FF debt 'no justification' for donation rule change

Fianna Fáil's post-election financial difficulties offer no justification for increasing the amount of money businesses can contribute…

Fianna Fáil's post-election financial difficulties offer no justification for increasing the amount of money businesses can contribute to parties, says the Opposition.

The latest criticism of Minister for the Environment Mr Cullen's intention to increase donation limits follows allegations that Fianna Fáil is €1.5 million in debt following last year's general election. Although the figure is believed to be reliable, Fianna Fáil refused to confirm it yesterday: "We never comment on the financial state of the party," said a spokesman.

Labour TD Mr Eamon Gilmore said: "There is absolutely no case for changing the law to allow for increased donations to political parties from the corporate sector, simply to get Fianna Fáil out of a financial hole of its own making."

The Fianna Fáil €1.5 million debt offered "a significant context" for Mr Cullen's "surprise announcement" that he is planning to increase the corporate donations limits.

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"If Fianna Fáil is in financial difficulties, it is a problem of their own making. They introduced legislation in advance of the last election that increased by up to 50 per cent the amounts that candidates could spend.

"This allowed Fianna Fáil to spend close to an extra €1 million. Then, in an effort to circumvent the spending limits that apply only during the election campaign itself, Fianna Fáil indulged in a massive pre-campaign spending splurge."

Many observers believed that pre-election spending could have cost €3.5 million - only slightly less than the amount the party spent on three weeks of the campaign itself, according to Standards in Public Office Commission figures.

"It now appears that Fianna Fáil wants to fillet the entire 1997 Electoral Act that was introduced by the Labour Party to provide a more level playing pitch between the political parties.

"Fianna Fáil was always hostile to the Act. Since coming back to government in 1997, they have chipped away at its provisions and now Minister Cullen has indicated that he wants to start again with a clean sheet."

Meanwhile, the Fine Gael leader, Mr Enda Kenny, said the Minister's proposal was easily explained by the party's debt. "Minister Cullen has claimed that his concern for the taxpayer is behind this proposal, but this reveals his real motivation.

"The Taoiseach should immediately reject the Minister for the Environment's plan to allow unlimited corporate funding of political parties. The issue should not be allowed to fester.

"This Government has manipulated the Freedom of Information Act to protect its decisions from public scrutiny. It must not now amend the electoral acts to allow a small number of corporations or individuals to bankroll next year's elections," he said.

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times