Burton: Retiring TDs ‘don’t need’ pension payout

Tánaiste Joan Burton has suggested retiring ex-cabinet colleagues such as Pat Rabbitte, Eamon Gilmore, and Ruairi Quinn should turn down pension pay rises when they leave as they “don’t particularly need it”.

The Labour leader and Social Protection Minister put forward the proposal as she said the bulk of senior office holders in line for the financial boost are already well-off and should allow the money to be put to better use.

Speaking during a doorstep on the Greek eurozone negotiations outside Leinster House, Ms Burton said it is ultimately up to the recipients of the funds as to whether they should give the money back or not.

However, she added that given the significant payments the individuals already receive, they should consider not accepting the increase.

“Maybe they should, at this particular point in time, pause for thought and say ‘I don’t particularly need it’,” the Tánaiste said.

Ms Burton was speaking after revelations that planned pension rises across the public sector would see ex-politicians in line for increases of up to €1,680 on their already generous payments from the State.

Taoiseach Enda Kenny has resisted pressure from Fine Gael backbenchers to bring-in legislation to stop the rises going to the highest pension takers.

Instead, he has told the likes of Brian Cowen and Bertie Ahern, both already on pensions of some €134,000 per year each, to forego the rises when they come in.

The Tánaiste said she supports a universal cap on public sector pensions.

“I’ve always been in favour of caps on public service pensions, which is why, as part of the government agreement, for instance, payments to ministers on leaving office were all ended by this Government,” said Ms Burton. “People in receipt of political pensions, as with other people in receipt of pensions, gave a significant pension contribution returned to the State, a €20,000 reduction in their annual pension.

“We are now moving out of the situation where the Lansdowne Road programme is coming to an end and we’ve renegotiated a modest restoration we’ve already suggested to the people involved, particularly those who are office holders.

“To be perfectly honest, the bulk of them are highly paid consultants and, I would say, highly paid civil servants. Perhaps they should all pause and reflect as to whether at this point in time given the significant size of their pension gross over €100,000.”

The pensions row continued as it emerged that ministers spent €601,000 on outside PR advice despite having expertise in their departments on hand.

The expenditure was part of €1m that was drawn down from an obscure special secretarial allowance enjoyed by ministers since the 2011 general election.

The money is meant to be used for secretarial expenses, as well as training and publicity.

The PR firm, the Communications Clinic, benefited the most from the ministerial expenditure as it was paid €211,826 by a number of ministers, including Children’s Minister James Reilly and Justice Minister Frances Fitzgerald.

Former Small Business Minister John Perry paid out the biggest amount at €156,525, according to RTÉ.

Fergus Finlay: 12