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Use of charitable funds to top-up salaries unacceptable says minister

THE Republic's finance minister has said the use of charitable funds to top-up executives' salaries is "unacceptable".

Michael Noonan yesterday became the latest government minister to criticise a practice that saw senior figures in the Central Remedial Clinic receive salaries that exceeded HSE pay guidelines.

The clinic, which provides services for children and adults with physical disabilities, has admitted that money donated for its services was used to boost the salaries of a number of individuals.

It also confirmed that five senior staff, two of whom are due to retire in the next two years, still receive top-up payments. However, the salary of its CEO Brian Conlon is fully compliant with public pay policy.

Mr Noonan, above, said that from 2014 bodies like the CRC would have to "obey government pay caps".

Social protection minister Joan Burton fell short of calling for resignations from the CRC board, saying it was `"absolutely important" that all the facts were known first.

Her party colleague, health minister Ruairi Quinn, has publicly expressed his belief that board members should step down.

Tanaiste Eamon Gilmore and health minister James Reilly have both warned that state funding could be cut where hospitals or health agencies are failing to comply with public pay policy.

Charities across the state have reported that donations have fallen since the controversy erupted late last month.

Barnardos boss Fergus Finlay said frontline workers at the CRC had been left "as hurt and shocked" by news of the top-ups as members of the public.

He said that charities needed to operate in an atmosphere of total transparency and he welcomed justice minister Alan Shatter's plans to introduce a watchdog body next year.

The minister announced this summer that a Charities Regulatory Authority would come into effect during 2014.