Ex TD ‘isn’t able’ to repay €30k golden handshake refund
Senator Ray Butler says law on returning payment is an unfair, ridiculous rule
A Fine Gael senator has defended his failure to pay back a €30,000 golden handshake that he received for losing his seat as a TD before resuming his career in the Seanad just three months later.
When asked for the sum to be returned immediately – as the law requires – he said he was not in a position to do so, and offered a repayment schedule instead.
After losing his Dáil seat last year, Ray Butler signed a declaration for termination payments worth €30,904. This indicated that he would not subsequently consent to being nominated to the Seanad.
However, he became one of 11 nominees appointed to the Upper House by Taoiseach Enda Kenny in May – placing him in breach of legislation governing termination payments. He was required to ‘immediately refund’ all lump sums payments. Recent FoI documents reveal that the Oireachtas wrote to him seven times seeking the return of the money. The former Meath West TD told the Oireachtas authorities that he was ‘not in a financial position presently to repay this lump sum in its entirety’ and suggested repaying by instalments instead. He was reminded that he had given an undertaking that he would not give consent to being nominated as a senator, and that there was a legal obligation to ‘immediately refund’ the full sum. His request to repay ‘in the region of €1,000 per month’ was refused. Despite the absence of any agreement regarding the repayment, Mr Butler lodged €500 in an Oireachtas account on 14th November – six months after the immediate refund of the monies had fallen due.
He paid €500 on 29th November and lodged €1,000 last Monday – the day that records relating to failure to refund the payments were released under FoI legislation.
A meeting between Mr Butler, Ceann Comhairle Seán Ó Fearghaíl, and the Clerk of the Dáil Peter Finnegan was held last month and it is understood that an arrangement has been put in place.
It will take nearly two and a half years for Mr Butler to repay the full amount at a rate of €1,000 per month, disregarding any interest that may be applied.
Despite entering into an arrangement for the repayment of the full amount by instalments, Mr Butler has insisted that ‘it’s my money’ and described the law requiring the payments to be refunded as ‘a ridiculous rule’. He suggested that this legislation should be reviewed and claimed that it was ‘unfair’ that he was left without a wage for several months after losing his Dáil seat at the last election.
Speaking to the Irish Mail on Sunday before the repayment was formalised he said: ‘This money comes straight back to me if the Government falls in the morning. So, there is no favour to the taxpayer, it’s actually my money that I’m giving back. And if the Government falls in the morning, it comes back to me.
‘I think the legislation has to be looked at and changed because it’s a ridiculous rule.’
It is not the first time that Mr Butler has faced financial controversy. Last year, it was reported that he had submitted invoices to Meath County Council for money paid to local musicians for their performances at a local event. It subsequently emerged that the musicians had not been paid.
‘It’s actually my money that I’m giving back’ ‘The legislation has to be changed’