‘Coalition will always back high rollers’

Ministers have been accused of protecting the pensions of senior politicians while raiding those of ordinary citizens to the tune of €2.3bn.

As outrage over generous top-ups to the lavish pensions of former taoisigh and Cabinet members continued to escalate, Brendan Howlin, the public expenditure and reform minister insisted he has no power to impose a cap on such payments.

Fianna Fáil finance spokesman Michael McGrath hit back by saying the Coalition was protecting “high rollers” despite seeing no legal constraints to taxing private pensions.

Under an across-the-board Lansdowne Road Agreement deal, public sector pensions are set to rise, bring a boost of €1,680 to the €134,000 a year pensions of Bertie Ahern and Brian Cowen.

Mr Howlin insists that he cannot impose a pensions ceiling to deal with the situation, and the Government has so far rejected opposition demands to impose higher taxes on high awards in order to ensure the money stays in the public purse.

However, Mr McGrath insists that the only problem is the Government’s lack of political will to deal decisively with the situation.

“It is clear that this Government will always back the high rollers,” said Mr McGrath. “They were not concerned about running into legal trouble when they took €2.3bn from private savings. They were not concerned about taking money away from lone parents. This situation is down to the lack of political will to deal with it.”

Taoiseach Enda Kenny has urged the politicians involved to voluntarily forgo the planned increases because the economic situation remains “fragile”.

However, he rejected angry demands from some of his own backbenchers to bring in legislation to prevent the hikes going ahead.

Former taoiseach Mr Cowen has indicated that he will not take the increase, along with John Bruton.

Severla other former Cabinet ministers have refused Mr Kenny’s call to forgo the rise, as they insist the onus is on the Government to sort the situation out, not the recipient of the pension.

Tánaiste Joan Burton refused to brand those planning to take the increase as “greedy”, but urged them to think again.

“I just think that they should probably consider their position because in most cases the pensions are very significant and I certainly think in terms of different sacrifices which different people have made over the last six years,” said Ms Burton. “I think it would be an appropriate action by the politicians.”

Fine Gael TD Jerry Buttimer rurged ministers to find a mechanism to deal with the situation.

“It is imperative we don’t see some of these people having their pensions increased when they don’t need them,” said Mr Buttimer.

“The principle of the restoration not being granted to certain people in the top levels should be the aim. If a mechanism can be found then it should be, and I would urge ministers to do everything they can to ensure that is the outcome.”

Green leader and former energy minister Eamon Ryan said he will forgo his increase, while ex-health minister Mary Harney has indicated she will donate hers to charity.