Annual Report 2002

Exchequer Funding of Political Parties

Funding under the Electoral Acts

The Electoral Acts provide for the public funding of qualified political parties. To qualify for funding under this legislation, a political party must be included in the Register of Political Parties and must have secured at least two per cent of the first preference votes at the last Dáil general election. Seven political parties, including the former Democratic Left, qualified for public funding on the basis of the 1997 general election results. Six political parties qualify on the basis of the 2002 general election results. The amount of funding payable to each qualified party is determined by the proportion it secured of the total first preference votes received by all of the qualified parties.

The legislation provides that the funding must be applied to the general conduct and management of the party's affairs and the lawful pursuit by it of any of its objectives and, without prejudice to the generality of the foregoing, any or all of the following purposes:

- general administration of the party;

- research, education and training;

- policy formulation;

- co-ordination of the activities of branches and party members.

The funding is deemed to include provision in respect of the promotion of participation by women and young persons in political activity. It is also provided that the funding must not be "applied to, or to recoup, election expenses".

Qualified parties must account for their use of the funding on an annual basis. The Appropriate Officer of each qualified party provides an Exchequer Expenditure Statement to the Standards Commission which details the amount of funding received in respect of the preceding year and the purposes to which it was applied. A public auditor is required to audit the statement and the auditor's report must be submitted with the statement to the Standards Commission. Payments are not made beyond end-April of any year to a qualified party unless it has furnished a Donation Statement and an Exchequer Expenditure Statement to the Standards Commission in respect of the preceding year.

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