Phil Hogan (Carlow-Kilkenny, Fine Gael)

The amendment is similar to the one put forward on Committee Stage. However, it is now proposed to insert it in a different part of the Bill. The amendment seeks to introduce a provision for the disclosure of all donations once a general election is called. It is proposed for inclusion in the new Part IX of the Electoral Act 1997, which is being inserted by section 27 of this Bill.

This new Part in the 1997 Act will provide for the preparation and publication of accounts by a political party. It does not deal in any way with the reporting of political donations at a Dáil general election. Those provisions are set out in Part IV of the Electoral Act 1997 which is titled "Disclosure of Donations". In addition, the amendment makes no provision for how donations would be declared, to which body they would be declared and what sanctions would apply. These are some of the technical reasons for not accepting the amendment even though the spirit of what is proposed by the Senators is not a difficulty. Practical issues arise.

I agree there must be more transparency about donations. The current system is badly in need of reform and I have already indicated that this is high on the agenda of the Minister for Public Enterprise and Reform, Deputy Brendan Howlin. However, in this legislation I have radically changed the thresholds and the donations that can be made, particularly in light of the constitutional issues. Rather than wait for the constitutional issues to be resolved by referendum, we proceeded on the basis of doing what is legally sound at present.

Therefore, section 9 of the Bill provides for the lowering of the thresholds that must be declared to the Standards in Public Office Commission, SIPO. The threshold for disclosure by a political party is being reduced from €5,078 to €1,500 while the threshold for a Member of the Oireachtas, a Member of the European Parliament or a candidate in Dáil, Seanad or European Parliament elections is reduced from €634 to €600. There is a reduction in the threshold for donors other than companies, trade unions, societies or building societies in reporting donations to SIPO from €5,078 to €1,500. Aside from these reductions in the declaration thresholds, the maximum amounts that can be accepted as a donation by a political party or a candidate are being significantly reduced. Corporate donations are also being substantially curtailed.

The principle underpinning the amendment before the House is that all donations of all sizes should be subject to "immediate disclosure". The proposal would have serious negative consequences for the practical operation of politics. I do not believe in putting in place a system if it is not practically possible to implement it. This amendment could unwittingly tie the administration of the political donations system up in knots to the extent that people would genuinely find themselves in difficulty without that having been intended. I want candidates and political parties to be more accountable. I do not believe the approach that is proposed is feasible. I cannot imagine what public good would be served by reporting the name of every person who supports an election candidate by giving him or her a contribution of €10 or €20, or even by purchasing a €2 raffle ticket. That is what the effect of this amendment would be.

The threshold that would apply under this proposal is very low. Under this law, a poster in a shop window during an election campaign or sticker on a taxi could be regarded as a donation, and a corporate donation at that. The onus would be placed on the candidate to send a form to - presumably - the Standards in Public Office Commission immediately, reporting the receipt of such support. I do not think it is reasonable to require that every transaction be reported immediately, which is what the effect of this amendment would be. I suggest that if it were accepted, the Standards in Public Office Commission and the individual candidate would become bogged down in administration.

The Senator referred to the recommendations of the Moriarty tribunal, to which the Government had regard in developing this legislation. The provision in the Bill relating to the publication of political party accounts will address the Moriarty tribunal recommendation that all the income of political parties should be disclosed. I am going beyond that by saying all the expenditure of political parties must also be opened to public scrutiny and reported. The tribunal recommended that all political donations apart from those under a modest threshold should be disclosed. I believe the reductions I have outlined will address that in a substantial and significant way.

The reduction in the thresholds is a significant measure in its own right. It can be seen as part of a range of measures in the Bill that will have the cumulative effect of providing for a more open and transparent system of political funding and imposing a severe limitation on the scope for corporate influence on politics in Ireland. The problems in the current system have been clear for many years. This legislation will address the fact that too few donations fall within the net of disclosure.