Dáil debates

Tuesday, 3 May 2011

Ceisteanna - Questions

Appointments to State Boards

2:30 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 1: To ask the Taoiseach his plans to reform the manner in which persons are appointed to State boards; and if he will make a statement on the matter. [5744/11]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 2: To ask the Taoiseach his plans to increase transparency in the system of making appointments to State boards [5908/11]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Question 3: To ask the Taoiseach if it is his policy to advertise appointments to all State boards; and if he will make a statement on the matter. [6655/11]

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I propose to take Questions Nos. 1 to 3, inclusive, together.

The Government has decided that new arrangements will be put in place for the making of appointments to State boards and bodies. In future, Departments will invite expressions of interest on their websites for vacancies on the boards of bodies under their aegis. Ministers will not necessarily be confined to those who make expressions of interest, but will ensure all appointees have the relevant qualifications.

Several Departments have already started this process. The Department of Transport published on its website an advertisement seeking expressions of interest for appointments as chairpersons of the boards of the CIE companies and the Railway Procurement Agency and also for appointments to the boards of transport, tourism and sport agencies. The Department of Communications has also advertised on its website with regard to vacancies that will arise on the boards of bodies under its aegis before the end of 2011. The Department of Finance has sought expressions of interest for appointments to the board of directors of the recapitalised banks.

The Government has also decided that those who are being proposed for appointment as chairpersons of State boards will be required to make themselves available to the appropriate Oireachtas committee to discuss the approach they will take as chairperson and their views about the future contribution of the body or board in question. Following that discussion, decisions will be taken by the Minister or the Government, as appropriate, to confirm the nominee as chairperson.

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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Gabhaim buíochas leis an Taoiseach as an fhreagra sin. The soundings the Taoiseach has made with regard to the process for appointment to State bodies is welcome. However, it is a matter of regret that up to 110 people were appointed by the outgoing Government to State boards in the period between the dissolution of the previous Dáil and the formation of the new Government. We all agree this is not the way to do business and we need to ensure an ending to the "jobs for the boys" approach that has pertained in the past.

The Taoiseach gave some information on advertisements that have been placed and some appointments made. Is that an exhaustive account of matters at present? How many appointments has the Government made since it took office? I ask the Taoiseach to expand on the level of scrutiny and transparency that will apply in future appointments. I note that he again referred to prospective chairs of State boards presenting themselves before Oireachtas committees. When will this process begin? Can the Taoiseach reassure us that this will not be simply a rubber-stamping exercise? What kind of discretion will the Oireachtas committees have? Crucially, will a committee have the power to block an appointment to a State board?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The change here is pretty dramatic in the context of what went on before. We also discussed this at the last round of Taoiseach's Questions. This will take effect from the time the Oireachtas committees are set up, which will be in the very near future. The first person to appear before an Oireachtas committee will be the nominee for appointment to Bord na gCon, for which there has been a vacancy for some time. The procedure is that the proposed person will appear before the relevant Oireachtas committee and give his or her view as to what contribution he or she can make to the agency or body to which he or she is proposed to be appointed. The advertisements to be carried by departmental websites or organisations outside the normal remit of Government will carry the requirements as to what is wanted from the personnel who might apply in an expression of interest, in other words the range of specific qualifications or competencies required so that there is a standard that is required which people will know if they apply or put in an expression of interest. This will take effect as soon as the Oireachtas committees are up and running. As vacancies occur, as will happen, Departments will advertise on their websites the range of competencies and qualifications so that those who are interested can put in their expressions of interest.

The Deputy asked if the committee could block somebody's appointment. I made this clear before; if a proposed person nominated either by a Minister or by the Government really falls down in making his or her presentation to the relevant committee, obviously the Government or the Minister would need to take that into account, but it is not a function of the committees - they are not blocking committees. It is an opportunity for the proposed person and the committee to discuss the policy issues in respect of the organisation, agency or body concerned.

