PROPOSALS LAST month to reform the expenses of TDs and Senators merely “tinker at the edges of the significant spending reforms needed in the Oireachtas”, Minister for the Environment John Gormley has told the Dáil.

He said Leinster House must show political leadership. “I do not believe that last month’s expenses reform proposals from the all-party Oireachtas commission are nearly sufficient to show that leadership”.

Speaking during the debate on the economy, Mr Gormley said that “we in Government need, more than anything else, to send a signal to the general public that corporate greed and responsibility will not be tolerated.

“This is the reason the Green Party wants to see new measures to deal with the remuneration of the senior management of our banks and to ensure that those who have brought our banking system into disrepute and caused untold damage to our international reputation, are held fully to account.”

Opening the two-day debate, Minister for Finance Brian Lenihan confirmed that the system of expenses and allowances will also be “considered”, along with a review of funding of the offices of the 15 Cabinet members and 20 Ministers of State. He also said that foreign travel by TDs and Senators will be examined as part of measures to cut costs in Government and Oireachtas funding.

He staunchly defended the decision to tax public servants’ pensions to achieve €1.4 billion in exchequer savings, as part of the Government’s €2 billion in cuts announced on Tuesday.

“Let us be clear,” he said. “This is not about targeting the public service. We are simply asking public servants to make the same adjustment that is taking place across the economy.” New legislation will be introduced and is expected early next month.

As the pension levy applies to local authorities as well, legislation will also be amended.

The Minister said that a “much smaller component of the total pay-related savings will be achieved through reductions in travelling and subsistence rates and other savings”.

Mr Lenihan stressed that savings will be vigorously pursued in all appropriate State payments to individuals, including fees payable to medical and legal professionals. But he warned that discussions with professional interests and delays in those talks “may limit the scope for securing the full savings we would like in 2009”.

But he appealed to all sections to put their shoulders to the wheel and share in the national effort to deal with this unprecedented economic downturn.

He also appealed for the co-operation of all politicians to show clear political leadership as the Government aims to achieve substantial savings through the introduction of a range of changes in Government and Oireachtas funding.

The approach to foreign visits by Oireachtas committees, the funding of the Houses of the Oireachtas commission and the system for expenses and allowances will be considered.

Mr Lenihan said the total savings came to €2,090 million in a full year, in addition to the €1 billion saving in 2010 by not paying the pay deal next year. “In announcing these measures we have focused not just on short-term needs, but also on the vital necessity of preparing the ground for economic recovery,” he said.