Funding & Quotas

Political Funding

The Electoral (Amendment) (Political Funding) Act 2012 amends he Electoral Act 1997, the Local Elections (Disclosure of Donations and Expenditure) Act 1999 and the Electoral Act 1992 to provide for:

• a ban on the acceptance of donations over €200 for political purposes from a corporate donor unless the donor has registered with the Standards in Public Office Commission;
• the establishment of a register of corporate donors which shall be published;
• a reduction in the maximum amount that can be accepted as a donation by a political party, an accounting unit of a political party or a third party from €6,348.69 (£5,000) to €2,500;
• a reduction in the maximum amount that can be accepted as a donation by an individual (elected representative or election candidate) from €2,539.48 (£2,000) to €1,000;
• a reduction in the threshold at which donations must be declared by a political party to the Standards in Public Office Commission from €5,078.95 (£4,000) to €1,500 and by an individual from €634.87 (£500) to €600;
• a reduction from €5,078.95 (£4,000) to €200 in the threshold at which donations must be reported by companies, trade unions, societies and building societies in their annual reports or returns;
• a reduction in the threshold for donors other than companies, trade unions, societies and building societies, in reporting donations to the Standards in Public Office Commission, from a figure of €5,078.95 (£4,000) to €1,500 for aggregate donations given in the same year;
• an obligation on all registered political parties to prepare an annual statement of accounts and an auditor’s report which is to be submitted to the Standards in Public Office Commission for publication. State funding provided to a political party shall not be paid in the event of non-compliance with this provision.

The Act cut by half, political parties’ State funding received under the Electoral Act 1997 if they dis not have at least 30% women and 30% men candidates at the next general election (2016). Seven years from the general election where this provision first applies, this will rise to 40% commencing at the general election held next after that . There will therefore be a minimum of 7 years between the 30% and the 40% provision applying.

Donations

The Electoral Act 1997 legislates for the disclosure of donations given for political purposes and the regulation of spending at Dáil, Seanad, European Parliament and Presidential elections by political parties, candidates and third parties. Monetary amounts can be varied by an order made by the Minister, having regard to any change in the Consumer Price Index.

The 2012 Act reduces the maximum amount that can be accepted as a donation by a political party, an accounting unit of a political party or a third party from €6,348.69 (£5,000) to €2,500. It also provides for a reduction in the maximum amount that can be accepted as a political donation by an individual from €2,539.48 (£2,000) to €1,000. This €1,000 limit applies in respect of donations to a member of either House of the Oireachtas or a Member of the European Parliament, as well as a candidate at a Dáil, Seanad or European Parliament election.

There is a ban on the acceptance from a corporate donor of a donation in a particular year, the value of which exceeds €200 unless the corporate donor is registered with the Standards in Public Office Commission, and the donation is accompanied:

• in the case of a company, body corporate or unincorporated body, by a statement confirming that the making of the donation has been approved by a general meeting of the company or body concerned; or,
• in the case of a trust, by a statement made by a trustee that the donation is in accordance with the deed of the trust concerned.

There is an exemption for a provider of a programme of education and training or a students union where such a body makes a payment to a student society or club.

Registration of Donations

There are provisions for the registration with the Standards in Public Office Commission of a corporate donor intending to make a donation for political purposes of over €200 in a given year. The Standards in Public Office Commission maintains a register of corporate donors.

Specified information and documentation is to be submitted by a registered corporate donor to be made available for public inspection at theCommission’s offices with a summary version of the register to be published on the website of the Commission. Registration is on an annual basis with those wishing to remain on the register being required to renew their registration annually.

The thresholds at which donations must be declared to the Standards in Public Office Commission were changed by the 2012 Act:

• by a political party from €5,078.95 (£4,000) to €1,500;
• by an individual (a member of the Oireachtas or the European Parliament, or a candidate at a Dáil, Seanad or European Parliament election) from €634.87 (£500) to €600;

It an offence to accept a donation from a corporate donor unless that body has both registered with the Standards in Public Office Commission and declared that the donation has been properly authorised. It is an offence for a corporate donor to knowingly furnish information that is false or misleading.

Above €200, donations made by companies, trade unions, societies and building societies must be reported in their annual reports and returns.

An Presidential election donation statement to include information on all donations above €600 . This level also applies to Dáil, Seanad and European Parliament elections.

The maximum value of a donation that can be accepted by a candidate, agent or third party at a Presidential election was reduced under the 2012 Act.. The maximum amount that can be accepted by a candidate or agent was reduced from €2,539.48 (£2,000) to €1,000. The maximum that can be accepted by a third party was reduced from €6,348.69 (£5,000) to €2,500.

The same provisions apply in respect of the acceptance of corporate donations at a Presidential election,Dáil, Seanad and European Parliament elections and to political parties.

There are offences and penalties’ in connection with donations and election expenses at a Presidential election. It is an offence to accept a donation from a corporate donor unless that body has both registered with the Standards in Public Office Commission and declared that the donation has been properly authorised. It is an offence to knowingly furnish information that is false or misleading in this context.

A political party must appoint an ‘‘appropriate officer’’ for the purposes of compliance with certain requirements under the 2012 Act. The ‘‘appropriate officer’’ has additional responsibilities in connection with the preparation and submission of a political party’s annual statement of accounts.

