Council may have to fork out up to €500,000 to departing councillors

Cash-strapped Meath County Council is facing a bill of up to €500,000 in golden handshakes for departing members of the council. The local authority is losing 13 of its sitting members following the weekend"s election results, all of whom will be paid once-off sums under the Local Government Act of 2001. Ten councillors lost their seats, and three - Jenny D"Arcy of Fine Gael, Peter Higgins of Fine Gael and veteran Michael Lynch of Fianna Fail, did not run for re-election, opting to stand down prior to Friday"s poll. Michael Lynch"s service of over 40 years would see him receive a sum in the region of €50,000, although the main part of the figure only applies to service since the legislation was introduced in 2001. Long-serving councillors such as Patsy O"Neill will also receive significant lump sums, with someone who was elected 30 years ago with unbroken service entitled to over €40,000. Cllr Jim Mangan had lost his seat for a period. Other councillors like Tom Kelly and Seamus Murray, who replaced Minister Noel Dempsey in 1992, who have served since the early 1990s, will also be entitled to substantial payments, with those elected around 10 years ago receiving in the region of €30,000. These include current cathaoirleach Liz McCormack, Peter Higgins and Oliver Brooks, who was co-opted to fill former Junior Minister Mary Wallace"s seat. A number of councillors elected last time out like Pat Boshell, Michael Gallagher, Charles Bobbett and Phil Cantwell will receive a lesser amount, but some will have to wait for their gratuity as it only applies to those over 50 years of age. Four town councillors in Navan and Trim have also lost their seats and will have to be compensated in the payment scheme, which is in lieu of a monthly pension payment. Meath County Council has been putting away some funding in reserve to cover the eventuality of having to make payments to departing councillors. Arrangements for the payment of a retirement gratuity to local authority councillors was introduced under the Local Government Act 2001. Following a review of the scheme, new regulations were made in December 2006 providing that the maximum gratuity after 20 years" service be increased to one-fifth of the representational payment for each year of service up to a maximum 20 years" service. In addition, the minimum qualifying period for the gratuity was reduced from three to two years" service. The regulations also provided that an additional ex-gratia payment may be made to councillors serving on or after 1st January 2007 made in respect of service before May 2000. The rates to be applied are dependant on the number of years" service and the category of local authority in which the councillor served.