Fahey opposes a ban on corporate party donations

The Minister for the Marine, Mr Fahey, has defended corporate donations despite a call yesterday for a ban on such donations …

The Minister for the Marine, Mr Fahey, has defended corporate donations despite a call yesterday for a ban on such donations from the Fianna Fail backbencher, Mr Brian Lenihan.

Mr Lenihan added his voice to the call for a ban to those of the Minister for Social Community and Family Affairs, Mr Ahern, the Fianna Fail chief whip, Mr Seamus Brennan, and Fianna Fail TDs Mr Sean Fleming and Mr Conor Lenihan.

Mr Brian Lenihan said the three main political parties were under obligation to particular interests because of the very substantial corporate donations in recent years. A perception had been created in the public mind, he told the Irish Examiner yesterday, that the recipients were under an obligation to those who gave them money.

However, when asked about the perception that favours were given in return for corporate donations, Mr Fahey said: "We operate with absolute integrity. If you want to go back to a State system, I don't think that is necessarily the best way to go."

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Mr Fahey was re-elected to the Dail in the 1997 general election after serving as a senator. "I know I would not have been reelected at the last election with out being able to open a full-time constituency office. I was a senator at the time. I asked friends who were business people for donations. Without that, I would certainly not be back in the Dail," he said.

The Minister said the donation process, as it existed, where donations over £500 to an individual politician and over £4,000 to a party must be declared, was open and transparent.

The Fianna Fail deputy, Mr Conor Lenihan, said he had always favoured a ban on corporate donations but believed the regulations covering donations from individuals were effective. "I believe that only individuals should be allowed to donate to political parties, and it is appropriate that donations over £500 be declared," he said.

However, he believed only a handful of other members of the Fianna Fail parliamentary party backed the call for a corporate ban. "This is one of the moves necessary in the current climate to restore some measure of confidence in the democracy."

His party colleague, Mr Billy Kelleher TD, said corporate donations should be allowed to continue but should be paid to a third party, who would register the donations and pass them on. Banning these donations would simply drive them underground, he said.

"If someone wants to do something untoward, there are other ways of giving money to people," he said.

Mr Derek McDowell, the Labour Party spokesman on finance, said he welcomed the public support from another Fianna Fail deputy for a ban on corporate funding.

"Clearly, politicians across the board realise that a ban on corporate funding is an essential component of any process to restore the credibility of politics. The Taoiseach has yet to give any credible explanation for his position and has even sought to hide behind bogus legal arguments that he refuses to publish," he said.