Leo Varadkar (Dublin West, Fine Gael)

The Deputy will be aware that I have announced a number of significant changes to corporate governance structure in CIE and the CIE companies. The term of the current executive chairman of CIE, Bus Éireann, Iarnród Éireann and Dublin Bus will expire at the end of June. When his term ends, the position of the executive chairman will be abolished and four non-executive chairpersons will be appointed to the boards of the companies. This will represent a considerable change to CIE's corporate governance structure. Prior to their confirmation and formal appointment, each of the four individuals will appear before the relevant Oireachtas committee to set out their vision for the various State companies.

In addition, there will be a number of ministerial appointments of ordinary members to the boards of the various CIE companies in the coming months. Each of these board members will, when appointed, receive a letter of mandate. This letter, among other matters, will advise board members that if they are requested by an Oireachtas committee to appear before it in their capacity as board members, they will be expected to attend. This is in addition to the Government's commitment to introduce legislation and hold a referendum to allow Oireachtas committees to carry out investigations and compel witnesses to attend. It is intended that the referendum to which I refer will be held later in the year.

I am aware that concerns have been expressed with regard to matter arising from the Baker Tilly report. However, I am advised that the Secretary General of my Department indicated to the Comptroller and Auditor General in September 2010 that detailed replies were received from CIE in January and March 2010 and that these outlined the steps taken in strengthening procurement policy and practice, the extent of implement of the recommendations and the board's satisfaction with the adequacy of the controls in place. As such, and in consultation with my colleagues, I will give careful consideration to the Deputy's proposal. I will report back to the House in this regard in due course. I will also be keen to take on board the views of the incoming transport committee on this matter.

The issue of expenses of CIE Tours executives is a matter for CIE and I have asked the company to contact the Deputy directly about it. I would expect any expense claims to be reasonable and vouched or verified. I will take dim view of any evidence to contrary but I recognise the fact that executives of CIE Tours are obliged to travel overseas a great deal in order to secure business. CIE Tours does not benefit from a subvention from the State and it generates cash for CIE, which, in turn, reduces the need for Exchequer contributions.

The funding of PSO services is governed by contracts between the CIE companies and the National Transport Authority, NTA. The NTA monitors the contracted performance of the PSO operators on a quarterly basis and reports are published on its website. The NTA recently imposed even more demanding performance targets on Iarnród Éireann, Bus Éireann and Dublin Bus. These companies stand to lose up to 10% of their PSO if they do not meet these targets.

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