John O'Donoghue (Kerry South, Fianna Fail)

I second the amendment.

Minister for Arts, Sport and Tourism (Mr. O'Donoghue): The effect of the amendment would be to require that contracts entered into by the authority, not normally requiring the use of the corporate seal, would have to be executed by two members of the authority or a member of the authority and a staff member. The provision contained in this section, as published, is standard. I am not persuaded that a member of the board should have to sign every contract. This is a matter for the authority to decide, in accordance with good corporate governance.

I want to be clear concerning the standard practice in Bord Fáilte. It is that the board is notified of all proposed grant contracts, all registrations and, as far as I am aware, all other contracts of significance. Once the board signifies its approval, the executive proceeds to finalise the paper work. Some contracts require the corporate seal and this is done by the secretary and chair of the board meeting. Other contracts are entered into by the executive, following board approval. To require a member of the authority to execute all contracts seems unnecessary and overly bureaucratic, especially as the authority will already have approved the general terms of the contract. Both internal and external auditors can scrutinise contracts, signed in their implementation, against the documents submitted to the board.

The system appears to have worked well to date and has not been a matter of concern to the Comptroller and Auditor General. Therefore I do not propose to interfere with it by legislation. It is a matter for the authority itself. I have asked my officials to copy the Seanad debate for the interim board. If, in the context of considering the issues raised, it believes there are procedural matters which need to be addressed I am sure it will address them and give them to the authority for attention, once it is established. This is a reasonable approach to some of Senator Quinn's proposals on the authority's internal procedures.