Author: Mark Coughlan

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.

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

I’ve been doing the maths on the expenses documents Gav published last week. An interesting exercise…

As reported by the Tribune, the three biggest expense claimants over the last four years were Ned O’Keeffe of Fianna Fáil, Fine Gael’s Pat Breen and the independent TD Michael Lowry, so I’ve been looking at them to begin.

Before I go any further I wish to say I’ll be getting the median claimant and doing something similar to this at a later date too, before any one tells me I’m a populist gobshite for picking the top three (I knew that already).

Messrs Breen, O’Keeffe and Lowry all claimed within €10,000 of €300,000 for the period covering 2005 to 2008, mainly for the same things, so for the purpose of this post I’ll won’t be differentiating between them. Additionally, Gavin has since received documents for 2003 and 2004 – which he’ll post when he gets a chance – so I’ll be including their details from those years here too. Therefore the following numbers could from FOI documents for 2003, 2004, 2005, 2006, 2007 and 2008 for Pat Breen, Ned O’Keeffe and Michael Lowry. Feel free to challenge my methodology, or attempt to use your own, but I’m fairly confident in my maths (while welcoming confirmation/correction from those more qualified in the field)…

All of this is on top of the their salaries of around €100,000 per annum.

Over six years they claimed €1,319,070.49 (€1.3m) between the three of them.

In an average year they each claimed €75,110.21 (Seventy five thousand one hundred and ten euro, and twenty-one cent).

That works out at €205.78 every single day, [Annual figure divided by 365].

Which equals €1440.46 per 7 days. [Daily figure multiplied by seven]

However, I know most years the Dáil sits just 96 days per year, so that means they claimed: €782.39 per sitting day. [Total figure divided by 3 then divided by 576 – which is 96 multiplied by six]

…but I also know TDs say they do crazy hours in their constituency. If I take it that they’ve worked every day except Sundays and the 9 public holidays for all six years, the figure is €247.07 per working day. [365 minus 52 (Sundays per year) and nine (Bank holidays per year), then multiplied by six, all divided into the total expenses figure of €1.3m, then divided by three]

Finally, I’ve calculated that if on every one of those days, (six days per week for six years, without exception – no holidays, no half-days, no sick leave) they worked for 12 hours, they’d be claiming €20.59 per hour. [€247.07 divided by 12]

Note: the minimum wage is €8.65. Jobs Seekers Allowance is around €200 per week. And as stated, the above is on top of large salaries.

What do you make of that? That’s some amount of phone calls, and some serious petrol and lunch bills if you ask me.

You can view the document I used to calculate these figures here.

Two things I’d like to know: Why did Ned O’Keeffe claim €675 just last year for an ISDN line. Those lines are out-dated and useless for nothing except radio interviews… and very rarely used for those as a phone line is almost always more than sufficient. They’re slightly quicker than dail-up for browsing the internet, and far slower than an off-the-shelf broadband package, what’s he using the line for so? It certainly doesn’t sound like he used it for the interview with Newstalk I drew attention to a few weeks ago. Remember? The one where he waffled about politicians being value for money and expenses keeping corruption to a minimum… I wonder if he’d appear on morning radio to defend his expenses now? Hmmm.

Also, what do the constituency offices of these three lads look like? They spent about €52,ooo each on their constituency offices between 2003 and 2008, the offices all must be century-old manor houses in need of constant maintenance if they cost that much to keep upright, surely?

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Footnote: The Sunday Tribune used the documents Gavin published here last week for their frontpage story and a double-page spread inside yesterday, taking the details to an audience larger than we could hope for here. Their report was followed up on RTÉ Radio too. I noticed BreakingNews.ie said “some newspapers” had reported the information, if you spotted them in papers other than the Trib, do let us know. In fact, if you notice what appears to be one of our stories in any media, whether we’re mentioned or not, throw us a mail [tips AT thestory DOT ie].

We’re not interested in invoicing or shaming those who don’t credit us (though we’re no fans of the latter), just in seeing how the information disseminates. Thus far we’re aware of mentions in the Sunday Times, Irish Times, Daily Mail, Sunday Tribune, Irish Examiner, and of course Gavin’s appearance on RTÉ’s Prime Time. Not bad for a project that only started seven weeks ago, but we’d like to keep track…