Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move: "That the Bill be now read a Second Time."

I am pleased to have the opportunity to present this Bill to the House. Communication, dialogue and engagement are central to a well-functioning democracy and are critical drivers of trust. The Government needs to be open to outside interests and ideas. Lobbying is an essential element of the democratic process. Individuals and organisations legitimately and reasonably want to influence decisions that may affect them. In turn, the Government needs access to the knowledge and views that lobbying can bring. Lobbying provides decision-makers with valuable insights, information, policy perspectives, identification of various policy options and debate on those options. This role is critical, given the complexity of public policy and Government decision-making and the wider impact of government.

The extent of lobbying activity is a good measure of an engaged citizenry. However, openness and transparency on public policy formulation, development and decision-making are central to effective public governance. It is crucial that lobbying activity be open to public scrutiny. That scrutiny is part of the desirable checks and balances that help to ensure that any attempt to seek to exert undue or improper influence on the conduct of policy formulation and development, political decision-making, and preparation and implementing of legislation is discouraged.

The Bill will amend the Regulation of Lobbying Act 2015 in order to build on the current strong legislative foundation and further strengthen Ireland's lobbying laws, thus ensuring that the regulation of lobbying framework remains up to date and fit for purpose. The Act is viewed internationally as an example of best practice by already regulated systems and those introducing similar laws. By bolstering our regulation of lobbying regime even further, the Bill will ensure that the regime continues to deliver on the objectives set for it. I will take this opportunity to acknowledge and commend Deputy Howlin on his work in this regard and on introducing the original legislation in 2015, which was groundbreaking for its time. The Bill's goal will be to improve the operation and functionality of the lobbying register, strengthen the existing legislation and its enforcement, and make failure to comply with the post-term employment restrictions set out in section 22 of the Act a relevant contravention under the Act.

To date, two statutory reviews have taken place under the 2015 Act - one in 2017 and another in 2019. In September 2020, I commenced a further review that would examine the operation of the Act, in particular the area that dealt with post-term employment as a lobbyist. This comprehensive review of the entire Act was concluded in May 2021. This is a complex policy area and a detailed review was necessary to assess properly the policy, legal and practical implications of the issues raised. In addition to consultations with the Office of the Attorney General, the review included an assessment of the current operation of key provisions of the Act, consultation with, and consideration of, the views of the Standards in Public Office Commission, SIPO, an overview of lobbying regulation in other jurisdictions, and consideration of options to address concerns raised and the policy, legal and practical implications of different responses. The core consideration was to examine how the existing solid legislative foundation could be enhanced most effectively and efficiently, strengthening weaknesses that had been identified. On foot of the review, a number of recommendations were brought forward for legislative change.

The key elements of reform in this Bill will allow for the following changes to be made to the Act: to extend the time period between statutory reviews from three to five years to allow for the impacts of any policy or legislative change to become clear; to bring certain business groupings with no employees within the scope of the Act and require that members of such groups be named on lobbying returns to ensure the groups do not avoid the requirement to register; to extend the Act's scope to include non-remunerated officeholders to capture all relevant lobbying activity; to provide for an exemption from registration for communications made by political parties to their members who are designated public officials, DPOs, only in their capacity as members of their respective parties; to introduce legislative provisions to improve the operation of the lobbying register; to introduce a new "relevant contravention" in the Act, covering the taking of any action by a person that has the intended purpose of avoiding the obligations to register or submit lobbying returns to the commission; and to amend the Act to make failure to comply with the cooling-off provisions of section 22 of the Act a relevant contravention under the Act. In this regard, a system of administrative sanctions operated by SIPO will be introduced. This system will involve minor or major sanctions. The sanctions proposed include a caution or reprimand, a monetary penalty of up to €25,000 and a prohibition from lobbying of up to two years. They set out clear timelines in the Act for the processing of section 22 applications made to SIPO by former relevant DPOs.

In terms of the development of the Bill, I thank the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach for its careful consideration of the general scheme of the Bill during pre-legislative scrutiny.

Deputy Mairéad Farrell and other members of the committee made thoughtful contributions during that process. I welcome their input into the development of the Bill. While broadly supportive of the measures proposed in the general scheme, the committee made seven recommendations, which my Department has considered in detail. Four of those recommendations require clarifications and a commitment to ensure sufficient capacity to implement any changes, which has been communicated to the committee. The remaining recommendations, if adopted, would give rise to significant legal and policy issues and I have responded to the committee directly on them. I thank the members again for their very thorough and comprehensive report, which clearly reflects the strong engagement and interest they have in this topic. Should the Bill be successful on Second Stage, I look forward to engaging in detail with colleagues from the committee in regard to any amendments they wish to put forward on the next Stage.

