Clare Daly (Dublin Fingal, Independent)
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12. To ask the Minister for Agriculture, Food and the Marine the steps he has taken to ensure that the Irish National Stud will abide by the code of practice in appointing a new chief executive which is currently under way, in view of the controversy over the reappointment for a third term of a person as CEO of Horse Racing Ireland, despite the code of practice for the governance of State bodies stipulating a single, non-renewable term for CEOs of such bodies. [4855/17]

Clare Daly (Dublin Fingal, Independent)
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This question comes on the back of the debacle on the reappointment of Brian Kavanagh as CEO of Horse Racing Ireland. As the Minister is aware, the position of CEO of the Irish National Stud is currently up for grabs and I hope the Minister can reassure me that the code of practice for governance of State bodies, in particular with regard to stipulation of a single non-renewable term, will be invoked in this situation because there is a perception at large that there is a bit of a clique in operation at the moment.

Michael Creed (Cork North West, Fine Gael)
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I appreciate the image Deputy Daly wishes to portray but I assure her it is far from the reality. The Irish National Stud is a commercial State body. The appointment of a chief executive officer is a matter for the board of the Irish National Stud, subject to the consent of the relevant Ministers. I understand a recruitment competition is currently under way.

The Deputy will be aware that the board has its own obligations in relation to compliance with corporate governance standards. My Department has arrangements in place to monitor the activities of State bodies and ensure compliance with the code of practice for the governance of State bodies.

I understand the current CEO of the Irish National Stud has announced that he is stepping down from the position. I am aware that he has done an excellent job as CEO of the stud and I wish to add my voice to the many tributes that are rightly being paid to him. I understand that the INS board may request a temporary extension to the current CEO's contract to facilitate a smooth transition to a new CEO and I am open to considering that in line with Government policy and guidelines. I am sure the Deputy would wish to acknowledge the CEO's contribution as well.

Clare Daly (Dublin Fingal, Independent)
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I do not think the Minister knows what I would or would not like to do. Horse racing has been called into serious disrepute due to the handling of the previous CEO's appointment. I am concerned to ensure that such a debacle is not repeated in this instance. I take heart from the fact the Minister has told me the position will not be filled by the current CEO who has just finished his term of office. I remind the Minister that the code of practice is there for very good reasons. Only a very small number of CEO positions are filled beyond the five or seven year term. Is the Minister saying the current CEO will not take up the new position and has not put his name forward for reappointment? The Minister mentioned he wishes to ensure a smooth transition but I do not know why provision was not made for that, given that the incumbent was well aware when his contract was due to terminate. Will the Minister assure us the transition period would only be for a matter of a month or two? Anything more than that would call into question governance issues and compliance with the code of practice.

Martin Heydon (Kildare South, Fine Gael)
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I am a bit disturbed that Members of Parliament are asking questions based on the perception of a clique being in operation. We in this House have a duty to deal much more in reality than perception. On that basis and in light of what the Minister has just said, I put on record my appreciation to the outgoing CEO for a remarkable contribution to the running of the National Stud. One only has to look at the figures in terms of tourism, the equine industry and the overall figures relating to the state the National Stud was in when he took it over compared to the way he leaves it now. It is a credit to him and he deserves great credit for that.

Michael Creed (Cork North West, Fine Gael)
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I thank Deputy Heydon for his comments. He addressed far more eloquently than I the track record of the outgoing CEO. It is insightful to look at the state of the National Stud when the CEO was appointed and its current financial state. Actions speak louder than words and his actions have been a tribute to the industry, which he leaves in a far better state than he found it. I acknowledge his contribution.

Appointments are, in the first instance, an issue for the board. The CEO has indicated that he does not wish to apply for the position. There will be a recruitment campaign and in order to ensure a smooth transition, we are open to considering a transition period. That is something which will be negotiated with the board. I do not envisage that being a problem.

Clare Daly (Dublin Fingal, Independent)
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It is a matter for the board, subject to the Minister's approval. I am pleased the Minister said the outgoing CEO will not continue in the position. The recruitment process is already well under way. The gentleman's contract has expired. The question I asked the Minister is how long he is prepared to extend the contract and when can we expect the vacancy to be filled in line with the code of practice for appointments to State boards, which specifies that a different person would take up the position.

Michael Creed (Cork North West, Fine Gael)
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I am prepared to consider that. I have yet to receive a formal request from the National Stud in respect of that matter. If such a request comes before the Department, it will be considered on its merits.