THE Government has been advised it cannot proceed with the Bill providing £2.6 million in (funding for political parties because it could be unconstitutional.
The legal advice, sought by the Attorney General's Office, was sent to the Government recently.
Attempts are now being made by the Minister for the Environment, Mr Howlin to redraft the Bill to bring it in the parameters of the Constitution.
The Electoral Bill, 1994 providing for "limited public funding" of political parties, with total annual payments of £1 per vote has been stalled at Committee Stage since the Supreme Court judgment in the case taken by the Green Party MEP, Ms Patricia McKenna, in the divorce referendum campaign last November.
The court found the use by the Government of public money to fund a campaign designed to influence voters in favour of a Yes vote was an interference with the democratic process.
A petition, taken by the former senator, Mr Des Hanafin, is currently being considered by the Supreme Court. It seeks the nullification of the results of the divorce referendum on the same grounds.
Following the McKenna case, it is understood the Attorney General, Mr Dermot Gleeson, sought outside legal advice to determine if it was permissible for the State in the Electoral Bill, to fund political parties. That legal advice, recently received, was negative.
The Attorney General's Office was advised that the Government could not proceed with the Electoral Bill in its present form on constitutional grounds. But it was also suggested that it could be possible to fund political parties if the Bill was changed.
It is believed the central problem with the Bill, as proposed, is that it would unbalance the democratic process by using public money to discriminate in favour of parties already elected against those seeking to be elected to the Dail.
Sources could not confirm yesterday if it is now the Government's intention to withdraw the Bill.
The prospect of its introduction later this year has set all parties off on fund raising campaigns before disclosure becomes obligatory. The Labour Party's recent controversies surrounding (the Minister of State, Ms Fitzgerald, and the chairman of the Independent Radio and Television Commission, Mr Niall Stokes, were part of such a campaign.
Under the present Electoral Bill, Fianna Fail would receive an annual payment from public funds of £988,000 Fine Gael £878,000 Labour £472,000 the Progressive Democrats £152,000 Democratic Left £95,000 and the Green Party £19,000.
The other provisions of the Electoral Bill regulating party, constituency and individual expenditure are believed to be constitutional. They require parties to disclose donations worth more than £4,000 and individual TDs and candidates to reveal contributions of more than £500.
The term "donation" is defined as including the value of property, goods or services provided free of charge or at reduced cost as well as monetary contributions. Contributions to fund raisers must also be taken into account.
If State funding of political parties does not materialise, it is likely the consensus between the Government and Fianna Fail parties setting limits on election expenditure will collapse.
