Brian Cowen (Laois-Offaly, Fianna Fail)

——on many occasions. The Ethics in Public Office Act 1995 and the Standards in Public Office Act 2001 requires the directors of prescribed public bodies to provide annual statements of interests to a nominated officer of the body concerned such as a chairperson of the board or the company secretary. The statements of interest must also be given to the Standards in Public Office Commission. The type of interests that are to be disclosed include details of occupation, shares, other directorships, land, travel or accommodation services provided at less than the commercial price, public service contracts, gifts etc. Directors may also voluntarily disclose other interests not listed in the legislation. If a director needs to carry out a task and discovers he or she has a material interest in it, he or she must inform the other directors. A director must not perform such a task unless there are compelling reasons to do so, and in the event, he or she must inform both the other directors and the Standards in Public Office Commission as regards the compelling reasons.

I remind Deputes that the code of practice for the governance of State bodies also seeks to ensure that all State bodies are governed to the best possible extent in line with best practice. The purpose of the code is to provide a governance framework within which the internal management and internal and external reporting of relationships of State bodies is to take place. The framework within which boards must operate is set by the code. It provides board members with the way in which to measure their actions.

Deputy Gogarty referred to instances where former employees take up work after leaving the public service. I am not sure how this Bill would affect employees. However, there are procedures in place both in the Civil Service and the local authority area regarding the acceptance of outside appointments and consultancy engagements following resignation or retirement. In the Civil Service the code of standards and behaviour provides that a civil servant should not accept an appointment or particular consultancy project where he or she believes the nature and terms of such an appointment could lead to a conflict of interest or the perception of such, without first obtaining the approval of the outside appointments board established under the code, or of the Secretary General or head of office, as appropriate. Additionally, civil servants who hold positions which are designated posts for the purpose of the Ethics in Public Office Acts must, within 12 months of resigning or retiring, obtain the approval of the outside appointments board or the Secretary General or head of office, as appropriate, before taking up any outside appointment. Similar provisions now apply in the local authority area.

Deputy Sargent spoke about the composition of school boards of management. This proposed Bill would not affect such boards. Boards of management are put in place in line with the legislation and are not appointed by the State. Deputy Eamon Ryan referred to pension entitlements of board members. I am not sure what he is referring to here since, in general, it is only the chief executive officer and staff of boards who hold pensionable positions.

I welcome the point made by Deputy Paul McGrath. It is one I have mentioned already, to the effect that some people with great experience will be unwilling to apply for posts, but might agree to a request from Government to serve. Any system must not be such so as to deprive people of the opportunity to use their experience for the good of the country.

In conclusion, I reiterate that the current system has worked well. It is an appropriate system for appointments to various State groups. This system allows us to benefit from the wide experience of people and allows them to do valuable public service. If there are instances under this system where that has not happened, there are accountability mechanisms that can ensure no reappointment. If there is a clear issue where people are not competent in a particular area, their unsuitability will become obvious fairly quickly. It is in line with the tradition of citizens' and public service in terms of the appointments system as it exists. This Bill would not enhance matters. Instead, it would reduce the attractiveness of taking up public service and make it difficult to draw on the necessary experience and expertise that has been available to Governments in the past.

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