Announcing the appointment of Leo Varadkar to its global advisory board this week, the Penta group in Washington, DC, said the former taoiseach had extensive policy expertise and an unwavering commitment to fact-based decision-making that would be a significant asset to its clients.
In the world of media, public relations and public affairs in Dublin, there has been considerable curiosity about Varadkar’s future plans. But there did not appear to be a lot of surprise at his new role.
In recent years, there has been a steady stream of former politicians becoming involved in lobbying, public relations and consultancy.
Varadkar is not even the first former occupant of the Taoiseach’s office to go down that road.
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His predecessor Enda Kenny joined the board of Heneghan Strategic Communications in 2021 as a non-executive director, although it is understood he is not involved in any advocacy or lobbying carried out by the company.
The firm’s managing director, Nigel Heneghan, said Kenny had been “an excellent addition to the board, where his experience, insights and guidance are of great importance, as the company, an independent Irish-owned business, looks to navigate future challenges and opportunities”.
Former tánaiste Mary Harney was appointed as a senior adviser to the communications and public affairs consultancy Hanover Communications in 2017.
The company said she provided “consultancy and advisory services to a range of corporate clients in the technology, healthcare, pharmaceutical and financial services sectors”.
[ Leo Varadkar takes job with US-based public relations firmOpens in new window ]
The former Fine Gael TD for Kerry Brendan Griffin is also a senior adviser with Hanover. The company said on its website that he brought “significant experience of government and policymaking”, having been minister of state with responsibility for tourism from 2017 to 2020.
A number of other former politicians such as Lucinda Creighton and Lorraine Higgins have established their own companies while Jim Glennon, who was a Fianna Fáil TD, is the chairman of public relations company Edelman in Ireland.
But why would public relations or public affairs companies want to have former politicians on board?
One senior figure in the world of public relationssaid there were “hard and soft” reasons.
He said a former senior politician should have skills, experience and insight that can be very relevant and provide real value to big organisations.
“A former senior politician should have knowledge of policy areas and policy matters and a network that can bring perspective on issues of the day,” he said. “This network can bring experience which can then be blended with those of the political figure.”
He suggested it was more than politicians being paid for “who they know”. He said equally important was the knowledge as to how policy is shaped and decided.
He said the “soft reason” behind such appointments is that they can enhance the status of the organisation.
Another individual with significant experience in the sector drew distinctions between senior politicians who become directly involved in lobbying and those who work at more arm’s length, serving on boards or advisory groups.
[ Former Leo Varadkar adviser hired as speechwriter for Ursula von der LeyenOpens in new window ]
They said senior politicians may have “been in the room” and be aware of how thinking is evolving on particular issues including potential obstacles. All this may be of considerable importance if the politician has experience at EU or international level.
Another senior industry figure pointed to another advantage : former politicians have automatic access to Leinster House, where they can meet serving TDs and Ministers.
Such knowledge and access can be lucrative. One industry insider told of a former minister who had sought fees of about €80,000 a year to serve on the board of an Irish public relations/public affairs company.
However, there are also rules aimed at preventing a revolving door of former politicians and officials seeking to lobby their former colleagues.
Under legislation lobbyists have to be registered while certain designated public officials are subject to a one-year “cooling-off” period. However the Standards in Public Office Commission (Sipo) can waive or reduce this requirement.
Former Fine Gael ministers earn revenues of more than €1 million through their consultancies
Former European commissioner Phil Hogan has declared revenue of €1 million from his consultancy firm, which advises corporate clients
Filings with the EU transparency register show that Hogan’s business consultancy firm has the objective of providing high-level advice and services for company management and supporting stakeholder relationships.
The figures show the company, Triton Advisory UL trading as Hogan Strategic Advisory Services, had annual revenue of greater than or equal to €1 million.
Clients who had been represented by the firm include mobile phone group Vodafone and credit card firm Visa, which paid fees of between €200,000 and €299,000 in 2023.
The filing state that clients in the current financial year include metal and glass packaging company Ardagh plc, law firm DLA Piper and banking giant JP Morgan.
Separate filings also show that that Vulcan Consulting Limited, founded by former Minister of State for European Affairs Lucinda Creighton, also has revenue of equal to or greater than €1 million.
In the last financial year until early 2024, it received fees of between €50,000 and €99,000 from tech companies Apple and Amazon as well as from the Irish pharmaceutical representative body, IPHA. It reported revenue of between €200,000 and €299,000 from Analog Devices and electronics manufacturer Teksend Photomask.
