21/06/07 - Report on Exchequer Funding received by Political Parties for 2006

Part 3 - Purposes for which the Exchequer Funding is provided

In accordance with Section 18, the funds received by qualified parties 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, namely -

(i) the general administration of the party,

(ii) research, education and training,

(iii) policy formulation, and

(iv) the co-ordination of the activities of the branches and members of the party."

The funding received is also deemed to include provision in respect of expenditure by qualified parties in relation to the promotion of participation by women and young persons in political activity.

The funding received may not be applied to, or to recoup, election or referendum expenses. During 2006, certain media reports suggested that Exchequer funding received by qualified political parties might be used to finance "pre-election" spending at the 2007 Dáil general election. "Pre-election" means expenses incurred on goods, property or services which are used prior to the dissolution of Dáil Éireann. The Standards Commission took the view that it was not appropriate to use funding received under the Electoral Act 1997 to finance any form of election spending at either the Dáil or Seanad general elections. It issued guidelines to this effect in November 2006 to each of the qualified political parties. These guidelines were also published on the website of the Standards Commission.

The guidelines stated that where it is evident from a Statement of Expenditure of Exchequer Funding that the funding had been used for electoral purposes, the Standards Commission would publish details of such use in its report to the Chairman of Dáil Éireann and would also inform the Minister for Finance that, in its opinion, an inappropriate use of the funding has occurred. It would then be a matter for the Minister for Finance to decide what action should be taken with regard to future payments of the Exchequer Funding received under the Electoral Acts to the party concerned.

The appropriate officers were required to state on their Statement of Expenditure of Exchequer Funding if the Allowance had been used for electoral purposes. Each of the six appropriate officers have stated that the funding was not used for electoral purposes.

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