Political parties are notoriously slow to explain exactly how they are funded. Elaine Byrneasked Fine Gael for access to its accounts and the party agreed.
In their election expenditure report, published just before Christmas, the Standards in Public Office Commission established that the three-week period before the 2007 general election cost political parties and candidates over €11 million.
This is a misleading figure. We do not know what the real cost of the election was or where the money came from. For many candidates the campaign spending began two years before polling day, not three weeks.
Currently, political parties and candidates do not have to provide an annual statement of accounts to the commission. There is no statutory obligation to declare the total cost of their overall election campaign.
Approximately €10.9 million of the €11 million figure was in undisclosed fundraising. Under the current disclosure limits, political parties do not have to disclose donations under €5,079. There is a limit of €6,349 to what can be donated in any given year by the same donor.
In response to these questions and to demonstrate that it had nothing to hide, Fine Gael provided The Irish Times with copies of their 2005 and 2006 annual accounts. Their 2007 accounts will be filed early in the new year and it is understood that these figures are similar to the 2005 and 2006 figures.
The figures cited here relate to the 2006 accounts; figures for 2005 are comparable. The legislation distinguishes between candidate and party expenditure, therefore these figures relate only to party finances.
In 2006, the party received almost €3.5 million in Oireachtas grants. These monies cannot be used for election purposes.
Fine Gael general secretary, Tom Curran, has confirmed that the two years leading up to the election cost the party approximately €4 million. Of this, €1.14 million was spent in the three weeks before June 11th.
Fine Gael borrowed €2.25 million to finance the election. It anticipates that this debt will be cleared before the 2009 local and European elections from monies raised through its national draw.
The party fundraised €1.48 million in 2006; this was up from the €1.37 million raised in 2005. These monies are specifically for campaigns and elections expenses such as the leader's tour, national posters, PR, focus groups, polling, literature and other related election costs.
Fine Gael's fundraising is primarily membership driven: two-thirds of its income derives from party affiliation fees and the annual national draw.
Membership fees from its 35,000 members provide an income of €323,189. The national draw is the party's biggest earner at €1.4 million. The net profit to the party after draw prizes and general expenses is €644,783. A further €612,796 is returned to the constituencies for election purposes. This rebate is not included in the overall party income because it is specifically for candidates and not the party.
All the party's donations are below the €5,079 disclosure limit, and total just €28,382 or 2 per cent of overall income. Contributions by the parliamentary party to the "party fund" are double this at €53,000.
Fine Gael organised three corporate dinners in 2006 at an average of €2,000 a head. This contributed to 14 per cent of overall income - just over €200,000. The London, Dublin and Cork golf classics netted €100,905. The annual presidential dinner made €72,892. Other sources of finance included the annual ladies lunch, ardfheis fundraising, a constituency dinner and a "night at the dogs". These four events contributed in total €50,837.
Tom Curran says the party would have been "quite happy" if the 2002 election spending limits had remained unchanged for 2007. Spending limits were increased shortly before the 2007 election was called.
Cork South-Central Senator, Jerry Buttimer and Dublin Central Senator, Pascal Donoghue, were first-time candidates in the last election.
Buttimer believes the three-week statutory limit is too short, overall spending should be capped and State funding for election financing should be introduced. His election funding derived from personal savings, his SSIA and small constituency fundraisers.
Donoghue gave up a senior position at Procter and Gamble six months before the election to focus full time on his campaign. In doing so he relinquished a substantial salary and generous health and pension rights. He funded his campaign from family contributions, personal savings and local fundraising.
Both Senators maintained they made enormous personal and financial sacrifices. They believe an unfair perception exists regarding how campaigns are funded. They say those who donate to political parties are stigmatised by assumptions of attempts to gain improper influence. The system of election funding is inherently flawed and not working. The standards commission, political parties and representatives clearly believe this to be so. Indeed the only thing that the current structure of election financing contributes to is the extensive undermining of public trust.