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.