€70k ‘golden goodbye’ for Shatter
Mr Shatter would be the last former minister able to claim the benefit as he quit office shortly before the perk was abolished.
The Department of Public Expenditure and Reform has informed Mr Shatter of the entitlement and it is up to the now backbench Fine Gael TD to decide whether to take it.
Mr Kenny’s spokesperson made it clear the Taoiseach believes Mr Shatter should waive the entitlement as this had been stated government policy. “Everybody should adhere to that policy, including Alan.”
Fianna Fáil finance spokesman Michael McGrath urged Mr Shatter to forgo the payment.
“He may be legally entitled to it, but he knows many people out there are suffering and it would be a welcome gesture if he were to forfeit it,” he said.
“He is a wealthy man. Questions need to be asked about why the Government did not act more quickly to end this ministerial payoff like they promised — especially when they had no problem acting with such speed to impose austerity measures such as the property tax and water tax.”
The Government’s pledge to end such severance payments was not enacted until after Mr Shatter’s resignation following criticism of his failures to deal with whistleblower allegations delivered in the Guerin report.
Mr Shatter is entitled to the €70,282 payment over two years because Brendan Howlin, the public expenditure minister, did not sign commencement orders for the legislation before Mr Shatter quit the Cabinet earlier this month.
As Mr Shatter held office for two continuous years, the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices Act 1992, grants him the payment which is equivalent to the ministerial allowance part of the €157,540 salary ministers draw.
The Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act of 2014 now ends such severance payments.
As Mr Shatter still receives his basic €87,258 pay for being a TD, the severance deal covers the €70,000 extra he was paid for serving in Cabinet.
The payments would break down as him receiving 75% of the ministerial top-up for the first six months after leaving office, followed by 50% of that tranche for the next 12 months, and then 25% for the final six months.
A spokesperson for the Department of Finance said Mr Shatter had been told of the entitlement and it is up to him to decide whether to accept it or not. “There was no delay in processing this change, no one could have anticipated the turn of events which took place.”
It is not known whether he will draw the allowance down.
Attempts to contact Mr Shatter were unsuccessful.
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