Fergus O'Dowd (Louth, Fine Gael)

There are many good facets to this Bill and the core issue is to make the boards more dynamic and businesslike as organisations. The number of representatives on boards is to be reduced from 12 to eight and the Bill clearly enunciates a procedure whereby there would be an election among worker directors if the directors of the company declare that more than 30 people will work there in a particular year. Due provision is being made for a democratic election among workers in a port authority.

For the public representatives elected by the people, there is no clarity in the Minister's actions. On Committee Stage I understood the Minister would think about what we said. I respect the Minister and I do not believe what he said was anything other than what he believed at the time. Not having a direct election from the elected local authorities on to the board would fly in the face of what is being done in the Bill for workers and elected representatives generally. It is making little of them in that it does not recognise their capacity or ability to select from their own number an individual or individuals who have already been elected by the public to represent the local authority and other interests.

That such a person would be selected by a local authority as opposed to the Minister would lend greater credibility to the mandate he or she would enjoy. If he or she is appointed by the Minister - regardless of who might be that Minister - questions will always arise in the context of political issues. However, if he or she is selected by a local authority, clarity will be brought to the process. Local authorities already appoint elected members to the boards of various bodies. If the heart of local democracy is reflected in the fact that directors can come from among the ranks of elected local representatives, it would not be acceptable if absolute clarity were not provided in respect of the process to which I refer.

Another issue to which I wish to refer relates to the situation where local authorities that are located adjacent to each other have representatives on a harbour authority. Louth County Council, Meath County Council and Drogheda Borough Council are represented on Drogheda Harbour Commissioners. If only one representative is to be selected from among those three local authorities, the Minister of the day will have major difficulties in keeping his supporters at bay on the two authorities that lose out.

The democratic process would benefit if the selection of representatives is made by local authorities. If the Minister, as seems to be the case, is reducing the number of representatives to one in each case, perhaps a rotation system might be introduced in order that the various local authorities would, at some point, be represented. I am not sure as to what will be the period of office of the representative but I presume it will be five years. In such circumstances, a local authority that is represented on the board for a five-year period should not be so represented on the next occasion and the honour should pass to another authority. I am of the view that this is a fair way to proceed.

I accept the need to reduce the numbers serving on the boards. However, democratically elected representatives who are accountable but who are not appointed by the Minister should be central to the process.

See this speech in context