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One departed minister received now-cancelled cabinet cash allowance, premier's office says

One now-retired politician availed of a new transitional allowance for outgoing cabinet ministers that was rescinded hours after being revealed by CBC News on Friday.

Policy was axed same day CBC News reported on its existence

A man wearing a suit stands in a room with grey walls. A logo for the Newfoundland and Labrador Department of Industry, Energy and Technology hangs behind him.
Andrew Parsons left provincial politics in May, after serving as an MHA since 2011 and a cabinet minister since 2015. (Mike Simms/CBC)

One now-retired politician availed of a new transitional allowance for outgoing cabinet ministers that was rescinded hours after being revealed by CBC News on Friday.

Late Tuesday afternoon, the premier's office confirmed details of payments made under the now-cancelled policy.

Those details were first reported by the business and political news website allNewfoundlandLabrador.

Former energy minister Andrew Parsons "resigned while the policy was in place and has therefore received the cabinet transitional allowance," Sonja Pomeroy, a spokesperson for the premier's office, wrote in an emailed statement.

Parsons would have been eligible for an allowance payment of around $37,000.

According to Pomeroy, former premier Andrew Furey "has not received the cabinet transitional allowance and has asked that he not receive it." He had been eligible under the policy.

Neither Parsons nor Furey has provided comment.

Policy rescinded hours after airing of CBC report

On Friday morning, CBC News revealed that the provincial cabinet had quietly approved a new transitional allowance policy for departing ministers, which came into effect April 1.

It provided one month's ministerial salary for each year of service in cabinet, on a prorated basis, for a minimum of three months and a maximum of 12 months. 

For ministers, that worked out to a minimum payout of around $12,000, up to the full annual salary of $48,664.

Man in blue suit
John Hogan left cabinet in March to run for the provincial Liberal leadership. He won, and was sworn in as Newfoundland and Labrador's 15th premier in May. (Mark Quinn/CBC)

The revelation of the new payment to outgoing cabinet ministers, approved just months before an election, generated immediate public controversy. Six current cabinet ministers have indicated they plan to retire when voters go to the polls.

On Friday afternoon, Premier John Hogan announced that cabinet had met and decided to "immediately rescind" the policy, which had never been publicly disclosed.

Hogan stressed that he was not in cabinet when the policy was approved, and was not involved in that decision.

In an open letter to Hogan on Monday, Opposition Leader Tony Wakeham was skeptical about that explanation.

"Setting aside how difficult it is to believe that the public service would not brief a new premier on issues of compensation for cabinet, your statement raises more questions than it provides answers," Wakeham wrote.

The PC leader said any cabinet minister who voted to approve the allowance should be removed from the Liberal slate of candidates in the coming election.

A collage photo of two men wearing suits speaking to the media.
PC Leader Tony Wakeham, left, and NDP Leader Jim Dinn have both been sharply critical of the now-cancelled allowance for departing ministers and how it has been handled. (Jeremy Eaton/CBC)

Meanwhile, NDP Leader Jim Dinn called on Hogan to disclose exactly who supported the decision.

"None of these ministers are living paycheque to paycheque," Dinn said in a press release Tuesday. 

"To make such a selfish decision after hearing firsthand how much people are struggling is nothing short of greed."

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