10/03/09 - Report to the Minister for the Environment on Third Parties and the Referendum on the Treaty of Lisbon

Chapter 2 - Provisions of the Act applying to third parties

This chapter sets out the obligations of third parties under the Act.

a) What is a third party?

Section 22(2)(aa) of the Act defines a third party as a person, other than a registered political party or a candidat e at an election which accepts a donation exceeding €126.97 in value. A third party can be an individual, a body corporate or an unincorporated body of persons. In general most third parties tend to be groups or organisations.

A donation is defined in section 22(2)(a) of the Act as "any contribution given for political purposes". Insofar as third parties are concerned, the definition of political purposes includes:

1. to present, directly or indirectly, the policies or a particular policy of a third party;
2. to present, directly or indirectly, the comments of a third party with regard to the policy or policies of a political party, political group, TD, Senator, MEP, a candidate or another third party at an election or referendum or otherwise;
3. to promote or oppose, directly or indirectly, the interests of a third party in connection with the conduct or management of any campaign conducted with a view to promoting or procuring a particular outcome in relation to a policy or policies or functions of the Government or any public authority; or
4. otherwise to influence the outcome of an election or referendum or a campaign referred to at (c) above.

In practice most third parties which have registered with the Standards Commission or which have otherwise come to its attention have done so in relation to a campaign at a referendum or an election. The Standards Commission has found, however, that part (3) of the definition of political purposes can capture the activities of a number of individuals or groups who may not have regarded themselves as being engaged in a "political" campaign.

b) Registration

Section 23C of the Act requires third parties to register with the Standards Commission. They must register as soon as may be after receipt of a donatio n exceeding €126.97 and before incurring any expenses (or any further expenses) for political purposes. When registering, a third party must provide the following information to the Standards Commission:

• the name and address of the third party and the na me and address of the person responsible for its organisation, management or financial affairs (the "responsible person");
• a statement of the nature, purpose and estimated amount of donations to, and proposed expenses of, the third party during the year;
• an indication of any connection the third party may have with any political party or candidate at an election or referendum or otherwise.

Once registered as a third party, an individual or group is also required to comply with the provisions of the Act regarding the opening and maintenance of a political donations account and is prohibited from accepting certain types of donations.

c) Maintenance of a political donations account

Section 23B(1) of the Act provides that where a third party receives a monetary donation in excess of €126.97, it must open and maintain an account in a financial institution in the State and lodge the initial donation and all subsequent monetary donations to that account (referred to as a "political donations account"). Monies withdrawn from the political donations account may only be used for political purposes. It is important to note that this only applies to contributions received by a third party which have been given for political purposes. If a third party receives contributions which are not for political purposes, it is not required to lodge these contributions to its political donations account.

Section 23B(5) of the Act provides that each year the responsible person of a third party must furnish a bank statement to the Standards Commission from the financial institution in which the political donations account has been opened. The bank statement must be furnished by 31 March and must specify the transactions that have taken place in relation to the account during the preceding year. Section 23B(5) also provides that the statement must be accompanied by a Certificate of Monetary Donations on which the responsible person certifies that all monetary donations received by the third party during the preceding year were lodged to the account and that all amounts debited from the account were used for political purposes. Section 23B(6) provides that the Certificate is accompanied by a Statutory Declaration. It is an offence for the responsible person of a third party to fail to furnish a Certificate or bank statement to the Standards Commission

The responsible persons of third parties which registered with the Standards Commission during 2008 (including those which registered in connection with the referendum on the Treaty of Lisbon) and who were required to open a political donations account will be required to furnish a Certificate and a bank statement to the Standards Commission by 31 March 2009.

Section 23(B)(8) of the Act provides that the Standards Commission shall not disclose the contents of the Certificates or bank statements unless ordered by a court to do so or where such disclosure is required in connection with an investigation held by the Standards Commission.

d) Prohibited Donations

The Act provides that there are certain types of donations which a third party may not accept. Section 23(1) of the Act provides that a third party shall not accept an anonymous donation exceeding €126.97. If such a donation is received, the Standards Commission must be notified and the donation or the value thereof remitted to the Standards Commission within 14 days of its receipt.

Section 23A(1) of the Act provides that third parties may not accept donations from the same person, in the same calendar year, which exceed an aggregate value of €6,348.69. If a donation in excess of the maximum prescribed limit is received, a third party must return the donation to the donor, or in the case of a monetary donation, that part which exceeds the limit and keep a record of its return. Alternatively a third party may remit the donation, or in the case of a monetary donation, that part which exceeds the limit, to the Standards Commission.

Section 23(A)(2) of the Act provides that a third party may not accept a "foreign donation". A foreign donation is a donation from an individual (other than an Irish citizen) who resides outside the island of Ireland or a donation from a body corporate or unincorporated body of persons which does not keep an office in the island of Ireland from which one or more of its principal activities is directed. If a foreign donation is received the third party must return the donation to the donor and keep a record of its return or remit the donation to the Standards Commission.

It is an offence for the responsible person of a third party to fail to take the appropriate action in relation to a prohibited donation.

e) Requirement to notify the Standards Commission of intent to incur expenses at a Dáil or European election

In addition to the requirement to register as a third party, an individual or group who or which proposes to incur expenses at a Dáil, European or presidential election and has not been authorised to do so by a candidate's election agent or the national agent of a political party, must notify the Standards Commission of their intent to incur expenses. This requirement also applies to individuals or groups who have not registered as third parties and who intend to incur election expenses. It does not apply, however, to individuals or groups who intend to incur expenses at a referendum.

When notifying the Standards Commission of an intent to incur election expenses an individual/group must provide:

1. the name, address and description of the person proposing to incur the expenses;
2. a statement of the nature, purpose and estimated amount of such expenses; and
3. an indication of the person's connection, if any, with any party or candidate at the election.

If deemed by the Standards Commission not to be connected to a candidate or political party at the election, the individual/group will be required to furnish an Election Expenses Statement to the Standards Commission.

It is an offence if an individual/group which incurs election expenses fails to comply with these requirements.

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