Richard Bruton (Dublin North Central, Fine Gael)
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Question 92: To ask the Minister for Finance his strategy for the reform of political expenses of office holders and of ordinary Members of the Houses of the Oireachtas. [38095/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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First, it must be stated that Members of these Houses and officeholders incur legitimate expenses as part of their parliamentary duties both in attending Leinster House and as part of their constituency duties. It is appropriate that the amount of any such expense should be kept under review to ensure they are appropriate to reflect the cost of these duties, as well as the prevailing economic circumstances.

As Deputy Bruton will be aware, I have already reduced the cost of the expenses. Expenses generally have been reduced by 10% and mileage rates have also been reduced by 25% in line with the general reduction in public service mileage rates. Members of the Oireachtas and officer holders are therefore making a contribution in recognition of the current economic position.

The Houses of the Oireachtas Commission brought forward proposals earlier this year to introduce a single composite parliamentary allowance in place of a number of separate allowances. This summer I introduced the Oireachtas (Allowances to Members) and Ministerial and other Parliamentary Officeholders Act 2009 which, among other things, provided an enabling provision for a single composite allowance. This allowance would replace some or all of the many separate allowances payable at present. The legislation also allows for the proposed composite allowance to be linked to attendance.

At the time I introduced the legislation, I stated clearly that I was of the view that there was a need for further consideration and discussion of the proposed composite allowance before I brought forward the necessary regulations. In the interim, over the summer period, I introduced and adopted the regulations which provided for the 25% reduction in travel expenses and the 10% reduction in all other expenses. That is now law and is operative. Since then, I have had discussions with the Houses of the Oireachtas Commission, and there are continuing contacts at official level.

At present I am in the process of finalising the most appropriate revised arrangements, which will give a transparent, verifiable and cost-effective system of parliamentary expenses. When I have completed my consideration of the matter, regulations setting out the new arrangements will be laid before the Houses.

Richard Bruton (Dublin North Central, Fine Gael)
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As we approach probably the most difficult budget in the history of the State, does the Minister agree that the Government must be seen to lead by example in this field? Does he believe the size of ministerial offices working for constituency purposes should be controlled among office holders and that Ministers drawing cash allowance in lieu of secretarial assistance should be discontinued? Does he believe we need to have proper verification of expenses, both that they are properly incurred and that they are for proper purposes? I am sure he will share my dismay at reports of cases where the purposes for which allowances are being deployed do not appear to follow proper criteria. When does he believe he will have final decisions, particularly in regard to Ministers' pay and conditions and the Oireachtas expense regime? Does he expect to have those matters decided prior to the budget in order that they will be a factor in putting together an overall package?

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy has asked a number of questions. Will he remind me of his first question.

Richard Bruton (Dublin North Central, Fine Gael)
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If the Minister answers the questions he remembers, perhaps I will recall the first one I asked him.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Deputy asked if it is intended to apply similar changes to the expenses of Ministers. The answer is, yes, it is. The Deputy's first question was in regard to Ministers' offices. There are guidelines in existence on the operation of ministerial constituency offices. In respect of those guidelines, there also has been a requirement since April that further savings be made by Ministers on that account.

Clearly, the verifiability of expenses is an important issue. I accept that the commission proposed to me that the new regime should be based on attendance but no verification mechanism was proposed for attendance. I am not satisfied in regard to all expenses that attendance of itself verifies the incurring of the expense - it may in some cases but not in all. These issues are being worked through with the commission at present. I agree with the Deputy that even in the context of a block grant, a total absence of verification is not an adequately transparent system to carry the public confidence that must be carried in any system of expense.

The Deputy's last question related to when it is proposed to bring forward this regime. I have already had extensive consultations with the commission and with the delegation representing the major parties in the House. It is the intention to announce a revised regime in advance of the budget.

I am open to persuasion by the other parties on the appropriate day, but it would seem to me that the appropriate course of action would be to bring it into operation from 1 January next. We already introduced expenses changes half way through this year, involving substantial reductions in the amount of expenses. For ease of administration, the best course of action would be to introduce them from 1 January next.

Richard Bruton (Dublin North Central, Fine Gael)
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I welcome the Minister's indication that he will make a decision before the budget because the credibility of the entire House will be on the line unless we are shown to be able to reform the way we operate ourselves.

The approach of Ministers to allowances and to their own ministerial offices needs to be significantly curbed. To state that there is an arrangement in place does not meet that requirement. There would be an expectation that adjustments would be greater by those who hold ministerial office and have greater access to support. That would be a fair expectation in a system of reform.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I do not necessarily accept the assumption that, for example, as Minister for Finance, I have fewer opportunities to engage in constituency work than many Members of the House who are not Ministers. There must be some balance in the provision of assistance in that area for Ministers.

Richard Bruton (Dublin North Central, Fine Gael)
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The Minister keeps us here most of the time he is here too.

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It should also be noted that those who are assigned to assist in constituency offices are expressly prohibited in the terms of their contracts from engaging in political work. That said, I will take into account what the Deputy has said and I agree that whatever is adopted on expenses for Members of the House must equally apply to Ministers.