John McGuinness (Carlow-Kilkenny, Fianna Fail)

The Deputy will appreciate that I have no role or function in the day to day operations of Enterprise Ireland and Shannon Development. My Department has responsibility for ensuring that corporate governance procedures, systems of financial control and reporting relationships are in place within those organisations.

Both Enterprise Ireland and Shannon Development have confirmed that they operate in accordance with the framework code of best practice set out in the code of practice on the governance of State bodies. The code demands that boards "introduce controls to prevent fraud including adequate controls to ensure compliance with prescribed procedures in relation to claiming of expenses for business travel." Each year both agencies confirm in their annual reports that they are in compliance with that code. Additionally, I receive a separate report from their chairpersons affirming that they are in compliance with payment of expenses to the board.

I have been advised by Enterprise Ireland that it has taken steps to ensure an appropriate control environment is in place by establishing formal procedures through various committee functions to monitor the activities and safeguard the assets of the organisation, clearly defining and documenting management responsibilities and powers and developing a strong culture of accountability across all levels of the organisation.

Enterprise Ireland has an internal audit department that operates in accordance with the internal audit charter approved by the audit committee of the board. This committee meets on a quarterly basis to review reports prepared by internal audit and other departments. The audit committee reports regularly to the board on the matters that it has considered.

Enterprise Ireland observes the Department of Finance guidelines on public procurement. The organisation has a comprehensive purchasing procedures manual which ensures compliance with purchasing guidelines and legislation for both national and European tendering.

Enterprise Ireland's advertising spend relates exclusively to its public calls for proposals and publicising applications to its three national competitive funds for Irish enterprises.

Additional information not given on the floor of the House.

Shannon Development has confirmed to me that, on the basis of the systems and processes in place, all appropriate procedures for financial reporting, internal audit, procurement and asset disposals are being carried out by Shannon Development, that the company has not engaged in excess expenditure on advertising, foreign travel, events, and corporate entertainment and that the company is fully compliant with public procurement procedures.

With regard to foreign travel, I have been assured that both agencies comply with Department of Finance regulations. In addition, in the light of recent concerns in this regard, the Department of Finance's main guidelines on foreign travel have again been circulated to all agencies and they have been asked to confirm by 15 December that the guidelines are being complied with. The situation will be monitored under existing liaison arrangements between the Department and Shannon Development.

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