Pearse Doherty (Donegal South West, Sinn Fein)
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Question 258: To ask the Minister for Public Expenditure and Reform if he will detail the full provisions of the party leaders' allowance as it is paid to independent TDs, including the amounts of money paid out to individual TDs on an annual basis since 2001; the tax liability of this allowance; the accounting and auditing practice for the allowances; the range of activities covered by this allowance; his plans to introduce legislation on this matter outlining the purpose of the legislation and its intended publication date; and if he will make a statement on the matter. [4963/12]

Brendan Howlin (Wexford, Labour)
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As indicated in my replies to Parliamentary Questions No. 40637 on 15th December last, No. 3118 on 19th January and No. 3848 on 24th January this year, I intend to bring proposals to Government shortly in relation to the Party Leader's Allowance.

The Party Leader's Allowance is provided for in the Oireachtas (Ministerial and Parliamentary Offices) Act, 1938, as amended by the Oireachtas (Ministerial and Parliamentary Offices (Amendment) Act, 2001.

The allowance is paid to the parliamentary leader of a qualifying party in relation to expenses arising from the parliamentary activities, including research, of the party. Payments are made in respect of members of the party elected to Dáil Éireann and members elected/nominated to Seanad Éireann at the last preceding general election, or a subsequent bye-election or, in the case of Seanad Éireann, nominated to it after the last preceding general election.

The legislation provides that payments may be made to a member of Dáil Éireann, who at the last preceding general election or at a subsequent bye-election was elected as a member other than as a member of a qualifying party, i.e. an Independent Member. Such qualifying Independent TDs are entitled to an annual rate of €41,152. A similar provision in the Act provides for an annual payment of €23,383 for Independent Senators

The annual amounts paid in respect of each Independent TD since 2001, as requested by the Deputy, are set out below at Appendix 1. The allowances are generally payable monthly in arrears into a bank account specified by the beneficiary of the allowance. The Party Leader's Allowance is not subject to tax.

The conditions governing entitlement to payment of the allowance are set out in the Act. The Act prescribes 11 different categories of expenditure, including research, which are regarded as expenses arising from parliamentary activities for the purposes of entitlement to the allowance. These are set out at Appendix II. The primary restriction in the Act on the use of the allowance is that it may not be used in respect of election expenses.

The 2001 Act gives a statutory oversight role in relation to the Party Leader's Allowance to the Standards in Public Office (SIPO) Commission. This requires each party leader to prepare a statement of expenditure for the allowance, to have it audited by an independent auditor and furnish it with the auditor's report to the Commission. Based on the accounts submitted, the Commission is required to make a report to the Minister in relation to the use of the Party Leader's Allowance and cause a copy of the report to be laid before the Oireachtas. Allowances paid to Independent members are not subject to these oversight provisions. Any changes to the matters prescribed in the Act require primary legislation. Appendix I

Appendix II

Relevant expenditure for the purposes of the Party Leader's Allowance

Expenses arising from parliamentary activities, including research includes expenditure on the following categories—

1. the general administration of the parliamentary activities of a qualifying party,

2. the provision of technical or specialist advice likely to be required in connection with legislative proposals or potential parliamentary initiatives,

3. research and training

4. policy formulation,

5. the provision of consultants' services, including the engagement of public relations consultants,

6. polling or public attitude sampling in connection with parliamentary debates or initiatives,

7. the purchase of support services for a parliamentary party from the party,

8. the payment to a parliamentary leader of any salary or honorarium in respect of duties arising from his or her activities as such leader as distinct from those of a member of Dail Eireann or a holder of a ministerial office,

9. the payment to another person of any salary or honorarium in respect of duties arising from the person's activities in a parliamentary party,

10. the provision for, or recoupment of, transport and personal expenditure incurred by a parliamentary leader, officers or a parliamentary party spokesperson as a result of their parliamentary party function,

11. entertainment.