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Smith asks IFA to pay his €1m lump sum to charity

Tim O'Leary said the association has to take a 'good hard look' at itself
Tim O'Leary said the association has to take a 'good hard look' at itself

Former secretary general of the Irish Farmers' Association Pat Smith has said he would like his €1 million severance payment lump sum to be given to two charities.

A dispute has emerged over the severance payment agreed between Mr Smith and the organisation's former president Eddie Downey, with Mr Downey's acting replacement claiming the severance package is not binding.

The disputed severance package, worth €2m in total, is apparently made up of a lump sum of €1m plus an annual payment of €100,000 for the next ten years.

In a statement this evening, Mr Smith said the package represented approximately six weeks redundancy pay for each year worked for the association and fulfilled legal commitments he and other staff have in relation to pension shortfalls.

Mr Smith said he believes the deal was fair in the context of his work and delivery for the IFA for over 25 years.

However, he said he has no intention of "getting into a brawl" with the organisation over the payment and has asked the IFA to "stand good to its deal" and pay the €1m in equal amounts to two charities - Self Help Africa and the Society of St Vincent de Paul.

Mr Smith also said his solicitors sent a letter to the IFA's Executive Council yesterday, the contents of which he claims were not made known to the organisation's members.

The IFA have denied this claim, saying it was read out to yesterday's Council meeting. They have also reiterated their intention to fight the severance claim "all the way".

RTÉ News has obtained a copy of this letter, which corrects "misleading and inaccurate information which has been put into the public domain".

Earlier, Tim O'Leary, the Acting President of the IFA, said Mr Smith was effectively fired from his position.

A subsequent IFA statement has also reiterated this claim.

Speaking on RTÉ's Six One News, Mr O'Leary said Mr Smith "was fired because he was no longer able to carry out his duties because of the serious controversy around his position and rumours around his salary".

Mr Smith's pay package, which amounted to €535,000 in 2013, was revealed to members of the organisation on Friday, leading to him leaving the role.

Mr O'Leary said the agreement does not apply as it would have needed the approval of the IFA's National Treasurer, Jer Bergin, who was not involved in the negotiations.

He also said Mr Smith's severance cheque has not been written and he will have to sue the association if he wants it.

When speaking on RTÉ's News At One earlier today, Mr O'Leary said that the terms of reference for a review by former IFA chief economist Con Lucey will include the pay of all executives and the details of IFA-controlled companies.

Mr Lucey is to report to the Executive Council on 15 December.

Mr O'Leary said Mr Downey resigned as the association’s president because "the pressure got too much and things were not going to work as long as he remained as president".

In a statement yesterday evening, Mr Downey said he made the decision to resign with regret after working for more than 20 years with the association.

In relation to Mr Smith's severance package, Mr O'Leary said he was not made aware of the details of the package until after the deal was done.

Mr O'Leary said Mr Downey should not have been in the room on his own with Mr Smith.

During a 17-hour emergency meeting, which ended in the early hours of this morning, the council decided unanimously to use all legal avenues to challenge the severance package.

Mr O'Leary also said he is running for the IFA presidency.

Acting General Secretary Bryan Barry said the IFA would offer its grass-roots members an unreserved apology over serious failings that are indefensible.

He said it was part of an internal struggle to move from old structures to more modern structures but that the organisation is facing up to that 100%.

He added that the IFA will now come out fighting really hard in the interest of farmers on the issues that concern farmers.

Call for more information to be made public

Meanwhile, Fianna Fáil's agriculture spokesperson said there is still information that farmers need to have from the IFA following the recent controversy over remuneration paid to its former secretary general.

Éamon Ó Cuív said the pay levels and bonuses of all executives earning over €100,000 and other information, including companies the IFA controls, should be made available.

He said people wanted to know who was in the position to make these decisions on pay and bonuses because they have huge implications for the ordinary farmer.

Mr Ó Cuív said it was very damaging that the information has had to be "dragged out" of the IFA.

He said it was important that the report was delivered on 15 December and he hoped that it would be circulated to all members who could then make decisions on the future of the executive board in a democratic fashion.

There have also been calls from grassroots level for the entire executive board of the organisation to step down in the wake of the controversy.

Tomás Ó Fátharta, a Co Galway farmer and IFA member, said somebody from outside the executive must be made president.

He also said Mr Downey did not have the right to write a €2m severance cheque for Mr Smith.