Lenihan: Expenses overhaul 'a distraction'

Overhauling the expenses regime for TDs and senators won’t help solve the financial crisis, Finance Minister Brian Lenihan claimed today.

As the controversy over Ceann Comhairle John O’Donoghue’s lavish spending rumbled on the minister said people needed to focus on the real issues facing the economy.

“This country faces a very serious fiscal crisis,” Mr Lenihan said.

“The abolition of Oireachtas expenses wouldn’t solve that crisis in any degree.

“So we need to focus on the real issues facing the country.”

The Finance Minister said Oireachtas expenses were an important issue and signalled he would make the process more open.

“That will be done and it will be done in a short timeframe,” Mr Lenihan said.

It emerged today the auditor charged with overseeing the expenses system in the Oireachtas resigned complaining his proposals for reforming the system were ignored.

Yesterday Mr Lenihan denounced the forced resignation of Mr O’Donoghue as a bad day for Irish politics claiming his party colleague was not given the opportunity to explain his expenses before Labour leader Eamon Gilmore dramatically demanded he step down.

In the Dáil the Labour Party called for urgent action to overhaul the regime claiming it was affecting all members of the Oireachtas.

Roisin Shortall, social and family affairs spokeswoman, said: “Lets have action on this. We’re all being tarnished.”

Tánaiste Mary Coughlan said there would be no delay and pledged the Government would bring forward reform.