Hogan says new cash benefit for departing ministers axed, in wake of CBC report

CBC

2 days ago

Premier John Hogan says his cabinet has met and decided to "immediately rescind" a new policy that provided outgoing ministers between $12,000 and $48,000 on their way out the door.
In a post on Facebook late Friday afternoon, Hogan reiterated that he was not in cabinet and was not involved in the decision to approve the policy.
The new benefit — which came into effect April 1 — was never publicly disclosed, until it was revealed by CBC News on Friday morning.
"I became aware of the matter following inquiries from the media and acted quickly to revoke the allowance," Hogan noted in his Facebook post.
The stunning reversal came 10 hours after CBC News broke the story about the new transitional allowance policy for ministers.
It provided one month's salary for each year of service in cabinet, on a prorated basis, for a minimum of three months and a maximum of 12 months.
The province's Executive Council declined to say when the decision was made, noting that it was a decision of cabinet and those deliberations are protected.
On Thursday evening, a spokesperson for Hogan told CBC News that the premier was not in cabinet when the decision was made, and he was not involved in the decision.
That statement sparked barbs from both opposition parties Friday.
"I think that's a cop-out," Progressive Conservative Leader Tony Wakeham said in an interview early Friday afternoon.
Wakeham called the allowance "another Liberal scandal," and said Hogan, as premier, would be well aware of a decision made by cabinet.
"At a time in Newfoundland and Labrador when so many people are hurting with the cost of living, to see taxpayers dollars being secretly paid out to Liberal cabinet ministers and approved by their own ministers, this is scandalous," Wakeham said.
NDP Leader Jim Dinn said the decision left him "shaking my head [in] disbelief," and recalling what he's heard while hosting town halls about affordability.
"It shows a lack of sensitivity to the struggles that many people face in the province," Dinn said.
"If you can make decisions like this, surely there are other things you can do just as easily to help people of the province who are struggling with cost of living."
Both leaders spoke to CBC News before Hogan's Facebook post announcing the reversal of the benefit.
Since April 1, when the now-rescinded policy came into effect, eight cabinet ministers have either already left or signalled their intentions to not run again when voters go to the polls in a looming provincial election.
Hogan's statement on Facebook did not address whether the decision is retroactive, and how it would apply to any money already paid out.