Irish politicians’ gravy train intact despite escalating debt burden

The proposed €120 billion plan proposed at the two-day summit in Brussels last night is relatively modest when compared to the National Debt of Ireland, which nos stands at  €129 billion

While the Government wrestles with its conscience about the phenomenal debt burden on Irish taxpayers’ and the implications of the personal insolvency of many of them, one facet of that burden which seems utterly immune from the conscientious distress of the Government is the quantum of taxpayers’ money paid to political parties and Independent members of the Oireachtas under the Electoral Acts.

The sums involved are additional to the very substantial tax-free payments in respect of the Parliamentary Standard Allowance, the Travel and Accommodation Allowance and the other direct supports provided through the Oireachtas Commission at a cost of €130 million in 2011. They are simply outrageous, unconscionable and, in a society bearing a cumulative exchequer deficit well over €82 billion and a titanic National Debt, unaffordable.

The standard of accounting is risible in the case of political parties and non-existent in the case of Independent politicians. The quality of oversight reporting by the politically-compromised Standards in Public Office Commission is opaque, shoddy, wretched, inconsistent and disregarding of basic accounting conventions.

Thanks to the bountiful munificence of Charlie McCreevy in 2001 political parties have been granted over €78 million of taxpayers’ money since 1 January 2007 under the authority of the Electoral Acts to meet reported expenditure of under €64 million with €14 million left in their balance sheets. Last year 29% of the €13.3 million paid to political parties was carried over to 2012, probably as a consequence of the vast sums spent paying a myriad of ministerial political advisers.

The scale of these payments escalated since 2002 by 47% in line with increases in public sector pay but it is most noteworthy that payments to political parties did not reduce when public sector pay reduced from 2009 onwards.

Do taxpayers really need to: pay Fianna Fáil €28,542 in respect of depreciation, (a non-cash charge); pay Fine Gael €18,657 to spend on ‘donations’; pay the Labour Party €44,000 to spend on ‘international affairs’; provide €28,700 to the Sinn Féin ‘national finance department’ and leave €90,000 in the balance sheet of The Green Party, which has no Oireachtas membership? [/over]

Fine Gael and Labour voted against the appointment of a politician (former Fianna Fáil minister, Michael Smith) in a Dáil vote on 19 December 2007 to membership of the Standards Commission, a curtain-raiser initiative of the Ahern Government that preceded the publication of tribunal reports. It is interesting that only 15 of the 73 TDs who supported that motion are in the current Dáil and they include the Chairman of the Public Accounts Committee, John McGuinness, Independent Deputies Noel Grealish, Finian McGrath, Mattie McGrath and Michael Lowry.

Both the Taoiseach, Enda Kenny and the Tánaiste, Eamon Gilmore,  participated in the Níl vote against that motion. If the Governing parties position in 2007 opposed the principle of a politician, or former politician, becoming a member of a commission whose mandate is to oversee the ethical standards of politicians and public officials’, why has this Government not already removed political influence from the Standards Commission, especially in the light of the tribunal reports’ findings and instructed it to improve the quality of its published reports rather than tolerating its interminable excuses for inertia and weakening moral authority?

Will the Government’s ambition to reduce the debt burden on taxpayers’ include a dramatic reduction in the amounts of State money paid to political parties to a level that is affordable and demand a more transparent and credible regime of accounting for this money, or does the Government merely intend to haunt society with threats, innuendo and rumours of more taxation, new charges and cuts in public services?

Political party State funding, a rich, rewarding gravy train

The scale of funding provided by taxpayers to political parties under the Electoral Acts and the Party Leader’s Allowance legislation, by any benchmark, is so outrageous, absurd, unaffordable and inadequately accounted for that political parties have become equivalent to bloated, featherbedded and State-dependent QUANGOs.

Figures recently published show that taxpayers provided €12.66 million last year to which a further €3.1 million was carried forward from 2010 bringing their spending capacity in 2011, courtesy of taxpayers’, to €15.77 million. They reported spending €11.88 million which means they brought forward €3.8 million to 2012; a 26% increase on the sum carried forward, unspent, from 2010, in an era of severe austerity, great personal sacrifice and massive cutbacks.
 
