The Public Offices Commission has been forced to abandon attempts to count some spending by politicians during election campaigns, following the refusal of the Government to change legislation.
Yesterday, the commission finally ruled that the Labour Party had not overspent on its Dublin South Central by-election campaign in October, 1999, and during the Tipperary South contest in June, 2000.
Under the Electoral Act, 1997, the commission has power to force parties to keep campaign spending below £20,000 for each candidate in a five-seater constituency, £17,000 for each in a four-seater and £14,000 in a three-seater.
In March, 2000, it ruled that Dublin South Central winner, Labour TD Ms Mary Upton, had breached the £17,000 spending limit allowed by £257.62, and it referred the matter to the Director of Public Prosecutions.
Ms Upton's election agent, Mr Niall Connolly, argued that the overspend was caused because an office had to be rented and insured eight days before the official opening of the campaign.
A month later, the DPP decided not to prosecute. Mr Connolly's version of events was more correct, he found. The Electoral Act legislation, he said, was ambiguous and would be interpreted against the prosecution.
In its report yesterday, the commission admitted that its view had "differed" then, and now, from the DPP. The DPP's view would have "major implications" for its supervision of future election spending.
Based on its own legal advice, the commission had believed that anything that clearly identifies a person as a candidate, such as leaflets, must be counted as election spending, regardless of when they are used.
Following correspondence between the DPP and the commission, the Minister for the Environment and Local Government, Mr Dempsey sought the advice of the Attorney General, Mr Michael McDowell.
In a letter to the commission "within the last couple of weeks", the Minister wrote to say he would not amend Section 31 of the Electoral Act.
Yesterday's report from the commission makes clear it has reached its decision reluctantly and only because it accepts that no prosecutions were going to be launched.
In future, property, goods and services will be covered by the Electoral Act limits only if they are used during the election campaign, but regardless of whether they were bought before or after its beginning.
The issue of "when the clock starts" has dominated discussions between politicians and the commission.
Delighted by the announcement, Labour TD Mr Eamon Gilmore said Fianna Fail has tried for four months to portray the two cases as reasons for increasing the spending limits. "This claim was disingenuous and dishonest. It was little more than black propaganda, perpetrated by a Government on the run and desperate to try and muddy the waters. It has failed totally."
