Allowances cut for TDs and Senators

A MINISTERIAL order cutting specific allowances to TDs and Senators will achieve estimated annual savings of €232,378.

Statutory Instrument 285, now in effect, cuts 50 per cent of the allowance paid to the chair of each of 23 committees, from €19,058 a year to €10,012, an annual saving of €208,058.

The order also lowers the fee paid to members of the Houses of the Oireachtas Commission by 20 per cent from €19,058 to €16,018. In effect it will achieve a saving of €24,320.

The order follows, the passing of enabling legislation in the Dáil last month. The Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices Act also allows Minister for Finance Brian Lenihan to alter the system of expenses by paying a monthly lump sum to TDs to cover travel and overnight costs, along with money to run constituency offices.

This section of the legislation, which has not yet been enabled, would result in 46 per cent of all TDs losing out while the majority would benefit for those who lived between 15 and 80 miles away from Dublin.

The legislation also cuts expenses by 10 per cent, ends the system of long-service payments or increments, and at the next general election pension payments to former ministers while they are still in the Oireachtas or European Parliament will be wound up. Pension payments will be reduced by 25 per cent in the interim.

The commission, established in 2002, oversees and controls the funding and organisation of the Office of the Houses of the Oireachtas. A cross-party committee, it has 11 members, eight of whom receive the allowance.

Ceann Comhairle John O’Donoghue as chairman and vice-chairman Senator Pat Moylan do not receive the allowance as they are “office holders” and receive a separate higher allowance. Senator Moylan is Cathaoirleach of the Seanad

If a TD or Senator is entitled to several allowances for holding office, they receive the highest payment.

Clerk of the Dáil Kieran Coughlan is also a member of the committee but does not receive the allowance.

The allowance for the chairman of the Seanad members’ interests committee is also cut by 50 per cent, from €6,380 to €3,190, but this fee is not paid because the committee is chaired by Senator Pat Moylan.