FF deputies press for ban on political donations by business

The Taoiseach, Mr Ahern, is facing pressure from Fianna Fail backbenchers to ban all corporate and business donations to political…

The Taoiseach, Mr Ahern, is facing pressure from Fianna Fail backbenchers to ban all corporate and business donations to political parties and election candidates.

The Laois-Offaly Fianna Fail TD and former financial director of the party, Mr Sean Fleming, has tabled a motion for Wednesday's meeting of the parliamentary party calling on the Government to introduce legislation banning all political donations from business.

Mr Fleming's motion also calls for full State funding of political parties and for a "sensible" system of disclosure of expenditure by political parties and election candidates.

According to Mr Fleming, he has received positive feedback from party colleagues, including Ministers, in relation to the motion which was tabled for last week's parliamentary party meeting but was not reached due to a busy agenda.

READ MORE

Two weeks ago Fianna Fail agreed on a new code of ethics which will place a limit on the amount of corporate money an election candidate can keep. Any amount above the limit will have to be handed to the party. The threshold is to be set by party trustees in the coming months and is likely to be in the region of £5,000.

Last night Mr Fleming said he had no problem with the new code. "That is dealing with the current situation where donations from the business sector are allowed. My proposal is a further advancement on this," he said.

He said the financial links between politics and business had given politics a bad name. "A significant aspect of every tribunal we have had in the last few years has involved tracing financial contributions from business to politicians."

Political parties would not be dependent on business donations if they were fully funded by the State, Mr Fleming added.

At the moment, the State funds political parties at £3 million a year; £2 million goes to the party leaders' allowance funds; and £1 million goes directly to the parties based on their vote in the last election. There is no full disclosure as to how this money is spent, Mr Fleming pointed out.

"I believe that for another £5 million you could fund all political parties adequately, cut out all business donations and have full disclosure."

Mr Fleming said he was very encouraged by the support for the motion he had received from colleagues in the past week.

Meanwhile, it was reported yesterday that the forthcoming Standards in Public Office Act will oblige politicians to produce a tax clearance certificate within months of their election.

According to the Sunday Business Post, the Bill is currently being drafted by the Attorney General's office and will impose heavy penalties for those found to be in breach of the regulations.

The Bill will supersede a proposal in the Fianna Fail code of ethics which states that election candidates should sign a pledge that they have complied with or are in the process of complying with their tax obligations.