MINISTER FOR Public Expenditure and Reform Brendan Howlin said he would attempt to abolish severance payments and reduce lump sums and pensions in reforming retirement packages for senior civil servants.

Mr Howlin said he would not pretend he could break contracts already in place for people who had legitimate expectations now.

“Other anomalies may well arise,” he added.

“I am grappling with each of those as they arise to do what is best in the interests of the taxpayer.’’ The Minister was replying to Sinn Féin’s Mary Lou McDonald who asked if he had attempted to rescind the special severance gratuity payment and added years awarded to former secretary general to the government Dermot McCarthy.

She said Mr McCarthy had received a pay-off of €713,000 at a cost to the State of about €6 million. “Whatever about the time of his appointment, his retirement occurred on the Minister’s watch,’’ she added.

Ms McDonald accused Mr Howlin of ignoring his powers under legislation, specifically, the Superannuation and Pensions Act 1963, which said severance gratuity payment could only be paid on the Minister’s say-so.

Mr Howlin said Ms McDonald liked to grandstand, adding he was conscious that they were speaking about an individual who had served the State well over a long period. He said a breach of contract would certainly have had legal repercussions.

Ms McDonald asked about the packages to be given to the secretaries general of the Department of Enterprise and the Department of Education, whose terms were soon to end.

Mr Howlin said there were two more potential retirees at the grade at which they would be entitled to terms under the Top Level Appointments Committee on this side of the February deadline.