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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I appreciate that the requirements and job specification would be set out, which is absolutely necessary. If the ultimate power of decision is not vested in the committee - if one is to be cynical about it - does it not then simply become an optical exercise? I do not suggest that the committees should become simply blocking mechanisms, but if one were to scrutinise the candidature of any person for any appointment, surely the logical outflow from that is that the committee would have the power to either accept or reject, to endorse or otherwise the candidacy for any particular position. It leads me to conclude that perhaps this is simply optics and a rubber-stamping mechanism.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Could we have a question, please?

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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Given that an applicant will set out initially his or her vision for the job based on what he or she can bring thereto, what will be the role of the committee in scrutinising performance on an ongoing basis?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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It depends on the organisation, agency or committee involved. The Government set policy, as decided by the Cabinet, and a range of organisations, agencies and Departments implement it. If one wants to see the scale of change, one should note that Oireachtas committees never had the range of competencies required or the necessary experience. Members were appointed on the basis of friendship rather than competence, as admitted in the House by a former Taoiseach. That is not the way it should be. If agencies, organisations and committees are to conduct their business properly, it must be done in the context of implementing and carrying through on current Government policy in the interests of the country and the people. It would be thoroughly unwise, therefore, of a Government to disregard the view of an Oireachtas committee of anybody appearing before it. That is why expressions of interest will be made by people who deem themselves to be competent and have the experience and qualifications necessary to express an interest in a position in the first place. We want far greater transparency than has been the case heretofore. In the main, the appointments will be confirmed by the Cabinet, or Minister, after the appointees have been proposed and have appeared before the relevant committee to make their case.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I have two questions, Nos. 2 and 3, on the same issue. While not wanting to get involved in party political point-scoring, for decades every Government, before its dissolution after a general election, appointed people to State boards as vacancies arose. On the Taoiseach's last day in office as Minister for Tourism and Trade he appointed a Fine Gael trustee to the board of Bord Fáilte.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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That was a long time ago.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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We can all-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Deputy should ask a question.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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That is prehistoric at this stage.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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While I welcome the change, I do not believe it is dramatic. I am conscious that even Sinn Féin, for example, had made comments-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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Questions, please.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I have two. I am building up to them and will ask them if allowed without interruption. Although I heard Sinn Féin articulate concerns about this system, it was no slouch when it came to North-South bodies, for example. With regard to the Northern Ireland Executive-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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This is Question Time and questions must be put to the Taoiseach.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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-----there was a Sinn Féin nominee and a DUP nominee and one could take one's pick. We should not have lectures across the House or be politically cynical about this.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Taoiseach has admitted the vast majority of the 108 nominees were of good quality.

I come to my point.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I thank the Deputy.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Does the Taoiseach agree that the reforms introduced by a Minister in the previous Government, Mr. Eamon Ryan, went further than those being proposed in that he actually gave authority to a committee to nominate individuals, particularly in the broadcasting arena? It was a novel approach that he adopted with the sanction of the previous Government. While what we are witnessing is welcome in terms of advertisements and committees having a chance to discuss a nominee's views, that is as far as it goes. The power to nominate and confirm will remain with the Government. It is not the dramatic change outlined by the Taoiseach. I suggest Mr. Ryan, the former Minister, went much further by giving authority to a committee to make an appointment. Perhaps the Taoiseach might consider whether the committees of the House should share the responsibility for appointing members to semi-State bodies.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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As the Deputy stated, he is not interested in the Punch and Judy business of the past. I am concerned about making changes that will apply in the future. I am not giving committees absolute authority to make appointments but the opportunity to discuss policy with the person proposed by the relevant Minister or the Cabinet as chairperson of the relevant organisation or agency. That is a big change which goes across the board, and not just in the unique circumstances in which the former Minister, former Deputy Eamon Ryan, made his decision. This opens opportunities for people who believe they have the qualifications and experience necessary to give public service to the country in the relevant organisation or agency to appear before the Oireachtas committee and discuss not only what they bring to the table but also the Government policy in that particular area. If the committee finds that the person before it is grossly incompetent, the responsible Minister and the Cabinet would have to take cognisance of that. However, the way this is structured means that only people with the qualifications, experience and competence would express an interest in the first place.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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Given that the policy and the parameters of any State agency are set by the Government and the Oireachtas in legislation, it does not fall within the remit of a new chairperson to dramatically change them. What one will be examining is the competence, qualifications and the capacity of the person to chair a board. In that instance, given the majority the Government has in the House and will have on the committees, there is a grave danger that we will get what amounts to a rubber-stamping exercise, unless more teeth are given to committee members and the committees of the House in terms of the actual appointments. Second, is it just the chairperson who will have to appear before Oireachtas committees and any other appointees will not? I understood from the Taoiseach's reply that it is only chairpersons.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I do not believe there should be Oireachtas hearings for the casual filling of vacancies on boards that might not rank in the top three in the order of priority. The chairperson has the fundamental function of chairing the relevant body or agency and to steer it in the direction, in so far as the committee is concerned, of the relevant element of Government policy. I am anxious to see how this will operate in practice. I would like to see the first two dozen cases go before the relevant committees, see how they get on, the reaction and how the process works. It is a change that does not transfer absolute authority to the committees but there is a clear inference that somebody appearing before a committee, following nomination by a Minister or the Cabinet to be a chairperson of an organisation or agency, had better have the qualifications, competence and experience to chair the board of the organisation or agency in question.

