Fergus O'Dowd (Louth, Fine Gael)
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Question 40: To ask the Minister for Transport if he will ensure that all future proposed appointments by him to State bodies will be referred to the Joint Oireachtas Committee on Transport in the interests of transparency and accountability; and if he will make a statement on the matter. [18340/10]

Noel Dempsey (Meath West, Fianna Fail)
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Appointments to each State board under the remit of my Department are made in accordance with the relevant legislation. I believe that strong State companies need strong boards to lead them. Appointments made by me are done on the basis of the appointees having the necessary skills, competencies and experience to contribute effectively to the work of the board. I am conscious that there are many skilled and experienced people in society who would welcome the opportunity to contribute their expertise by becoming members of State boards, but who may consider that they have no avenue for expressing this interest.

In preparing for the establishment of the National Transport Authority, I took the decision publicly to invite applications from members of the public who wished to be considered for appointment as an ordinary member of the authority. The application process was straightforward. Applicants were simply asked to demonstrate their experience of certain areas, such as finance, transport, land use planning and so on, as provided for in the legislation establishing the authority. I received 68 applications and I appointed four of these to the board of the authority on its establishment on 1 December 2009. This was a very useful experience and one that I may draw on again. Future appointments will be considered when the proposals contained in the current programme for Government are finalised.

Fergus O'Dowd (Louth, Fine Gael)
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There was no public consultation whatsoever when the Minister recently appointed an executive chairman to CIE, a job that pays at least €210,000 per annum. Given this appointment was made after the Minister's experiment with the National Transport Authority, which we all supported, why did he not advertise the position publicly? It is important that the principle the Minister rightly supported for that authority should be continued, but he ignored it with his reappointment of the chairman of CIE. While I am not questioning his capacity to do the job, there are dozens of other people who would love to have a go. The transport committee would be very happy to invigilate the Minister's nominee, especially in respect of policies, transparency and accountability in the CIE group.

Noel Dempsey (Meath West, Fianna Fail)
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It is true that the Government reappointed Dr. Lynch on my recommendation. I do not think the Deputy is comparing like with like. Dr. Lynch is an executive chairman and that is a completely different situation from appointing a member of the board. I reappointed him on a three monthly rolling basis for 12 months in order to ensure continuity at the company at this critical juncture. It is not any secret that the finances of CIE are in a very precarious position. There have been ongoing negotiations on change, including the implementation of the Deloitte report. Dr. Lynch has a very "hands on" approach to these matters, so I felt it was in the best interests of the company that he continue in his role for up to 12 months.

Different issues will have to be discussed. Dr. Lynch went in there at a particular time for particular reasons. The company was not in great shape at the time and it had been involved in various controversies. He was appointed because of his expertise and experience. He has done well on that but the question now arises as to whether or not there is a necessity to continue with the role of an executive chairperson. That is something we could discuss at some time in the future.

Fergus O'Dowd (Louth, Fine Gael)
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I agree with the Minister that there is a need to break up the CIE group of companies and let them run their own show, but they should be made accountable to the Oireachtas Joint Committee on Transport. Fine Gael agrees that the person should be appointed as a chairman rather than as an executive chairman. However, there are critical issues concerning transparency and accountability within CIE, and particularly concerning the exceptional audits that took pace within the company. Arising from the Baker Tilly report, there are issues concerning further audits on which CIE is refusing to make a public statement. That is of great concern to me.

One of the key accidents that happened in recent decades was the one at Malahide. CIE and Irish Rail, however, have lost their corporate memory on the construction of that viaduct. It is terribly important that the chairperson the Minister appointed should be invigilated on all these issues in his capacity as chairperson. However, the Minister has reappointed him for another year without any accountability or transparency. It is more of the same and that is what we are concerned about.

Noel Dempsey (Meath West, Fianna Fail)
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The Deputy is incorrect on that. As I understand it, Dr. Lynch has been involved at least twice on the Baker Tilly report and, in addition, concerning the Malahide viaduct.

Fergus O'Dowd (Louth, Fine Gael)
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Yes, but as chairperson.

Noel Dempsey (Meath West, Fianna Fail)
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I would welcome an examination by the Joint Committee on Transport of the reports on that matter, once they are published by the Railway Safety Commission. Ultimately, however, the Deputy and I will never agree on this matter, as I am the person responsible. I am the person who has to answer questions in the House and I am not going to allow a committee to appoint a chairperson, unless the committee is prepared to take full responsibility for all of his actions.

Fergus O'Dowd (Louth, Fine Gael)
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No, but we have to invigilate him.