Finian McGrath (Dublin North Central, Independent) | Oireachtas source

This is a very important debate which forms part of the wider debate on reform for which many of us have been campaigning for many years. The Bill deals with aspects of accountability and transparency and the need to adapt to the current economic and political situation. Our people are crying out for change and are demanding sensible spending of public moneys and value for money. I will vote for this Bill if its proposals can meet those demands.

Misleading information needs to be dealt with. I refer to those who are cynical and who are misinformed about these issues. Citizens need to understand the defects and unfairness in the political system. It is necessary to weed out the bad eggs and implement necessary changes urgently. Members of the Oireachtas have a duty to support changes and reform and to stop the hypocrisy in many places in this House.

The Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Bill 2013 seeks to change the party leader's allowance which will be renamed the parliamentary activities allowance and to abolish severance payments for Ministers. It does not affect the parliamentary standard allowance for all Members of the Oireachtas. The party leader's allowance is a device for giving allowances needed by either a parliamentary party or an Independent Member for parliamentary activities such as research. The Bill will change the party leader's allowance regime. This also affects allowances for Independent politicians like me. The allowance will be reduced by 10% with more demanding reporting and vouching standards for the allowance overseen by the Standards in Public Office Commission.

Not all Independent Members are in receipt of the allowance; it only applies to those elected in a general election or a by-election. A person who subsequently leads a political party cannot claim a party leader's allowance. The Bill will not change this regulation. In my view that is a mistake. The Bill will abolish the current system whereby Ministers receive a payment on leaving ministerial office. This is a welcome proposal. These changes were proposed in the 2013 budget. The Bill will not affect the parliamentary standard allowance.

This Bill is the beginning of a reform process which will introduce an amount of accountability and transparency. However, in my view, further and urgent reform is required of the system of funding of political parties and Independent Members. We cannot have the brass neck to cut the respite care grant or the bereavement grant of €800 when the reductions proposed in the Bill are at the level of 10%. There has been uproar in this House about the consultancy expenses and salaries regimes in some charities and public bodies. We must lead by example.

Funding should follow the Member. I support my colleagues on this issue even if I disagree with them on other issues. Everyone must be treated equally and with respect and above all, in a transparent manner. The people want accountability. I ask the Minister of State, Deputy Brian Hayes, to listen to that request. I wish him well in the forthcoming European elections.

I note Government Deputies having a dig at the leader's allowance for Independent Members. All political parties are provided with funding by way of a leader's allowance as well as other funding. I hear the smart comments from the Government backbenches. Some of us put details of our expenses on our websites, even though we were not required to do so. We use some of our leader's allowance to employ extra staff and for research and development. We try our best to be accountable. I do not say that everything is squeaky clean and that I am holier than anyone else but some of us try to be accountable.

Political parties receive in the region of €13 million in Exchequer funding annually. The money is paid to parties under the Electoral Acts and the party leader's allowance. The five largest parties receive funding of €5 million as well as €8 million under the party leader's allowance legislation. I do not think some of the Government backbenchers are aware of this funding. This funding is not subject to income tax and may not be used for electoral or referendum purposes. The level of funding is linked to pay increases in the Civil Service. However, the legislation governing the funding is silent on pay decreases. Qualified political parties must furnish statements of expenditure of the funding received.

I note that Fine Gael received in the region of €4.484 million, while the Labour Party received €2,163,293. In the current economic climate, we must question whether such funding amounting to €13 million is justified. Public representatives need funding and expenses to assist in doing their job but I ask the major political parties whether they need €13 million, in particular when prescription charges have increased per item and the telephone allowance for the elderly of €9.50 per month was abolished. The bereavement grant of €800 was abolished and the maternity benefit was cut to €230 a week, costing this year's mums €832. I raise these issues because we must look at the facts and the reality.

I refer to issues not covered by the Bill. Salaries and pensions are not included. The system must be made more accountable. Civic society is demanding changes and it is time to introduce a system of vouched expenses for all politicians. The use of the guillotine must be discontinued and legislation must be carefully scrutinised. The committees must be given powers to examine in advance spending proposals as well as powers to hold inquiries and to compel witnesses and documents.

