Dáil debates

Wednesday, 7 November 2012

2:20 pm

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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To ask the Minister for Defence if he will provide an update on the situation with regard to the governance of the Red Cross; and if he will make a statement on the matter. [48504/12]

Photo of Alan ShatterAlan Shatter (Dublin South, Fine Gael)
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Pursuant to the Red Cross Act of 1938, the Irish Red Cross Society was established by Government order in 1939 as an independent charitable body corporate with full power to manage and administer its own affairs through its governing body, its central council. At first, the 1939 order underwent piecemeal changes only but, following a turbulent period in the recent history of the Irish Red Cross, earlier this year the Government approved the Irish Red Cross Society (Amendment) Order, which represented the most wide-ranging and fundamental set of changes to have occurred since the establishment of the society in 1939.

In summary, the key changes made in the amendment order were as follows. The composition of the society's general assembly was altered to the extent that not more than 10% of its membership are now nominated by the Government. The position heretofore had been that not less than one third was nominated by the Government. In keeping with best practice internationally, the executive powers of the President of Ireland were withdrawn. Previously the President had the power to call an emergency general meeting and to nominate the chairperson of the society. In accordance with the rules of the society, the chairperson is now elected and appointed by the members of the society's general assembly. The President remains honorary president of the society and is its sole patron. The amendment order gave legal effect to the society's revised constitution and its amended rules and governance structures. The central council was renamed as the general assembly and the executive committee as the board of directors.

Pending approval of the amendment order, the society's revised constitution and amended rules had been approved at a meeting of the central council in March 2012. The changes made had been developed in close collaboration with the International Federation of Red Cross and Red Crescent Societies, IFRC, and the International Committee of the Red Cross, ICRC, and meet the rigorous standards these organisations set for good governance internationally.

The constitution and rules of the society now provide for a general assembly and board profile which introduces external expertise to the organisation. For example, the society's chairperson can now co-opt two external people directly onto the board of directors to ensure there is a good balance of professional expertise and experience. Furthermore, the society's nominations committee can also bring a number of external people, currently four, onto the general assembly, which also adds to the diversity of experience and expertise available to the society's highest deliberative authority.

Additional information not given on the floor of the House.

The society's constitution now also provides that a member of the board of directors must stand down for one full three-year term once he or she has served on the board for two consecutive three-year terms.

Following the Government's approval of the amendment order, and in accordance with the society's revised constitution, in May of this year the Government approved the nomination of four nominees to the society's general assembly. These four individuals were carefully chosen for the value their experience and expertise can bring to the society, and I am pleased to note that three of the four were subsequently elected to the board of directors by the members of the society's general assembly. Both the approval of the amendment order and the subsequent nomination of these four high calibre individuals to the general assembly of the society represent significant and important steps taken by this Government in helping to restore the full confidence of the public in the Irish Red Cross Society. These steps, allied to the rule and constitutional changes made by the society itself, provide for corporate governance arrangements that bring the Irish Red Cross into the 21st century. There is clearly a strong impetus for change within the society itself and while a lot of important measures have been taken over the past year and a half, I urge the society to maintain the momentum it has built up.

Furthermore, the programme for Government provides for the initiation of a detailed legal review of the basis, structures and governance of the Red Cross in Ireland to improve its functioning in the light of changing circumstances. My Department has commenced work on the review and I anticipate this will result in a Red Cross (amendment) Bill during the lifetime of this Government.

Photo of Seán Ó FearghaílSeán Ó Fearghaíl (Kildare South, Fianna Fail)
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Does the Minister intend to bring forward a new Red Cross Bill for consideration? If so, what is the timeframe? Is the Minister happy that the serious deficiencies previously identified in the accounting system of the Red Cross have been addressed? In any legislation the Minister brings forward, will there be strict time limits on the duration of appointments to the board?

Photo of Alan ShatterAlan Shatter (Dublin South, Fine Gael)
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On the last question, the society's constitution now provides that a member of the board of directors must stand down for one full three-year term once he or she has served on the board for two consecutive three-year terms. I am concerned in particular that some individuals were on the board repeatedly and that there was neither the opportunity for change or for others to become members of the board. Following the Government's approval of the amendment order, and in accordance with the society's revised constitution, in May of this year the Government approved the nomination of four nominees to the society's general assembly. These four individuals were carefully chosen for the value their experience and expertise can bring to the society, and I am pleased to note that three of the four were subsequently elected to the board of directors by the members of the society's general assembly.

Both the approval of the amendment order and the subsequent nomination of these high calibre individuals to the general assembly of the society represent very significant and important steps. In the context of dealing with the issue of membership, there were individuals who had been on the ruling body of the society for many years. In the recent elections, two of them did not stand. In effect, much of the reform I was anxious to achieve has been achieved in the context of dialogue in which I engaged with the society from a very early stage after my appointment. There has been a sea change in the context of the rules and regulations and the society's constitution. Work is ongoing with regard to the new legislation we have promised in this area. I cannot give an exact timeframe because of the pressures on the legislative schedule in the Office of the Attorney General but I assure the Deputy that I am committed to that legislation. It is part of the programme for Government and it will come before the House at the earliest possible opportunity.