Michael Kitt (Galway East, Fianna Fail)

They are on the way. These requirements were put in place in 1999 and operated for the 1999 and 2004 local elections.

A commitment in the programme for Government provides for spending limits at local elections to be examined in the context of the Green Paper on Local Government. Submissions made in the course of preparing the Green Paper were generally positive towards the introduction of a cap on local election spending. This Bill has therefore been brought forward to give effect to this aspect of the programme for Government.

The Bill provides, accordingly, for the amendment of the 1999 Act to introduce a scheme of limits on expenditure by candidates and political parties at local elections. It is the intention that the provisions of the Bill will be effective for the local elections to be held on 5 June next.

The approach being adopted is to amend the Local Elections (Disclosure of Donations and Expenditure) Act 1999, to provide for a cap on spending at local elections, as well as any other incidental provisions which may be necessary. The introduction of spending limits will be provided for by way of the insertion of a new Part IIIA in the 1999 Act specifying limits for spending in each electoral area.

The purpose of introducing spending limits is to create as level a playing field as possible to ensure that candidates of modest means are not put at a disadvantage in contesting local elections. The putting in place of the limits on expenditure at the 2009 elections will bring local elections into line with the other electoral codes where spending limits already apply.

In October 2008, the Minister, Deputy Gormley, consulted the Joint Committee on the Environment, Heritage and Local Government on the issue of spending limits. A policy research document prepared on behalf of the committee and presented at that meeting offered useful practical guidance. There were a number of complexities that needed to be considered and these were discussed with members of the committee.

The various views expressed by stakeholders have been taken into account in establishing the scheme of spending limits. The Consultative Committee on Local Government Reform, which was involved in the preparation of the Green Paper on Local Government, also considered the issue of expenditure limits. That committee included representatives from all of the main local government associations and representative bodies, the Association of County and City Councils, the Association of Municipal Authorities in Ireland, the County and City Managers Association and the Local Authority Members' Association.

In deciding on the actual spending limits, a balance had to be struck. The limits have to be both realistic and reasonable. If they were set at too low a level, they might unduly impede campaigning, particularly by new candidates. Were the limits too high, it would defeat the objective of discouraging excessive spending.

Based on past experience, expenditure by candidates varies widely, with candidates in more populated county and city council areas tending to incur greater expenditure. There is also considerable variation in the population of electoral areas. For example, among the county and city councils, the electoral area with the smallest population is Drumlish in County Longford, with 6,453 people. At the other end of the scale, in Dublin city, the Pembroke-Rathmines electoral area, with a population of 60,277, is the largest electoral area.

In setting the spending limits, account has been taken of these differences. Therefore, candidates in more populated county and city council electoral areas will be able to incur greater expenditure. For the 34 county and city councils, a sliding scale with four separate spending limits, based on the population within each individual electoral area, will apply. A top limit of €15,000 will apply in the most populated areas, with limits of €13,000, €11,500 and €9,750 to apply to candidates in other county and city council electoral areas, depending on their population.

Given their different administrative responsibilities, the Government decided there was a case for setting different limits for county and city councils and borough and town councils. It was also decided that all candidates standing for election to borough and town councils would be subject to a flat spending limit of €7,500. As Senators are probably aware, it is common for candidates to contest local elections simultaneously for both a county council and an urban-based borough or town council. In these circumstances, a candidate will be able to spend up to the limit for the county council electoral area, plus one quarter of the limit for the borough or town council electoral area. In view of the economies of scale for a candidate who contests two polls on the same day, it is reasonable to reduce the limit for spending in the case of the relevant borough or town council election. The spending limits will apply at the next June's local elections and future local elections.

Each section is explained in the explanatory memorandum. I will give a brief summary of the principal provisions. Section 2 provides for amendment of the 1999 Act to update definitions of expressions used in that Act. Section 3 provides for the repeal of section 6(1)(b)(v) of the Act of 1999 to take account of the Supreme Court judgment on the use of public funds for electoral purposes in the case of Desmond Kelly v. the Minister for the Environment, Heritage and Local Government, Ireland and the Attorney General, 2002. Section 6(1)(b)(v) of the 1999 Act deems certain types of expenditure not to be election expenses, including certain payments, services or facilities provided from public funds by a range of individuals and bodies. That provision is contrary to the judgment in the Kelly case and, accordingly, it is proposed to repeal it.

