Written answers

Thursday, 24 November 2011

Department of Public Expenditure and Reform

Departmental Expenditure

5:00 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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Question 102: To ask the Minister for Public Expenditure and Reform the reductions to Members' pay, expenses and pension entitlements that have taken place in the previous three budgets. [36739/11]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The previous three budgets cover the period from the Supplementary Budget in April 2009 to Budget 2011 which was announced in December last. Significant reductions have been effected to the pay, expenses and pensions of Oireachtas members in the period and since the current Government took up Office.

The pay rates of Oireachtas members have been reduced through the application of the Financial Emergency Measures Acts 2009. This legislation applied the pension related deduction with effect from March 2009 and the pay reduction from January 2010 to all public servants including members of the Oireachtas. This represented a cumulative reduction of 15% in respect of members of the Dáil and 13% for members of the Seanad. Also, under the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices Act 2009, the payment of Long Service Increments to members ceased with effect from the formation of the current Oireachtas. The cost of allowances in the nature of pay paid to members in respect of parliamentary duties as Chairs of Oireachtas Committees, Party Whips, Members of the Oireachtas Commission etc. has been reduced by the Government in the current Oireachtas by some 50% from 2010.

For senior Office Holders including An Taoiseach, Ministers, Ministers of State, Ceann Comhairle, and Leas-Cheann Comhairle, the cumulative reductions in salaries including those announced by the Government on taking office, have resulted in significantly higher reductions ranging from 24% to 37%.

In conjunction with the Oireachtas Commission a major reform of the system of expense allowances for Oireachtas members was made last year. The new system provided for a single, transparent and verifiable parliamentary allowance system to cover the parliamentary and representation costs of Deputies, Senators and Ministers. This major reform carried through the reductions already imposed on Oireachtas members' expenses in 2009. The mileage allowance was reduced by 25% and other allowances were reduced by 10%. New lower limits have also been set to the entitlement to prepaid envelopes for Members. This is now 1,250 envelopes per month for Deputies and 750 envelopes per month for Senators.

In relation to pensions, a number of measures have been implemented. Following the recent General Election, members who are elected to either House may not be paid an office-holder pension while a sitting member. This measure was provided for in the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices Act 2009. The Public Service Pension Reduction (PSPR) applies to former members of the Oireachtas. In addition, the pay reductions applied to members' salaries since 2010 will impact on pension benefits for those retiring after the end of the 'grace period', i.e. from March 2012 onwards. Those retiring on pension before that date are subject to the PSPR.

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