To put the scale in context, the British Government provided €8 million in 2011 to Opposition parties who successfully contested the 2010 general election for research support for front-bench spokesmen. The 2010 British general election consisted of a valid poll of 27.1 million votes. Our 2011 general election consisted of 2.2 million 1^st preference votes.

Despite the attachment of an auditor’s certificate the accounting for this money is pathetically obscure; devoid of candour and adequate transparency, notwithstanding the proximity of the Standards in Public Office Commission as overseer.

The Standards Commission advise that Fianna Fáil, for example, claimed to spend €28,542 on ‘depreciation’, a non-cash expense. Fine Gael spent €18,657 on ‘donations’. Labour spent €44,666 on ‘international affairs’. Sinn Féin spent €28,700 on its ‘national finance department’. The Green Party, with only 41,000 general election votes and without a single Oireachtas member, managed to spend €341,466 but have still brought forward over €90,000 to 2012. The pair of two-TD parties received so much funding that they are bringing forward almost €93,000 of unspent taxpayers’ money to 2012 leaving the four of them to eke out an existence on the €167,462 in tax-free travel, subsistence and Parliamentary Standard Allowances.

The People Before Profit Alliance spent just €1,000 on ‘pre-Budget research’ but over €7,500 on ‘travel and subsistence’, over and above the €20,000 their TDs collected in travel and subsistence to commute from the adjacent Dublin suburbs last year. The Socialist Party has obliged all taxpayers to pay €4,689 in respect of the production of Socialist Party publications. Independent members [/over] of the Oireachtas pocketed €713,885, free of income tax, without even an auditor’s certificate, or any obligation whatsoever to account for this money. Some of them tell us they donate their allowances to charity.

The Parliamentary Leader’s Allowance, which last year amounted to €7.2 million, is linked to pay increases in the civil service but the legislation does not compel a reduction in line with civil service pay cuts and the radical pruning of the public sector since 2009.

It is noteworthy, in the context of the statutory mandate that 30% of selected candidates in the next general election are to be female, that 1.4% of the €5.4 million provided to seven parties under the Electoral Acts was applied to the promotion of participation of women in political activity.

The foregoing expenditure is separate and distinct from the €6 million received, tax-free, directly by TDs in respect of the Parliamentary Standard Allowance and generous tax-free travel and subsistence allowances, which they receive when they turn up for the 100 days sitting of the Dáil each annum.

Spending last year on political parties is equivalent to an average of €1,311 for each 200 votes received by qualifying parties in the February 2011 general election. Political parties in Great Britain and the North are obliged to provide detailed annual audited accounts since 2003. The average overall subvention for each set of 200 votes won by qualifying parties in the last British general election in 2011 was €37.16, less than 3% of what Irish taxpayers are saddled with.

The ridiculous scale of political party spending in Ireland is also illustrated when the campaign cost of each vote cast, €4.17 in the 2011 general election is compared to the campaign cost of each vote cast in the 2010 British general election, €1.07.

Is there any other facet of the €52 billion in current expenditure that is spent by the Government so out of kilter with economic reality, where loose and ambiguous rules are tolerated and the standard of elementary accountability to stakeholders is so opaque?

How can the Irish Government, reform-minded and responsible for public expenditure, public sector reform and the adequacy of corporate governance standards look voters in the eye while this self-indulgent squandering orgy that is unnecessary and which is taking place directly under their collective nose?

The British political party subvention, incidentally, is restricted to Opposition parties with at least 2 MPs and more than 150,000 votes (0.55% of the national poll). It is based on three elements:

1. General funding of €18,600 per seat + €30,04 for every 200 votes

2. Apportioned travel expenses for Opposition parties subject to an overall limit of €204,000

3. A sum for the running of the Leader of the Opposition’s office

4. Salaries for three post holders: Leader of the Opposition’ Opposition Chief Whip and Assistant Opposition Whip

The Fianna Fáil constituency money and vote trail

This Friday marks the first anniversary of the 31st Dáil when the Fianna Fáil representation was reduced from 77 in 41 constituencies to 19 TDs in 17 constituencies and only the leader, Micheál Martin, achieved a personal quota in the ballot box.