Section 3 also provides for the amendment of section 6(3)(a) of the 1999 Act which determines the spending period at local elections for the purpose of disclosing election expenses. The existing formula in section 6(3)(a) of the 1999 Act refers to the period commencing with the making of the order by the Minister appointing the polling day and ending on polling day. The Bill provides that the spending period will now be specified by a separate order of the Minister made after the order appointing the polling day. The spending limit period will commence between 50 and 60 days before polling day and end on polling day.

Section 4 provides for the insertion of a new Part IIIA in the 1999 Act. This Part contains two sections which deal, respectively, with spending limits at local elections and the setting of a spending period for the reckoning of election expenditure incurred by or on behalf of candidates or political parties at a local election. The new Part IIIA inserts a new section 12A in the 1999 Act which will provide for the introduction of spending limits at local elections. It sets out the specific limits on election expenditure by candidates and political parties for each category of electoral area, calculated on the basis of the population of such areas. For the 2009 local elections, population data from the 2006 census report are being used as the basis for determining spending limits in county and city council electoral areas. It is important that the scheme of limits takes account of the fact that shifts in population will occur. If the population of an area increases, it is important that allowance is made for revising spending limits in that area where appropriate. An amendment made to the Bill by the Dáil provides that population data used in setting spending limits will be from the census report setting out the final result of the most recent census of population for the current time.

The new section 12A of the 1999 Act, as amended, will also provide that the spending limits for local elections will apply to individual candidates in the first instance. Candidates nominated by a political party will be deemed automatically to allocate 10% of their spending limit to the party's national agent for use at a national level. However, there will be scope to vary this figure upwards or downwards by written agreement between the candidate and his or her political party.

The new Part IIIA also inserts a new section 12B which includes a revised formula for determining the period for the reckoning of election expenses incurred by or on behalf of a political party or a candidate at a local election. It provides that after the Minister has made an order under section 26 of the Local Government Act 2001 fixing polling day at a local election, he or she may by order specify the period during which election expenses at the local election concerned are to be reckoned for the purposes of the new Part IIIA of the 1999 Act. The new section 12B also provides that the date on which the spending period commences at the election must be not less than 50 and not more than 60 days prior to polling. The spending period ends on polling day.

The existing requirements provided for in the 1999 Act with regard to the furnishing of statements of election expenditure by political parties and candidates at local elections will continue to apply at the 2009 and future elections. The key additional requirement is that candidates and political parties are required to comply with the relevant spending limits specified in the new section 12A of the 1999 Act. Political parties and candidates at the election will have to continue to comply with the existing requirements of the 1999 Act on the furnishing of statements of election expenses and donation statements within 90 days following the polling day at the election. These include statements by the national agent of a political party to the specified local authority and by the designated person of a political party, a candidate at the election, or a third party to the local authority concerned.

For election candidates, the statement of donations and election expenses must include details of the election expenses incurred and the source of income, including details of each donation exceeding €635. Statements by political parties and third parties of expenditure at a national level will be made available for inspection by the specified authority, which is Dublin City Council. In the case of a candidate whose candidature is authorised by a political party, the national agent of the party may, by agreement in writing, authorise the designated person of the party within an electoral area to incur a proportion of the election expenditure at the election which the candidate is entitled to incur at electoral area level under section 12A(1)(a). The designated person must submit a declaration of spending to the local authority, as he or she was required to do heretofore under the existing provisions.

Section 5 provides for the insertion of a new subsection in section 19 of the 1999 Act to require local authorities to include in their annual reports the aggregate details of election expenditure in respect of each candidate as well as details of donations received by candidates. This will assist in publicising the information contained in the statements of election expenditure and statutory declarations furnished to elected members of local authorities as required by section 14 of the Act of 1999. This Act requires local authorities to register every statement of election expenses and every donation statement they receive under section 13 of the Act and to acknowledge receipt of the statement. A local authority must also give public notice in a newspaper circulating in its functional area indicating the time and place that statements can be inspected. The notice must also include the names of those who have not furnished statements.

Local authorities are required to retain for a period of at least three years from the latest date for the furnishing of statements every statement of election expenses and statutory declaration, as well as any relevant court orders arising from legal proceedings connected with a local authority election. A local authority must permit any person to inspect, free of charge, any document furnished to it by a national agent or designated person of a political party or candidate at the election and to take a copy of such document or an extract from the document on payment of a fee not exceeding the reasonable cost of copying.