I will briefly go through each section of the Bill, outlining its content and purpose. As this is amending legislation, some sections need to be read in conjunction with the principal Act. A number of sections are also technical in nature. If any Member feels a technical briefing on the Bill would be helpful, I will make my officials available to assist in this regard.

Section 1 identifies the Regulation of Lobbying Act 2015 as the principal Act being amended.

Section 2 provides for an amendment to allow for the period between statutory reviews of the Act to be extended from three to five years.

Section 3 amends the provisions relating to regulations made under the Act, consequent on further amendments allowing SIPO to make regulations.

Section 4 provides for an extension of the definition of lobbying in regard to the development or zoning of land, certain informal business groups, non-remunerated office holders and communications made by a political party to its members.

Section 5 inserts a definition of "company" into the Act.

Section 6 provides for a prohibition on registered persons from lobbying where they have notified the commission that they have ceased to carry on lobbying activities.

Section 7 amends the provisions dealing with certain details to be supplied by applicants who wish to be included on the lobbying register, including, for example, that persons applying for registration must give the name of every person who is a member of an informal business group.

Section 8 amends the provisions relating to the returns made by registered persons.

Section 9 makes amendments regarding relevant contraventions by introducing new relevant contraventions for certain persons. These contraventions are carrying on lobbying activities while one's registration has been marked as having ceased; taking any action with the purpose of avoiding one's obligations concerning registration or the making of returns, that is, the anti-avoidance clause; and, where required, failing to apply to SIPO for consent to take up a specific employment or position in certain circumstances during the 12-month cooling-off period subsequent to leaving a position as a relevant DPO.

Section 10 amends provisions dealing with offences to provide, in effect, that contravening section 22 of the Act, while a relevant contravention, will not be a criminal offence.

Section 11 provides for a consequential amendment relating to the serving of fixed-payment notices.

Section 12 strengthens provisions relating to post-term employment as a lobbyist. It also establishes how applications for consent are to be dealt with by the commission and provides for obligations for public service bodies.

Section 13 provides for the introduction of a system of administrative sanctions to be administered by SIPO relating to breaches of restrictions on post-term employment as a lobbyist and the avoidance or circumvention of a person's obligations to register and submit returns.

Section 14 sets out the matters to be considered by the commission in determining the amount of any financial sanction to be imposed under the new system of administrative sanctions that relates to breaches of restrictions on post-term employment as a lobbyist and-or the new anti-avoidance clause. Such matters include those relating to the need to ensure any sanction imposed is appropriate and proportionate to the contravention concerned and will act as a sufficient incentive to ensure any like contravention will not occur in the future, the gravity and duration of the contravention concerned, the extent of any failure by the person to co-operate with the investigation concerning that person, and the repeated occurrence of the contravention concerned by the person.

Section 15 provides for the payment of any financial sanction imposed under the new system of administrative sanctions.

Section 16 provides for the appeals mechanism to the Circuit Court relating to decisions of SIPO to impose a minor or major sanction under the new system of administrative sanctions relating to breaches of restrictions on post-term employment as a lobbyist and-or the new anti-avoidance clause. A decision of the Circuit Court may be appealed to the High Court on a point of law only.

Section 17 provides that where a person does not appeal a major sanction, the commission must apply to the Circuit Court for confirmation of the decision to impose the major sanction concerned.

Section 18 details that SIPO must publish a code for the conduct of investigations under section 19 of the Act and for the conduct of proceedings before the commission relating to the new system of administrative sanctions for breaches of restrictions on post-term employment as a lobbyist and-or the new anti-avoidance clause.

Section 19 provides for the serving of notices required to be given to a person in regard to a former relevant DPO's application for consent to take up employment or a position during the 12-month cooling-off period or concerning the procedures governing the imposition of administrative sanctions.

Section 20 is a technical amendment required to update a legislative reference.

Section 21 deals with the delegation of functions by the commission.

Section 22 amends the Schedule to the Act, which lists those bodies that are not public service bodies due to changes made to the harbours legislation.

Section 23 sets out the Short Title of the Bill and provides the commencement arrangements for the Bill.

I put the House on notice that I anticipate bringing forward a number of technical amendments on Committee Stage. I am happy to expand on any of the provisions currently in the Bill during the course of this debate if Deputies wish to raise any particular issues. We will have an opportunity to go into much more detail on Committee Stage when we examine the Bill section by section. I look forward to hearing the contributions of Deputies during this debate and I hope the House will support the passage of the Bill and assist in securing its early enactment. I commend the Bill to the House.

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