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The Taoiseach will agree that the committees already have the right to talk to the chairperson of a State agency and, indeed, they frequently do so. I ask the Taoiseach to reconsider the idea, even on a pilot basis in the case of some State agencies, of sharing the authority with committees of the House.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The difference is that previously there was a one line announcement to the newspapers that person X was appointed as the chair of a board, agency or organisation. The relevant committee had no function at all, other than to welcome the new arrival as the chairperson. In the case of these chairpersons, the Minister or the Cabinet will make a nomination, the person will appear before the Oireachtas committee, explain what they bring to the board, how they see the future policy evolving and discuss that with the members of the committee. That is a big change. If the person appearing before the committee falls down on that job, the Minister and the Cabinet would obviously have to take cognisance of it. It would be unwise to disregard it.

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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I will take some quick supplementary questions. I remind Deputies that everybody is entitled to table a question and I want to be fair to those Deputies who did so. We will not spend all day on these three questions. There will be a quick supplementary question from four Deputies.

I call Deputy Higgins and ask him to be brief. A total of 29 questions were tabled for answer by the Taoiseach today. Some of those indicating that they wish to put supplementary questions did not table any of the original 29 questions. I ask those Deputies to whom I refer to respect those who tabled questions.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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As a starting point for this debate, does the Taoiseach candidly admit that Fine Gael and the Labour Party were as guilty of cronyism as Fianna Fáil with regard to the manner in which, over decades, they appointed-----

Photo of Seán BarrettSeán Barrett (Dún Laoghaire, Ceann Comhairle)
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The Deputy should get on with it.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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-----people to public boards? Does he agree that - I will not use the unkind word "hacks" - the latter were activists of the political parties? If the Taoiseach is serious with regard to the new system he proposes, why did the Minister for Agriculture, Marine and Food rush to make appointments to and to promote people within Bord na gCon? Rather than the somewhat narrow process he proposes, does the Taoiseach not agree that a far more wide-ranging and democratic process involving the users of the services of State boards should be put in place? Does he also agree that there should be a much more proactive role for the workers who supply those services?

Photo of John HalliganJohn Halligan (Waterford, Independent)
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I broadly welcome the proposals the Taoiseach has put forward. In the context of some of the outrageous appointments made by the previous Administration - during the general election campaign and on polling day - and in light of what the Taoiseach said about the competency of people appointed to positions on State boards, does the Government have the power to revoke or cancel such appointments or to re-interview those who were appointed? Most of the appointments to which I refer involved people who support Fianna Fáil and who would probably be opposed to the Government parties. Will the Taoiseach indicate if these appointments can be revoked or cancelled or if those who were appointed - who were selected because they are friends of the Fianna Fáil Party - can be interviewed again to establish the nature of their competency and qualifications?

