Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

Section 11 amends the composition of the board of PIAB in line with Government policy to have more board members appointed through the Public Appointments Service, PAS. Section 11 removes ICTU and IBEC as bodies designated under the Bill to nominate members to the board.

As I mentioned during the Second Stage debate, it will be open to members of ICTU or IBEC to apply through the PAS process when vacancies arise. Seeking expressions of interest for board appointments through the PAS process allows for appointments to be made from a greater number of potential candidates with the desired skill sets, which can vary over time, depending on the skills available to the board. Board members are appointed as individuals by the Minister where, in the opinion of the Minister, they have the expertise in a field relevant to the board's functions.

The code of practice for the governance of State bodies published in 2016 provides that board members should have the appropriate skills and knowledge appropriate to the activities of the State body to enable them to discharge their duties and responsibilities effectively. The code of practice also requires that, in determining the criteria for board vacancies, the Minister consult the chairperson of the board to identify the appropriate and collective mix of experience, knowledge and skills required to oversee the board's performance of its functions successfully. All applicants who meet the criteria may apply to PAS and be assessed. Corporate governance standards require that the board members act in good faith and in the best interests of the State body. The duty of the board member is owed to the agency and not to any specific stakeholder.

Under the Bill, it was proposed that five board positions would be filled through PAS, through open advertisement operated by PAS, which since 2014 has been responsible for putting in place an open, accessible, rigorous and transparent system to support Ministers in making appointments to State boards.

I wish to clarify for the Deputy that the current board consists of a Chairperson, the chief executive of PIAB, and nine ordinary members, of whom six are nominated by external bodies designated under legislation. The Minister normally nominates a senior departmental official to the board. The external bodies are as follows: two persons nominated by ICTU, one person nominated by IBEC, one person nominated by the Irish Insurance Federation, one person nominated by the Central Bank, and one person nominated by the Competition and Consumer Protection Commission.

Under the Bill, it is proposed that the five positions will be filled through the Public Appointments Service, PAS.

When the board was established social partnership was in place. The chair of the board, along with the two board members appointed via PAS, decide what skill set is needed. It is for that reason they will have the flexibility to appoint or recommend an appointment of people with different skill sets.

For the reasons I have outlined I ask the Deputy to withdraw his opposition to section 11.