Annual Report 2005

Funding under the Party Leaders Allowance legislation

The Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act 2001 provides for the payment of an annual allowance to the parliamentary leader of a qualifying political party in relation to expenses arising from the parliamentary activities, including research, of the party. This allowance is known as the Party Leaders Allowance and the legislation is referred to hereafter as the Oireachtas Act 2001. The Standards Commission has a supervisory role under the Oireachtas Act 2001 in relation to expenditure of the Party Leaders Allowance.

A qualifying party is defined as a party, registered in the Register of Political Parties, which had at least one member elected to Dáil Éireann or elected or nominated to Seanad Éireann at the last preceding Dáil or Seanad general elections (2002) or at any subsequent by-election. The allowance is calculated on the basis of the number of members which have been elected to Dáil Éireann or elected or nominated to Seanad Éireann. Based on results at the 2002 general elections and subsequent by-elections, the parliamentary leaders of seven political parties currently qualify for payment of the allowance. Six of those seven parties also qualify to receive funding under the Electoral Acts.

The allowances were set by the Oireachtas Act 2001 and are increased in line with civil service general pay increases. The allowances can also be increased by an order of the Government.

For Members of Dáil Éireann, the allowances as at 31 December 2005 were as follows:

In the case of Seanad members, the allowances were:

The total amount paid to qualified political parties in respect of 2005 was €6,896,735.

If a qualifying party forms part of the Government, the combined allowances in respect of its members of the Dáil only, are reduced by one-third. The allowance must not be used for, or to recoup, election or poll expenses and is not subject to income tax.

Each parliamentary party leader is required to prepare annually, or cause to be prepared, a statement of any expenditure from the allowance. The statement sets out the amount received in respect of 2005 and the amount, if any, carried forward from 2004. The statement must give details, under the headings provided for in the Oireachtas Act 2001, of the matters on which the funding was spent during 2005. The statement must be audited by a public auditor and furnished to the Standards Commission within 120 days after the end of the financial year in which the allowance has been paid. The relevant date is usually 30 April. However, the period of 120 days is extended by any period for which the Dáil stands dissolved during that period. If the statement of expenditure and auditor's report are not received by the Standards Commission within the required timescale, payment of the allowance is suspended until such time as the statement and auditor's report have been received.

The Standards Commission must furnish a report to the Minister for Finance indicating whether the statement and auditor's report have been submitted within the specified period, whether any unauthorised expenditure is disclosed and whether the statement is adequate or inappropriate. A report concerning expenditure of the allowance in 2005 was furnished to the Minister for Finance on 15 May 2006 and laid before the Houses of the Oireachtas on 16 May 2006. The report is available on the website of the Standards Commission. Copies of the statements and auditors' reports are made available for public inspection and copying at the offices of the Standards Commission.

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