British plans to deal Sinn Féin fundraising blow

Political parties in Northern Ireland are to be blocked from major fundraising abroad, the British government announced today.

The plans to close a loophole in the system could deal a huge blow to Sinn Féin’s money-making operations in the United States.

British parties are banned from accepting any donations above £200 (€295) from donors not based in the UK, but Northern Ireland has remained exempt.

Nationalists have argued that they depended on cash from the Republic and across the Atlantic.

But Northern Ireland minister John Spellar told Parliament today that the British government does not plan to renew the special arrangements when the order expires next February.

He said: “The (British) government recognises that the current funding arrangements lack transparency and that they are open to abuse.

“Moreover, the current regime creates clear differences between political parties in Northern Ireland on the one hand and those in the rest of the United Kingdom and in Ireland in terms of their access to funds.”

The announcement could cause a huge headache for Sinn Féin, which depends heavily on support from Irish-American sympathisers to fund party activities.

Unionist and conservative politicians have long opposed the different laws operating in Northern Ireland, claiming it gives republicans an unfair advantage.

Mr Spellar insisted the British government was fully aware of Northern Ireland’s special circumstances regarding the continuing fear of intimidation of donors.

He also accepted that the Republic had a special role in political life north of the border and pledged that the new arrangements would take these issues into account.

But he added: “Equally, however, there is a reasonable demand in many quarters for greater transparency and accountability.

“The (British) government is therefore inviting views of what new arrangements might be made within those objectives, and will aim to announce its decisions by the end of the year.”