Coalition parties pocket €200k for TDs who lost the whip

The Labour Party has taken in almost €100,000 in Dáil allowances in respect of the five TDs who have lost the party whip and moved to the opposition benches.

Brendan Howlin, minister for public expenditure and reform, has ruled out changing the anomaly which allows parties to claim the same rate of leaders’ allowance — awarded per TD — after their numbers are reduced.

This also means Fine Gael will be entitled to keep almost €100,000 a year paid on behalf of five TDs who were expelled over their opposition to the Protection of Life During Pregnancy Act.

The “golden handcuff” rule means the funding will stay with the party, while Lucinda Creighton, Billy Timmins, Terence Flanagan, Peter Mathews, and Brian Walsh will not be entitled to the €40,000 allowance paid to Independent TDs. Labour can claim €95,385 for the five TDs it has lost.

One of these, Colm Keaveney, said the system is unfair and called on the Labour Party to give the money to charity.

He believes the system creates “golden handcuffs” that act as a disincentive to TDs who want to vote against their party because they will be left without the resources needed for research and other services for their constituents.

A review of the allowance has been carried out and a number of changes will be introduced to make it more transparent.

Mr Howlin will bring the Oireachtas (Ministerial and Parliamentary Offices) Amendment 2013 Bill to Cabinet in the autumn. He ruled out changing how the allowance is allocated based on the general election and by-election results.

“At this time, it is not proposed to change the current position with regard to members of the Oireachtas whose status changes (either by leaving or joining a parliamentary party) during the lifetime of the Dáil or Seanad,” he wrote in a briefing note on the bill.

The unvouched leader’s allowance is intended to help parties with research and other parliamentary activities. It amounts to €71,520 for the first 10 TDs, €57,214 for the next 20, and €28,616 after that.

The sum is reduced by a third for parties in Government. The Labour Party has been entitled to €1.8m a year in the payment based on 37 TDs elected to the party in the 2011 election.

Fine Gael has claimed €2.7m a year under the allowance, based on the 76 TDs elected for the party.