While the Party faces horrendous problems in Dublin, where following the death of Brian Lenihan, it has been wiped out, there are very significant pockets of strength throughout the country which is reflected in votes and money generated within constituencies.

The following table summarises the votes achieved within the 17 constituencies that delivered a TD:

CONSTITUENCY	TD	Winner’s Votes	FF Quota
Carlow-Kilkenny	McGuinness, J	9,531	1.69
Cavan-Monaghan	Smith, B	9,702	1.21
Clare	Dooley, T	6,789	1.11
Cork NC	Kelleher, B	7,896	0.76
Cork NW	Moynihan, M	8,845	1.00
Cork SC	Martin, M	10,715	1.68
	McGrath, M	7,221
Donegal NE	McConalogue, C	6,613	0.70
Dublin W	Lenihan, B	6,421	0.83
Galway E	Kitt, M	6,585	0.90
Galway W	Ó’Cuív, E	7,441	1.26
Kildare S	Ó’Fearghail, S	4,514	0.97
Laois-Offaly	Cowen, B	8,257
	Fleming, S	6,024	1.61
Limerick	Collins, N	9,361	0.83
Limerick City	O’Dea, W	6,956	0.81
Longford-W’meath	Troy, R	4,275	0.97
Louth	Kirk, S	0	0.78
Mayo	Calleary, D	8,577	0.96
Wexford	Browne, J	7,352	1.11

Funding at the constituency level is in the form of an annual National Collection and an annual Superdraw.  There has also been an Election Draw, direct contributions and the proceeds of membership and cumann registration available to the Party nationally.

The following table summarises the estimated total income at constituency level between 2009 and 2011 and the general election expenditure by candidates. 

CONSTITUENCY	Estimated Income, 2009 -11  €	Constituency Expenditure – General Election 2011 €	Spend per Vote
Carlow-Kilkenny	51,523	51,265	€2.48
Cavan-Monaghan	124,768	39,253	€2.73
Clare	111,357	26,247	€2.05
Cork NC	19,890	19.905	€2.52
Cork NW	60,048	30,208	€2.65
Cork SC	34,151	40,907	€2.28
Donegal NE	22,867	19,213	€2.91
Dublin W	13,260	26,113	€3.71
Galway E	52,946	27,587	€2.58
Galway W	53,637	59,215	€4.66
Kildare S	16,805	19,430	€3.04
Laois-Offaly	123,200	46,062	€2.32
Limerick	77,944	17,033	€1.82
Limerick City	16,773	17,592	€2.53
Longford-W’meath	70,474	52,512	€4.69
Louth	55,192	50,231	€4.63
Mayo	67,614	30,921	€2.59
Wexford	67,430	41,717	€2.97

 

Fianna Fáil spent a total of €2,138,792 to obtain 387,358 votes in the 2011 general election.  Deputy Seamus Kirk, as a Ceann Comhairle of the 30th Dáil, was returned in Louth without contesting the election 

Fianna Fáil face titanic struggle in Dublin

The Fianna Fáil grass roots spent the weekend agonising how the party might be rebuilt.  The rubble that comprises its Dublin operation seems to be mortally wounded.

Dublin accounts for 807,000 of the nation’s 3.2 million voters – just over 25% of the total.  It accounts for 47 of the 166 Dáil seats and in the 2007 general election Fianna Fáil captured 19 of these with 196,029 first preference votes.  It achieved 67,836 first preference votes in last year’s general election and the late Brian Lenihan captured the party’s only Dublin seat.