Under section 18 of the 1999 Act, local authorities are required to draw up and issue guidelines to candidates and political parties on matters provided for in the Act. This will also include guidance on spending limits at elections. Such guidelines on local elections will be of great assistance to candidates and political parties and provide for a greater understanding of the requirements of the legislation governing local elections and spending limits.

Section 6 provides for the amendment of section 19C(1) of the 1999 Act to widen the scope of section 19C by inserting in it a reference to section 12A. This will enable the Minister to vary the spending limits at local elections from time to time to take account of changes in the consumer price index since the commencement of the provision. This will be done by order of the Minister under section 19C and will obviate the need for primary legislation in this regard. Section 7 provides for the amendment of section 20 of the 1999 Act. The amendment provides that where a member of a local authority elected at a local election who incurs expenditure greater than the limits set out in section 12A of the 1999 Act, as amended, and he or she is convicted by a court following proceedings initiated under section 21(3A), in addition to any penalty which the court may impose, he or she will be disqualified from membership of any local authority.

Section 7 provides for the amendment of section 20 of the 1999 Act. The amendment provides that where a member of a local authority elected at a local election who incurs expenditure in excess of the expenditure limits set out in section 12A of the 1999 Act, as amended, and he or she is convicted by a court following proceedings initiated under section 20(3A), in addition to any penalty which the court may impose, he or she will be disqualified from membership of any local authority. The disqualification in such a case will apply and will have effect for the remainder of the term in office of the members of that authority.

Section 8 of the Bill provides for the amendment of section 21 of the 1999 Act to strengthen provision for offences and penalties in that section and to introduce additional offences and penalties in respect of non-compliance with spending limits at local elections. It provides respectively that a national agent or a designated person of a political party or a candidate at the election is guilty of an offence if he or she incurs election expenses in excess of the relevant expenditure limits.

The amendment of section 21 also provides for offences and penalties where a person incurs election expenses on behalf of a political party unless the person is the national agent or a person authorised by such agent acting within the limit of such authorisation or on behalf of a candidate, unless the person is a designated person or a person authorised by such person acting within such authorisation.

Penalties of up to €25,000 are provided for where a person guilty of an offence is convicted on indictment or, at the discretion of the court, to imprisonment for a period not exceeding three years or to both the fine and the term of imprisonment.

Section 9 of the Bill deals with the position in litter legislation on the existing exemption from prosecution for exhibitors of public meeting, election or referendum posters. That legislation is silent on the start date from which such posters may be erected. In practice, many local authorities do not allow candidates to erect posters until an order appointing polling day is made.

The Local Elections (Donations and Expenditure) Act 1999, as amended, will allow for a spending period for the purposes of determining candidate expenses for local elections to be specified, by order of the Minister for the Environment, Heritage and Local Government. The Minister has already indicated that he has decided that this period will be not less than 50 and not more than 60 days prior to polling day at a local election as the date for the commencement of the spending period, and the polling day at the relevant election as the date on which the spending period ends.

This may inadvertently result in candidates believing that they may lawfully erect election posters for a period of 50 to 60 days prior to local elections, a time period which is too long and may lead to greater levels of litter arising from these posters. To control litter arising from posters and to remove any uncertainty which could be created, it is proposed that the maximum time period prior to an election during which posters may be exhibited should either commence from the date the polling day order is made or be a designated time period of 30 days prior to polling day, whichever is the shorter time period.

In the case of any future referendum, the Minister has indicated that he does not propose to restrict the time period involved to 30 days, instead allowing posters to be erected from the date the order appointing polling day is made. Following the amendment to the Litter Pollution Act, posters which advertise a public meeting for up to 30 days prior to the date of that meeting will be permitted.

This amendment to the Litter Pollution Act will clarify the position regarding the time limit for the erection of posters for public meetings, elections and referenda and remove any confusion which may exist in this regard, leading to greater control of postering and a reduction in the risk of litter arising. It is not proposed to amend the provision which currently allows exhibitors seven days after a poll to remove any posters that they erected.

The putting in place of the spending limits will ensure that national and local elections will all be subject to similar regimes on the rules governing the electoral system and spending at elections which should contribute to simplifying the law on expenditure at elections. The amendment to the Litter Pollution Act contained in the Electoral (Amendment) Bill provides clarification both for exhibitors and for local authorities who are responsible for enforcing the legislation and will create a level playing field for all candidates.

I commend the Bill to the House.