Foreign donations to Áras hopefuls banned by watchdog

Foreign donations will be banned and individual contributions to candidates limited to €1,000 under draft guidelines for the presidential election.

The ethics watchdog rules also pave the way for the major political parties to back Michael D Higgins through services, offices, or facilities.

With the official race now under way, the draft rules will be scrutinised by the estimated 11 hopefuls trying to get on the ballot paper for the October 26 presidential election.

The Standards in Public Office Commission (Sipo) guidelines, obtained by the Irish Examiner, outline rules for election agents, banned and allowable donations, spending limits, and election expenses, as well as penalties for any breaches.

Stipulations around donations for candidates include a ban on foreign donations, where that person resides outside Ireland or by a corporation or body that has no offices here.

Anonymous donations exceeding €100 also are not allowed.

The maximum amount of money a presidential candidate can receive from an individual is €1,000 while the same limit applies to a political party donation.

If a political party, other than a candidate’s own, donates to their campaign, it must be registered as a corporate donor.

Furthermore, parties can offer their services, including offices or the use of an individual’s car without these being considered as election expenses.

The rules mean that Fine Gael, Fianna Fáil, and Labour, whose TDs and senators have agreed to back Mr Higgins for a second term at Áras an Uachtaráin, can offer services or facilities without them being counted as expenses.

Taoiseach Leo Varadkar has already said he is more than willing to provide Fine Gael resources and money for the outgoing president’s campaign. Labour has also confirmed it could do the same, while a number of officials with party links are expected to join Mr Higgins’ election campaign team.

The guidelines state that cash donations for candidates cannot be more than €200.

Loans borrowed from individuals by candidates must be treated as bank or financial institutional borrowings and should be subject to similar interest rates, state the guidelines.

The rules on donations and loans could have ramifications for candidates unable to source large amounts of money or resources.

Senator Joan Freeman, founder of Pieta House, has said she cannot mortgage her house like rival Gavin Duffy and will have to rely on donations.

Sipo is expected to publish the final presidential race expense and donation rules this week.

€750k spending limit for presidential race

- Maximum spending limit for candidates is €750,000 (unchanged since 2011). This includes Vat.

- Each candidate shall appoint a presidential election agent to account for expenditure on their campaign.

- A donation, as defined under legislation, includes money, property or goods, supply of services, promoting a candidate, and contributions to fundraisers.

- Holders of elected/public office must note that facilities provided to them — for example, prepaid envelopes, stationery, office accommodation, telephones — are provided solely for their own use for public representational purposes and use for electoral purposes must be accounted for as expenses.

- Where publicly funded property, services, or facilities are used for the election, the cost must be reimbursed. Examples could include stationery, phones, staff time, and cars.

- Candidates who are holders of elected/public office may be required to communicate with the electorate during the election period. Where costs are met from public funds, it is necessary to differentiate between use of public resources in carrying out their representative business and use of public resources for electoral purposes.

- Support not regarded as donations include a free service by an individual, such as their car or phone. Company cars must be counted as a donation.

- Other issues not regarded as donations include the support of a political party worker. Expenses paid by party for a candidate are not considered a donation.

- A non-financial institution loan given to a candidate must be agreed in writing and at a rate reflecting the interest charged by a lender.

- Acceptance of an anonymous donation exceeding €100 is prohibited. Cash donations of more than €200 are banned.

- A candidate or election agent must not accept a “foreign donation”, given by an individual outside Ireland or by a foreign-based corporate body.

- The maximum donation from a particular person is €1,000. This limit applies to a donation from a party.

- If a political party, other than the candidate’s own, donates an amount in excess of €200, they must register as a corporate donor. This means Fine Gael and other parties will have to register as such to donate to Michael D Higgins’ campaign.

- A candidate must, within 56 days of polling day of October 26, furnish an election donation statement.

- Staff that take annual leave and work voluntarily on a candidate’s campaign will not be considered an election expense.

- Parking and litter fines are not considered as election expenses.

- The use of a political party’s offices is not considered as an election expense. However, the costs of heat, light, and telephones are election expenses.