Joan Burton (Dublin West, Labour)
Link to this: Individually | In context

Question 168: To ask the Minister for Finance his views on a transparent vetting process, involving public confirmation hearings before the Joint Committee on Finance, for appointments to boards under the aegis of his Department including, but not limited to, the proposed Banking Commission, the National Asset Management Agency, the National Treasury Management Agency, the National Pension Reserve Fund, the board of governors of the Central Bank; his further views on whether the lack of transparency in such board appointments is an important factor in the decline of public and market confidence in these boards; and if he will make a statement on the matter. [37706/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

Appointments to the board of a State body, including those under the aegis of my Department, are generally made by the Minister with responsibility for the Body in question. The arrangements for such appointments are normally set out in the legislation establishing the State Body. In recent years the system of appointments to State boards has been refined and the overall calibre of appointees has improved. It has increasingly become the practice to specify in the governing legislation the attributes required of board members.

The Government is anxious to innovate in this area and is keen to bring more accountability into the system of State board appointments. The Renewed Programme for Government, which was agreed at the beginning of October, contains a commitment to a more global reform of the system of appointments to Public Bodies. The document provides that the Government will introduce on a legislative basis a more open and transparent system for appointments to public bodies. The legislation will outline a procedure for the publication of all vacancies likely to occur, invite applications from the general public and from the responses create a panel of suitable persons for consideration of appointment. The legislation will also specify numbers of persons to be appointed by a Minister and will facilitate the appropriate Oireachtas Committees to make nominations to the panel.

The Deputy refers to appointments to a number of State bodies under the aegis of my Department. With regard to appointments to the board of the National Assets Management Agency, as the Deputy is aware legislation on the establishment of NAMA is currently going through the Dáil, however, I intend to consult with the Opposition parties about the chairmanship of the agency and I have written to the Opposition leaders in that regard.

In the context of the reform of the institutional structure for financial regulation, it is a priority for the Government to ensure that the membership of the new Central Bank of Ireland Commission will comprise persons with substantial experience and recognised expertise in relevant specialist areas such as financial regulation, international finance, risk management and economics.

The position with regard to the National Treasury Management Agency Advisory Committee and the National Pensions Reserve Fund Commission is that appointments to both bodies are made by the Minister for Finance, there is no requirement for outside consultation. However, the NPRF Act 2000 requires those appointed to the NPRF Commission to have acquired substantial expertise and experience at senior level in any of the following areas.

· Investment or international business management

· Finance or economics

· Law

· Actuarial practice

· Accountancy and auditing

· The Civil Service of the Government of the Civil Service of the State

· Trade union representation

· The Pensions industry

· Consumer protection