Chairman and members I thank the joint committee for agreeing to meet me to discuss the issue of spending limits at local elections.
Today's meeting builds on a very positive engagement by the committee in electoral and other matters since my appointment as Minister. In particular, I am conscious of the significant work of the committee on the register of electors. I know the committee has also been briefed recently by my officials regarding the Green Paper on local government reform, Stronger Local Democracy-Options for Change, which covers a wide range of issues, including the establishment of spending limits at local elections. I have no doubt that the level of ongoing engagement and interaction between us will help to advance the ambitious programme of electoral and local government reform set out in the programme for Government.
As members are aware, the Electoral Act 1997 is the principal instrument for regulating election spending. This landmark Act introduced limits on election expenditure as part of an integrated package of measures, including an element of public funding for political parties and a disclosure requirement for political donations above certain thresholds.
The spending limits, which have increased in line with inflation over the years, have operated in respect of Dáil elections, general elections and bye-elections, European Parliament elections and Presidential elections since 1 January 1998. These measures represented one of the most innovative and radical overhauls of our electoral system since the foundation of the State and have been strengthened over the years to bring greater transparency and accountability into spending by, and funding of, political parties, public representatives and candidates.
In particular, the 2001 Electoral (Amendment) Act introduced significant new requirements with regard to political donations, such as capping the size of donations, prohibiting foreign donations and requirements for a mandatory political donations account, with bank statements being furnished to the Standards in Public Office Commission. I fully endorse and support these measures.
Having said that, I am the first to acknowledge that, as implementation of the system has evolved, various issues have been raised by the standards office, the media and others, including political parties themselves, about aspects of the regulatory framework. I am conscious of the complexity of the system as it currently stands, as well as the issues that have been raised regarding its effectiveness as a whole. In this regard, the programme for Government commits to establishing an independent electoral commission to progress a significant programme of electoral reform and modernisation, including an examination of the issue of the financing of the political system. Everyone involved in the political system will recognise the scale of the task involved in rolling out this work. As a first step, I expect to receive shortly the report arising from an initial consultancy study commissioned by my Department relating to the establishment of an electoral commission.
On the specific issue before us, my concern at the absence of spending limits at local elections is a matter of public record. While details of expenditure, as well as donations over a very low threshold, must be disclosed, the current statutory requirements need, in my view, to go further. The programme for Government indicated that the issue would be examined in the Green Paper on local government reform. Submissions made in the course of preparing the Green Paper were generally supportive of some kind of expenditure limit. The paper outlines two main options: to introduce a fixed expenditure ceiling; or linking limits to a proportion of Dáil expenditure. The Green Paper refers to fears that control systems can be overly complex and introduce additional bureaucracy without commensurate benefits. Moreover, overly bureaucratic rules can militate against attracting new talent into the local government arena. The Green Paper proposes that we engage on a cross-party basis on this challenging issue and that is why I asked that we meet here today.
On how we might proceed to address this issue, a number of potential options can be identified. For example, the model adopted in the case of the 1997 Act as amended, for spending limits at Dáil and European elections, suitably adapted, could be applied to local elections expenditure for candidates at such elections. That approach, involving oversight by the Standards in Public Office Commission, which has proved to be a robust mechanism for ensuring compliance with spending and donation limits, has served us well for the past decade and is worth considering as a possible approach for local elections, with some necessary changes.
Alternatively, the option of giving additional functions to the local authorities merits consideration. Under the Local Elections (Disclosure of Donations and Expenditure) Act 1999 candidates and political parties are required to submit details of statements of all election expenses incurred at local elections to the relevant local authority. Candidates at the elections are also required to submit details of the donations received. Under that Act, local authorities are given the function of reviewing the statements received and are conferred with powers and functions similar to those performed by the Standards in Public Office Commission under the 1997 Act, as amended, regarding Dáil and European elections. This includes power to draw up and publish, to persons covered by the Act, guidelines relating to compliance with the Act and, on request from such a person, to give advice to him or her. There is also power to prosecute candidates or parties who fail to comply with the requirements of the Act. There may be potential to draw from the experience gained in the local elections in 2004 in the operation of this aspect of the 1999 Act and to explore the possibility of assigning similar functions to local authorities in respect of overseeing compliance with limits on donations and elections expenditure at local elections.
However, I have no preconceived ideas about what the best approach is to addressing the issues. That said, I do not think it would be beneficial to split the functions of both elections spending and donations between bodies. The oversight, compliance and enforcement role in respect of both issues should fall either entirely to the standards office or to the local authorities, in the interests of administrative efficiency. I would be interested to hear the views of the committee on these important issues.
Regulatory controls in this area must achieve the objective of a level playing field for all and must be underpinned by clear and simple rules capable of being complied with and enforced. Complexity and bureaucracy would inhibit rather than further our objective of transparency and accountability. In formulating a statutory framework for local spending limits we must also be conscious of the resources that will be required to implement it. It is against this background that the proposed spending limits and the mechanisms underpinning them will have to be fully teased out. The issues involved are detailed and complex, as we know from practical experience with the Dáil and other electoral codes.
This matter includes a number of core, often interrelated, issues. First, determination of the spending limits amount or amounts. Second, whether different amounts should apply to city and county councils and town councils. Third, the relationship between spending by national parties and spending by candidates. Fourth, the election period to which the spending limit applies. On this point, the Standards in Public Office Commission, in its contribution to the Green Paper process, suggested three months. The Labour Party, in its Bill published earlier this year, proposed nine months. Fifth, the regulatory authority — to which expenditure is to be reported — its functions and the powers that will be available to it. In this regard, there is the issue of scale. The number of councillors, at more than 1,600, far outnumbers Deputies, Senators, Members of the European Parliament, and so on. Furthermore, at the 2004 local elections, there were in excess of 3,200 candidates. This compares to 470 at the 2007 general election and 44 at the 2004 European elections. Similarly, with regard to constituencies, there are in the order of 270 local electoral areas compared to 43 Dáil and four European Parliament constituencies. Sixth, the detailed arrangements for disclosure and publicising of spending. Seventh, the timing of the coming into operation of any new arrangements. Reasonable advance notice is required for candidates about the requirements they will have to meet.
In coming before the committee today, I hope to engage with members on the issues I have outlined and to explore the scope for an all-party approach. I thank the members for their time and courtesy in meeting me today and I look forward to hearing their views.