Mary Butler (Waterford, Fianna Fail)
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I remind members, visitors and those in the public gallery to please ensure their mobile phones are switched off or are in flight mode for the duration of the meeting as they interfere with the broadcasting equipment, even when on silent mode. We have an engagement with the chairperson designate of the National Standards Authority of Ireland, NSAI. I welcome Mr. James Kennedy, chairperson designate of the National Standards Authority of Ireland.

Before we commence and in accordance with procedure I am required to read the following: By virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to the joint committee. If, however, they are directed by it to cease giving evidence on a particular matter and continue to do so, they are entitled thereafter to only qualified privilege in respect of their evidence. They are directed that only evidence connected with the subject matter of these proceedings is to be given and asked to respect the parliamentary practice to the effect that, where possible, they should not criticise or make charges against any person or an entity by name or in such a way as to make him, her or it identifiable.

Members are reminded of a long-standing parliamentary practice to the effect that they should not comment on, criticise or make charges against a person outside the House, or any official by name or in such a way as to make him or her identifiable. I now call on Mr. Kennedy to make his opening remarks to the committee.

Mr. James Kennedy:

I thank the committee for consideration of my nomination as chairman of the NSAI. I am honoured by this opportunity and in the short period since receiving the nomination I have taken steps to engage with the Department of Business, Enterprise and Innovation and NSAI management in respect of the expectations not only on the chairperson but of the authority itself. From my background in the medical devices and pharmaceutical industry at a national, European and global level, I have an awareness of the requirements and I have experienced the significant benefits accruing to organisations from the application of standards in a business environment. In addition, my tenure on the board of IBEC and as president of the Chambers of Commerce of Ireland have provided me with an insight into the issues facing Irish businesses as they position themselves in the ever-evolving economic climate.

My initial discussions have identified that NSAI has strong vision, mission, values and a good strategic plan to 2020, which was approved by the Minister. I would like to take the opportunity to commend the work of the outgoing chairperson, Mrs. Julie O'Neill and the board members on the strength of the strategic plan, which will guide my chairmanship, if ratified. In addition, the NSAI is a contributor to the 2018 Action Plan for Jobs programme, APJ, and Enterprise 2025 Renewed, with a role in the following actions. The intention is to enhance supports for companies engaged in research, development and innovation, and the roll out of a workplace innovation toolkit. The intention is to position Ireland to the forefront of sector-specific standards, including in medical technologies, chemicals, food and energy, to stimulate innovation, certainty and international reputation, as well as to manage potential consequences arising from Brexit.

In the context of those initiatives, it is important to note that the NSAI is not a job creation agency but a key element in the trade infrastructure that underpins our economic activity. I am advised that the NSAI has strong performance, operating and governance structures aligned to the delivery of its statutory and strategic objectives and the code of practice for the governance of State bodies 2016.

I will now address the challenges. The improving economic conditions and preparations in anticipation of a post-Brexit environment will provide challenges for the NSAI in the coming years. I understand the Department is working closely with management to ensure alignment of the objectives of both the NSAI and the Department. The intention is to target and refocus standards development activities to strategically support priority sectors identified as key to economic development, such as the medical devices sector. We must ensure that the NSAI services contribute to Brexit solutions that minimise disruption to Irish business and enhance opportunities for entry to international markets. We must also structure the organisation to deliver at maximum potential for Irish business. We must further enhance Ireland's reputation as a country of choice with a robust trade infrastructure which supports the technical requirements of business.

As a non-commercial body, the NSAI's income continues to be the predominant source of funding with 75% of operating costs met from certification and other fees charged by the authority. With increasing costs and an ongoing programme of staff investment this model is under pressure. I have noted that it will be 2020 before management is projecting a return to an operating surplus, which is a key objective for the board. Brexit will undoubtedly present unique challenges for the NSAI, as well as in European and international institutions where we represent Ireland. With support from the Department, the NSAI is assessing and positioning itself for the evolution of a final Brexit position. I believe that the services provided by the NSAI will contribute to the Government's planning and business supports to ensure Irish business will emerge even stronger in a post-Brexit environment.

