THE LARGE severance payments paid to retiring ministers, including a €68,000 sum to former taoiseach Bertie Ahern, does little for the credibility of politicians at a time they are calling for cutbacks, a senior member of the Opposition has contended.
Fine Gael enterprise spokesman Leo Varadkar yesterday questioned the practice of paying retiring ministers lump sums when they return to the backbenches.
It follows disclosures yesterday that Mr Ahern and two junior ministers - who also stepped down when Brian Cowen became Taoiseach - will receive substantial lump sums.
Documents released under the Freedom of Information Act to RTÉ show that Cork East TD Michael Ahern and Wexford deputy John Browne will be paid €53,000 each over the next two years in addition to their TDs' salaries of over €100,000. The lump sums are also separate to their ministerial and TD pension entitlements, though the ministerial pension will not be paid until the severance payments discontinue.
Both ministers were dropped by Mr Cowen last May.
The arrangements to allow severance payments to retiring ministers has been in place since 1992. Last night, Mr Varadkar asked why such schemes were not being scrutinised by the Department of Finance at a time when the public finances were under huge pressure.
"I think it should be looked at at a time when the Government is supposed to be reining in public spending. When Germany had a similar crisis six or seven years ago, they actually did cut back on ministerial pay and perks," he said.
He continued: "The Government and all politicians would have more credibility with the public if we practised what we preached." A spokesman for the department said last night that there were no plans to adjust pay and allowances for TDs, Senators or Ministers in the budget, though he said these matters were kept under periodic review to ensure value for money.
Office holders are entitled to be paid in full from the time he or she resigns from office, irrespective of whether or not they continue serving as TDs. Several senior Opposition TDs including Fine Gael leader Enda Kenny and former leader Michael Noonan are in receipt of ministerial pensions.
The scheme, introduced in 1992, makes the allowance payable for a period in ministerial office, subject to a limit of two years. The severance allowance and the office holder's pensions cannot be paid simultaneously. The rate of the sum is determined by the length of time during which it is paid.
Former ministers are entitled to receive 75 per cent of the ministerial salary for the first six months, 50 per cent for the next 12 months and 25 per cent for the remainder of the period.
The issue of ministerial pensions has proved controversial in the past. Last October, former education minister Michael Woods was criticised after it emerged that a special provision was included in a Bill to allow him claim some €75,000 in backdated pension payments.
