Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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I am glad this matter was selected and I thank the Minister for Arts, Heritage and the Gaeltacht, Deputy Deenihan, for coming in to deal with it.

As I understand it, differences of opinion on governance and board focus led to five members quitting the board of the National Concert Hall in early April. Mr. John McGrane, a senior figure at Ulster Bank and a member of the board, stated at the end of April that there was a disagreement on the board and some members chose to leave, saying:

It is as simple as that. That is their right and I respect them. Business will carry on.

The five members quit at the National Concert Hall's annual meeting in Dublin on 9 April following the circulation of a note to members of the board which was critical of the position of some unnamed members. The resignations are the culmination of a split in the board that has been evident throughout the past year. The note, drafted by Mr. McGrane, stated that there were "professional differences" with some on the board. A copy was also sent to Minister, Deputy Deenihan, who attended the annual meeting but who did not address Mr. McGrane's note, although he may wish to say otherwise now.

Those who resigned are Mr. Pat Heneghan, Mr. Bruce Arnold, Mr. Artemis Kent and Ms Patricia Slavin. The National Concert Hall board chairman, Ms Margaret Ryan, who had previously indicated her intention to stand down, also formally resigned at the meeting. The board is ordinarily comprised of 15 members, including the chairman. The board is understood to be split on the running of the National Concert Hall in general and on strategies for the future. The differences "were on board governance and board focus", Mr. McGrane stated. These were not related specifically to financial or artistic concerns. He stated, "They were purely about the focus of the board", and "It is my belief that the focus of the board should be on being positive and proactive in the best interests of the hall."

Those who resigned were appointed to five-year terms on the board in July 2011 by the Minister, with Ms Ryan appointed to the chair last year. I note Ms Ryan was also appointed a director with Fáilte Ireland, while Mr. McGrane was appointed to the board of the concert hall by the Minister in 2011.

In a statement, the Department confirmed that the four ordinary members of the board who stepped down on 9 April had done so "due to differences on the board". The statement added:

The matters that were raised are matters for resolution by the board. The main purpose of the Minister's address to the board on April 9th was to inform the board that the Government has decided to place the National Concert Hall on a statutory footing.

It also confirmed a number of new appointments to the board, including new chairman, Mr. Gerry Kearney, a retired Secretary General of the then Department of Community, Rural and Gaeltacht Affairs. Mr. Kearney will take the position as chairman on an interim basis until the new legislation has been enacted. This development will trigger the establishment of a new board. Others appointments include Ms Maura McGrath, who has over 20 years' experience working at senior management and executive levels in the private and public sectors; Mr. Barney Whelan, director of communications and corporate affairs at An Post; Professor Mícheál Ó Súilleabháin, a pianist, composer and academic who holds the professorship of music at the Irish World Academy of Music and Dance at the University of Limerick; and Ms Rebecca Gageby, head of programmes and administration at the Royal Irish Academy.

The taxpayer, as the principal funder of the National Concert Hall, has a right to know what issues currently divide the board at the National Concert Hall, what strategies are in dispute, what opinion the Minister has on this dispute and whether taxpayers' best interests are served by this dispute.

I am conscious that the board and management of the concert hall have done a superb job over the years. The most recent annual report available suggests that approximately €2.4 million of subvention was available to the hall in 2012 and it returned a modest surplus of just over €100,000. It is deeply distressing to see an institution of State that has so much positive achievement to its credit be undermined as a result of board conflict at this time, and I suppose what we are doing today is providing the Minister with an opportunity to assure the country that efforts are afoot to ensure that whatever conflict exists can be resolved speedily.

Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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I am happy to avail of this opportunity to address the House on the governance and future of the National Concert Hall. The National Concert Hall is one of our most important cultural institutions and one dearly beloved by both the Irish public and international visitors to Ireland. Over the course of 2013, more than 300,000 people attended almost 950 events at the National Concert Hall. This underlines the importance of the National Concert Hall as the most important venue in the State for musical performance of the highest standard.

As part of the process of reform at a range of institutions, including the national cultural institutions, the Government recently considered the governance position at the National Concert Hall. Since establishment in 1981, the National Concert Hall has operated as a company limited by guarantee. On 25 February 2014 the Government approved my proposal to place the National Concert Hall on a statutory footing, similar to other national cultural institutions. I informed the board of the National Concert Hall of this development when I addressed the board on Wednesday, 9 April.

Since then, the Government has also approved the draft heads of a Bill to place the National Concert Hall on this statutory basis, and legislative drafting work in relation to this will be prioritised. The draft heads of Bill on this proposal will shortly be submitted to the Oireachtas Joint Committee on Environment, Culture and the Gaeltacht for parliamentary scrutiny.

