Noel Dempsey (Meath, Fianna Fail)

The Bill as drafted provides for the submission of an initial strategy statement to the Minister covering a five-year period. In the case of a subsequent strategy statement, the Bill does not specify the precise period to be covered as it will be specified by the Minister at the appropriate time. The flexibility that the Deputies seek is contained in the Bill as it stands. It is wise and prudent to commence the operation of NORA on the basis that it creates its business plan and strategy for a reasonable period of five years or longer. As Deputy Broughan has said, it is equally reasonable to ensure that it subsequently has flexibility. It may be that a three-year period would be more appropriate at that stage or it may be that a seven-year period might be more appropriate. The Bill covers what the Deputies are trying to achieve.

Even in the initial five-year period it would be a very foolish organisation — we would probably be talking about dismissing some of the directors or the CEO — if it did not keep its strategy under constant review as circumstances change. That is a normal part of doing business. An example to which Deputy Broughan adverted is that the price of oil changes and will impinge on the national oil reserves agency's ability to purchase oil. Review is required on a constant basis and will take place as a matter of routine.

I accept the thrust of the Deputies' argument. The process should not be so rigid that it will be unable to respond to market forces. The specification of the initial five year period is welcome because it will make people focus on a slightly longer term but there is nothing rigid about that. After two or three years the company could decide it would do another three or five year strategy, or change its strategy completely.

The flexible approach that is adopted meets what the Deputies want. It will allow the Minister of the day to prescribe the period to be covered according to the demands at the time. The second strategy statement required of NORA will specify a two year or three year period. As it stands, the Bill is along the same lines as most corporate governance requirements imposed on similar bodies. I ask the Deputies to accept that the Bill reflects the spirit of their amendments in that it allows the flexibility they require.

See this speech in context