Committee Reports::Report - Procedure and Privileges on the matter of a Members' Fund::17 July, 1949::Report

1. A Report of the Joint Sub-Committee set up by the Committees on Procedure and Privileges of both Houses to consider and report on the matter of a Members’ Fund is appended to this Report. The circumstances under which the Joint Sub-Committee was appointed are detailed therein.

2. The Committee on Procedure and Privileges at its meeting on Wednesday, 13th July, 1949, adopted the Report of the Joint Sub-Committee and recommends its adoption to the Seanad.

JOINT SUB-COMMITTEE OF THE COMMITTEES ON PROCEDURE AND PRIVILEGES OF DAIL EIREANN AND SEANAD EIREANN.

REPORT ON MEMBERS’ FUND.

1. The Dáil Committee on Procedure and Privileges at its meeting on the 17th June, 1948, agreed that it was desirable that a statutory Fund should be established for the relief of ex-Members or of their widows or orphans who are in reduced circumstances, and appointed a Sub-Committee, consisting of Deputies Halliden, Kennedy, C. Lehane and McMenamin, and the Leas-Cheann Comhairle as Chairman, to consider in more detail the scheme for such a Fund. (Deputy Lehane was subsequently replaced, at his own request, by Deputy Timoney.) The Seanad was asked if it wished to participate in the establishment of the Fund, and the Seanad Committee on Procedure and Privileges at its meeting on the 24th June, 1948, agreed with the principle of setting up the Fund and nominated Senators Hayes, Hearne and Duffy to join with the Dáil Sub-Committee in considering the formulation of the scheme.

2. The Joint Sub-Committee met on several occasions and having formulated certain tentative proposals requested the Minister for Finance to provide the assistance of his Department in advising on the financial implications of the proposals. The Minister acceded to this request and nominated Mr. Hanna and Mr. Redmond, Assistant Secretaries of his Department, to represent him at the next meeting of the Sub-Committee. The Joint Sub-Committee is indebted to those officers for their detailed examination of the proposals and their help in preparing the final recommendations. In this connection it may be pointed out that, as there is no question of a State subvention for the proposed Fund, the formal approval of the Department of Finance to the recommendations was not sought.

3. The Joint Sub-Committee considered the advisability of procuring actuarial advice, but they were advised informally that the lack of positive data relating to members of the Oireachtas which would be essential for such an actuarial examination would seriously handicap the actuary in his investigations and render his conclusions so restrictive as to be of little value to the Sub-Committee.

In lieu, therefore, of a comprehensive actuarial investigation the Joint Sub-Committee contented itself with carefully examining the scheme in force in Britain, the changes which were rendered necessary in course of time with special reference to the increased scales of benefit provided for in the House of Commons Members Fund Act, 1948, which amended the Act of 1939 in this as well as other respects, and having taken into account the similarities and differences existing in the Parliaments of the two countries, has recommended benefits which in its opinion are not unduly high and will not impair the solvency of the Fund. Realising, however, that changing circumstances might endanger the financial soundness of the proposed scheme, provision has been included for the variation of the scheme by resolutions of both Houses should it become necessary in the light of experience of the working of the Fund.

4. It is impossible to forecast what the probable number of cases to be met from the Fund will be and it has not been found possible to ascertain with any precision how many benefits might have been required from 1923 to date if a Fund had been in existence. The Joint Sub-Committee's opinion is that demands on the Fund will be comparatively light in the initial stages (74 members of the present Houses have the proposed requisite 10 years’ Parliamentary service) and it is, therefore, loath to adopt an unduly cautious outlook similar to that shown in the British Act of 1939 and subsequently proved unnecessary. It appreciates, however, that in granting benefits regard must be had to the capital of the Fund, and it is satisfied that these recommendations while providing adequate benefits will also ensure the accumulation of a Fund which will always be sufficient to continue the payment of existing benefits, and thus that future income will be wholly available for the provision of further new benefits.

5. The question of the incidence of income tax in relation to the Fund was also inquired into by the Joint Sub-Committee. It has been ascertained from the Department of Finance that the Revenue Commissioners are prepared to take the view that if the payments to recipients of benefit from the Fund are subject to annual review they should not be regarded as income, but merely as grants of a temporary nature not attracting liability to tax, but in common with other Funds of a similar nature, the income of the Fund itself would be subject to income tax. The Sub-Committee accepts this position and does not feel that any recommendation for its variation is called for.

