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Hogan brings groundbreaking legislation before the Seanad

02/02/12


New Bill radically reforms political funding and includes a 30% gender balance requirement for political party candidates

The Minister for the Environment, Community and Local Government, Phil Hogan T.D., will today (2nd February 2012) open the debate in the Seanad on the Electoral (Amendment) (Political Funding) Bill 2011.

Speaking at Second Stage in the Seanad today Minister Hogan said: ‘Reform of political funding has been promised for years, and although the Government has been in office less than a year, we are now presenting another far-reaching and progressive piece of reforming legislation.  This Bill will significantly enhance the openness and transparency of political funding in Ireland.’

“This is one of the most significant pieces of legislation ever brought before the Seanad. The people of Ireland have a right to know how their political system and political parties are funded.  This Bill, when enacted, will fundamentally change the way politics is funded and conducted in Ireland. Corporate donations will be severely curtailed.  The books of political parties will be opened up to public scrutiny.  The maximum amount that can be accepted as a political donation will be more than halved and there will be greater openness, with significant reductions in the thresholds for the public declaration of political donations.  Other measures in the Bill provide for greater transparency by both donors and those in receipt of political donations. Excessive and secretive corporate funding of politics is corrosive to democracy and to public trust in politics.”

“The corporate funding of politics comes at a price above and beyond the value of any donations that are given and accepted.  It brings with it an unavoidable perception of a mutually beneficial relationship.  As we have seen in Ireland in recent years, this can have an incrementally corrosive impact on public trust in politics. This Bill will decisively shift the balance of the current political funding and regulatory system in favour of the citizen.  It will affirm the right in law to know how politics is funded, who is providing the funding and how that money is spent.”

“The Bill is also an important step towards achieving a significant improvement in the balance of representation in the Dáil between men and women.  When citizens of this country look at our national Parliament, they should see something more akin to their own reflection looking back at them.  This is not currently the case with 183 men and 43 women.  That’s hardly balanced representation.  The provision in the Bill is designed as an incentive mechanism to encourage political parties to apply a more equal gender balance in the selection of candidates.  It is a proportionate response to address a significant weakness in Ireland’s democratic system.”

“At the general election held in February 2011, 86 of the 566 candidates who sought election were women, representing 15.19% of the total.  If the Bill is passed the intended outcome will be to effectively double that figure to 30% within one general election cycle.  Provision is then made for this figure to increase from 30% to 40%, with a minimum of 7 years allowed for this change to come into effect.”

“The gender balance provision linking the State funding of political parties to candidate selection at Dáil elections has the potential to change the face of politics forever.  This is real change.  This is real reform.”

Ends.

Main features of the Electoral (Amendment) (Political Funding) Bill 2011

Corporate donations
The Bill published today provides that corporate donations of over €200 will be prohibited unless the donors meet the most strict and exacting conditions.  They will have to provide details of their membership and shareholders and copies of their accounts and annual reports to the Standards in Public Office Commission each year.  Details of donors will be included on a register to be published on the Commission’s website.  Each donation will have to be approved by a General Meeting of the members of the corporation or body.
These provisions will apply to all corporate and unincorporated bodies.  The provisions will apply to companies, partnerships, trade unions, trusts, co-operatives, societies, building societies, charitable organisations, non-governmental organisations, clubs, associations, and any other unincorporated bodies of persons.   In other words, all bodies and organisations other than natural persons.


Political donations
There will be a reduction in the limits on political donations that may be accepted.  These limits will fall from €6,348 to €2,500 for donations received by a political party.  For a candidate or elected representative the limit will fall from  €2,539 to €1,000.
There will be a reduction in the thresholds at which donations must be declared to the Standards in Public Office Commission.  For a political party the limit will fall from €5,078 to €1,500.  For a candidate or elected representative the limit will fall from €634 to €600.
Companies, trade unions, societies and building societies will have to report all donations over €200 in their annual reports.  Currently such bodies only have to report donations over €5,078.
The threshold for all other donors, other than companies, trade unions, societies and building societies, in reporting their donations to the Standards in Public Office Commission will also fall from a figure of €5,078 for aggregate donations given in the same year to an aggregate figure €1,500.

Audit and publication of political party accounts
The Bill will address the need for improved transparency in political funding arrangements by providing for the submission by political parties of financial accounts to the Standards in Public Office Commission.  This information will be published to facilitate greater transparency for citizens in knowing where political parties get their income, and where they spend their money.  Political parties that do not comply with these new requirements face having their State funding withdrawn. 

Gender balance provisions
As an incentive to encourage the selection of a greater number of women candidates, the new legislation includes a provision that political parties will face a cut of half their State political funding if they do not have at least 30% women and 30% men candidates at the next general election.  This will then rise to 40% after a further 7 years. Payments made to political parties under the Electoral Acts are linked to performance at a general election.  These new requirements will therefore apply in respect of candidates of political parties at a general election.

The Bill is available on the Oireachtas website.  www.oireachtas.ie

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