Storm over Kinnock's Euro pay-off

Neil Kinnock was at the centre of row today over his "extravagant" payoff from the European Commission.

The former Labour leader will receive a three-year stipend of £277,000 when he retires as a Brussels commissioner next month.

This will be followed by an annual pension of £63,900 a year, the equivalent of £1,205 a week.

The money is in addition to any pension he receives from his 25-years as an MP.

Graham Brady, the Conservative Europe spokesman, said the pay-off was another example of the Brussels "gravy train". He said: "Hard-pressed British taxpayers will be appalled at this extravagant pay-off for Neil Kinnock, who has failed comprehensively to tackle fraud, waste and corruption in the EU.

"If he was being paid by results he would be refunding his salary, not drawing this huge additional payment."

The three- year " transitional allowance" is given to commissioners to help them adjust to life away from Brussels. Having served two five-year terms, Mr Kinnock is entitled to an allowance of 65 per cent of his final ?142,000 salary.

That amounts to ?277,000. He will then receive an annual pension of 45 per cent of his final salary, giving him ?63,900 a year.

His fellow British commissioner Chris Patten, who only served one fiveyear term, will receive a three-year transitional allowance of ?210,000 followed by a pension of ?32,000.

The large pay-offs are aimed at deterring commissioners from exploiting their inside knowledge of the EU to gain directorships with private companies. Mr Kinnock, 62, joined the EU as transport commissioner in 1995. He was promoted to vice-president of the commission in 1999 with a remit to root out corruption in the EU.

Peter Mandelson will take over as Britain's sole European commissioner on 1 November.

Neil O'Brien, director of the Eurosceptic No Campaign, described the commissioners' pay-offs as a scandal. They were also condemned by the Taxpayers Association of Europe.

The organisation said the Brussels rules were completely "unsuitable".