Annual Report 2005

Third Parties

A "third party" is defined in the Electoral Acts as any person (i.e. an individual or a group), other than a political party or a candidate at an election, who accepts, in a particular year, a donation for political purposes the value of which exceeds €126.97. The definition of political purposes is quite broad and, as well as referring to elections and referenda, also covers any campaign which supports or opposes any policy of the Government or a public authority.

Third parties are required to register with the Standards Commission. They are prohibited from accepting "anonymous" or "foreign donations". The maximum donation which a third party can accept from the same person in the same year is €6,348.69 (the same limit applies to political parties). If a third party receives a monetary donation exceeding €126.97 it must open a political donations account.

Not later than 31 March each year, the "responsible person" of a third party (i.e. the person responsible for its organisation, management or financial affairs) must furnish a Certificate of Monetary Donations and a statement from the financial institution in which the political donations account is held specifying the transactions which have taken place on the account during the preceding year. A strict reading of the legislation would require a registered third party to comply with this requirement every year even though it may no longer be in existence or engaged in activities which are captured by the definition of political purposes. Most third parties tend to be either standing organisations which decide to become involved in a particular campaign, or groups which are established for a definite purpose, e.g. to influence the outcome of a referendum, election, etc. Most third parties do not continue in existence thereafter.

The Standards Commission takes what it considers to be a practical approach to supervising these provisions of the legislation. Each year it writes to relevant third parties asking them to confirm whether or not they intend to continue in existence as a third party. If the third party confirms that it does not intend to continue in existence or engage in activities which are captured by the definition of political purposes, no further contact is made with that individual or group.

Nine groups submitted returns to the Standards Commission in respect of 2004. Two of these groups registered for the first time in 2004, with a further group registering in 2005 and submitting documentation retrospectively. Seven of the nine groups completed a Certificate of Monetary Donations and submitted a bank statement in respect of 2004. The remaining two groups notified the Standards Commission that they did not have any activity in their political donations account in 2004 and, therefore, were not required to complete a Certificate of Monetary Donations.

Accordingly, the Standards Commission wrote to each of the nine registered third parties in advance of the 31 March 2005 deadline for return of statutory documentation for 2004, and requested that the responsible person confirm in writing if the third party was continuing to operate during 2005. One group (Stop Bush Campaign) had ceased to operate as a third party, while a further group (Éire ar son na Beatha) advised that it had no plans to operate in 2005.

Statutory documentation for 2005 was submitted by the responsible person for four of the remaining seven groups to the Standards Commission by 31 March 2006. A further group advised in writing that it was no longer in operation. Another group advised verbally that it did not operate in 2005 but has yet to confirm this in writing. The remaining group has been in contact with the Standards Commission to confirm that the outstanding documentation will be forwarded shortly. Details of the third parties which have registered with the Standards Commission since the commencement of these provisions on 1 January 2002 are set out in Appendix 1 of this report.

The Standards Commission recognises that most individuals/groups are unaware of the requirement to register as a third party. It publishes a notice in the national newspapers each year setting out the requirements of the legislation. It also publishes a detailed explanatory note which is available on its website. The Standards Commission also contacts individuals/groups which may be involved in activities which are captured by the definition of political purposes. A copy of the explanatory note is provided and the individual/group is invited to consider whether it is required to register as a third party. The Standards Commission contacted a number of such groups during 2005 most of whom indicated that the legislation does not apply to them because they were not in receipt of political donations in excess of €126.97.

The Standards Commission has previously expressed its concerns about the provisions of the legislation relating to third parties. These concerns were set out in its Review of the Electoral Acts published in December 2003. Of particular concern is the broad definition of "political purposes" which may cover, on an ongoing basis, individuals or groups which would not normally be regarded as politically active but who, in conducting their normal day to day business, could be involved in activity which would be captured by the definition of political purposes. The Standards Commission is aware that some such groups have raised similar concerns. In particular, groups which received funding from trusts or benefactors which are based outside this jurisdiction are concerned that the current legislative provisions may place restrictions on them accepting such contributions for their normal day to day activities.

The Standards Commission has suggested that instead of concentrating on receipt of a donation exceeding a particular threshold, the legislation might focus on spending on a particular campaign by individuals or groups which is above a certain threshold (e.g., €5,000). If the campaign is for political purposes as defined in the legislation, limits on the type and amount of donations which can be accepted for the campaign would apply. Individuals/groups might be requested to show how such a campaign was funded.

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