Dáil debates

Thursday, 8 March 2012

3:00 pm

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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Today is international women's day. In deference to this auspicious day, I call on the Government to legislate for a corporate board quota similar to that of Norway. This would compliment the Electoral (Amendment) (Political Funding) Bill, which proposes an increase in women's representation on the ballot paper for the Dáil.

Irish female representation on corporate boards is dismal. In March 2011 women made up only 6% of directors in our biggest company boardrooms. Almost all of our 35 largest Stock Exchange-listed firms have no women board members at all. These are the heavy hitters, with market capitalisation of €5 billion. In terms of female decision making in the Civil Service, the statistics are also depressing. There is nearly twice the number of females as males working in the Civil Service yet, at the highest ranks, they are far outnumbered by men. At the highest level of Secretary General, women account for only 17.6%, while at the clerical officer level, women occupy 77.3% of posts.

The most widely known example of quotas for corporate boards is in Norway, where a 40% gender quota exists. These boards are in public, limited, state-owned and inter-municipality companies. The quota policy was introduced in Norway in December 2003 but gave companies a grace period until 2008 to reach the target. Female representation increased gradually before it dramatically jumped from 15.9% in 2004 to 37% in 2007 and finally reached the 40% target in 2008. Legislated board quotas have since been introduced in Spain in 2007 and in France and the Netherlands in 2010. Quotas for public limited companies are also being discussed in Belgium, Canada and Italy, where laws are pending at different stages of the ratification process.

Ireland's big investors seem to be averse to the implementation of a gender quota system. Companies in Norway were also quite against the idea in the first instance. It was argued that companies would be forced to appoint less qualified people as board members just because of their gender. However, studies have since revealed that 36% of female board members in Norway have a university education lasting six years or more, compared to just 22% of their male counterparts. I ask that a corporate quota to increase women's representation be put in place.

4:00 pm

Photo of Shane McEnteeShane McEntee (Meath East, Fine Gael)
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Given it is international women's day, I must say they are all looking very well today in the Dáil. I welcome the opportunity afforded by this debate to underline the Government's strong commitment to improving corporate governance, particularly in light of the serious shortcomings of corporate governance revealed in the recent past in both the private and the State sector. The quality of board governance is key to the successful and prudent management of enterprises. Since the Government took office, we have made changes to the system of appointment to State boards to ensure greater transparency and balance. Departments now invite expressions of interest in vacancies on the boards of bodies under their aegis on their websites.

When requested, the Public Appointments Service provides a selection and support service to Departments and offices where State board vacancies have been advertised on their websites. In short-listing applicants, the Public Appointments Service gives due regard to the recent experience of applicants to ensure an appropriate mix of skills and gender.

The programme for Government also contains a commitment that: "Public funding for political parties will be tied to the level of participation by women as candidates those parties achieve". The Electoral (Amendment) (Political Funding) Bill 2011 includes provision for a requirement that to qualify for full State funding under Part 3 of the Electoral Act 1997, a qualified political party will have to have at least 30% female candidates and at least 30% male candidates at the next general election - I do not know where that leaves the rest. Seven years from the general election where this provision first applies, this will rise to 40% commencing at the general election held next after that. When the Bill is passed, the intended outcome will be effectively to double that figure to 30% within one general election cycle, which is very ambitious.

In March 2011 the Government announced in the programme for Government that it will take steps to ensure that all State boards have at least 40% of each gender. While that has been a long-standing goal in public policy, it is a challenge to achieve it. The figures for the end of 2010 show that the participation rate for women on State boards is 34.67%, which is slightly above the 2009 rate, but still short of the 40% target. The position of women chairpersons is more encouraging however, up from 46 to 52 in 2010, or from 18% to 20%.

Quotas or incentives may have a role to play but there are wider societal factors that impede the participation of women in public and corporate life. In the general context, the issue of gender balance and corporate governance was the subject of a public consultation last year by Internal Market and Services Commissioner, Michel Barnier. The Commission summary of the outcome noted that the majority of respondents rejected the idea of listed companies being required to ensure better gender balance on boards. The respondents that were in favour proposed different means for achieving a better gender balance, starting with a voluntary approach for a transitional period, followed by compulsory measures if need be.

The Government will keep the situation under review and consider what further action may be needed to achieve the desired target. It is noteworthy that the Electoral (Amendment) (Political Funding) Bill 2011 does not compel or oblige parties by law per se to provide a quota of candidates of a particular gender but operates by way of encouragement and incentive.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I welcome the Government's forthcoming Electoral (Amendment) (Political Funding) Bill 2011. However, I also wish to highlight the gender pay gap. The unadjusted gender pay gap in October 2009 was 12.8%, an increase from 12.4% in October 2008. I acknowledge that women have made strides in many respects, however, as a Government we must respond to gender barriers and tackle issues that hinder women's ability to fulfil their full potential. For example, today Safe Ireland launched its national one day census of domestic violence services 2011. It reported that on the 4 November 2011, a total of 770 women and children received support from a domestic violence service. Furthermore, the gender inequality in the time use 2008 report indicated that on an average day women spend two hours 29 minutes at caring work and two hours 36 minutes at house work. By comparison, on an average day men spend 39 minutes caring and one hour and 15 minutes, which I question, at house work. There is a large discrepancy between the two.

I wish to draw attention to a statement made at the recent Davos summit by Facebook's Sheryl Sandberg. She called for girls to be more ambitious at work and men to be more ambitious at home. We must create an Ireland where this is possible.

Photo of Shane McEnteeShane McEntee (Meath East, Fine Gael)
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I might not answer that point at all.

Photo of Peter MathewsPeter Mathews (Dublin South, Fine Gael)
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I was not approached about the survey.

Photo of Shane McEnteeShane McEntee (Meath East, Fine Gael)
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I wonder what answer Deputy Mathews might have given. One is ashamed, especially when one sees the manner in which women are treated in other countries. Everyone must strive to achieve equality. We are all the same and we are all entitled to the same wages and to be in the same positions. With people such as Deputy Mitchell O'Connor fighting for that aim it is not too far away in this country. One cannot force anything on people but one must create the situation in which it can happen. I thank the Deputy for raising the subject.