(a) Name: The Fund should be known as the Oireachtas Members' Benevolent Fund.

(b) Managing Body of Fund : The management of the Fund and the exercise of any power or discretion exercisable in relation thereto should be vested in a Committee of Management consisting of four Deputies and two Senators, appointed in each successive Parliament on the recommendation of their respective Committees of Selection, together with the Ceann Comhairle as Chairman : the quorum of the Committee to be four.

(c) Trustees of the Fund : There should be two permanent trustees of the Fund, the Clerks of the Dáil and Seanad, and all sums payable to or out of the income or capital of the Fund should be paid to or by them, and the assets of the Fund should be vested in them. They should be empowered to invest in their own names all moneys requiring to be invested and vary investments as and when directed by the Committee of Management and receive the interest thereon.

(d) Contributions : A contribution of £12 per annum, involving a levy from the allowance of each Member of the Houses of the Oireachtas of £1 a month, should be deducted at source and paid into the Fund.

(I) Every ex-member of either House of the Oireachtas who fulfils the following conditions :—

(i) That he was a member of the Fund at the critical date (i.e., the date on which the enabling Bill becomes law) or that he became a member subsequently;

(ii) that he was 60 years of age or over when his membership of either House ceased, or, where he has not reached the age of 60, that the Committee of Management is of opinion that by reason of mental or bodily infirmity he is incapable of earning a living, and

(iii) that he has given Parliamentary service for periods together amounting to 10 years.

(II.) The widow and orphans of a deceased member or ex-member of either House, provided that the following conditions are fulfilled :—

(i) that the member or ex-member was a member of the Fund at the critical date or that he became a member subsequently, and

(ii) that he had given the requisite 10 years’ Parliamentary service.

(f) Scales of Payments : Grants payable should be at the discretion of the Committee of Management and should not in any event exceed the following amounts—

(i)An ex-Member—£5 a week, or such sum as would bring his income up to £6 a week, whichever is the less;

(ii)Children—£50 per annum for the eldest child and £30 per annum for each succeeding child, the payments to be continued, at the discretion of the Committee of Management, for any period that they are in full attendance at educational establishments or undergoing courses of training to fit them for employment;

(iii)Widow of deceased Member or ex-Member— £130 per annum, or such sum as would bring her income up to £156 per annum, whichever is the less, payable as long as she remains a widow;

(iv)Orphans— £75 per annum for first child and £50 per annum for each subsequent child, the payments to be continued, at the discretion of the Committee of Management, for any period that they are in full attendance at educational establishments or undergoing courses of training to fit them for employment.

Grants should be reviewable should the conditions of any beneficiary alter materially, or in any event at least once a year.

In arriving at the amounts payable, the Committee of Management should have power to ascertain the income of any beneficiary in such manner or on such principles as they may determine.

(g) Gratuities : The Committee of Management should have power in special circumstances to make non-recurrent grants of an amount to be determined at their discretion ; the awarding of such grants to be approved by not less than four members of the Committee.

(h) Investments and Acceptance of Gifts : The funds should be invested in trustee securities and the Committee of Management should be empowered to accept any legacies, donations, etc., which may be bequeathed to the Fund.

(i) Audit and Report : Accounts of the Fund should be audited by the Comptroller and Auditor General and an annual report on them submitted to both Houses of the Oireachtas.

(j) Actuarial Examination : To ensure the continued solvency of the Fund it should be subjected to actuarial examination at least once every five years and a report presented to the Committee of Management on its general financial position.

(k) Legislation : The recommendations of the Joint Sub-Committee should be implemented by statute and power should be included therein to vary its provisions by resolution of both Houses to avoid any necessity for introducing amending legislation.

SEANAD ÉIREANN.

COMMITTEE ON PROCEDURE AND PRIVILEGES.

REPORT ON MEMBERS’ FUND.

JOINT SUB-COMMITTEE OF THE COMMITTEES ON PROCEDURE AND PRIVILEGES OF DAIL EIREANN AND SEANAD EIREANN.

REPORT ON MEMBERS’ FUND.