Brian Cowen (Laois-Offaly, Fianna Fail)

I propose to take Questions Nos. 1 and 2 together.

The code of conduct for officeholders, published by the Standards in Public Office Commission, sets out among other things a framework for acceptance of hospitality. Briefly, the code provides that officeholders should not accept offers of hospitality where to do so would, or might appear to, place them under an obligation. The code also provides that officeholders should not accept offers to meet the costs of travel facilities and-or commercial accommodation in connection with official activities where such offers are made by private citizens or private enterprises but that discretion may be used where an officeholder is the official guest of another Government or official body or of a not-for-profit representative organisation or the like.

For obvious reasons, restrictions in the code of conduct for officeholders do not apply to any offer or supply of property or a service made in the course of and for the purpose of performance of duties of an officeholder.

The Department of Finance's code of practice for the governance of State bodies, which was recently updated and re-issued on 15 June, provides a framework for the application of best practice in corporate governance by both commercial and non-commercial State bodies. The code lays down that all State bodies should have written codes of business conduct for their directors and employees and makes clear that such a code should address as a fundamental issue of principle avoidance of giving or receiving corporate gifts, hospitality, preferential treatment or benefits which may affect or appear to affect the ability of a donor or the recipient to make independent judgment on business transactions.

The code of practice reminds directors and employees of State bodies that they should be guided by the principles set out in the code in meeting their responsibilities to ensure that all their activities, whether covered specifically or otherwise in the code, meet the highest standards of corporate governance.

In certain circumstances, receipt of hospitality could constitute a gift. If a Minister were to receive a gift worth more than €650 from a State agency, it would be deemed to be a gift given by virtue of office and would have to be surrendered to the State. It would also have to be declared in the Minister's annual statement of registerable interests.

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