State agencies pay out tens of millions in severance packages since 2019

The figures were released to Social Democrat TD Catherine Murphy via a series of parliamentary questions, who said it was prompted by the recent scandal over severance payments to RTÉ personnel. File picture: Stephen Collins/Collins Photos

Tens of millions of euro have been paid out in severance packages to departing workers at State agencies in recent years, new figures have shown.

Such packages ran into the millions for companies such as the DAA, Irish Rail, Nama and the Central Bank.

The figures were released to Social Democrat TD Catherine Murphy via a series of parliamentary questions, who said it was prompted by the recent scandal over severance payments to RTÉ personnel.

At the Daa, which operates Cork and Dublin Airports, voluntary early retirements and voluntary severance scheme exits since 2019 added to a total sum of €56m.

In terms of these payments to Daa and Shannon Airport Group workers, Transport Minister Eamon Ryan said: “In relation to the aviation sector, the context of the covid-19 pandemic had an immediate and severe impact on global travel. It created an acute financial situation for our State airports, with a reduction in passengers in 2020 at Dublin and Cork Airports of 78%, and at Shannon Airport of 79%.

“It was in this context that Daa and the Shannon Airport Group undertook significant organisational restructuring and streamlining of operations, seeking efficiencies and implementing cost-saving measures. This included putting voluntary severance and voluntary early retirement schemes in place, to ensure company survival.” 

In 2023, Dublin Port Company had two individuals receive exit packages, one of which was greater than €200,000. A further six individuals received payments totalling €1.5m through a voluntary severance programme at the company in 2019 and 2020. 

Mr Ryan said: “Dublin Port Company confirms, with the exception of one position which was refilled at a reduced cost, no positions categorised as redundant were refilled in any capacity.” 

Eirgrid, meanwhile, has made one payment above €200,000 since the year 2019 to now.

“The individual left the organisation on the basis that the terms of their departure would remain confidential,” Eirgrid said. “Further details cannot therefore be provided in order not to identify the individual or the amount paid to the individual.” 

In 2019, Irish Rail paid out voluntary severance packages totalling €1.56m to 13 employees, and a further €0.57m to five employees in the subsequent four years.

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At the Central Bank, nine employees received severance packages totalling €1.15m, a further €140,257 to one individual in 2022 and €105,312 to another in 2023.

Nama saw severance packages worth €1.19m given to 10 employees in 2021 and packages worth an average of €123,000 paid out.

Last year, a senior market advisor in an overseas role with Enterprise Ireland received a “statutory end-of-contract payment in line with local legislative requirements” worth €120,864.

Minister for Enterprise Simon Coveney said: “In countries such as the UAE, Qatar, India, China, South Korea and Saudi Arabia, there are provisions for statutory benefits, payable upon completion of contract, related to local service in those jurisdictions.” 

Ms Murphy, TD for Kildare North, said: “The Comptroller & Auditor General published a special report on the management of severance payments in public sector bodies in late 2015.

“In the report it is stated that ‘the Department of Finance indicated that severance payments or early retirement terms could be incurred for chief executives of state bodies, within maximum limits and without requiring the approval of the department’. This could be interpreted as a blind-spot in oversight and controls.”