Dáil debates

Thursday, 25 September 2008

Other Questions

Appointments to State Boards.

3:00 pm

Photo of Jimmy DeenihanJimmy Deenihan (Kerry North, Fine Gael)
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Question 7: To ask the Minister for Finance if he will ensure that all of his appointments to State bodies will be tabled for consideration by the Joint Committee on Finance and the Public Service. [31481/08]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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The arrangements for appointments to the boards of State bodies are normally set out in the legislation establishing the bodies in question and are designed to ensure efficient management of the organisation. Appointments to the boards are generally made by the Minister with responsibility for the body in question, subject to the consent of the Minister for Finance.

In making appointments, Ministers seek to ensure that the people appointed bring a diverse range of relevant skills and experience to the body. Ministers also take account of any specific legislative or policy requirements, such as those contained in the Worker Participation (State Enterprises) Acts or the Government's policy on gender balance on the boards of State bodies. Where appropriate, Ministers may also consider representation from different strands of society such as the business community, consumers, trade unions or the other social partners.

I am generally happy that the present arrangements, which follow the practice of previous Governments, work well and that people with the required skills and experience are appointed to State boards. Nevertheless, I recognise that it might be useful to give some thought to involving committees of the House in appointments to some boards. This is an issue some of my colleagues have examined with regard to boards under their remit.

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I welcome the fact that the Minister intends to put some thought into this, but I hope it does not suffer the fate of his thoughts about publishing evaluations.

Does the Minister not agree that we would be much more assured of the quality of the people appointed if we had some level of assessment by an Oireachtas committee? I am not talking about a Star Chamber, but an Oireachtas committee which will have accountability in scrutinising these appointments.

We are at a critical time in terms of dealing with the Central Bank and Financial Regulator. Is the Minister confident, looking at the boards of these bodies, that they have the necessary skill, expertise and experience to handle the challenges we face and protect taxpayers' interests? This issue is particularly acute for the Minister, as he appoints board members of the Central Bank and the Financial Regulator. Is the Minister satisfied and confident that we have that expertise in place?

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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Of course I have full confidence in the authorities referred to by the Deputy, although he will appreciate that I did not appoint the persons in question. However, I have confidence in the operation of these authorities. If it falls to me to make appointments I will of course take great care in doing so, as they are of great importance in the financial administration of the State. However, I have no reason to lack confidence in these boards or authorities as a Minister.

With regard to the more general question of appointments, there is an issue of whether suitable persons would come forward if they were to be subjected to the Star Chamber of committee interrogation in the House. This is something on which we should reflect in deciding whether we want to go down that route. There is also the more general issue that a harmonious relationship between a board and a government is desirable, irrespective of the political colour of that government. The fact that the appointment is made by a government does ensure that the appointee understands the special relationship that necessarily exists.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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The Minister spoke about diversity with regard to appointments to political boards. Does the Minister agree that after 11 years of Fianna Fáil in government, what most people think of in terms of diversity in State boards is the diversity of Fianna Fáil cumainn represented by many of the board members? That is, unfortunately, what people have begun to see. Historically, that may be a consequence, as I said, of Fianna Fáil's 11 years in government. However, there has been an extraordinary increase in the number of bodies. Depending on how one counts them, we now have up to 800 boards, quangos and task forces of every kind. Does the Minister agree that it is now very difficult to get competent people to serve on boards? Does he agree that it is necessary to reform the appointment process? The Minister for Education and Science, Deputy Batt O'Keeffe, may have picked someone who is good at maths to be an adviser on education, but does the Minister not think he might have been better advised to have a departmental official indicate the qualifications required to be an adviser on the costs of third level education?

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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As I indicated, I am open to suggestions as to how we can improve the quality of those appointed to the boards. I do not believe membership of a particular political organisation or party should disqualify persons from appointment to a State board.

Photo of Joan BurtonJoan Burton (Dublin West, Labour)
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It certainly helps to be a member of Fianna Fáil.

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Fine Gael)
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Does it not enhance a person's chances?

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I would deplore any tendency in that regard. Participation in political parties of every type, description and orientation is an important part of the public life of the State and should be esteemed rather than devalued. That is important in making appointments to boards. I do not accept the proposition that because a person is a member of a political party it somehow necessarily disqualifies him or her from appointment. That persons have shown public spirit to be involved in politics tends to qualify rather than disqualify them for appointment. However, I accept the point that we need to be exceptionally careful about these appointments. I am open to suggestions as to how we might improve the method of appointment.

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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Although the time allowed for this question has expired, I will allow brief supplementary questions from Deputies Creighton and O'Donnell.

Photo of Lucinda CreightonLucinda Creighton (Dublin South East, Fine Gael)
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The Minister has pointed to the general criteria that apply to appointments to State bodies and boards. Does he agree that the CSO report on gender representation shows that there is an appalling record, with only 34% of appointees to State boards being female? Does he have proposals to address that problem?

Regarding greater transparency in appointments, I agree with the Minister that membership of a political party should not disqualify a person. However, I certainly do not believe it should be the only criterion by which a person qualifies, which is often the case, as we have seen in the course of the Government and previous ones. I appreciate the Minister's aspiration for a role for Oireachtas committees on that basis. However, for this to happen would we not require some form of legislative initiative to ensure it would be a mandatory requirement for people to appear before an Oireachtas committee in order to be screened thoroughly?

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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In the light of the current uncertainty in the stock markets etc., has the Minister carried out a review and audit of appointees to current State boards to ensure we have the proper balance of business people and public servants and that the level of expertise available on State boards is sufficient to deal with the difficult times in which we find ourselves in terms of external audit?

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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A review and audit of the current membership of a board would, in effect, undermine its position.

Photo of Kieran O'DonnellKieran O'Donnell (Limerick East, Fine Gael)
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Let us call it a review.

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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Members of the relevant boards in the financial authorities have very grave responsibilities. I would not attempt to review their performance other than in the context of fresh appointments being made to those authorities or a public concern being raised about the public performance of their duties. No public concern about their duties has been brought to my attention.