This week's policy U-turn by the coalition Government on aspects of the Electoral Act is to be welcomed in the interests of transparency and fairness. The decision not to repeal those aspects of legislation which, from January 1st, will provide State funding for political parties - while limiting expenditure at election time - may not have been taken for the best motives. But it is the correct decision. According to an official spokesman, a promise to change the legislation was abandoned because a Government voting majority could not be assured in the Dail. Rather than place the survival of the Fianna Fail/Progressive Democrats Government at risk by antagonising Independent TDs, the issue has been dropped.
The funding of political parties and the unhealthy relationship which existed between big business and past governments has been a source of public unease for many years. Allegations of a "golden circle", said to have existed in the late 1980s, were given some credence through a succession of business scandals.
More recent revelations by the McCracken Tribunal and the fact that two new judicial tribunals have been established by the Dail to examine the relationship between politics and business, should have convinced politicians long ago of the need for root and branch reform. But old habits and established systems die hard. Political parties are understandably reluctant to abandon advantages they once enjoyed in terms of raising and spending money at election time.
Arising from recent political scandals, all Dail parties accepted the need for a system under which business donations to political parties in excess of £4,000 must be disclosed. The limit was set at £500 for individual candidates. That section of the Act became law before the general election. Fianna Fail and the Progressive Democrats promised to repeal two other sections which would limit political spending at future elections and provide for State funding. From January 1st next, those parties which receive more than 2 per cent of the vote will receive State funding on the basis of their support. In addition, the receipted expenses of candidates will be paid - up to a ceiling of £5,000 - provided they receive one-quarter of a quota of votes. Placing a strict limit on spending at election time provides a more level playing pitch for all parties and for Independents, while making the need for private sector funding less emphatic. Because of excessive spending in the past, Fianna Fail was £3m in debt, while Fine Gael carried an overdraft of £1.5m. That was not a healthy situation for the parties or for democracy. The Electoral Act should help to prevent a recurrence.