Press Releases

Press release - Annual Report 2006

Date Released: 28.06.2007

"There is a strong case to be made for a new approach to the general funding of political parties and sound arguments to be made for increased transparency in such funding and for greater scrutiny of political party expenditure" according to Mr Justice Matthew P. Smith, Chairman of the Standards in Public Office Commission, in the fifth annual report of the Standards Commission published today. The Commission calls for implementation of Council of Europe recommendations in Ireland - these recommendations include a requirement that all political parties keep proper accounts, that these accounts be furnished to an independent authority, that the accounts specify all donations received by a political party and that in the case of donations over a certain value, the donors be identified (page 3).

For the first time, the Standards Commission includes a chapter in its report on recommendations for legislative change. The Commission regrets that amendments to the Ethics legislation which it had urged in its 2005 annual report had not been included in the Ethics Amendment Bill published towards the end of the 29th Dáil. The Commission also requests that urgent consideration be given to the drafting of a more user-friendly consolidated Ethics Bill in view of the complexity of the existing Ethics Acts. Based on its experience, the Commission highlights 10 necessary amendments to the Ethics legislation and 14 amendments to the Electoral legislation. Some of the recommended amendments include:

• The Ethics legislation should include a statement of the ethical standards required of office holders and public servants rather than the existing "nebulous" standard of a "specified act" (page 31).
• While the Commission has the power to conduct investigations under the Ethics Acts in the absence of a specific complaint, it has long held the view that in order to discharge effectively its statutory duty to consider matters of significant public importance, it ought to have the power to appoint an inquiry officer in such circumstances (page 33).
• Introduction of accountability for election expenses incurred prior to the election period - which only begins with the dissolution of the Dáil (page 35).
• A recommendation that the Minister for Finance introduce regulations applying the obligations of the Ethics Acts to board members and specified senior employees of each newly established public body from the date on which the body is set up. The Commission also repeats its recommendation that Chairpersons of Oireachtas Committees be designated by the Minister for Finance as office holders for the purposes of the Ethics legislation - this would make them subject to the Ethics Acts in their capacity as Chairpersons (page 33).
• Granting of statutory power to the Standards Commission to review the Electoral legislation and report on its findings (page 34).
• Introduction of penalties and offences for failure to comply with the provisions of the Electoral Acts relating to disclosure of donations and expenditure by candidates and political parties at Dáil and European Parliament elections (page 35).
• Changes to the "third party" provisions - third parties should not be identified on the basis of having received a donation for political purposes but rather on the basis of expenditure on a campaign for political purposes (page 35).

The Report also deals with the following issues:

• There is a discrepancy between the provisions of the Code of Standards and Behaviour for Civil Servants dealing with conflict of interest and the summary of the provisions of the code issued in a Department of Finance circular (circular 26/04). The code itself provides that civil servants in certain designated positions for the purposes of the Ethics Acts shall not accept appointments from an employer outside the civil service or accept consultancy arrangements within 12 months of resignation or retirement, where the nature and terms of such appointment or engagement could lead to a conflict of interest, without first obtaining approval. The circular (as well as a summary provided in an appendix to the code) says that the civil servant shall not accept an appointment or consultancy arrangement where the civil servant concerned believes that the nature and terms of such an appointment could lead to a conflict of interest. The Standards Commission points out that the reference to the belief of the civil servant in the circular gives the misleading impression that the code provides for a subjective test as to whether a conflict of interest exists. The proper test is an objective one - i.e. what a reasonable observer might conclude - and this should be made clear to all concerned. The Commission has requested that the Minister for Finance make an appropriate amendment to the circular and to the summary of the code (page 11).
• A complaint received about the Minister for Enterprise, Trade and Employment, Micheál Martin TD, and his request to a civil servant to attend a meeting of the Fianna Fáil Parliamentary Party to brief the party on a report on the Groceries Order. While the Commission decided not to initiate an investigation under the Ethics Acts, it informed the Minister that it was not appropriate for him to request the attendance of a civil servant at a parliamentary party meeting and that his actions were not in keeping with the spirit of the Code of Conduct for Office Holders (page 7).
• A complaint regarding the Taoiseach Bertie Ahern, the then Tánaiste and Minister for Justice, Equality and Law Reform, Michael McDowell and the then Minister for Communications, Marine and Natural Resources, Noel Dempsey regarding alleged statements and actions relating to the Shell Pipeline and onshore terminal in Co Mayo. The Commission found in this case that the statements complained of amounted to reasonable political comment and that there was no basis on which to pursue the complaint (page 8).
• In relation to complaints against members of local authorities, the Ethical Framework for the Local Government Service obliges the ethics registrar of each authority to compile a public register of interests of members and others. The Standards Commission calls for such registers to be published on the internet as is the case with the registers of interests for members of Dáil and Seanad Éireann (page 8).
• The lack of an ethical code of conduct for public bodies in the wider public service as provided for in section 10 of the Standards in Public Office Act 2001. The absence of a statutory code for directors and employees of these public bodies could create serious difficulties for the Standards Commission in the future as well as deprive those subject to the legislation in the wider public service of the guidance available to, for example, civil servants (page 9).
• In 2006, over €13.3 million was paid to political parties under the Electoral Acts and under the Party Leaders Allowance legislation. The legislation provides that this funding may not be used for election expenses. The Commission issued guidelines on this point to all of the qualified political parties in November 2006; these legally binding guidelines stressed that it was not permissible to use this funding for any form of election spending.

Annual Report 2006 - Text Version

Annual Report 2006 - Downloadable Version

The Standards Commission is the independent body charged with oversight of the Ethics and Electoral legislation. The members of the Standards Commission are:

Mr Justice Matthew P Smith, Chairman;
Mr John Purcell, Comptroller and Auditor General;
Ms Emily O'Reilly, Ombudsman;
Mr Kieran Coughlan, Clerk of Dáil Éireann;
Ms Deirdre Lane, Clerk of Seanad Éireann; and
Mr Liam Kavanagh.

For Further Information please contact

SIPO at (01) 639 5666, or
David Waddell (01) 6395707/(087) 2329814
Brian McKevitt (01) 6395713
Facsimile: (01) 6395684

Issued by the Standards in Public Office Commission on 28 June 2007
 email: sipo@sipo.gov.ie
Website: http://www.sipo.gov.ie

Back to contents