Mr. Niall Ó Donnchú:

The Department welcomes the opportunity to address the committee on the general scheme of the national cultural institutions (National Concert Hall) Bill as part of its pre-legislative scrutiny process. The National Concert Hall is one of nine national cultural institutions that operate under the aegis of the Minister for Arts, Heritage and the Gaeltacht. It is the most prestigious music venue in the State, as well as being a national venue for the performance of various genres of music. The National Concert Hall is also responsible for the promotion and encouragement of the performance of music and of public knowledge, appreciation and enjoyment of music and the like arts.

From its location on Earlsfort Terrace, it operated a busy programme of events that included 942 individual performances which attracted an aggregate of 315,508 patrons in 2013. Access to the arts, culture and Ireland’s rich heritage are vital for preserving our society and national identity and helping to promote Ireland’s image abroad. The arts, cultural heritage and creative industries also make a major contribution to our economy and to sustaining and creating jobs. Cultural tourism, to which these sectors bring considerable value, also makes a significant contribution to economic well-being and the rebuilding of Ireland’s reputation on the international stage. The NCH occupies a valuable place in the Irish cultural life and is a key element of our artistic infrastructure.

The hall itself was opened to the public in 1981. In tandem with the opening of the hall came the establishment of the National Concert Hall Company to run it. Specifically, the National Concert Hall Company was established as a company limited by guarantee and has operated on this basis ever since. It is now more than 30 years since the NCH was established. During this period there has been an evolution in the thinking and policies surrounding corporate structures and governance, and members will be aware of the Government's public service reform programme, which has led to an examination of the structures of a range of public sector institutions, including the national cultural institutions. In the context of that programme, among other things, the Department has sought to provide, or update where appropriate, the legislative underpinnings for various national cultural institutions to align them with modern corporate governance requirements. As part of this process, the Government recently considered the governance position at the NCH and on 25 February 2014 approved the then Minister's proposal to place it on a statutory footing similar to other national cultural institutions, both existing and proposed.

As stated previously, the NCH is structured as a company limited by guarantee. Companies operating under the Companies Acts must comply with the corporate governance, reporting and accountability provisions of those Acts. Reporting to a Minister or onwards to the Oireachtas is not normal practice for companies established under the Companies Acts. The Minister considered it more appropriate that there would be a statutory based framework for the NCH to provide for reporting and accounting to the Minister and onwards to the Oireachtas. The Minister also considered it essential that the board of the NCH should have absolute clarity in respect of the position on all governance and operational issues at the NCH. As this would not normally be a feature of how companies operate, the Minister considered it appropriate that separate and tailored statutory governance arrangements should be introduced for the NCH. As a statutory body, the NCH will be required to prepare and adopt a statement of strategy, submit progress reports and prepare an annual business plan, to be submitted as appropriate to the Minister and the Oireachtas. This is in common with changes being proposed for other national cultural institutions. Earlier this year, the then Minister put proposals to Cabinet, which approved the decision to introduced statutory governance arrangements for the NCH. The outcome of these deliberations is the general scheme of the national cultural institutions (National Concert Hall) Bill, which is before the committee for the pre-legislative scrutiny process.

Prior to outlining the provisions of the general scheme, I would like to comment on the approach adopted by the Department in its initial drafting of the Bill. In general terms, the purpose of the general scheme of the Bill is to establish the National Concert Hall as a statutory body and to put in place the necessary corporate and reporting structures and supports. The approach of the Department towards the general scheme has been enabling rather than prescriptive in so far as that it is possible. In addition, the Department has been conscious of the special position of the National Concert Hall, which has to operate with a commercial and public service remit, and the legislation endeavours to take account of that. Finally, the Department has drawn from the experience of similar types of legislation enacted in recent years in relation to other public bodies here and abroad.

Part 1 of the general scheme contains standard heads, such as provision for a commencement day and expenses of the Minister. Part 2 deals with matters such as the establishment of the NCH as a statutory body and the date on which that it will happen. It also covers matters such as the functions of the NCH. There is also a provision enabling the Minister for Arts, Heritage and the Gaeltacht to confer additional functions on the NCH. The general scheme also contains a number of heads dealing with the production of a statement of strategy, business plan and annual report by the NCH, and the processes that should be undertaken in this regard.

The next section of the general scheme deals with the board and staff of the NCH, and associated provisions.

Head 17 deals with the board of the hall and provides the size of the board shall be cut from 15, as it currently stands, to nine. The Minister considers that the transition to a statute-based national cultural institution would best be managed by a focused expert board. It is provided that appointments to the board should draw on a wide range of experience and skills to ensure the National Concert Hall board has all the necessary range of skills and experience. Such a board might include experts in the fields of governance, accountability, law, music, marketing and venue management. It is intended to rotate board membership to ensure greater continuity at board level. This is a change from the current situation whereby the whole board is appointed at the same time and, accordingly, completes its term of office at the same time. It is intended the chair and the board will operate pro bono.
The heads also contain a provision dealing with committees. This will enable the board to include people who are not members of the board and is a useful way of widening the range of expertise available to the board for specific issues such as audit.
Head 23 provides an appropriate statutory underpinning for the position of the director and head 24 for the staff of the hall. In particular, head 24 confirms the staff of the hall will transfer to the new statutory body on the same terms and conditions as they held before the dissolution of the National Concert Hall Company.
Heads 28 to 31, inclusive, contain standard provisions concerning, for example, the ability of the National Concert Hall to borrow moneys and the conditions under which they can do so. Heads 32 to 37, inclusive, cover a variety of issues. A head has been included to enable the National Concert Hall to establish subsidiaries and enter into joint ventures or partnerships. In addition, head 36 deals with the establishment of foundations. The Department is cognisant of the dual operations of the National Concert Hall in both the commercial and public sector. Accordingly, it sees these heads as useful tools for the National Concert Hall. As a statutory body, the National Concert Hall will have enhanced capacity to engage in fund-raising. This, again, is common to other national cultural institutions which are already established as statutory bodies and which have strong fund-raising programmes.
Heads 38 to 44, inclusive, are directed at covering the transitional issues that may arise during the dissolution of the National Concert Hall Company and the establishment of the statutory National Concert Hall body. The primary aim is to place the new statutory body in the shoes of the National Concert Hall Company.
The Department has consulted with the National Concert Hall to obtain the perspective of its board and executive. This has been a useful exercise. I envisage consultations will continue with the hall to ensure the legislation is fit for purpose. In that regard, I would like to express my thanks to the chairperson, the board and the executive for their co-operation and assistance in that matter. The Department also looks forward to receiving the input of the committee when it has had a chance to consider the heads of the Bill.
The National Concert Hall occupies a special place in the Irish cultural world. The Department recognises that and wishes to ensure that the general scheme of the Bill will recognise the strengths of the concert hall and leave it fit for operating in this dynamic environment. The coming period will be one of change at the National Concert Hall. The legislative reforms planned for this institution will greatly enhance it for the performers, the staff and the public who visit the National Concert Hall each year. I thank the committee for its attention. My colleagues and I look forward to assisting the committee in its deliberations on the general scheme of the Bill.