The Dual Abode Allowance

The Examiner scooped me on Monday morning with their lede about the dual abode allowance, a story billed as a “revelation“.

I’d be working on-off on a piece on the DAA since August having heard it was racket for non-Dublin ministers.

To briefly explain: The Dual Abode Allowance is open to ministers and ministers of state from constituencies outside Dublin. It’s an income tax deduction which they can claim in a number of ways, depending on where they say they stay whilst attending the Dáil. There are no details on who avails of it, Revenue Commissioners cite “personal taxpayer confidentiality”, and several FOIs have been bounced in the last decade for the same reasons. So we know little of which ministers benefit from it, or to what extent. It’s rarely reported on due to this derth of information, though journalists and politicians know it’s there, and due to its quiet nature, it could be abused. It’s not a secret, if you ask someone relevant – even a politician –  about it and they’ll admit it exists – it’s not the Delta Force of allowances, as some may have you believe*.

It works like this; if a minister or minister of state has a second home in the capital they can claim an allowance on the mortgage for that property and on the costs of maintaining it. The maintenance costs must be vouched, unless they wish to opt for a flat-rate allowance of €6,500 (nice option, huh?). Furthermore, if the property is purchased while they’re in office they can claim for the full costs of the solicitors and auctioneers fees involved.

Ministers who rent accommodation can claim allowance for the full rent that plus maintenance costs, or a flat-rate of €4,500 per annum.

Lastly, if they’re using a hotel or guesthouse while in Dublin they can claim for the full cost of staying there, plus “additional costs associated with maintaining a second residence in a hotel” (whatever they may be, in a hotel – considering they can claim subsistence expenses generally also). A relative or friend’s house may constitute a guesthouse.

18 office holders availed of the allowance in 2005, 15 in 2006 and 16 in 2007, according to documents volunteered in August to me by the Revenue Commissioners after a brief phone call. A follow up email resulted in them supplying totals from 2002, 2003 and 2004 also. I’ve put all that documentation into one file, it can be viewed here and includes breakdowns for 2005, 2006 and 2007, which may interest some. That is the same information Shaun Connolly used for his story on the front of Monday’s Examiner, which was followed up on Tuesday and Wednesday. As he correctly points out, the cost over five years to the exchequer was just more than €550,000.

While that may seem a large figure in its own right, I didn’t think much of it upon receipt of the information. At least 18 different ministers, over three years, an average of circa €5,000, it’s not going to bring down the house – sure, the Leinster House lads spend that in a weekend at the races. I thought there may have been more to it than simply the €550,000 number, so I went looking.

I took the names of cabinet ministers who could avail of allowance and their wives names to the Land Registry to see if any of them owned property in Dublin. After checking out the results, I had drawn a bit of a blank (such is journalism; shadows, cul de sacs etc) so I tried cross referencing a few bits and pieces.

I gathered the names of every person who had occupied a minister or minister of state’s position in since 2004 and began some serious Microsoft Excelling. When I had the list of names I added their constituencies to see how many would have been able to claim the allowance each year. This wasn’t as simple as it may sound, reshuffles meant 2 ministers occupied one post in the same year. The results of the cross referencing can be seen on sheet two of this document:

  • 24 could have claimed DAA in 2004 – 13 did.
  • 23 in 2005 – 18
  • 24 in 2006 – 15
  • 28 in 2007 – 18

The numbers of claimants were not supplied for the other years, so it could not be calculated.

2005 had the smallest differential between claimants and possible claimants, so I worked on that to try and discover who exactly was claiming the allowance that year. I found this article by Harry McGee from last year in The Irish Times archive which gave me some more info. McGee reported that Noel Dempsey and Dermot Ahern travel home each night after the Dáil, making it logical to assume they don’t claim the allowance.

That reduces the differential to 3… two of the possible claimants, Barry Andrews and Mary Hanafin, are from Dun Laoghaire, which is easily within driving distance of the Dáil (particularly when you’ve a ministerial car and driver), so it may be fair to assume they don’t sleep in the city when the Dáil is in session. Assuming they don’t claim leaves one non-claimant from 2005 that we don’t know about. Taking it that a minister claiming the allowance in 2005 has continued to do so, we can logically conclude that all bar one of the following is claiming DAA:

Mary Coughlan, Brendan Smith, Martin Cullen, Eamon O’Cuiv, Willie O’Dea, Batt O’Keeffe, Micheal Martin, Dick Roche, Tony Killeen and Michael Finneran.

However, that relies on the taking Dermot Ahern and Noel Dempsey assertions that they travel home as a statement that they don’t claim the allowance and the assumption the two Dun Laoghaire representatives don’t claim.

In the end I got nothing unexpected, sometimes you chase stories and get nothing, no regrets.

Of course, the real story would be if Brian Cowen was still claiming it for his apartment behind the Four Courts, while having use of Farmleigh as Taoiseach. That was what I ultimately wanted to discover, unfortunately I didn’t have the resources to do so. Someone should consider asking An Taoiseach that question…

Note: A TD is claiming whilst not using the property personally – e.g. allowing a son or daughter to use the property while attending college in Dublin – is what is referred to in the UK as ‘house flipping’. And we know what happened when MPs admitted to that

Footnote A: I am aware there is an FOI being appealed on further details of the DAA at present.

Footnote B: It was still worth going after the bigger story to get scooped on the smaller one.

Footnote C: Enda Kenny has said he will abolish this allowance if he becomes Taoiseach; populist rhetoric of which I believe not a word. But I’ve taken note.

* now that you know about the uber-secret allowance, I will have to kill you.

http://www.irishtimes.com/newspaper/ireland/2008/0421/1208468931904.html

4 thoughts on “The Dual Abode Allowance”

  1. I’m almost certain Dick Roche travels back to Wicklow every evening.
    If you remember the time he was kidnapped at Druid’s Glen, there was reference at the time to him being on the way from his home to Dublin and stopping off there for a swim.

Leave a Reply

Your email address will not be published. Required fields are marked *