December 2003 - Review of Electoral Acts

Exchequer funding of political parties

In 2002, direct Exchequer funding of political parties under the Electoral Acts and the Party Leaders Allowance scheme amounted to €10.4 million. The specific uses to which the funding can be applied are outlined in the legislation and they exclude spending in relation to elections or referenda. Generally speaking, the funding can be used for the organisation of party structures and for activities such as policy development, research, etc. An account of how the funding is used must be provided each year to the Standards Commission and must be accompanied by an auditor's report. This material is available for inspection by the public.

There is reference earlier in this document to the need for equity in how Exchequer funding of political parties is determined. Under the Electoral Acts, a party qualifies for funding based on the votes obtained by its candidates at the last preceding Dáil general election. They must have obtained at least two percent of the total first preference votes. At present, six parties qualify on that basis, i.e. Fianna Fáil, Fine Gael, Labour Party, Sinn Féin, Progressive Democrats, Green Party.

Funding under the Party Leaders Allowance scheme is dependent on a party having at least one TD or Senator elected or nominated. The six parties mentioned above, together with the Socialist Party, qualify for funding under that scheme as do independent members of the Dáil and Seanad.

An issue which has been raised with the Standards Commission relating to the foregoing is the position of new or smaller political parties which do not meet the current criteria for funding. Included under this heading are seven political parties which are registered in the Dáil Register of Political P.arties.

It has been argued that, in the interests of equity and democracy, financial assistance should be available to support the operation and development of less prominent political organisations which would allow them to participate in a meaningful way in the political process. It is not suggested that public money would be disbursed to all and sundry who would claim to be bona fide political entities. It is, however, contended that a basis could be found on which to expand the parameters for funding beyond the current beneficiaries. This might be achieved by setting aside a specific sum with suitable controls, as already exist for the qualified parties, being put in place to ensure that the funding was fully accounted for and was used for its proper purpose

Back to contents