Brian Lenihan Jnr (Dublin West, Fianna Fail)

I have my doubts that an Oireachtas committee would deliver appointments to a wide variety of State bodies in a timely and efficient manner, a prerequisite to ensuring the continued smooth operation of the bodies in question. We should study the experience in the United States in that regard. Last night, Deputy Varadkar acknowledged there could be some difficulties. However, he was more optimistic than I would be that they could be managed.

The proposal contained in his Bill that the Dáil should confirm Executive appointments by resolution would be unprecedented. The only appointment made in this manner is that of Comptroller and Auditor General who is a constitutional officer. Looking narrowly at the matter of transparency, it should be noted by the House that the names of directors of State bodies and statutory agencies, as well as their professional activities and qualifications, are publicly available in the annual reports, which must be laid before the Houses prior to publication. An examination of recent appointments will show that the qualifications of many of those nominated to serve of State boards have been impressive.

The selection process for senior positions is important but it is not the only means of ensuring best practice in the governance of State bodies. There are a wide variety of obligations on board members including the corporate governance obligations set out in the recently revised code of practice for the governance of State bodies. The code is very clear on the matters that are reserved to the board and for which it is responsible and will be held to account.

This evening, I had the pleasure of conferring certificates and diplomas for training courses for directors at an Institute of Directors function. We must deepen this area, as the office of director carries serious fiduciary responsibilities to shareholders and legal obligations with regard to creditors, debtors and employees. It is important that those who undertake such an office understand its responsibilities and I am open to all suggestions for improvement in that regard.

Proper oversight of State bodies by the parent Department is fundamental. The Government accepts the recommendations in the OECD's 2008 review that the framework between Ministers and State bodies should be strengthened. The task force established by the Taoiseach on foot of the review set out a three-year framework, which the Government has adopted, for transformation of the public service. The Department of Finance will lead the work in the development of models of performance and governance frameworks. These models will cover the issues raised by the OECD, including the role and function of the boards of State bodies. Any major change to the system of appointment of the chairmen and CEOs should await the outcome of that work.

The Government and I share Deputy Varadkar's concern to ensure the highest standards of corporate governance of statutory bodies. We do not accept the Bill as currently drafted will achieve our shared ambition. Therefore I oppose the Bill.

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