asked the Minister for Industry and Commerce if he will introduce legislation which would prevent employees of the IDA from leaving to take up positions with companies which had recently received substantial financial support from the IDA, especially where such staff had been involved in the decision to provide such financial support; if his attention has been drawn to a recent case where an executive of the IDA who was reported to have been involved in a decision to provide almost £1 million financial assistance to a company (details supplied) in County Wicklow resigned from the IDA and joined this company as a director; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - IDA Employees.
13.
I have no proposals to introduce legislation of the kind suggested in the question.
While it would be inappropriate to comment on specific cases, I am aware that IDA staff have, on occasions, been offered positions with grant-assisted companies. I do not regard this as objectionable as there are arrangements to ensure the proper handling of all proposals for financial assistance from the IDA. All such proposals have to meet certain specified criteria set out in legislation and detailed guidelines laid down by the authority. Each proposal is required to be approved by an independent board or committee, with projects involving a significant amount of financial support requiring Government approval.
The Minister's reply disappoints me. Surely he will agree that offers of substantial jobs in executive positions in IDA-assisted companies exert undue pressure on the IDA employee to ensure that the appropriate grants are given to the company. Would the Minister not agree that this sort of occurrence approximates very closely to a type of bribery or indicates that some decision has been made beforehand that if a grant is approved a person will get a position in the company? Surely that raises dangers for the employee?
The picture painted by the Deputy is not what happens. No individual executive of the IDA has the power to sanction a particular grant. I do not consider it appropriate that we should have new legislative provisions because grant assistance decisions are not taken by IDA staff members. I do not believe that legislative provisions are feasible in that project executives and staff generally would deal with a large number of companies over a long period. Grant decisions are taken either by the IDA Authority, the IDA board, specific grants committees or small industries regional boards on which there are representatives of the IDA, other State agencies and Government Departments. There are also specific provisions in the 1986 IDA Act which prohibit staff from divulging information received in the course of their employment. No individual executive of the IDA has a grant-giving function and so cannot be influenced. Grants are decided by the Authority, the board, grant committees or regional boards in the case of small industries. If the grant is over a certain level it must go to Government for approval.
While agreeing that decisions are made at top level by the Authority, surely the Minister will agree that those decisions are made on the basis of research and reports done by employees and assistants within the IDA and that it is on the basis of this research work that the authority finally make a decision. They made a wise decision, for instance, in the case of De Lorean on the basis of research supplied by employees of the IDA. It is important to ensure that employees doing this research are unbiased in their reports to the authority, so that they will make their decision on the basis of correct information.
No decision would be made on the basis of the report of an individual. The full project is examined in all its detail by the authority or the board, the grant committee, the regional board or the Government. In the day-to-day operations of the IDA it is not one specific individual in any case. It is a question of a full proposal being put forward, taking into account all factors. It is on the basis of that report that a decision is taken.
A brief question from Deputy John Bruton.
Can the Minister say if codes of conduct in regard to this matter apply in other member states of the EC to grant-giving agencies?
I have not that information, but I can get it and let the Deputy know.
We now come to deal with Questions addressed to the Minister for Communications. Question No. 26.