COUNCILLORS ACROSS the country who fail to get re-elected in next year's local elections are due to share a windfall that could top €10 million. Currently, the country's 34 county and city councils are making provision for the new "retirement gratuities" in their downsized budgets for 2009.
In one instance, Clare County Council is setting aside €250,000. In the 2004 local elections 10 of the 32 councillors lost their seats.
Long-serving councillors who decide not to run next June or fail to get re-elected will receive sums that top €40,000.
The key distinction in the new scheme from the Government's 1999 "scrappage scheme" for councillors is that those councillors who avail of the gratuity next year are free to contest any future local election. The payout of €10 million could be more than three times what the former minister for the environment, Dick Roche, estimated would be the cost of the scheme when he announced it in December 2006.
If the council provision is replicated nationally, councils could end up paying out €8.5 million. This does not include the provision for councillors who are members of town councils, which could account for an additional €1.5 million.
Under the scheme, councillors who have served since the 1999 local elections will receive about €30,000 as the "retirement gratuity" guarantees €3,300 per annum since 2000 and a lower scale prior to 2000.
The vice-president of the Association of City and County Councils which represents 883 councillors, Cllr Michael O'Brien (Lab), said yesterday the retirement gratuity in the context of local authorities' overall budgets "is minuscule".
"The gratuity payments brings remuneration for councillors into the 21st century. It is something that had to be rectified." Director of the Association for City and County Councils, Liam Kenny said "It is the first time since the establishment of local government in Ireland in 1899 that the recognition in the form of a gratuity for councillors' service has been recognised."
Former Clare mayor, Cllr Patricia McCarthy (Ind) said the council is obliged to make provision for the payments. "It is like the terms and conditions for employees, the council can't take a gamble and not provide for the sum in the budget."
