Will Fianna Fáil ever learn? In the teeth of tribunal revelations concerning crooked politicians, bent businessmen and political donations, the Minister for the Environment, Mr Cullen, has signalled his intention to increase the amounts that can be raised through corporate funding.
The Minister has ignored significant increases in State funding for political parties and has spoken of there being "almost a duty" on business to support the political system. He has sought to justify his initiative by saying higher contributions would be "absolutely transparent."
Mr Cullen should pull the other leg. Nothing, other than Fianna Fáil's single-minded ambition for power, explains the step he proposes to take. Fianna Fáil needs more money to retain its advantage over other parties and to fund its ultra-slick election machine. And it wants the corporate sector to pay. The steps now being proposed run directly counter to the spirit of the 1997 Electoral Act which, for the first time, placed limits on spending by candidates and parties at election time and established disclosure limits for political donations. Since that Act was passed, both Fianna Fáil and the Progressive Democrats have waged a determined campaign against its provisions.
Last year, as a general election approached, the then Minister for the Environment, Mr Dempsey, increased the amounts of money that could be spent by candidates in their constituencies by up to 45 per cent. He also raised the disclosure limit for corporate donations to a party from £4,000 and capped it at £5,000. Candidates were allowed to receive maximum donations of £2,000, but had to disclose sums in excess of £500.
Many companies do not wish their donations to become public knowledge. And, because of an expected reduction in funding from the corporate sector in 2001, arising from disclosure provisions, the Government agreed to make up any shortfall. Funding under the Electoral Act increased from about €1.27 million in 1997 to €4.5 million last year. Money provided under a system of party leaders' allowances now stands at €5.5 million, compared to €3.3 million last year. Thus, the political system receives State funding of at least €10 million a year.
At the moment, the Flood tribunal is investigating a series of political donations made to local councillors, who plead their innocence. The sums are not particularly large. But, in the present climate, the public is likely to lean towards believing the worst, even before evidence is heard. In such circumstances, a cogent argument can be made for severing the financial connection between business and politics. Spending limits for elections are already extremely generous and State funding for the political process has increased dramatically in recent years. Political parties should be able to operate effectively within existing limits.
Public trust in the democratic system has been damaged by revelations linking corrupt businessmen and politicians. Increasing the level of corporate funding would be a backward step. Straightforward State funding, with individual donations from registered voters, is the way to go.