Flow of business donations has not dried up for political parties

STORY OF THE WEEK/Political Contributions: Parties have been obliged by law since 1997 to declare all donations to the Standards…

STORY OF THE WEEK/Political Contributions: Parties have been obliged by law since 1997 to declare all donations to the Standards in Public Office Commission and business people giving more than €5,078.95 must be prepared to have their names published

Politicians and political parties received more than €4.5 million in donations during the last Oireachtas, according to a new analysis.

The largest beneficiary of donations from domestic sources was Fianna Fáil although Sinn Féin routinely declares receiving hundreds of thousands of euro from its US and Australian supporters.

Fianna Fáil's junior coalition partner, the Progressive Democrats, also receives business donations.

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The largest Opposition party, Fine Gael, banned donations in February 2001 when its leader, Mr Michael Noonan, was selected.

For its part, Labour's principal source of donations was from the trade union movement, SIPTU in particular. The party returned a €63,486.90 donation from Esat founder Mr Denis O'Brien, last year "because of its size".

According to a spokesman for Mr O'Brien, he offered the money "to support the democratic process". In 2000 he also donated €63,486.90 to Fianna Fáil, the Progressive Democrats and Fine Gael.

Donations of that scale are no longer permitted. Since the start of the year, total donations from an individual or corporation to a single party cannot exceed €6,348.69 each year.

It is in the wider context of scrutiny by tribunals and other inquiries that political parties have been obliged by law since May 15th, 1997, to declare all donations to the Standards in Public Office Commission. If fully declared, the donations are legitimate.

Still, certain transactions between business people and politicians remain under scrutiny at the Flood and Moriarty tribunals. But an analysis of the commission's reports reveals that the flow of cash has not dried up.

Since 1997, however, those giving more than €5,078.95 (£4,000) must be prepared to have their names published.

Individual TDs received €890,476.39 between 1997 and 2002. Their parties received €3.62 million in the same period.

Fianna Fáil received €194,615 from business in 2001. The party received €193,577.92 in 2000 and €257,464.78 in 1999.

It received €549,162.99 in 1998 and €312,118.8 in 1997. These sums were given to the party and they exclude donations to individual politicians.

The Progressive Democrats received €137,132 in 2001 and €82,861.84 in 2000. The party received no donations in 1999. In 1998, it received €6,348.69 and received €12,697.38 in 1997.

In closing off corporate donations, Mr Noonan's desire was to "restore trust in politics". Citing what he described as a "cancer" in the body politic, at that time he said: "This is due to the widespread belief that contributions from the corporate sector influence policy in favour of the interests of those who contribute to the detriment of the wider public."

But Fine Gael itself has been the beneficiary of corporate largesse. Leaving aside the disputed circumstances of a £50,000 payment from Telenor/Esat Digifone and the exposure of apparent payments to Mr Michael Lowry, the party declared donations of €63,486.90 in 2000.

In 1999 it received €18,845.45 and in 1998 it received €80,663.92. The party received €34,917.80 in 1997.

Those who gave money to the party included Irish Inter-Continenal Bank, Irish Distillers, Waterford Crystal, Ryan Hotels, Irish Life and Smurfit.

Mr Noonan's sentiments were dismissed by rival political sources. They say the only alternative to an outright ban on corporate funding is for the State to pay all the expenses of all parties.

In addition to disclosures about the finances of Mr Charles Haughey, senior Fianna Fáil figures such as Mr Ray Burke and Mr Liam Lawlor have seen their political careers fall apart amid the exposure of their affairs by the Flood tribunal, which is investigating payments to politicians in connection with the planning process.

For all that, many donations to Fianna Fáil in 2001 came from the building and property sector. It also received money from Renault Distributors and the Quinn insurance group that year. In 2000, donators included Anglo Irish Group, the C&C drinks group and Nissan Ireland.

According to the Standards in Public Office Commission records for 2001, Fianna Fáil received €7,618 from Airscape Ltd, an associate of Harcourt Developments.

It received €10,767 from Ballymore Properties and €6,349 from Cosgrave Developments. Durkan New Homes donated €9,828 to the party and Maplewood Homes gave €3,911. PJ Hegarty & Sons gave €5,587; building contractor Mr Patrick Kelly gave €6,603; and Rhatigan Developments gave €2,508.

Larger donations from the property sector came from Treasury Holdings and its associates, the Spencer Dock Development Company and Castle Market Holdings. They donated €21,432 to Fianna Fáil last year while the Spencer Dock company and Castle Market Holdings donated €15,875 to the party in 2000 and €16,637 in 1999.

Treasury, Castle Market and the Spencer Dock Company also gave €63,487 to the Progressive Democrats last year.

Treasury's Spencer Dock company has an agreement with CIÉ to develop 42.2 acres of its lands in the North Lotts area of Dublin.

However, a scheme of development prepared by the Dublin Docklands Development Authority (DDDA) has not yet been approved by the Minister for the Environment and Local Government, Mr Dempsey.

Asked about Treasury's donations, a spokesman for the company said: "They donate to mainstream political parties and it's without fear or favour."

Ryanair's chief executive, Mr Michael O'Leary, donated €63,487 to the PDs. Mr O'Leary has long sought bespoke facilities for his airline at Dublin airport.

The Tánaiste and PD leader, Ms Harney, declared the donation when the Cabinet agreed to ask Aer Rianta to develop a special pier at Dublin airport for the use of "low-cost" airlines.

The only donations to the Green Party in 1997-2002 were from its TDs and MEPs.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times