Coalition U-turn on funding political parties

In a major U-turn, the Government is to proceed with the State funding of more than £2 million for political parties. It was forced to drop its pre-election promise to amend the provisions of the Electoral Act, 1997, when the three Independent TDs indicated that they would not support the Government.

Coupled with the obligation to disclose donations, the Act provides for payments to political parties and the reimbursement of election expenses of candidates. The payments are due to start from January 1st.

Commenting on the change of direction, the Government spokesman said last night that the Government had undertaken its promised review of the legislation and found there was not a majority in the Dail in favour of changing the rainbow coalition's measure. He also signalled that a sounding of Independent TDs had disclosed they were in support of the Act.

A Progressive Democrats spokesman said that since the passage of the Bill, no PD public representative had sought to repeal the legislation. The Government still had reservations about elements of it.

Under the State funding provisions of the Act, which were vehemently resisted by Fianna Fail and the PDs in opposition, the Central Fund would make payments to each political party organised throughout the State to contest Dail elections and whose candidates obtained not less than 2 per cent of the first-preference votes at the preceding general election. Payments will begin from January 1st and continue until the ensuing general election.

The total payments to be made in any year, under this provision, would be limited to £1 million.

Candidates in a Dail election, who obtain sufficient votes to exceed one-quarter of the quota, will also be eligible to claim recoupment of their expenses up to £5,000. Payment will not be made until a statement of expenses is furnished by the candidate's election agent. These payments, according to Section 21 of the Act, will become operative from January 1st, 1998.

Welcoming the Government decision not to amend the Electoral Act last night, the Labour spokesman on the environment, Mr Brendan Howlin, said that when he first introduced it, Fianna Fail was less than enthusiastic while the PDs were openly hostile.

Most of the parties represented in the Dail, including Sinn Fein, the Green Party, Democratic Left and the PDs, would qualify for an allocation from the £1 million payment to political parties since they obtained "not less than 2 per cent" of the first-preference vote in the June general election.