asked the Taoiseach if he will designate one of his Ministers to take overall responsibility for Government policy towards commercial State-sponsored bodies in view of the fact that they are now spread over nine Departments and have many common difficulties and features.
Ceisteanna—Questions. Oral Answers. - Commercial State-sponsored Bodies.
1.
I do not propose to change the working relationship between Ministers responsible for policy and the commercial State-sponsored bodies responsible for executing it.
The existing position is that three Ministers, the Ministers for Finance, for Energy and for Communications have direct responsibility for the majority of commercial State-sponsored bodies.
There is also adequate provision for central co-ordination. The Minister for Finance has traditionally exercised co-ordinating responsibility in relation to commercial State-sponsored bodies in the areas of the terms and conditions of borrowing; the provision of exchequer finance by way of equity and loans, and the appraisal of investment proposals.
The Minister for Finance has also initiated the preparation and submission of corporate plans by commercial State-sponsored bodies. He will submit to the Government periodic reports on those plans and on the financial position of the bodies.
At present also proposals for improving the reports and accounts of both commercial and non-commercial State bodies are being finalised by the Department of Finance, after consultation with other Departments.
The Minister for Finance has, of course, overall responsibility for financial management in Government Departments and this extends to commercial State-sponsored bodies.
The Minister for the Public Service is responsible for policies on pay and related matters in relation to commercial State-sponsored bodies in the context of overall national incomes policy.
The Minister for the Public Service is also taking steps to improve the management processes in Government Departments. These improvements will cover all areas of Departments' activities including the activities concerned with the effectiveness and efficiency of commercial State-sponsored bodies.
Could the Taoiseach say if he is satisfied with the performance of commercial semi-State companies? Would he say what precise plans the Government have for these 28 or so companies which now employ 50,000 people turning over £3 billion and account for approximately 20 per cent of State debt with some three-quarters of them in financial difficulties? Would the Taoiseach inform the House if he is satisfied with that type of performance and does he not now think that the time has come for a more radical look at the way these State companies are co-ordinated?
I could not say that I am satisfied with the performance of all commercial State-sponsored bodies. While many of them continue to perform very efficiently, in a number of cases there have been problems. Some of these problems may derive from the impact upon them of policy decisions of different Governments, others may have arisen from inadequacies in their own management and direction. I would not attempt to obscure the fact that there are problems but the Minister for Finance has initiated the submission of corporate plans by these bodies and will be submitting a periodical report on them to the Government. The process under which each body have to submit their corporate plans for the years ahead has concentrated the minds of people considerably and will give the Government a much better overall view of where these bodies think they are going and will put the Government in a better position to co-ordinate their activities.
Is the Government's intention to provide the additional equity which these companies will require over the next few years, which according to some will run into hundreds of millions of pounds over the next five or six years? I do not see that in the national plan and I wonder if the Taoiseach has provided for that kind of injection of equity over the next couple of years.
That seems to be another question.
It is a very relevant one.
It is not relevant to the question on the Order Paper.
Is the Minister satisfied with the general performance of semi-State companies since their formation and would he agree that it is only now in these recessionary times that people are trying to undermine the confidence of the people working in these sectors?
The overall performance of semi-State bodies and their contribution to the State since their establishment is of great importance to this State. As somebody who worked in one for a long time I am aware of the great value of these bodies and I am aware of the fact that because they work in the public interest it can beneficially affect the morale of the staff. But problems have arisen in recent years, partly because of the recession, partly because of the impact of Government policies which have sometimes misdirected them and partly because there have been some deficiencies in management and direction which need to be remedied. The steps that have been taken and are being taken will ensure that these bodies will be able to contribute as effectively as they have in the past to the general national welfare.
Will the Taoiseach and the Government consider releasing the commercial State-sponsored bodies from the shackles of Devlin so that they may employ the best people at the most appropriate salaries, because of the huge commercial enterprises which they now are?
That is another question.
It arises on the management of semi-State bodies which the Taoiseach referred to in the final part of his answer. I am asking the Taoiseach a straight question. Would he consider that the shackles of Devlin inhibit the proper development of many of our semi-State bodies at the moment?
The Chair considers that that is a detail.
The Chair may consider it to be a detail, but I can assure him and the House that it is a very big detail and a very big matter in the management of semi-State commercial bodies——
I grant you that, but this is a general question about an overall matter.
—— more especially when one considers the mess that many are in. It is time to break out of the strait-jacket and consider releasing the inhibitions that apply to those organisations.
Deputies
Hear, hear.
I rule that question out of order.
If the Government want a good semi-State sector the organisations must be able to operate.
I am sorry, Deputy, I cannot allow it.
The Chair is in a straitjacket himself.