Oireachtas Expenses (1)

WILL nobody stop the political gravy train? With the country up to its eyes in debt, it is disgraceful that 26 Independent senators and TDs are receiving annual allowances of thousands of euro at the taxpayers’ expense — utterly unvouched and untaxed.

Described as a "party leader’s allowance", the payment was introduced by ex-finance minister Charlie McCreevy during the Celtic Tiger era with the aim of offsetting the disadvantage Independents had against powerful party machines. Whatever about justifying the principle of this allowance, the fact that it remains unvouched and untaxed is unconscionable.

The latest revelation has been aptly described as the best kept political secret for some time, and is certain to heighten demands for the abolition of the Seanad. Despite Taoiseach Enda Kenny’s 2009 pledge to axe the upper house, it continues to roll down the track on its extravagant way.
As a result of the handout, 12 Independent senators are each getting an allowance of €23,382 a year (€280,584 total per year), while 14 Independent TDs receive €41,152 each (€576,128 total per year). One further independent TD is eligible for the payment but does not claim it.

According to political rules, such as they are, the money must not be used for electoral purposes but rather to meet expenses for activities like public relations or research. The big difference is that political parties enter the allowance in the books and it is therefore subject to audit in the normal way.

But when paid to Independent deputies and senators, it goes straight into their pockets. They are not required to vouch for how it might have been spent, or even if it is not spent at all as originally intended.

This allowance comes on top of the Seanad salary of €65,621 a year, bringing the combined income of an independent senator to just under €89,000. Significantly, the travel, overnight or subsistence expenses of senators are not included in this figure. Travel expenses were central to the political scandal that surrounded Senator Ivor Callely who is no longer a member of the Seanad. The allowance payment brings the income of an Independent TD with a basic salary of €92,672 up to €133,824 (again excluding travel, overnight and subsistence allowances).

That the McCreevy dig-out for Independents has gone unvouched, unaudited and untaxed is absolutely scandalous. This is taxpayers’ money. The kid-glove approach to Seanad finances is in stark contrast with the heavy-handed treatment of old-age pensioners at the hands of the Revenue Commissioners and is utterly unacceptable.

When he promised to abolish the Seanad and reduce the number of TDs by 20 almost three years ago, Mr Kenny reckoned it would save "an estimated €150 million over the term of a Dáil". Now that he is Taoiseach he has the power to do it. The sooner it is done, the better. But the immediate priority must be to ensure that allowances of this kind are vouched for, justified, audited properly and fully taxed in the public gaze.

Additionally and to reflect on the Ivor Callely case, it could well be argued that the constituency which each TD or Senator represents is their 'Permanent Place of Employment' and that Leinster House is a 'Remote Location' each representative must work from occassionally (this really is stretching Revenue rules), therefore there is no justification whatsoever for TDs to be using 'Summer/Holiday Homes' or 'Family Homes' where parents or siblings currently or previously resided to pump up their travel claims. Additionally it would be worth auditing historic Oireachtas accounts to ensure that those who have claimed travel allowances were not also allocated a Government Car and Garda Driver.

The Healy-Rae telephone voting debacle was another cover-up where The Oireachtas covered for its own. By all reports from that time, the quantity of automated calls reported (and reimbursed by Healy-Rae Junior were from a specific period (48 or 72 hours) and were merely a fraction of the total number of calls made. As Healy-Rae is an Independent TD he also receives the €41K uplift and would have one of the highest travel claims within the Oireachtas due to his constituency location. However the bigger question is "what exactly does Healy-Rae contribute" - South Kerry Constituency could lose a TD and nobody would notice. 

This sordid affair is yet another example of politicians making rules for politicians. Allowing taxpayers’ money to be used as a form of unvouched expenses will further deepen public cynicism at the failure to effect meaningful change in a political system that regularly reflects all the worst excesses of a banana republic.

What other perks are Oireachtas members granting themselves which we have yet to discover. It is time for an independent audit of Oireachtas Expenses and Perks both in terms of what they are and what is being claimed. A full UK stype audit of historic personal expense accounts is required and the DPP needs to prosecute any clear fraud - Dail attendance records need to be compared to expense claims etc etc.