James Reilly (Dublin North, Fine Gael) | Oireachtas source

They are primarily in the acute hospital and disability sectors. Since 2009 they have been required to enter into a formal service arrangement with the HSE. The service arrangement is the contract between the HSE and each individual agency. Under this arrangement, they are obliged to give certain undertakings in relation to compliance with a range of standards and statutory requirements.

A compliance statement process came into effect for agencies from January 2014 and applies to their 2013 financial accounts. Submission of an annual compliance statement will form part of the consideration of ongoing funding for each agency. In agencies established under legislation the membership of the board is often prescribed in the legislation. In general, legislation prescribing the membership of boards provides for the inclusion of relevant stakeholders particular to the organisation. Where membership is not prescribed, boards must examine their functions to ensure the appropriate competency and skills mix is provided by board members in order to carry out their functions effectively, ethically and in keeping with best governance practice.

In line with Government decisions in 2011, my Department advertises for board vacancies as they arise where I, as Minister for Health, have nominating rights. Competencies are developed and agreed in conjunction with relevant boards, depending on their requirements. The suitability of applicants is assessed against these criteria and a short list is compiled, from which I may make appointments. Full cognisance is taken in all appointments made by me of relevant competencies or gaps identified by individual organisations. The code of practice for the governance of State bodies provides a framework for the application of best practice in corporate governance by both commercial and non-commercial State bodies. While a list is provided, sometimes people who have not applied, who are deemed by the Department to have suitable qualifications, can be appointed also.

The chairperson performs a key role in ensuring appropriate standards of corporate governance are adhered to in all aspects of the activities of the board. Boards are required to constantly review their operations and seek to identify ways to improve their effectiveness. This will include the identification of gaps in competencies and ways they could be addressed. Where a board chairperson is of the view that specific skills are required on the board, he or she should advise me of this view for consideration sufficiently in advance of the time when board vacancies are due to arise in order that I may take his or her views into consideration when making appointments.

I have recently established a governance forum for the health sector, including section 38 agencies, to support and help chairpersons, board members and CEOs to fulfil their accountability and governance roles. I will insist on structured induction programmes for all new board members and a system of independent regular governance audits. All efforts are made, in conjunction with relevant agencies, by my Department and the Health Service Executive to ensure the composition of each board and relevant competencies required to facilitate the effective and efficient conduct of each organisation, including relevant stakeholder inclusion, are in place.

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