Expenditure of the Party Leaders Allowance (2009)

Statements of Expenditure and Public Auditors' Reports, in respect of 2009, furnished to the Standards in Public Office Commission, pursuant to Section 1.10(11)(a) and Section 1.10(11)(d) of the Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act 2001

Report by the Standards in Public Office Commission to the Minister for Finance in accordance with Section 1(10)(11)(e) of the Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act 2001.

Foreword

I am pleased to furnish this report to the Minister for Finance in accordance with section 1.10(11)(e)(iii) of the Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act 2001 (the Act). The Statements of Expenditure and Public Auditors' Reports referred to in the report were furnished to the Standards in Public Office Commission (the Standards Commission) pursuant to sections 1.10(11)(a) and 1.10(11)(d) of the Act.

Justice M. P. Smith
Chairman

Part 1 - Introduction

1.1 The Oireachtas (Ministerial and Parliamentary Offices) (Amendment) Act 2001 provides for the payment of an annual allowance to the parliamentary leader of a qualifying party in relation to expenses arising from the parliamentary activities, including research, of the party. This allowance is known as the Party Leaders Allowance.

1.2 This report concerns the Statements of Expenditure of the Party Leaders Allowance for the year 1 January 2009 to 31 December 2009 furnished to the Standards Commission by the parliamentary leaders of the six political parties qualified to receive the allowance in 2009.

1.3 A qualifying party is defined in the Act as a political 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. Following the general election of 2007, the parliamentary leaders of six political parties are qualified to receive the allowance.

1.4 The allowance is calculated for each parliamentary leader by reference to the number of members of the party elected to Dáil Éireann or elected or nominated to Seanad Éireann. If a qualifying party forms part of the Government, then the combined allowances in respect of its members of the Dáil only is reduced by one-third. This reduction applied to the allowance received in 2009 by Fianna Fáil, the Green Party and the Progressive Democrats. The Progressive Democrats received payments for the first three months of 2009 only.

1.5 The Standards Commission has a supervisory role in relation to expenditure of the allowance. It must receive and consider statements of expenditure of the allowance and to consult, if necessary, with the parliamentary party leaders on matters contained in their statements. The Standards Commission must furnish a report to the Minister for Finance on the statements received by it and to lay a copy of its report before the Houses of the Oireachtas. It must also facilitate the inspection and copying of the statements furnished to it.

Part 2 - Statements of Expenditure furnished by the Party Leaders

2.1 Background
Section 1.10(11) of the Act provides that parliamentary 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 this 120 day period. Section 1.10(12)(a) of the Act provides that an allowance shall not be paid unless the statement and auditor's report have been received by the Standards Commission not more than 120 days after the end of the financial year to which the statement and auditor's report relate.

2.2 The parliamentary leaders who were required to furnish a statement to the Standards Commission were:

• Mr Brian Cowen TD, Fianna Fáil.
• Mr Enda Kenny TD, Fine Gael.
• Mr Eamonn Gilmore TD, Labour Party.
• Ms Mary Harney TD, Progressive Democrats.*
• Mr John Gormley TD, Green Party.
• Mr Caoimhghín Ó Caoláin TD, Sinn Féin.

*Although Senator Ciarán Cannon was the parliamentary leader of the Progressive Democrats from April 2008, section 1.10(1) of the Act provides that the allowance shall be paid to a member of Dáil Éireann. The allowance, therefore, continued to be paid in 2009 to Deputy Harney. Mr Brendan Malone of Malone Power & Co., Chartered Accountants furnished the statement in respect of the Progressive Democrats.

2.3 A Statement of Expenditure/Public Auditor's Report was received by the Standards Commission from the parliamentary leaders of all five qualifying parties, and the PD representative, within the specified period (i.e., by 30 April 2010).

2.4 Section 1.10(11)(e) of the Act provides that the Standards Commission must consider each statement and auditor's report furnished to it and, if necessary, consult with the parliamentary leader on any matter contained in the statement.

2.5 Parliamentary party leaders are required to state on their Statement of Expenditure of the Party Leaders Allowance if the allowance has been used for electoral purposes. Each of the parliamentary party leaders, and the PD's representative, has stated that the allowance was not used for electoral purposes.

2.6 The Standards Commission must furnish a report to the Minister for Finance on the statements and auditors' reports received indicating:

1. whether the statements and auditors' reports have been submitted within the specified period,
2. whether any expenditure is disclosed which does not comply with subsection 1(10)(5) of the Act,
3. whether the statements are adequate, or
4. whether the statements are inappropriate.

2.7 The Standards Commission, having considered the Statements of Expenditure/Public Auditors' Reports, is now satisfied that:

1. the Statements of Expenditure were received within the specified period
2. the Statements of Expenditure do not disclose any expenditure which does not comply with section 1.10(5) of the Act,
3. the Statements of Expenditure are adequate, and
4. the Statements of Expenditure are not inappropriate.

2.8 The Standards Commission is required to lay a copy of its report to the Minister for Finance before each House of the Oireachtas. A copy of the statements and auditors' reports received must be retained by the Standards Commission for three years and be made available for public inspection and copying. The Statements of Expenditure/Public Auditors' Reports furnished to the Standards Commission may be inspected and copied by members of the public at the offices of the Standards Commission, 18 Lower Leeson Street, Dublin 2. The information is also available, in summary form, at http://www.sipo.gov.ie

2.9 Details of the allowances paid to the parliamentary leaders are shown in Table 1 of the Appendix.

2.10 Table 2 of the Appendix shows the breakdown given by each political party of expenditure of the allowance during 2009.

Part 3 - Party Leaders Allowance during 2009 and current rates of payment

3.1 Section 11A of the Ministerial and Parliamentary Offices Act 1938 (as inserted by the Ministerial, Parliamentary and Judicial Offices and Oireachtas Members (Miscellaneous Provisions) Act 2001) provides that the allowance shall increase in line with general Civil Service pay increases. There was no increase in the Party Leaders Allowance during 2009. The Act is silent in relation to general pay reductions in the civil service.

3.2 Section 8A of the Ministerial and Parliamentary Offices Act 1938 (as inserted by section 11 of the Oireachtas (Allowances to Members) and Ministerial and Parliamentary Offices (Amendment) Act 1973) provides that the Government may, by order, increase the allowance. (Increases made by an order of the Government generally reflect increases awarded under Reports of the Review Body on Higher Remuneration in the Public Sector.) During 2009, no such increases to the allowance were made by Ministerial Order.

3.3 As of 31 December 2009, therefore, the allowance paid to parliamentary party leaders in respect of members of Dáil Éireann was as follows:

• €71,520 per member for each of the first 10 members elected,
• €57,214 per member for each member elected from 11 to 30 members and
• €28,616 for each member elected over 30 members.

3.4 As of 31 December 2009 the allowance paid to parliamentary party leaders in respect of members of the Seanad was €46,766 per member elected or nominated for each of the first five members and €23,383 for each member elected or nominated over 5 members.

3.5 As of 31 December 2009, non-party members of Dáil Éireann received an allowance of €41,152 while non-party members of Seanad Éireann received an allowance of €23,383. Non-party members of Dáil or Seanad Éireann are not required to furnish to the Standards Commission a Statement of Expenditure in relation to the allowance.

Table 1

Details of funding available to the Parliamentary Leaders of Qualified Political Parties under the Party Leaders Allowance during 2009

* Where funding in respect of a particular year is not spent in that year, it must be accounted for in the statement(s) for the year in which it is actually spent.
** Returned to the Department of Finance

Table 2

Breakdown given by each political party of expenditure of the allowance during 2009

Categories of expenditure

(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.