Seán Sherlock (Cork East, Labour)
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499.To ask the Minister for Public Expenditure and Reform his policy on independent boards of State agencies; whether these are required in legislation that establishes each agency in line with principles of good governance; and if he will make a statement on the matter. [32616/24]

Paschal Donohoe (Dublin Central, Fine Gael)
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As the Deputy may be aware, the role and levels of accountability of State boards have evolved significantly over the last number of years during which we have seen marked developments in the importance of oversight, transparency, disclosure and the management of risk and change. State boards are today required to engage in active oversight, provide clear direction and guidance to State bodies, and are held responsible and accountable for ensuring the highest standards of corporate governance. To do this they require very specific skills and experience. The State boards selection procedures introduced by the Government in 2011 and revised in 2014 underpins the transparency, independence and objectivity of State board membership. All State bodies should have published Codes of Conduct for their Board and employees. The Code of Conduct should refer to the need for each member of the board of a State body holding a designated board membership to ensure his/her compliance with relevant provisions of the Ethics in Public Office Acts 1995 and 2001, including disclosure of registrable interests by holders of designated board memberships.

The Code of Practice For the Governance of State Bodies (The Code), published by my Department, forms the prevailing reference framework for good governance as applicable to State boards. The Code was developed to encourage good practice corporate governance arrangements, better decision-making in respect of strategic direction and resource allocation, and to facilitate transparency and external scrutiny of how State boards manage their business. The Code provides a good reference framework for State boards, in respect of their role and expectations as joint and individual board members. The Code is required to be considered in conjunction with the wider range of governance codes, companies act, legislative provisions, government circulars and guidance notes.

Board independence is a critical feature to ensure that the State organisations are run effectively, to deliver on their mission. The Code sets out a robust process whereby the State boards have clear authority in their sphere, to guide the operation of the State body and to hold the CEO and senior management to account against the organisations strategy. The Code further provides for robust engagement between the State body and the relevant Department and that includes features such as oversight agreements and performance delivery agreements. These agreements act as a performance contract between the parent Department and the State body in which an agreed level of performance or service is formalised. Taken together these measures ensure that the State board has a clear understanding of the relevant policy context set by Government, has capacity to guide the State body towards maximum performance in this context, and has systems for accountability back to the parent Department.

The current governance arrangements for all boards and their members both in legislation and in the supporting codes introduced by my Department provide a strong framework for appropriate board independence.