Combined Section 15/16 Manual of the Standards Commission

4.1 Requirements of the Party Leaders Allowance Act

The Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act 2001 ("the Party Leaders Allowance Act") provides for the payment of an annual allowance to the parliamentary leader of a "qualifying party" in relation to expenses arising from the parliamentary activities, including research, of the party. The allowance, which is referred to as the Party Leaders Allowance, is paid by the Department of Finance. The Standards Commission has a supervisory role in relation to spending of the allowance.

A "qualifying party" is defined in the Party Leaders Allowance Act as a political party registered in the Register of Political Parties which contested the last general election or any subsequent by-elections and which had at least one member elected to Dáil Éireann or elected or nominated to Seanad Éireann at that general election or at any subsequent by-election.

The allowance is calculated for each parliamentary leader by reference to the party's representation in Dáil and Seanad Éireann. If a qualifying party forms part of the Government, the combined allowances in respect of its members of the Dáil, only, is reduced by one-third.

The Party Leaders Allowance Act provides for an allowance of €48,547 per member for each of the first ten members of a qualifying party elected to Dáil Éireann, €38,837 per member for each member from 11 to 30 members, and €19,423 for each member over 30 members.

The Party Leaders Allowance Act provides for an allowance of €31,743 per member for each of the first five members elected or nominated to Seanad Éireann, and €15,872 for every member thereafter.

The Party Leaders Allowance Act provides for an allowance of €27, 934 for non-party members of the Dáil and an allowance of €15,872 for non-party members of the Seanad. Non-party members of the Dáil and Seanad are not required to make returns to the Standards Commission accounting for their expenditure of the allowance and the Standards Commission has no role in relation to the monitoring of such expenditure.

The allowances provided for under the Party Leaders Allowance Act increase in line with general pay increases in the Civil Service and are not subject to income tax.

The allowance is paid to the parliamentary leaders of qualified parties in relation to expenses arising from the parliamentary activities, including research, of the party. The Party Leaders Allowance Act provides that "expenses arising from the parliamentary activities, including research" include expenditure on the following matters:

• (a) the general administration of the parliamentary activities of a qualifying party,
• (b) the provision of technical or specialist advice likely to be required in connection with legislative proposals or potential parliamentary initiatives,
• (c) research and training,
• (d) policy formulation,
• (e) the provision of consultant services, including the engagement of public relations services,
• (f) polling or public attitude sampling in connection with parliamentary debates or initiatives,
• (g) the purchase of support services for a parliamentary party from the party,
• (h) 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 Dáil Éireann or a holder of a Ministerial office,
• (i) the payment to another person of any salary or honorarium in respect of duties arising from the person's activities in a parliamentary party,
• (j) 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,
• (k) entertainment.

Section 1.10(5) of the Act provides that the allowance shall not be used for, or to recoup, election or poll expenses incurred under

1. the Electoral Acts 1923 to 1990, or the Electoral Acts 1992 to 1999,
2. the European Parliament Elections Acts 1977 to 1993, or the European Parliament Elections Acts 1992 to 1999,
3. the Presidential Elections Acts 1937 and 1992, or the Presidential Elections Acts 1992 to 1997,
4. the Referendums Acts1942 to 1992, or the Referendums Acts 1992 to 1998,
5. the Seanad Electoral (Panel Members) Acts 1947 to 1972, or
6. the Seanad Electoral (University Members) Acts 1937 to 1973.

Parliamentary leaders must prepare, or cause to be prepared, not more than 120 days after the end of the financial year in which an allowance has been paid (i.e. by 30 April each year), a statement of any expenditure from the allowance. The statement must be audited by a public auditor and must be submitted with the auditor's report to the Standards Commission within the 120 day period. The period of 120 days is extended by any period for which the Dáil stands dissolved during that time. The Party Leaders Allowance Act provides that an allowance shall not be paid unless the statement and auditor's report have been received by the Standards Commission not more than 120 days after the end of the financial year to which the statement and auditor's report relate.

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