Election losers got thousands in payouts

TDs who lost their seats in last year’s general election got payments amounting to more than twice the average industrial wage in their first year outside Leinster House.

Details of termination payments, which include lump sums and monthly payments, show former Fine Gael deputy Paul McGrath was paid €86,885 under the scheme that compensates Oireachtas members who find themselves suddenly out of work.

Mr McGrath retired at the last election and has since concentrated on charity work, mostly in developing countries, for which he does not get paid.

Former Labour representative in Kerry South, Breeda Moynihan-Cronin — who also decided to step down — received payments of €85,245 from May 2007 to May 2008.

Former junior minister, Joe Jacob, who once caused controversy over his lack of knowledge over the use of iodine tablets and the emergency plans in the event of a terrorist attack, was paid €71,243 in the year after stepping down at last year’s election.

This is according to the figures released to the Irish Examiner under Freedom of Information legislation.

Mr McGrath, the former Westmeath FG TD, retired last year after 27 years of service. He had the highest termination payments which amounted to €86,884.

The termination payments were agreed in 1992 under Bertie Ahern as finance minister. They are similar to redundancy payments for politicians who might find themselves out of work.

Those who become MEPs or are appointed by the Government to a full time position are not entitled to the payments.

Mr McGrath defended the payments saying some termination allowances made in the private sector “amount to much more” even though they don’t have to “come up with having their jobs approved by thousands of people”.

Former Socialist party TD Joe Higgins, who got a lump sum of €16,079 in May 2007 and monthly payments amounting to €44,949, said he continues the same as he did when he was a TD by living on the average industrial wage and giving the remainder to his party.

He said: “Many workers are plucked out of their jobs with no such compensation other workers have managed to fight for redundancy payments and TDs probably fall somewhere in between.”

Mr Higgins said: “What most politicians earn are multiples of the average industrial wage and so they grow light years away from what it is means to live.”

Former politicians start receiving their pensions after they stop getting their termination payments.