I propose to take Questions Nos. 45, 47 and 88 together.
The legislation and, where relevant, memorandum and articles of association governing the State-sponsored bodies under my aegis set out the accountability, control and methods of reporting of the boards of these bodies. The legislation stipulates that for items such as major capital expenditure, increases in borrowing limits or the establishment of subsidiaries, the prior sanction of both the Minister for Finance and myself is required. In the case, for example, of legislation in respect of the Electricity Supply Board, Bord na Móna, Nuclear Energy Board, Coillte Teoranta and Bord Gáis Éireann these matters were recently brought before the Houses of the Oireachtas for passage into law.
The question of managerial practices and codes of standards in State-sponsored bodies are matters for the boards and senior management of these organisations. I am aware that these matters are fully addressed through a combination of requirements of legislation, provisions in memoranda and articles of association and systems of codified company circulars. These codes of conduct set out standards, authority levels, systems, procedures and controls which govern all matters of financial control, accounting, procurement, contracting, income and expenditure control.
With regard to conflicts of interest at board level, the boards of the Energy State-sponsored bodies apply the following broad rules: where any board member, otherwise than in his/her capacity as a director, is in any way whether directly or indirectly interested in a matter he or she shall at the meeting disclose to the company the fact of such interest and the nature thereof. The board member shall not take part in any deliberations of the meeting relating to such matter save to the extent as the chairman may permit. In such instances the board member shall not vote on a decision relating to the matter. Any such disclosure shall be recorded in the minutes of the meeting.
I have no reason to doubt that the legislation governing these bodies together with their internal systems of control are adequate with regard to the Energy State-sponsored bodies.
I would not wish to prejudice the proceedings of the various inquiries currently underway other than to say that any improvements in this regard which comes of these inquiries will be implemented by my Department.
A review is currently being carried out by the Minister for Finance concerning the principles which govern the relationship between Departments of State and the State-bodies under their aegis together with subsidiary and associated companies which take account of the procedures at present in place. I expect that this review will be completed in the near future and I am open to any suggestions for improvement in this area. My Department have examined recently the arrangements in place in relation to each of the State bodies concerned and are not aware of any incidents which give rise to concern. Nevertheless, I am conveying to the chairmen of each State-sponsored body under my aegis the Government's concern and requesting a written assurance that the desired standards of conduct and the highest levels of personal integrity are being followed.