Minister Howlin publishes legislation in relation to allowances paid to leaders of qualifying political parties and qualifying independent members, and in relation to the abolition of severance payments to Ministers and certain other Oireachtas Office Holders.
The Minister for Public Expenditure and Reform, Brendan Howlin T.D., has published legislation in relation to allowances paid to parliamentary leaders of qualifying political parties and to qualifying independent members of Dáil Éireann and Seanad Éireann, in respect of expenses arising from parliamentary activities, including research. The Bill also includes provision for the abolition of severance payments for current and future holders of certain Ministerial and Parliamentary Offices upon cessation of Office in accordance with the Programme for Government.
The Bill provides for a 10% reduction in the rates of the allowance, with a saving of €0.84 million and for changes to improve the effectiveness and transparency of the allowance by providing for improved reporting and auditing provisions than currently apply to parliamentary leaders. These auditing provisions will also apply to independent members in receipt of the allowance.
The Minister stated: “The State has for many years supported members of the Oireachtas as they carry out their parliamentary activities. That is the right thing to do as long as the funding is appropriately applied, and seen to be so.”
The Bill renames the allowance which was formerly called the Party Leaders Allowance to the Parliamentary Activities Allowance to better reflect the purpose of the allowance. In addition to the reduction in rates and the new auditing provisions, the Bill also makes several changes including requiring the repayment of unspent amounts, a time limit of six (6) months under which arrears of allowances due may be paid, and for civil service decreases in remuneration, as well as increases, to apply to the allowance.
The Bill expands the role of Standards in Public Office Commission in relation to the allowance and provides for inspection powers and, for the purpose of providing practical guidance on the application and operation of the allowance, for the preparation and publication of guidelines by the Commission.
The abolition of severance payments will ensure that current and future holders of such Offices will not receive such payments at the end of their term of Office.
The Bill and Explanatory Memorandum are attached.
ENDS
22 October, 2013
Notes for the Editor:
The Party Leaders Allowance is provided for in the Oireachtas (Ministerial and Parliamentary Offices) Act, 1938, as amended, including most recently, by the Oireachtas (Ministerial and Parliamentary Offices (Amendment) Act, 2001.
The allowance is paid to the parliamentary leader of a qualifying party in relation to expenses arising from the parliamentary activities, including research, of the party. Payments are made in respect of members of the party elected to Dáil Éireann and members elected/nominated to Seanad Éireann at the last preceding general election, or a subsequent bye-election or, in the case of Seanad Éireann, nominated to it after the last preceding general election. The conditions governing entitlement to payment of the allowance are set out in the Act. The primary restriction in the Act on the use of the allowance is that it may not be used in respect of election expenses.
The legislation also provides that payments may be made to a member of Dáil Éireann, who at the last preceding general election or at a subsequent bye-election was elected as a member other than as a member of a qualifying party. A similar provision applies for independent Senators.
The 2001 Act gives a statutory oversight role in relation to the Party Leader’s Allowance to the Standards in Public Office (SIPO) Commission. This requires each party leader to prepare a statement of expenditure for the allowance, to have it audited by an independent auditor and furnish it with the auditor’s report to the Commission. Based on the accounts submitted, the Commission is required to make a report to the Minister in relation to the use of the Party Leader’s Allowance and cause a copy of the report to be laid before the Oireachtas. Allowances paid to Independent members are not currently subject to these oversight provisions.
The Bill published today reduces the rates of the allowance by 10% and improves the transparency and accountability of the allowance by providing for improved auditing to apply to parliamentary leaders of qualifying parties and for the same requirements to be extended to independent members in receipt of such payments.
Severance Payments to Officeholders
In line with a commitment given in the Programme for Government, the Minister announced, as part of Budget 2013, that the payment of severance payments to Officeholders was to be abolished.
Currently a person’s entitlement to a severance allowance commences on the day after s/he ceases to hold the relevant Office, and the allowance is payable for a period equal to the period during which the person has been continuously in Office (i.e. without any break in service) prior to such cesser, subject to a limit of 2 years. The Offices currently eligible for severance payments are:
An Taoiseach, An Tánaiste, Minister, Minister of State, Attorney General, Ceann Comhairle, Leas Cheann Comhairle, Cathaoirleach of the Seanad, Leas Chathaoirleach of the Seanad and Leader of the Seanad.
Severance payments are calculated as 75% of salary for 6 months, 50% of salary for the next 12 months and 25% of salary for the balance up to a maximum of 6 months (i.e. maximum of 1 year’s salary). Pension is not payable during a period when severance is in payment.
The abolition of these payments will take effect immediately following the enactment of the legislation. Consequently, any officeholders serving at that time will not receive them on leaving Office.