Dara Calleary (Mayo, Fianna Fail)

I want to begin by congratulating the Ceann Comhairle on his election and wishing him every success and happiness.

I thank all Members who contributed to the debate on the Bill. I thank them for their suggestions, which we will consider prior to Committee Stage, and in respect of FÁS itself, which we will review during the coming weeks. As the Tánaiste stated, this is an important Bill. Its main objectives are to improve the effectiveness and governance of the board of FÁS and strengthen the accountability of the director general of that organisation to the Oireachtas. The Bill also addresses the recommendations contained in the Committee of Public Accounts' Fourth Interim Report on Special Report 10 of the Comptroller and Auditor General and FÁS 2007 Accounts and the work of the Comptroller and Auditor General.

In light of the remarks made by Deputy Shortall, it is important to state that the Bill is one of many actions taken by the Tánaiste, since assuming office in May 2008, to implement a fundamental cultural change in accountability and transparency in FÁS in order that it might, from now on, concentrate on addressing the key challenge of unemployment through its job search and various training and employment programmes. As Members are aware, the Bill specifically provides for a change in the structure and composition of the board of FÁS; making the director general of FÁS clearly accountable to the Oireachtas; requiring the disclosure of conflicts of interests by directors and staff of FÁS; banning directors and staff of FÁS from any involvement on matters in respect of which they have a conflict of interest; and protection for whistleblower members of staff who report serious wrongdoing in the organisation. I will deal with Deputy Crawford's remarks on that matter in a moment.

The board of FÁS has undergone major scrutiny in recent months and there have been many calls for changes to its composition. Following its meeting of 1 October 2009, the Tánaiste welcomed the fact that following the resignation of the chairman of FÁS, the remaining members of the board indicated their intention to stand down upon the appointment of a new board after the passing of this Bill. This will meet the Tánaiste's stated goal of achieving an orderly transition to a new board structure for FÁS. Most importantly, it will also ensure that the work of the board's audit committee - which is concluding a further set of internal audit reports on controls and procedures within the organisation - can be completed in the coming weeks.

The restructuring of the board of FÁS was one of the principal recommendations made by the Committee of Public Accounts in its Fourth Interim Report on Special Report 10 of the Comptroller and Auditor General and FÁS 2007 Accounts. The Bill proposes to reduce the size of the board from 17 members to 11, including the chair, which will make it less unwieldy. In addition, there will be changes to the composition of the board, the members of which will now be appointed on the basis of relevant experience and competencies in areas such as the functions of FÁS, finance, corporate governance and public administration. These are the correct competencies for the members of the next FÁS board. References to Fianna Fáil cronies, etc. - most of which were made by Labour Party Members - are completely unnecessary and irrelevant to this debate. In making appointments to boards, the Tánaiste has shown preference for people who possess the skills that are required. However, I will follow up on Deputy Burton's point in respect of training for board members.

The Bill also provides for a system of rotating appointments in respect of board members. Experience has shown that this type of system has the advantage of preserving corporate knowledge while also bringing fresh ideas and fresh faces to the boardroom. The Tánaiste will appoint the members of the Board in consultation with the Minsters for Education and Science and Social and Family Affairs. It is also proposed to include the director general of FÁS as an ex officio member of the board. This will enhance communication between the executive and the board, something that was lacking in recent times.

Another recommendation made by the Committee of Public Accounts in its fourth interim report that is addressed in the Bill relates to the accountability of the director general of FÁS to the Oireachtas. In order to resolve this matter, provisions are included in sections 4 and 5 which set out clearly the accountability of the director general to the Committee of Public Accounts and other committees of the Oireachtas. It is through the committee system that the issue of accountability is best pursued. The various sectoral interests of members of the committees ensure that they are best placed to ensure this happens.

The Committee of Public Accounts also requested that the legislation should address the issues surrounding the fiduciary duties of a director of FÁS and his or her responsibility to report matters to the Minister for Enterprise, Trade and Employment. This concern is addressed in section 8, which provides, in certain circumstances, for the removal of the prohibition on the disclosure of information obtained by a member of the board in the course of his or her duties. This amendment will remove any doubt with regard to there being a legal barrier to a member of the board reporting issues of concern to the Minister.

