Seanad debates

Wednesday, 13 May 2009

Corporate Governance: Motion

 

7:00 pm

Photo of Brendan RyanBrendan Ryan (Labour)

I thank the Minister of State for his contribution to this debate. He has spent much time in this House in recent weeks.

Members spoke about a range of measures needed to restore confidence in our economic and political systems. As Senators Hannigan and Prendergast pointed out, in the current economic climate failure to act is not an option and the sooner we clean up our act the better. The Government needs to take a lead in good governance by stamping out political patronage. The same people keep cropping up on State boards and semi-State companies. The former Taoiseach, Deputy Bertie Ahern, unashamedly said he appointed people to boards on the basis of friendship. Until we adopt a system whereby ministerial appointments to State boards and semi-State companies are based on merit, public bodies cannot function to their full potential and accusations of cronyism will remain valid.

Senator Hannigan has previously called for the Seanad to have ratification powers for public appointees, which I support. Considering the Seanad is seeking more powers in response to public criticism, then a scrutiny role over matters such as this fits the bill. It would create greater public confidence in both the Seanad and the public appointments process. It is recognised that politics must not have a role in public appointments. However, the current system is about ensuring an unacceptable continuance of party influence in the public sector.

Senator Quinn referred to the Labour Party's efforts over the past ten years to introduce whistleblower's protection legislation. This is an essential element of transparent governance, be it in the public service, the private sector or the Government. Whistle blowing has already led to the establishment of tribunals inquiring into planning and Garda corruption. Often those in a position to blow the whistle cannot because they fear being victimised and losing their jobs. That is why Labour's proposal includes full protection for employees.

Ireland's reputation abroad has helped our economic interests over the years. We are reputed for our flexible approach to rules. It is portrayed, at home and abroad, as an endearing feature, a sign of our relaxed nature. However, we cannot be relaxed about matters like corporate governance or have international investors regarding us as lax about good regulation. It is not a selling point for a country that aspires to develop a smart economy and a society of equals.

I thank Senators Hannigan, Prendergast, MacSharry, Regan, Hanafin, Quinn, Butler, Twomey, Callely, Doherty and Mullen for their contributions. I commend the motion to the House.

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