We need to make senior public servants responsible for their decisions and actions.

I encourage the Minister and the Government to talk about real transparency in respect of the funding of political parties. We need to make parties publish proper annual accounts. We need to register and control lobbyists and, above all, protect whistleblowers, who will keep an eye on public money at all times. When we talk about reform, we need to make all appointments to State and public bodies and to the Judiciary open to public competition and Dáil scrutiny. We need to ban any individual from being a director of more than three major companies or public bodies. We need to conduct an urgent review of company law to ensure white collar criminals are brought to justice. Basically, we need to bring in these radical reforms.

Under this Bill, the leader's allowance will be reduced by 10%. The Independent Deputy's allowance will be reduced to €37,000 while the allowance for Independent Senators will be reduced to €21,000. It will be €64,000 per Deputy for each of the first ten Members elected, it will be €51,000 per Deputy for each Member elected from 11 to 30 Members and €25,000 for each Deputy elected over 30 Members. It will be €42,00 per Senator, elected or nominated, for each of the first five Members elected and it will be €21,000 per Senator elected or nominated over five Members.

The Bill repeals the 1992 additions and gets rid of the severance allowance while preserving the entitlements of those already in receipt of the allowance. The severance allowance will go on enactment, meaning that any serving Minister will not be entitled to a severance payment. The severance allowance should not be confused with the termination allowance as it applies only to ministerial posts and certain parliamentary offices. The termination allowance applies to all Members of the Oireachtas when they lose a seat. I strongly support these sections.

We need to see if we can do more in regard to costs. The financial implications of this legislation are that the 10% reduction in the rates of the allowance will result in savings of €0.84 million in a full year. I ask the Minister, who spends his life looking for an extra few bob here and there, if €0.84 million is enough, in particular when other areas are crying out for funding. I urge him to look at that figure again. A saving will also arise from the abolition of severance payments to holders of certain ministerial and parliamentary offices as the current and future holders of such offices will not receive such payments at the end of their term in office. These issues should be looked at more carefully. We should do our best to ensure more can be done.

I welcome this opportunity to have this broader debate. I urge the Minister to look seriously at some of the issues surrounding the funding. We need accountability, transparency and to bring in the changes people demand. We must get rid of the cynical view of politicians - the "You are all the same" syndrome. That is not correct. Most Members of the Oireachtas came in here with good intentions to do their best for their country and their constituents.

However, we have to lead by example. That is the bottom line in regard to this legislation, which is flawed from that point of view. There are many weaknesses in it in that it does not give us enough of a lead to tell people what we are doing. One never asks people for respect. People often say to me that one does not get respect, but one earns it. One earns respect in the community and if people lead by example, they will get respect. Some 35% or 40% of people would not then stay at home during the local or European Parliament elections. From a democratic point of view, it worries me that approximately 35% to 40% of our people are so cynical that they will not vote. It is not just an Irish problem. In the European Union and in the United States, many of the marginalised and excluded do not vote because they are so cynical about things. Many people who are very well off are also cynical, but I do not agree with some their cynicism because some of them were very quick during the good old Celtic tiger days to make a quick buck and take as much as they could. We need to challenge these perceptions.

This country should be about ensuring fairness, equality and accountability, which is what the people demand. This legislation deals with certain issues but we need to go further with reforms and changes and create a new Ireland which ensures the political system is run in an efficient way and does not squander public money. That is the bottom line. We need to cut the fat in the system and use that money to develop this country and make it a more efficient, competent and competitive one with a broader future. There are enough people in this country to do that and there are enough Members in this House to roll up their sleeves, get stuck in and do that for their country.

I welcome this opportunity raise my concerns about the legislation. I also welcome the fact the Minister and Minister of State have come to the House to listen to the debate because it is very important they get the message from both sides of the House that we need accountability, openness and transparency but, above all, we need to ensure we earn the respect of the citizens of this State.

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