01/06/04 - Report on expenditure of the Party Leaders Allowance (2003)

PART 2 Relevant provisions of the legislation

To assist a better understanding of the statutory requirements, the Standards Commission considers it useful to set out, in this part of the report, an account of the relevant legislation.

Section 1.10 (1) of the Act 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.

A qualifying party is defined in the Act as a party registered in the Register of Political Parties which contested the last preceding general election or any subsequent bye-elections and which had at least one member elected to Dáil Éireann or elected or nominated to Seanad Éireann at that general election or at any subsequent bye-election.

The allowance is calculated for each parliamentary leader by reference to the number of members of the party elected to Dáil Éireann at the last preceding Dáil general election or at a subsequent bye-election, or elected or nominated to Seanad Éireann at the last preceding Seanad general election or nominated to it after the last preceding general election.

In 2003, the allowance in respect of members of Dáil Éireann was €53,266 per member for each of the first 10 members elected, €42,612 per member for each member elected from 11 to 30 members and €21,311 for each member elected over 30 members.

In the case of members of the Seanad, the allowance was €34,829 per member elected or nominated for each of the first 5 members and €17,415 for each member elected or nominated over 5 members.

Independent members of Dáil Éireann received an allowance of €30,649 and independent members of Seanad Éireann received an allowance of €17,415. Such members are not required to furnish to the Standards Commission a Statement of Expenditure in relation to the allowance.

Section 1.10(2) of the Act provides that if a qualifying party forms part of the Government, the combined allowances in respect of its members of the Dáil, only, will be reduced by one-third.

Section 1.10(5) of the Act provides that an allowance shall not be used for, or to recoup, election or poll expenses incurred for the purposes of an election or poll held under various Electoral Acts, European Parliament Elections Acts, Presidential Elections Acts, Referendum Acts or Seanad Electoral Acts.

Section 1.10(6) of the Act provides that the allowances are not liable to income tax.

Section 1.10(10) of the Act provides that where the members of a qualifying party agree to dissolve the party and to amalgamate with, or all its members join, another specified qualifying party, the members of the Dáil and Seanad of the former party will, from the date of dissolution, be deemed to be members of the specified other party for the purpose of payment of the allowance.

Section 1.10(11) of the Act assigned new functions to the Standards Commission, in relation to payments made from 1 January 2001, and provides that,

1) party leaders must prepare, or cause to be prepared, not more than 120 days after the end of the financial year in which an allowance has been paid, a statement of any expenditure from the allowance. The statement must be audited by a public auditor and must be submitted with the auditor's report to the Standards Commission within the 120 day period;

2) the person who was the parliamentary leader of a party and the person who succeeds him or her may agree in writing that a statement of expenditure from the annual allowance paid to a former parliamentary leader shall be included in the next statement of his or her successor;

3) the Standards Commission may, if it considers it appropriate, consult with the parliamentary leader on any matter contained in the statement of expenditure;

4) the Standards Commission must:

(i) consider the statement and auditor's report,

(ii) if necessary, consult with the party leader on any matter contained in it,

(iii) 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;

5) the Standards Commission must cause a copy of the report to the Minister for Finance to be laid before each House of the Oireachtas;

6) a copy of the statements and auditors' reports must be retained by the Standards Commission for three years and must be available for public inspection and copying.

Section 1.10(12) of the Act provides that an allowance shall not be paid to the parliamentary leader unless the statement of expenditure and auditor's report have been received by the Standards Commission not more that 120 days after the end of the financial year (i.e. by 30 April). The period of 120 days is extended by any period for which the Dáil stands dissolved which coincides with that period.

Section 1.10(14) of the Act provides that "expenses arising from the parliamentary activities, including research" include expenditure on the following matters:

(a) the general administration of the parliamentary activities of a qualifying party,

(b) the provision of technical or specialist advice likely to be required in connection with legislative proposals or potential parliamentary initiatives,

(c) research and training,

(d) policy formulation,

(e) the provision of consultant services, including the engagement of public relations services,

(f) polling or public attitude sampling in connection with parliamentary debates or initiatives,

(g) the purchase of support services for a parliamentary party from the party,

(h) the payment to a parliamentary leader of any salary or honorarium in respect of duties arising from his or her activities as such leader as distinct from those of a member of Dáil Éireann or a holder of a Ministerial office,

(i) the payment to another person of any salary or honorarium in respect of duties arising from the person's activities in a parliamentary party,

(j) the provision for, or recoupment of, transport and personal expenditure incurred by a parliamentary leader, officers or a parliamentary party spokesperson as a result of their parliamentary party function,

(k) entertainment.

Section 1.10(13) of the Act provides that the Minister for Finance may, by regulation, extend the above list after consulting the parliamentary leaders and after considering any report made by the Standards Commission.

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