Seanad debates

Thursday, 2 February 2012

Electoral (Amendment)(Political Funding) Bill 2011: Second Stage

 

12:00 pm

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)

The Bill will directly respond to the recommendations to which I refer. It will also address recommendations made in the Moriarty Tribunal report which was published in 2011.

The Bill is an important step towards achieving a significant improvement in the balance of representation in the Dáil between men and women. When citizens consider our national Parliament, they should see something more akin to their own reflection looking back at them. This is not currently the case with 183 men and 43 women. That is hardly balanced representation.

I will now outline for Senators the principal elements in the Bill. We will have an opportunity to scrutinise each section in more detail on Committee Stage. The Bill will reduce the current limits for acceptance of political donations and the thresholds for declaration of these donations. In doing so, it is noteworthy that the financial amounts set out in the existing legislation are given in punts - old money - even though the euro has been our currency for the past ten years. This says something with regard to the overdue nature of the changes we are making. The Electoral Act 1997 is almost 15 years old. The rules on political donations were incorporated into the Act in 2001. A major revision in Ireland's laws on political funding is, therefore, long overdue.

Part 1 entitled "Preliminary and General", contains standard provisions of a general and technical nature. Part 2, entitled "Amendment of Electoral Act 1997", provides for changes to donation and declaration amounts and introduces new conditions for corporate donations. The maximum amount that can be accepted as a donation by a political party, an accounting unit of a political party or a third party is being reduced to €2,500. The current figure is €6,348.69. The maximum amount that can be accepted as a political donation by an individual is being reduced from €2,539.48 to €1,000. This new limit will apply in respect of donations to a Member of either House of the Oireachtas or a Member of the European Parliament, as well as to a candidate in a presidential, Dáil, Seanad or European Parliament election.

The programme for Government makes clear this Administration's position that the role of corporate political donations in Irish politics must be curtailed. The measures in the Bill will give effect to this commitment, having regard to the need to respect Ireland's Constitution and our commitments under international and European law. Our objective is to restrict the influence of corporate donors. The Bill will do that to the maximum extent feasible and permissible. Provision is made for a ban on the acceptance of donations or more than €200 for political purposes from a corporate donor unless the donor has registered with the Standards in Public Office Commission. Such donations must also be accompanied by a statement confirming that the donation has been approved by a general meeting of the members of the body or by its trustees.

Allowing corporate donations of up to €200 to be accepted without having to comply with the new requirements is based on practical considerations regarding implementation. It is considered that placing the additional disclosure and approval conditions on relatively small donations of under €200 from businesses or organisations would not be fair or practical. For example, if there was no lower limit, a local business placing a poster in a shop window in support of a candidate could be regarded as giving a corporate donation by way of a benefit-in-kind. A shop owner who buys a raffle ticket or offers a small spot prize for a local function could similarly be regarded as giving a corporate donation. An exemption from the new registration requirements is given to a provider of a programme of education and training or a student's union where such a body makes a payment to a student society or club. This will allow colleges or students' unions to continue to provide financial support to student groups that promote political participation without being obliged to comply with the new corporate donor requirements. I am sure Members will agree that these grants to student societies can hardly be regarded as the sort of corporate donations which need to be restricted and that this exemption does not contradict our objective of enhancing the openness and transparency of political funding in Ireland.

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