Since the publication of the Comptroller and Auditor General's Special Report 10 in May 2008, the Tánaiste has worked tirelessly with the Chairman, two directors general and the board of FÁS to ensure that the mistakes of the past will not be repeated. I also wish to acknowledge the work done by the Chairman, members and staff of the Committee of Public Accounts and the Comptroller and Auditor General in this regard. In response to these actions, the financial control and governance structures across the organisation of FÁS have been improved. However, to strengthen transparency in this area, section 6 includes provisions that will prohibit staff and board members from engaging in procurement matters where a conflict of interest exists. These provisions also provide for appropriate penalties where these rules are broken, including dismissal for members of staff and removal from the board for board members.

As the Tánaiste indicated, misconduct can take place in any organisation - public or private, voluntary or professional - even where proper internal financial control structures are put in place. The protection for whistleblowers introduced in the Bill is a welcome strengthening of the position in this regard. Deputy Crawford or any other Member who harbours concerns regarding the operation of FÁS can discuss them with me confidentially and I will ensure that they are addressed without the need for compromising anyone's wish to remain anonymous. If there are specific issues which need to be addressed, they should be brought to my attention or that of the Tánaiste. I guarantee Members that I will treat any information put forward in total confidence and in a completely secure manner.

The matter of training services in the north-east region, to which Deputy O'Dowd and many others referred, has been examined by the Department. I am in a position to provide some information in respect of it now and further information will be given later in reply to a matter raised on the Adjournment.

FÁS local management had concerns about aspects of the assessment process carried out by a firm which it had contracted to provide training. Based on those concerns, it asked FÁS's internal audit division to report on the matter in May 2008. It should be noted that in the specific case to which Deputy O' Dowd referred, which occurred in 2006 and 2007, it was the monitoring procedures in FÁS which enabled a member of staff to identify the non-compliance issues. FÁS then reported the matter to the contracted training provider and to the appropriate certifying bodies. In 2008 it ensured that a comprehensive audit was set in train. The latter was completed in February 2009. In order to maintain the integrity of the training provided, FÁS reassessed the trainees and the certifying bodies, which are independent of FÁS, were satisfied to issue the appropriate certification in each case. The Department is asking FÁS to report to it on the action it is taking in respect of the findings of the February 2009 internal audit report in order to ensure there can be no recurrence of events of this nature. I reiterate that if there are Members of the Oireachtas, either Deputies or Senators, who possess information regarding matters about which they are concerned, they should bring it to my attention or that of the Tánaiste.

The overall mission of FÁS has never been more important, particularly in view of that fact that there are 423,600 people on the live register. I reiterate that during this difficult period, the Government is committed to continuing to provide these individuals with the assistance necessary to ensure that they can return to work. The Department of Enterprise, Trade and Employment is investing €1 billion in the provision of a range of labour force measures that will provide training and work experience opportunities to assist those who have lost their jobs.

FÁS employment services, together with local employment services, have put in place measures to double the capacity to cater for the rise in referrals from the Department of Social and Family Affairs. The implementation of these measures has increased the annual referral capacity to 147,000 persons in 2009. These measures and many others represent a significant step in meeting the huge challenge of supporting the unemployed.

The FÁS response, through those specific measures, demonstrates it is a key agency in the Government's plan to fight unemployment. It has delivered and continues to deliver services, supports and programmes to individuals across the country to ensure they remain in, or have the qualifications to return to, a changing labour market.

I again acknowledge and endorse the fact, as have many Members who participated in this debate, that the problems FÁS has experienced in one area do not in any way reflect on the hard work that continues to be done by the majority of workers in FÁS nationwide, who are committed to helping those who avail of the job search, training and employment opportunities the agency has to offer. I wish to acknowledge their hard work and commitment, which is needed now more than ever in these difficult circumstances.

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