Wednesday, June 1, 2011

No Ban on Corporate Political Donations

The Indo reports that there will be no outright ban on corporate political donations:
Contrary to the promises made by Fine Gael and Labour before the general election, Taoiseach Enda Kenny admitted the Attorney General advised the Government it couldn't bring in a blanket ban on corporate donations because it would result in "a serious constitutional challenge".

Instead, the law now seeks to put a limit of eur. 200 on non-individual political donations "unless the body has been registered with the Standards in Public Office."

I think this is a good move. I've blogged about this issue before here. Depriving those with skin in the game from participating in the political process is a bad idea for a variety of reasons. A sensible cap on the size of donations preserves the ability to participate while ensuring that those with the biggest purses don't exert disproportionate or undesirably excessive influence on political outcomes.