Local Elections (Disclosure of Donations and Expenditure) Act 1999

The Electoral Act 1997 legislates for the disclosure of donations given for political purposes and the regulation of spending at Dáil, Seanad, European Parliament and Presidential elections by political parties, candidates and third parties, the equivalent provisions in respect of local elections are set out in the Local Elections (Disclosure of Donations and Expenditure) Act 1999.

The 2012 Act reduced the threshold for the declaration of donations by an unsuccessful candidate at a local election from €634.87 (£500) to €600. The same declaration threshold as applies to individuals (a member of the Oireachtas or the European Parliament, or a candidate at a Dáil, Seanad, European Parliament or Presidential election).

The 2012 reduced the maximum value of a donation that can be accepted by a member of a local authority or candidate at a local election from €2,539.48 (£2,000) to €1,000, and by a political party or third party from €6,348.69 (£5,000) to €2,500.

The same provisions apply in respect of the acceptance of corporate donations at local government level as apply to political parties,holders of elected office, and candidates at Dáil, Seanad, European Parliament and Presidential elections. The monetary amounts may be varied by an order made by the Minister, having regard to any change in the Consumer Price Index.

The 2012 Act lowers the threshold at which donations to members of local authorities must be declared by members in their annual donations statement, from €634.87 (£500) to €600. There are equivalent provisions and ‘offences and penalties’ in connection with donations and election expenses at local government level. It is an an offence to accept a donation from a corporate donor unless that body has both registered with the Standards in Public Office Commission and declared that the donation has been properly authorised. It is an offence to knowingly furnish information that is false or misleading in this context,
in connection with these provisions.

Political Parties — Disclosure of Accounts

All registered political parties must prepare an annual statement of accounts and an auditor’s report to be submitted each year to the Standards in Public Office Commission for publication. The format of the accounts is to be based on guidelines prepared by the Commission, in consultation with political parties and approved by the Minister. In the event of non-compliance with these provisions, funding made available to political parties by the State under Part 3 of the Electoral Act 1997 is to be withheld.

Payments to a qualified political party shall not be made unless the political party concerned furnishes to the Standards in Public Office Commission an annual statement of accounts and an auditor’s report that comply with the guidelines published by the Commission.

The appropriate officer of a political party to keep, or cause to be kept, books of accounts to enable the annual statement of accounts to be prepared. Provision is made for the books of accounts to be preserved by the appropriate officer for a period of 6 years. The appropriate officer of a political party shall prepare an annual statement of accounts for each financial year.

The accounts of a political party must be audited by a public auditor within 6 months of the end of the financial year. The first accounts required to be audited will be in respect of the financial year which commences after the guidelines under the 2012 Act are published. The annual statement of accounts and a copy of the auditor’s report shall be furnished to the Standards in Public Office Commission within six months of the end of the financial year to which they relate. The Commission may at the written request of the appropriate officer extend this period by 14 days.

The 2011 Act provides that the maximum amount that can be reimbursed to a candidate at a presidential election is €200,000. It also sets out the qualifying criteria and the administrative arrangements for the making of payments. Statutory Instrument No. 442 of 2004 set the reimbursement level at €260,000 and specified the related administrative arrangements.

The spending limit at a presidential election shall not exceed €750,000. The Minister may, by order, vary the spending limit and level of reimbursement of expenses that apply at a presidential election in a manner similar to existing provisions that apply in respect of elections to Dáil Éireann and the European Parliament.

SIP Report

The Standards in Public Office Commission is to furnish a report to the Chairman of the Dáil, having considered the statements of accounts and auditor’s reports. Provision is made for procedures to be followed where the Commission is of the opinion that the annual statement of accounts does not comply with the guidelines.
The Standards in Public Office Commission is to prepare and publish guidelines for the keeping of proper books of accounts. The Commission is to consult with political parties on draft guidelines. The draft guidelines are then submitted for the consent of the Minister before being published and coming into force.

The Standards in Public Office Commission makes the annual statement of accounts and an auditor’s report for each party available for public inspection and for publication on the Commission’s website.

State Funding and Gender Balance

The 2012 Act amends the Electoral Act 1997 to provide that unless at least 30% of the candidates of each political party at the previous general election were women and at least 30% were men, then payments from the State to the political party concerned under Part 3 of the Electoral Act 1997 would be reduced by 50%. Seven years from the general election where this provision first applies, this will rise to 40% commencing at the general election held next after that. There will therefore be a minimum of 7 years

The gender of a candidate may appear on a nomination paper. The Returning Officer will in turn provide this information to the Minister for the Environment, Community and Local Government. There are provisions to facilitate the provision of information to the Minister on the number of candidates of each gender that have contested a general election. This is to enable a determination to be made on the amount of funding to be paid to each ‘‘qualified party’’ that is to receive State funding under Part 3 of the Act of 1997.

Disclosure of Donations

The 2013 Act provides for the application to political parties of the same information requirements in respect of the disclosure of donations that apply to elected representatives and election candidates. Political parties shall also include in their annual donation statement furnished to the Standards in Public Office Commission, the date on which a donation was received, whether the donation was requested from the donor and, if so, the name of the person who requested it and whether a receipt issued to the donor and, if so, the date on which the receipt issued and the name of the person who issued the receipt.