My approach to the position of chairman is one of consultation and working with the board, the Minister, the Department and primary stakeholders, including Departments and agencies. I look forward to working closely with Geraldine Larkin, the CEO, and the management team. Together, we must ensure the NSAI delivers in line with the strategy, requirements of legislation and national objectives. All of that will be done within a strong governance framework. I also see a responsibility for championing the future role of the NSAI, thus ensuring its services are utilised and leveraged within the strategies of Departments. In that context, I would welcome the opportunity to present to the committee, possibly on an annual basis, regarding the activities of the NSAI if it would consider that to be of benefit. Within the technical and quality infrastructure that is Ireland's trading economy, the NSAI has an important role to play. If my nomination is confirmed, I will be proud to contribute to that. Should members have any questions I would be happy to take them.

Mary Butler (Waterford, Fianna Fail)
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I thank Mr. Kennedy and congratulate him on his nomination as chairperson designate. Do members have any questions?

Niall Collins (Limerick County, Fianna Fail)
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I thank Mr. Kennedy for his interest in fulfilling the role. Out of curiosity, could he walk us through the process that brought him here? Did he apply for the position on publicjobs.ie?

Mr. James Kennedy:

Yes.

Niall Collins (Limerick County, Fianna Fail)
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Mr. Kennedy can take it from there.

Mr. James Kennedy:

Yes. I had been applying for some time for different positions on publicjobs.ie. I submitted my CV and application letter. There was then a short-listing process and I was interviewed by two people from the Department and the chairperson of the NSAI.

Niall Collins (Limerick County, Fianna Fail)
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Was that the outgoing chairperson?

Mr. James Kennedy:

Yes.

Niall Collins (Limerick County, Fianna Fail)
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Was there only one interview?

Mr. James Kennedy:

Yes.

Niall Collins (Limerick County, Fianna Fail)
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What rank were the departmental officials?

Mr. James Kennedy:

I was interviewed by Declan Hughes.

Niall Collins (Limerick County, Fianna Fail)
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I wish Mr. Kennedy the best of luck in his role and thank him for his interest in it.

Mr. James Kennedy:

I thank Deputy Collins very much.

Maurice Quinlivan (Limerick City, Sinn Fein)
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I too wish Mr. Kennedy the best of luck for the future. He will have our continued support.

Mr. James Kennedy:

I thank the Deputy.

Aidan Davitt (Fianna Fail)
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We wish Mr. Kennedy the best of luck in his position. I read his CV, which is comprehensive and broad, spanning industry, Chambers Ireland and IBEC. I congratulate him.

Mary Butler (Waterford, Fianna Fail)
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Will Mr. Kennedy have specific priorities in his first 12 or 18 months? I welcome his statement that he will appear before us on a yearly basis.

Mr. James Kennedy:

Yes. I feel strongly that we should consider all of the good things the NSAI is doing, which are technical, and that very good staff are involved. We should stand back a little for the moment. We have the strategy plan, but we need to look into where Brexit will lead us and how we can further support the work of the IDA and Enterprise Ireland, which are our sisters within the Department. We are planning to meet them. Ms Geraldine Larkin and I were at the IBEC conference this morning, where we were again pushing out the good news that the NSAI is here to help business and Ireland. We will also meet IBEC.

Mary Butler (Waterford, Fianna Fail)
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That is a good point. For the past four or five months, this committee has been examining the cost of doing business, especially for SMEs. Many stakeholders have appeared before us, including the IDA, Enterprise Ireland, InterTradeIreland, the Restaurants Association of Ireland and the Irish Hotels Federation. Major issues are arising in terms of the cost of staff, finance and, in particular, insurance. Many issues will overlap, so we can tie those in as we progress.

On behalf of the committee, I wish Mr. Kennedy the best of luck. We look forward to engaging with him in future.

Mr. James Kennedy:

I thank the Chairman.

Mary Butler (Waterford, Fianna Fail)
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Mr. Kennedy is more than welcome, and I thank him for attending to engage with us today. The clerk to the committee will write to the Minister informing her that we have completed our engagement with Mr. Kennedy. A transcript of this meeting with be provided.

I remind members of the select committee that we will meet at 5 p.m. to consider the Revised Estimates for public services: Vote 32 - Business, Enterprise and Innovation. The Minister for Business, Enterprise and Innovation, Deputy Humphreys, and the Ministers of State, Deputies Halligan and Breen, will be in attendance.

That concludes all of our business on today's agenda.