Darragh O'Brien (Dublin Fingal, Fianna Fail) | Oireachtas source

I move amendment No. 55:

In page 11, line 17, after “Agency” to insert “or a subsidiary DAC”.

Amendments Nos. 55, 56 and 125 to 131, inclusive, are technical in nature. They are a response to concerns raised on Second Stage about subsidiary designated activity companies, DACs.

The amendments provide for the inclusion of "or a subsidiary DAC" in a number of sections. I am introducing the amendments to provide clarity and absolute certainty and to remove any lingering doubt whatsoever that the provisions of the Bill that apply to the LDA will also apply to any of its subsidiary DACs. That was raised on the Second Stage debate. It was always the intention of this legislation when it was being drafted that references to the LDA would also refer to a subsidiary DAC, but for the avoidance of doubt, in the interests of trying to be helpful and to provide clarity, I am moving these amendments today. There has been some misleading commentary on the establishment of the LDA and its subsidiaries as designated activity companies under the Companies Act, as if to imply that this is in some way irregular. I take the opportunity to clarify again that it is standard practice to establish newly created State companies as DACs.

I will now highlight the sections that are being amended so people are clear. Section 7 relates to directions of the Minister. The making of directions by the Minister to the agency in the performance of its functions will also apply to subsidiary DACs. Section 21 relates to membership of either House of the Oireachtas, the European Parliament or local government. The provisions regarding board members and staff ceasing or being seconded from their roles if they become a Member of either House of the Oireachtas, the European Parliament or a member of a local authority will also apply to board members and staff of subsidiary DACs.

Amendment No. 134 deletes section 32(2)(a) and replaces it with a new provision in relation to the establishment of subsidiary DACs that provides that the LDA must obtain prior ministerial consent for the provisions in the constitutions of such subsidiaries that relate to the ownership and control of it. It was always the intent of this section that the LDA would need ministerial consent, but I want to clarify that ministerial approval is required in relation to the establishment of DACs as well as the ownership and control of them. In effect, the LDA will need to seek consent before it establishes any subsidiaries and clarify the ownership of them. It has always been intended that the LDA would establish subsidiary DACs, as this is in line with similar provisions for other commercial State bodies. There is nothing sinister in this, it is standard practice. A range of controls is in place in this legislation and the code of practice for the governance of State bodies in relation to the oversight of the LDA and its subsidiaries. In addition, NewERA will continue to provide advice to my Department on the oversight of the agency. Again, this is in line with provisions for other commercial State bodies.

Amendment No. 184 deletes section 55 and replaces it with more detailed provisions regarding the disposal of land by the LDA or a subsidiary DAC. First, it clarifies that a subsidiary DAC, in line with the LDA, must seek ministerial consent to dispose of land, but that this consent is not required where it is disposing of a single house for rent or purchase. We discussed the issue to some extent earlier. This had always been the intent of the section but it is important to clarify it.

Second, I am bringing an amendment to provide that the LDA or a subsidiary DAC must seek ministerial approval where more than one house is being sold as part of linked transactions. In other words, it will not be able to dispose of more than one house to a single purchaser without seeking ministerial approval. Of course, there will be occasions where it would be appropriate for the LDA or a subsidiary DAC to sell more than one unit to a single purchaser such as a local authority or an affordable housing body. Again, we discussed this earlier.

Amendment No. 194 inserts a new provision in section 59 to provide that in relation to compulsory purchase, land owned by the agency includes land owned by a subsidiary DAC. This again is for clarity, if needed, and the avoidance of doubt, and does not change the intent of this section in any way, shape or form. It ensures that the LDA may acquire land compulsorily where it is required to provide access to relevant public land and land owned by the LDA or a subsidiary DAC or is required to facilitate the provision of infrastructure on relevant public land or land owned by the LDA or a subsidiary DAC.

Amendment No. 231 is a Sinn Féin amendment so I will not speak to that one. The other amendments in this group are Nos. 228, 229 and 230, which amend section 78 to clarify that freedom of information will apply to subsidiary DACs. This is a point I made very strongly when in opposition with regard to the need for the agency to be subject to FOI, which it is. I am making sure, for the avoidance of any doubt, that subsidiary DACs are also included. Section 78 of the LDA Bill provides that the Freedom of Information Act 2014 will fully apply to the LDA from establishment day and also provides that records held by the dissolved LDA body will continue to be subject to FOI. That is important as it is will ensure transparency in the agency's operations. These amendments amend this section to provide that they will apply to subsidiaries of the LDA, which will be subject to FOI with effect from establishment day. That has always been my intention. I said that previously and I do not want to repeat it, but this is a belt and braces to ensure that people are really clear and refrain from making remarks to the contrary in future now that they are fully tied in.

The effective date for FOI for both the LDA and its subsidiaries will be 13 March 2019. This is the effective date, when the existing interim LDA entity's records became subject to FOI, and by applying this effective date to both the commercial LDA and its subsidiaries it will ensure that all LDA functions and operations will be subject to FOI. That is important for the sake of transparency. I want to make it clear that the LDA will be fully accountable to FOI and will come fully under the remit of FOI from establishment day and the normal provision whereby a new State body is not accountable under FOI for a period of six months from the date it is established will not apply to the LDA or any of its subsidiaries. It is important that the LDA is fully transparent in its operations and the amendments to this section will further clarify that. The management of the LDA is also fully committed to this principle. I acknowledge that Deputies have introduced amendments on this issue and I hope they will accept these amendments to clarify that the LDA and its subsidiaries will be fully accountable under FOI, as this is in the interests of all involved.