Photo of Shane RossShane Ross (Dublin South, Independent)
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What the Taoiseach spelled out in respect of his plans leaves one suspicious that the holes that are so apparent in it were dug by him and his Ministers. Given that the advertisements to which he refers and the recommendations and operations of the joint committee can be completely ignored by a Minister making an appointment, what is to stop Ministers who do not possess scruples or integrity from making nakedly political appointments identical to those made by the previous Government?

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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In the context of the questions posed by Deputy Higgins, I will be interested in hearing the Taoiseach's comments on workers and service users. Will the proposals regarding reform of the process relating to appointments to State boards extend to dealing with the outrageous salaries paid to executives on such boards? These individuals are being paid hundreds of thousands of euro at a time when workers are being asked to take savage pay cuts.

In addition to the reform of the appointments process, will there be a greater level of accountability to the public and to this House with regard to the policies pursued by and activities of the executives and boards of State companies? Many of these individuals appear to be a law unto themselves and are able to do whatever they like. We do not seem to be able to obtain accurate information on their actions and the policies they pursue, and we are not in a position to influence those actions and policies.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I do not accept Deputy Higgins's assertion that this is cronyism.

Photo of Joe HigginsJoe Higgins (Dublin West, Socialist Party)
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Why not?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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Even the Deputy will understand that there is a difference between what will happen in the future and what occurred in the past. It is clear that there is at least serious intent on our part - and a demonstration thereof - to allow the Oireachtas committees bring before them those who will be nominated to hold positions as chairpersons of State boards and companies. That is a good development. The relevant committees will hold public hearings but these will not be interrogative in the same way as US congressional hearings. However, nominees will be in a position to outline what they can bring to the organisations to which it is proposed to appoint them. The members of the committees will then be able to question these individuals on both the level of competency and the range of experience they possess.

In respect of the question on appointments during the election period made by the outgoing Government, I have been advised that it would probably not be worth trying to go down a legal route to remove people who have been appointed. It could happen where an organisation was being abolished and some quangos will be abolished following analysis by the Government. The Minister for Health and Children asked board members of the HSE to stand down voluntarily because the structure of the entire organisation was being changed, but this is a slightly different circumstance. There is no need for Deputy Shane Ross to be suspicious. The position is as he points out but not in fact. If an advertisement appears for a position, a number of people express an interest in it and the Minister and the Cabinet find that the range of competencies or experience is not available, they are entitled to move away from the list of those who expressed an interest. Such nominees have to be nominated by the Minister and approved by the Cabinet after going through the process of appearing before an Oireachtas committee.

Photo of Shane RossShane Ross (Dublin South, Independent)
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Could they nominate one of their friends?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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That could happen in much the same way as the Deputy said to me when he told me he had a couple of nominees for positions whom he said I might consider.

Photo of Phil HoganPhil Hogan (Carlow-Kilkenny, Fine Gael)
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They could be the Deputy's friends also.

Photo of Shane RossShane Ross (Dublin South, Independent)
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I will give the Taoiseach their names again if he likes.

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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I do not know whether they are the Deputy's friends. Accountability for State and semi-State organisations is part of the Government's focus on the comprehensive spending review. For years, long before Deputy Richard Boyd Barrett came here, when the Minister for Finance allocated money to a Minister, a Department or an agency, there was never a real analysis of what went on, other than an examination by the Committee of Public Accounts following the making of a report by the Comptroller and Auditor General, which would take place a few years later. We will now have a real analysis of how the money is being spent to ensure value for money is being achieved, see whether it is worthwhile continuing with a programme or increasing the relevance of another. The review will be finished by September.

Photo of Richard Boyd BarrettRichard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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What about the salaries paid?

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael)
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The first decision made by the Government was to reduce salaries. We will continue to reduce costs insofar as governance is concerned. The matter of the serious salaries of chief executives of State bodies is one for the Minister for Public Expenditure and Reform.