The decision to place the National Concert Hall on a statutory footing mirrors similar decisions taken by the Government last year in respect of the Irish Museum of Modern Art, IMMA, which also operated as a company limited by guarantee since establishment.

This legislation is very important for a number of reasons, chief among them being that the next board of the National Concert Hall will have absolute clarity in respect of the position on all governance and operational issues at the National Concert Hall.

As a statutory body, and in line with good governance, the NCH will be required to prepare and adopt a statement of strategy, submit progress reports, and will also be required to prepare an annual business plan, to be submitted as appropriate to the Minister and the Oireachtas. This is in common with the changes being proposed for other national cultural institutions.

As a statutory body, the National Concert Hall will have enhanced capacity to engage in fund-raising. This again is common to other national cultural institutions which are already established as statutory bodies and which have strong fund-raising programmes.

To prepare for the change in governance arrangements at the National Concert Hall, I have made a number of changes to the board. Mr. Kieran Tobin was chair until April 2013, at which point he stepped down from the role at that time for personal reasons. He has decided not to resume the position of chair, but will remain on the board to help in the development of the National Concert Hall in the period ahead.

Ms Margaret Ryan took on the role of chair in April 2013 to replace Mr. Tobin. This was always intended to be for a short term. She has stepped down from the board of the National Concert Hall to focus entirely on her role with Fáilte Ireland. The Government has since approved my proposal to appoint a new chair to the board of the National Concert Hall.

This new chair is Mr. Gerry Kearney, retired Secretary General of the Department of Community, Rural and Gaeltacht Affairs. Mr. Kearney will take the position as chair, with no fee payable, on an interim basis until the new legislation has been enacted.

I have also appointed four new board members to replace the board members who stepped down on 9 April: Ms Maura McGrath has over 20 years' experience working at senior management and executive levels in the private and public sectors, and also not-for-profit organisations in Ireland and abroad; Mr. Barney Whelan is director of communications and corporate affairs at An Post; Mr. Micheál Ó Súilleabháin is a pianist, composer, recording artist and academic, who holds the professorship of music at the Irish World Music Academy of Music and Dance based at the University of Limerick; and, Ms Rebecca Gageby is head of programmes and administration at the Royal Irish Academy.

The coming period will be one of change at the National Concert Hall. The legislative reforms that we have planned for this institution will greatly enhance it for performers, staff and the public who visit the National Concert Hall each year. I am very positive abou+t the future of this institution. I want to take this opportunity to thank the board of the National Concert Hall for its help and support in making this Ireland's leading venue for the highest standards in musical performance.

Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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The Minister and I have both put on record our admiration for the management and board of the National Concert Hall, and we recognise their achievements over the years. However, in his response the Minister has not addressed the reason for the resignation of the five board members. It is not every day of the week that five members of the board of a national institution resign. Are they resigning because of the legislation the Minister is proposing? Do they disagree fundamentally with that or are there other reasons? Are there other factors in terms of the governance of the National Concert Hall? Do they concern the focus of the board? That is what we have been given to believe by a resigning member of the board who has spoken out to give the public some information on what has been going on.

With all due respect, the Minister has given us no new information on the dispute and the problem that exists. He simply told us who is there and who will replace those who have left. We want to know what has been the problem with this institution which, in 2012, received €2.4 million of public money. It has a record of serious achievement in the performances it has mounted over the years. It is an institution that has the respect of the Irish people, as well as many international performers, and overseas visitors who have come here to attend performances in the National Concert Hall.

Now, however, we see there is a level of disarray among the board members. Why is that happening? The Minister should tell us because the Irish people want to know.

Jimmy Deenihan (Kerry North-West Limerick, Fine Gael)
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At this moment in time, there is certainly no disarray among the board members. I have full confidence that they will fulfil their duties. These people are doing the work pro bono, as did the previous directors, so there is no cost to the taxpayer. The new chairman is also doing the job pro bono. The National Concert Hall is operating very successfully.

At this stage, the reason for the disagreement has been outlined in various Sunday and weekday newspapers, so it is fairly well known. There were disagreements among members which focused primarily on a fund-raising initiative in America at that particular time which, I understand, could have cost the National Concert Hall €1.5 million. What was thought to be a philanthropic arrangement resulted in a commercial arrangement. That just could not be allowed to happen, and it was not allowed to happen either by myself or by the board. Members were not happy with that arrangement and as a result they stepped down because of it. That will not happen now.

I am providing for new legislation that will come before this House shortly and which will clarify the position. Hopefully, the Deputy will facilitate that legislation when it comes before us so that we can get it through the House quite quickly. In that way, we can clarify the role and function of the board and put it on a statutory basis like other boards.

The new board is taking on this responsibility and will move it on to a statutory basis. The National Concert Hall will continue to function successfully in future, as it has done in the past. The contribution by the taxpayer is about 37% of its total funding.