Phil Hogan (Carlow-Kilkenny, Fine Gael)

The third measure in the Bill seeks to reduce spending limits and the amount of expenses that can be reimbursed to a candidate at a presidential election. As Senators will be aware, a presidential election is due to be held in 2011. It must take place within the 60 days before the expiration of the term of office of the outgoing President - in other words between 11 September and 10 November 2011. It is, therefore, timely that the matter of the spending limit and the level of reimbursement of election expenses to apply to candidates be considered.

The measures contained in the Bill will have the effect of reducing the maximum amount that can be reimbursed from the Exchequer to a presidential election candidate from €260,000 to €200,000. The spending limit at the 2011 presidential election and all subsequent presidential elections is also to be reduced from €1.3 million to €750,000.

The reduction in the reimbursement payments will save the Exchequer money that can be put to better use elsewhere. While we do not know at this stage how many candidates are likely to contest the 2011 presidential election, were three candidates to qualify for a reimbursement payment at the maximum rate, the total saving would be €180,000.

In regard to the reduction in the spending limit, the cost to candidates of running a presidential election campaign would be reduced by up to €550,000 per candidate. While this will not save the Exchequer money, the reduction is of symbolic significance in reducing costs associated with the election of the President of Ireland.

Candidates will have to run their respective election campaigns with reference to the reduced spending limits and moderate their election spending accordingly. I remind Senators that the €750,000 expenditure is a target which does not have to be met. Political parties and candidates seeking election to office should lead by example. This is only right given the times we are living in.

The Bill makes provision in primary legislation, through the Electoral Act 1997, for the setting of the maximum payment that can be made to a presidential election candidate in respect of the reimbursement of expenses. It sets out the qualifying criteria and the administrative arrangements for the making of payments. The Bill replaces the existing provisions in the Electoral Act 1997, which required that arrangements for the reimbursement of election expenses be put in place by regulations made by the Minister. SI 442 of 2004 had set the reimbursement level at €260,000 and also specified the related administrative arrangements. This statutory instrument is now repealed and its provisions are replaced by a new section 21A in the 1997 Act. This new section largely replicates the administrative arrangements that were included in the statutory instrument. The significant change is in respect of the maximum amount that can be claimed.

The Bill will also have the effect of consolidating the legal arrangements for the payment of election expenses to candidates at a presidential election into primary legislation in the Electoral Act 1997 where there are equivalent existing provisions that apply in respect of elections to Dáil Éireann. Currently, a candidate who receives votes in excess of one quarter of the quota at a presidential election can claim a reimbursement of election expenses up to a maximum of €260,000. After this or any election, an application is submitted through the Standards in Public Office Commission with payment being made by the Department of Finance through the Central Fund. The same key qualifying criterion of receiving one quarter of the quota will apply under the revised provisions as will the administrative arrangements for submitting an application for payment. There are similar arrangements in place for Dáil and European Parliament elections.

Section 21(2) of the Electoral Act 1997 made provision for the level of reimbursement to apply at a presidential election to be set by regulations made by the Minister. These regulations came into effect on 14 July 2004 and first applied at the presidential election scheduled to take place in 2004. In the event, President McAleese was returned unopposed and no claim or payment for the reimbursement of election expenses was made.

With the spending limit at a presidential election being reduced from €1.3 million to €750,000 as part of this Bill, it is appropriate that the level of reimbursement of expenses be reduced also. While there was no provision for the reimbursement of election expenses at the last contested presidential election in 1997, by applying the relevant qualifying criteria, three candidates would have been able to claim a reimbursement. If three candidates qualify for the reimbursement, this would amount to a saving of €180,000 in the current year.

The programme for Government refers to the application of spending limits at a presidential election in the following terms: "We will introduce spending limits for all elections, including Presidential elections and constitutional referendums, including for a period in advance of scheduled Local, European, General and Presidential elections.". At a presidential election, the agent of each candidate is required to furnish a statement of election expenses to the Standards in Public Office Commission. This statement must be submitted within 56 days of polling day and must include details of the candidate's spending at a presidential election. When running their campaign and submitting a statement of election expenses, candidates will now be required to stay within the revised spending limit of €750,000. It will be an offence for an election agent or candidate to exceed the spending limit. This change will send out a strong signal that those involved in public life are committed to moderating their own expenditure, thereby showing a positive example to others. Reducing the election spending limit is of symbolic significance in demonstrating the willingness of those involved in public life to scale back their own spending on elections.

The existing section 53(1) of Part VI of the Electoral Act 1997 provided for the spending limit to apply at a presidential election to be specified by an order to be made by the Minister. The order setting the spending limit at €1.3 million was signed on 14 July 2004. As I mentioned, President McAleese was returned unopposed in 2004 and, as a consequence, there are no data publicly available on spending at previous presidential elections.

However, much has changed in this country since 2004 when the current spending limit was set and there is a clear case for its substantial reduction. To do this requires that a change be made in the primary legislation. That is why I propose to amend the Electoral Act 1997. Bearing in mind the current economic circumstances facing the country, it is important that we lead by example and moderate our election spending.

I will now outline briefly the specific contents of each section in the Bill. Section 1 contains definitions. Section 2 inserts a new section 39(2A) into the Electoral Act 1992. The new provision provides that where, after a period of six months from the date of a vacancy arising in the Dáil, the Dáil has failed to direct the Chairman of the Dáil to instruct the clerk of the Dáil to issue the writ for a by-election, the Chairman shall so instruct the clerk as soon as is practicable.

Section 3 amends section 6(2)(a) of the Electoral Act 1997. The amendment revises the terms of reference of a Constituency Commission which will now be required to recommend Dáil constituencies based on a number of Members between 153 and 160. The number of Members of Dáil Éireann recommended by a commission will still be subject to the limits set out in the Constitution.

Section 4 deletes the provisions currently in sections 21(2)(a) and 21(4) of the Electoral Act 1997 that enable the Minister to put in place regulations to provide for the reimbursement of expenses to a candidate at a presidential election. Revised arrangements are being made in section 5 of the Bill, which will insert a new section, section 21A, into the Electoral Act 1997.

Section 5 provides that the maximum amount that can be reimbursed to a candidate at a presidential election is €200,000. It makes provision in primary legislation, through the Electoral Act 1997, for the setting of the maximum payment that can be made to a presidential election candidate in respect of the reimbursement of expenses.

Section 6 provides that the spending limit at a presidential election shall not exceed €750,000. It makes provision in primary legislation, through an amendment to the Electoral Act 1997, for the spending limit to apply at a presidential election and replaces the existing section 53 of the 1997 Act. Section 7 provides for consequential amendments to the Electoral Act 1997 arising from the provisions in sections 4, 5 and 6 of the Bill. Section 8 contains standard provisions of a general nature dealing with the Title, construction and citation of the Bill.

It is very important that the reduced spending and reimbursement limits would apply to the presidential election this autumn. To do this, the Bill needs to be enacted before the summer recess. We have been facilitated by Oireachtas Members and by officials in scheduling this Bill for passage through the Dáil and the Seanad and I appreciate those efforts.

Senators will know that the Government has outlined an ambitious programme for constitutional and electoral reform. The programme for Government commits to a radical overhaul of the way Irish politics and government work. It set out a wide-ranging series of commitments to this end, a number of which are within my areas of responsibility as Minister. I am committed to working with my Government colleagues and all Oireachtas Members to implement these measures in full. I commend the Bill to the House.