Dáil Éireann Debate, Tuesday - 28 February 2012
61Deputy Mary Lou McDonald asked the Minister for Public Expenditure and Reform if he will provide a full list of all payments and allowances paid to members of the Government; the changes, if any, he plans to make to these payments and allowances; and if he will make a statement on the matter. [11411/12]
View answerThe Government decided on taking office in March 2011 to reduce the salaries of An Taoiseach, the Tánaiste and Ministers with immediate effect. The reductions were implemented on a voluntary basis pending the passage of the necessary legislation giving statutory effect to the reductions. Section 6(c) of the Financial Emergency Measures in the Public Interest (Amendment) Act, 2011 provides the legislative basis for the pay reductions from 1 January 2012.
The gross annual salaries now applicable to An Taoiseach, Tánaiste and Ministers amount to €200,000, €184,405 and €169,275, respectively. The gross salaries indicated are inclusive of the pay element for a Deputy amounting to €92,672. The effect of these reductions is that the gross annual salary of An Taoiseach has been reduced by nearly 30% since December 2009, and that of the Tánaiste and Ministers by nearly 25% over the same period.
Since 1 May 2011, Cabinet Ministers with the exception of the Taoiseach, the Tánaiste and the Minister for Justice and Equality now use their own cars on official business. All Ministers are now paid for official mileage up to 96,540 kilometres or 60,000 miles per annum. Ministers of State have used their own cars on the same basis since 1984. Ministers, including Ministers of State, may appoint two civilian drivers, the salaries for whom are paid by the Minister's respective Department. At the time the change was made, it was estimated the savings to be achieved by Cabinet Ministers using their cars would be approximately €4 million in a full year.
Ministers do not receive overnight payments while in Dublin. Ministers on overnight business away from their home or headquarters may claim the vouched cost of a hotel room, including tax and up to 15% in respect of any service charge. They may also claim an overnight subsistence allowance of €72.66 which is half the civil service Class A overnight rate of €108.99, increased by one third. Slightly higher rates apply in the case of travel to the USA and Canada.
Additional information not given on the floor of the House.
As with all Members of the Oireachtas, Ministers may receive the public representation allowance element of the parliamentary standard allowance. Under the public representational allowance, Ministers may claim an unvouched amount of €12,000 per annum or a fully vouched amount up to €20,000 per annum. The purposes for which this allowance may be used includes expenses related to constituency offices, home telephones, newspaper advertising, distribution of leaflets, newsletters, conferences and other matters related to their duties as a public representative. From 1 February, additional secretarial support as well as public relations, certain information technology and training services are included within the scope of this allowance. The overall cap remains unchanged. Since the commencement of the parliamentary standard allowance, Ministers' Departments are responsible for paying the cost of telephones in Ministers' constituency offices.
While it is not possible for me orally to go through a full list of the headings under which costs incurred are recouped by Ministers, I am arranging for the material to be made available to the Deputy directly. The Government has introduced a range of changes to the regime of payments and allowances paid to Government Ministers which has resulted in significant financial savings to the Exchequer. It is my intention to continue to ensure that the greatest value for money can be achieved in relation to payments and expenses of this nature on an ongoing basis consistent with ensuring maximum efficiency and output from officeholders and their offices.
The Minister had my full attention. I am sorry that he was cut short.
It is a rule of the House.
I appreciate that. I was introducing a note of levity, a Leas-Cheann Comhairle. I would like to focus on one or two specific matters. What, if anything, does the Minister propose to do about the laundry tax deduction allowance of €3,500 that is available to Ministers from outside Dublin who stay in hotels?
Can the Minister comment on the dual abode allowance, which is offered to Ministers who maintain second residences in addition to their primary residences and who represent constituencies outside Dublin? The allowance makes it possible for such Ministers to make a claim to the Revenue Commissioners for a tax deduction which can amount to €6,500 per annum. Such expenses and perks cannot be justified at any time and are particularly unjustifiable in the current climate.
The Minister mentioned the issue of mileage and the use by Ministers of their own cars. Can I ask him to address the recent controversy involving his colleague, the Minister for Education and Skills, Deputy Quinn? The controversy suggested that there is some difficulty in measuring the number of kilometres covered by Ministers.
I would like to respond to the three specific points that have rightly been made by the Deputy. I will not bring in extraneous matters or claim other things. I heard about the laundry issue on the radio. I had never heard of it before then. Nobody in the Cabinet had ever heard of it. I cannot find anybody who has ever claimed it, or even heard of it. I have no idea where it came from.
Does it exist?
No, as far as I am aware. It is not on any list that I have. I have no idea where it came from. The day it came up, I specifically asked whether anybody had ever claimed it, or heard of it. Nobody in the Cabinet of this Government had heard of it or claimed it.
So it does not exist.
As far as I am concerned, it does not exist. It is one of these interesting things that make for a good headline.
The Deputy also asked about the dual abode allowance. Her colleagues who come from outside Dublin claim an overnight allowance. Ministers are not entitled to that. When our colleagues who are Ministers and Ministers of State come to Leinster House they pay their hotel bills out of their own salaries. There is a dual abode allowance for those who actually have-----
There is no longer an overnight allowance for Members of the Oireachtas.
Do not go there.
The Minister should correct what he has said.
There is an overnight allowance.
There is not.
It is factored into the allowances that are paid. That is why there is a requirement to be in attendance for a fixed number of days each year. It is understood as being factored in. No such allowance is available to members of the Government. A dual abode allowance, which is a tax concession, is available to Ministers. I assure the House that it does not come close to covering the cost of staying overnight. I am willing to debate this matter because it needs to be addressed in a much fairer way.
The Deputy's final question related to mileage. When we came into office, we said we would abolish State cars, etc. In the last Dáil, the cost of State cars was €280,000 per annum per Minister. The cost of the new regime we have introduced is less than €100,000 per annum per Minister. We have reduced it by more than 60%, which is a very credible performance.
My question on that final point related to the measurement of the travel in question, which was the source of the controversy. The Minister might come back to that. It is curious that the Minister has said he had not heard of this laundry allowance. His colleagues were similarly unenlightened. It does exist. I strongly suggest that it should be abolished forthwith.
The Deputy can consider it abolished.
I do not think a long review is needed.
I had never heard of it.
It has been cited in response to parliamentary questions. Perhaps the Minister might consider that point.
The Minister dodged the question on the dual abode allowance by referring to overnight rates. This allowance allows for a Revenue write-off in respect of a percentage of the interest paid on the purchase of a second property or vouched elements in respect of the maintenance and so on, of a second property. There is a world of difference between public moneys legitimately covering accommodation in a hotel or a bed and breakfast or whatever, as against public moneys being a contribution to the purchase of a second residence or, for that matter, the maintenance and upkeep of that second residence. I put it to the Minister once more that this dual abode allowance is yet another of those that should be abolished.
I can inform the Deputy that in my own case, the dual abode allowance does not cover a fraction of the cost of my accommodation in Dublin. I am not complaining about this fact. If I were entitled to claim as a Deputy I would be able to cover the costs. I would be very happy to-----
The Minister could swap places.
-----take the Deputy's allowance instead. I will happily abolish the dual abode allowance.
With regard to the issue of laundry as raised by the Deputy, I cannot find the reference but if the Deputy can provide me with same, I would like to hear it or see it. I suggest she sends me the details.