The meltdown was pervasive and dramatic:

Constituency	1st Preference Votes 2007	1st Preference Votes 2011
Dublin Central	15,398	5,141
Dublin Mid-West	12,321	5,043
Dublin North	22,998	7,634
Dublin North-Central	16,029	5,017
Dublin North-East	13,864	4,794
Dublin North-West	15,124	3,869
Dublin South	25,298	6,844
Dublin South-Central	15,725	4,837
Dublin South-East	9,720	3,922
Dublin South-West	16,355	5,509
Dublin West	12,726	7,044
Dun Laoghaire	20,471	8,632
TOTAL	196,029	67,836

 

Fianna Fáil raised €820,726 in its national collection during the three-year period 2009-2011 and the Party’s twelve Dublin constituency organisations accounted for €4,669 of this.  Another source of finance is the Party’s Superdraw which raised €531,750 last year and the Dublin organisation accounted for €70,600 of this.

A reluctance to raise money did not stop Fianna Fáil spending a fortune in its Dublin constituencies last year.  The general election cost Fianna Fáil €2,138,792, equivalent to almost €107,000 per seat won – compared to €47,405 per seat won in 2007.

Constituency	Total Expenditure – General Election 2011, €	Spend per Vote, €
Dublin Central	€37,605	€7.30
Dublin Mid-West	€12,013	€2.38
Dublin North	€47,829	€6.27
Dublin North-Central	€20,185	€4.02
Dublin North-East	€17,761	€3.70
Dublin North-West	€22,156	€5.73
Dublin South	€33,545	€4.90
Dublin South-Central	€29,509	€6.10
Dublin South-East	€20,291	€5.17
Dublin South-West	€35,497	€7.02
Dublin West	€28,518	€4.05
Dun Laoghaire	€41,295	€4.78
TOTAL DUBLIN SPEND	€346,110	€5.10
FIANNA FAIL NATIONAL SPEND	€2,138,792	€5.52

 

Fianna Fáil generated income of €1.022 million last year from draws, national collection, donor contributions and membership fees.  But the taxpayer provided a further €1.3 million under the Electoral Acts and between 2007 and 2010 the Parliamentary Party Leadership Allowance added a further €31.88 million from the taxpayer – begging the question whether political parties in Ireland have effectively become semi-state bodies.

Micheál Martin’s ‘headache’

The article in the Irish Independent on 20 August, ‘Challenge for Martin as Lenihans’ opt out of the election’, asserts that this constitutes ‘a massive headache’ for Micheál Martin’s efforts to rid Fianna Fáil of its toxic image. Surely, this type of brazen nepotism would only appeal to the 15% of the electorate who supported the late Brian Lenihan. Martin’s fundamental challenge is to win the trust of the 85% of the electorate whose political gaze is elsewhere and he will need to do much more than merely preach to the choir in this endeavour.

The immediate and compelling challenge for Fianna Fáil is to sponsor a committed and sufficiently distinguished candidate to contest the Presidential Election. That ought to be a person with the capacity to inspire the trust, confidence and enthusiasm of the electorate; someone who can convincingly be described as the most distinguished Irish person of the current generation.

Half of the Irish electorate are under the age of 35 years. Most of this cohort has never voted in a Presidential Election. Our population has expanded by 850,000 since 1997. A substantial portion of the electorate were not even born in Ireland.

The clumsy and uncoordinated Fianna Fáil efforts to make a credible impact on the most important Constitutional Office of State are risible, especially when the competition is so lacklustre, taciturn and undistinguished.

The Presidency of Ireland is not a political party trophy even though Fine Gael and the Labour Party have treated the forthcoming contest as a facility to confer a distinguished honour on one of their own insiders. No party, or prospective candidate, has begun to explain the credentials to justify their high-flown ambition to be recognised as an eminent, world-class statesman. The response of the electorate to them, according to polls, is ambivalent and uncertain. There is every prospect that the Presidential Election will record a voter turnout no greater than the 47% recorded in 1997. The vitality and influence of the President will not be derived from electorate that is tepid.

Therefore, the next pragmatic step for Fianna Fáil is to provide the electorate with a candidate choice for President who is energetic and credible, untainted by the prevailing quagmire of toxicity and who reflects the voters’ aspirations, values and expectations.