Restrictions look set to be introduced to the controversial party leaders' allowance system. The government is to seek new audit requirements to the scheme which allows Independent TDs and Senators to receive thousands of euros in personal and unvouched funding from the exchequer.

In a Public Accounts Committee report published last night, the Department of Public Expenditure and Reform said Minister Brendan Howlin would bring proposals to Government on amending the legislation that underpins the allowance.

A public accounts committee heard last year that nearly €7.5 million was paid out under the system in 2011.

Independent TDs got almost €40,000 and Independent Senators about €23,000 on average in unvouched payments in 2011.

Industry Correspondent with the Irish Times is Martin Wall. He explains why this happened.