THE GOVERNMENT took a decision at yesterday's Cabinet meeting to alter the basis on which special allowances are paid to Independent TDs.
Minister for Finance Brian Lenihan has been asked to bring forward proposals on the matter.
The decision arose from the controversy over Fianna Fáil TD Beverley Flynn's declared intention to hold on to a sum of €41,152 payable annually on the basis that she was elected last year as an Independent, even though she has since rejoined Fianna Fáil.
Earlier, Ms Flynn said on local Mayo station Midwest Radio that she would now be giving up the allowance, following an assurance from Taoiseach Brian Cowen that the regulations would be altered to take account of changes in a TD's status.
Ms Flynn said: "When I mentioned this issue to the Taoiseach, I said obviously I was very anxious and happy that the regulations would be changed to reflect the correct status of every TD in the Dáil, and the Taoiseach has given me to believe that that actually will happen, and in the light of that indication from the Taoiseach it is my intention to immediately write to the Houses of the Oireachtas Commission to rescind the payment on my own behalf."
The Taoiseach initially made contact with Ms Flynn last Sunday, in the aftermath of his interview on RTÉ Radio's This Week, where the issue was raised by presenter Gerald Barry.
Mr Cowen indicated on radio he would be getting in touch with Ms Flynn.
Senior political sources said the Taoiseach made clear to the Mayo TD that the situation was not sustainable and told her: "I want to review this and the way it is presented - I want to take a look at this."
There the matter rested, but the Taoiseach was surprised when Ms Flynn gave an interview on Monday on RTÉ's News at Onein which she indicated strongly that she intended holding on to the money unless there was a cut in allowances for all TDs. When it was put to her by presenter Seán O'Rourke that there was a contradiction between accepting money due to her as an Independent when she had now rejoined Fianna Fáil, she said: "No, I'm entitled to it I suppose because of the legislation when it was introduced and the thinking behind it at the time was that if you get yourself elected, because of the difficulty in actually doing that, you're entitled to this payment for five years."
However, she indicated that she was prepared to join in making sacrifices along with other TDs on an across-the-board basis: "I would be open to that." Commenting on the interview later, senior political sources said it was not helpful.
Ms Flynn returned a call to the Taoiseach on Tuesday night and the outcome was yesterday's statement from the Mayo TD that she was giving up the allowance.
Government sources said the Taoiseach planned to put a proposal to Cabinet for changes to the allowance system, regardless of what course of action Ms Flynn took.
In her Midwest Radio interview yesterday, Ms Flynn told presenter Tommy Marren: "I have been deeply hurt over the last number of days at the manner in which it has been portrayed - as if this is some allowance that I have been grabbing for myself - when in actual fact nothing could be further from the truth.
"I think if anybody analyses my statements of interest in the Dáil from the day I went into politics to where I am today, they will fully realise that I have not gone into politics to make money," she said.