Annual Report 2007

Funding under the Party Leaders Allowance legislation

The Party Leaders Allowance legislation provides for the payment of an annual allowance to the parliamentary leader of a qualified political party in relation to expenses arising from the parliamentary activities, including research, of the party. The allowance is known as the Party Leaders Allowance. The Party Leaders Allowance legislation prescribes 11 different categories of expenditure which are regarded as expenses arising from the parliamentary activities, including research, of the party. Funding received under the Party Leaders Allowance is not subject to income tax.

A qualified political party under the Party Leaders Allowance legislation is defined as a party which is registered in the Register of Political Parties and which has had at least one member of the party elected to Dáil Éireann or elected or nominated to Seanad Éireann. Prior to the Dáil and Seanad general elections of 2007 the parliamentary leaders of seven political parties qualified for payment of the allowance. With the loss of its representation in the Houses of the Oireachtas, the Socialist Party did not qualify for payment of the allowance after the Dáil and Seanad general elections of 2007. The allowance payable to a qualified political party is based on the number of members of the party who are members of Dáil Éireann or Seanad Éireann. If a qualified political party forms part of the Government, the combined allowances in respect of its members of the Dáil only, are reduced by one third. Following the formation of a new government in 2007, this now applies to the allowance received by Fianna Fáil, the Green Party and the Progressive Democrats. The allowance must not be used for, or to recoup, election or poll expenses.

The allowances are increased in line with civil service general pay increases. An increase of 2% under Towards 2016 was applied from 1 June 2007. The allowances can also be increased by an order of the Government. Increases made by an order of the Government are in line with increases awarded under Reports of the Review Body on Higher Remuneration in the Public Sector. During 2007, no such increases were made by Ministerial Order.


As at 31 December 2007, the allowances for Members of Dáil Éireann are as follows:

	2007 (Per Member)
First 10 Members	€68,074
From 11 to 30 Members	€54,458
Over 30 Members	€27,237
Non Party Members	€39,169

As at 31 December 2007, the allowances for members of Seanad Éireann are as follows:

	2007 (Per Member)
First 5 Members	€44,512
Over 5 Members	€22,557
Non Party Senators	€22,557

For 2007, the total amount paid to the parliamentary leaders of qualified political parties and to Non Party TDs and Senators was €7,970,903. This is lower than the amount paid in respect of 2006 and is mainly due to the fact that the number of Non Party Members of Dáil Éireann was reduced from 19 to 12 after the Dáil and Seanad general elections of 2007 and the fact that the funding due to three qualified parties is reduced by one third on account of their forming part of the Government.

Each parliamentary party leader is required to prepare an annual statement of expenditure of the Party Leaders Allowance. The statement must be audited by a public auditor and a copy of the auditor's report must be furnished to the Standards Commission with the statement. The statement must be furnished to the Standards Commission within 120 days of the end of the financial year in which the allowance has been paid. This date is usually 30 April. (The Standards Commission requests, however, that the statement be furnished by 31 March each year.) If the statement of expenditure and auditor's report are not received by the Standards Commission within the 120 day period, payment of the allowance is suspended until such time as the statement and auditor's report have been received. The statements furnished for 2007 provide details of the funding received for that year and the amount, if any, carried forward from 2006. The statements give details, under the 11 categories of expenditure (prescribed in the Party Leaders Allowance Act), of the matters on which the funding was spent during 2007.

During 2007, Mr Eamon Gilmore TD replaced Mr Pat Rabbitte TD as parliamentary leader of the Labour Party. The Minister of the Environment, Heritage and Local Government, Mr John Gormley TD replaced Minister of State at the Department of Agriculture, Fisheries and Food, Mr Trevor Sargent TD, as leader of the Green Party. The Minister for Health and Children, Ms Mary Harney TD, replaced Mr Michael McDowell as parliamentary leader of the Progressive Democrats. In each case, in accordance with section 1(10)(11)(c) of the Party Leaders Allowance Act, it was agreed that a single statement of expenditure in respect of the allowance paid to the party during 2007, would be furnished by the current party leaders.

The Standards Commission must furnish a report annually to the Minister for Finance indicating whether the statements and auditors' reports have been submitted by the statutory deadline, whether any unauthorised expenditure was disclosed and whether the statement is adequate or whether the statement is inappropriate. A report concerning expenditure of the allowance in 2007 was furnished to the Minister for Finance and laid before the Houses of the Oireachtas in June 2008. The Standards Commission's report contained details of the funding received by the parliamentary leaders of qualified political parties and how it was spent and is available on the website of the Standards Commission. Copies of the statements and auditors' reports are available for public inspection and copying at the offices of the Standards Commission.

A difficulty for the Standards Commission in relation to its supervisory function under the Party Leaders Allowance Act is that, unlike the Ethics Acts and Electoral Acts, it has no statutory authority to give advice in relation to the appropriate use of the Allowance. Whereas advice given by the Standards Commission under the Ethics Acts and the Electoral Acts is legally binding, any advice given in relation to the Party Leaders Allowance Act has no statutory basis. The Standards Commission is required to report to the Minister for Finance on the statements of expenditure of the allowance. If a statement includes expenditure on matters which are not in keeping with the provisions of sections 1(10)(1) and 1(10)(14) or are prohibited under section 1(10)(5) of the Party Leaders Allowance Act, the Standards Commission, having consulted with the party leader on the matter, is required, in accordance with section (1)(10)(11)(e)(iii)(IV), to inform the Minister that the statement/auditor's report is not appropriate.

The Standards Commission has received requests from political parties for advice as to whether use of the allowance for a particular purpose is appropriate or not. The Standards Commission will usually give its opinion as to whether it considers the use of the Allowance for the particular purpose to be appropriate, having regard to the provisions of section 1(10)(1) and 1(10)(14) or if it considers such use to be prohibited under section 1(10)(5) of the Act. The alternative is for the Standards Commission to refuse to give advice on the matter, and, if the expenditure concerned appears on the leader's statement, to inform the Minister that it considers the statement to be inappropriate as it includes an expenditure item which is not provided for in the Act.

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