FINANCIAL ASSISTANCE FOR POLITICAL PARTIES BILL
EXPLANATORY AND FINANCIAL MEMORANDUM
INTRODUCTION
- This Explanatory and Financial Memorandum has been prepared by the Northern Ireland Assembly Secretariat in order to assist the reader of the Bill and to help inform debate on it. It does not form part of the Bill and has not been endorsed by the Assembly.
- The Memorandum needs to be read in conjunction with the Bill. It does not, and is not meant to be, a comprehensive description of the Bill. Where a clause or part of a clause does not seem to require any explanation or comment, none is given.
BACKGROUND AND POLICY OBJECTIVES
- The Bill enables the Northern Ireland Assembly Commission to provide financial assistance to political parties for the purpose of assisting Members of the Assembly connected with such parties to perform their Assembly duties.
- The authority to pay party allowances fell with devolution. The Northern Ireland Act 1998 does not give such authority. This Bill will provide the authority.
- Financial assistance to opposition parties has been paid in the House of Commons since 1975. It is known as 'Short money' after the then Leader of the House of Commons, the Right Honourable Edward Short.
Options considered and selected
- Consideration was given to delaying repeal of paragraph 4 of the Northern Ireland (Elections) Act 1998 under which financial assistance was paid. This proved to be impracticable. No other legal means of providing assistance could be identified. A Bill giving authority to the Northern Ireland Assembly Commission to provide financial assistance was therefore deemed necessary. The alternative to the Bill is to do nothing.
Commentary on clauses
Clause 1: Financial Assistance for Political Parties.
This clause enables the Northern Ireland Assembly Commission to make payments to political parties in accordance with the provisions of a scheme in force under Clause 2.
Clause 2: Scheme for Financial Assistance
This clause sets out the requirement for the Assembly Commission to devise a new scheme for financial assistance to parties, as soon as is practicable. It sets out examples of the terms which a new scheme may include. The scheme does not come into effect until approved by the Assembly.
Clause 3: Transitional Arrangements
Clause 3 sets out the transitional arrangements which will apply until a new scheme is devised. The existing arrangements for funding of political parties as determined by the Secretary of State will continue in force with effect from the date of devolution and will remain in operation until a new scheme is adopted by resolution of the Assembly, or until 31 March 2000 whichever is the earlier. There is no provision for financial assistance for political parties after 31 March 2000 unless a scheme under the Bill is approved before that date.
FINANCIAL EFFECTS OF THE BILL
- The costs under the existing scheme will be £141,000 until the scheme runs out at 31 March 2000.
- The costs under the new scheme will depend on the contents of that scheme and cannot be qualified at this time.
- There is no effect on public sector manpower.
EFFECTS ON EQUAL OPPORTUNITIES
- The Bill has no direct or indirect impact on Equal Opportunities.
LEGISLATIVE COMPETENCE
- The Member in charge of the Bill, Mr John Fee has made the following statement under Standing Order 28 of N I Assembly Standing Orders:
"In my view, the Financial Assistance for Political Parties Bill would be within the legislative competence of the Northern Ireland Assembly."