I propose to take Questions Nos. 13 and 36 together.
With regard to the State bodies under the aegis of my Department, the provisions governing actual or potential conflicts of interest of board members are set out either in the enabling legislation, or the relevant memoranda and articles of association.
In general, these bodies require that, where a board member has any direct or indirect material or financial interest in a company or concern with which the board proposes to make any contract or in any contract which the board proposes to make, the member shall disclose to the board the fact of the interest and the nature thereof. The board member shall not take part in any deliberation or decision of the board relating to the matter and shall not vote on a decision relating to it. Disclosures of this nature are recorded in the minutes of the board meeting.
With regard to the specific bodies mentioned in Deputy Bruton's question, the relevant legislative provisions governing disclosure of interests are as follows: IDA — Industrial Development Act, 1986, First Schedule, Paragraph 4 (3); An Bord Tráchtála — Export Promotion Act, 1959, section 9; and EOLAS — Science and Technology Act, 1987, section 16. Copies of these Acts are available in the Dáil Library.
The statutory requirements are supplemented by arrangements within the State bodies concerned. In the case of the IDA for example, it is the practice for all members of the IDA Authority, board and all grant committees to declare to the secretary details of companies in which they are involved. This information is recorded in the secretariat and is taken into account when project documents are being circulated to the committees. Members considered to have a conflict of interest do not receive documents, nor are they aware of or participate in discussions on those projects.
The State bodies under my aegis are overseen and monitored through a combination of departmental involvement at board level and regular contact with the bodies in question.
The conduct of employees in relation to actual or potential conflict of interest is a matter for the boards of the bodies in question. I understand, however, that conditions of service and staff handbooks contain provisions designed to cater for any potential conflicts. As these procedures fall within the day-to-day administration of the bodies concerned, they are not matters in which I have a direct function.
I have recently written to the chairman of each State body operating under the aegis of my Department emphasising the Government's concern to ensure that the highest standards of integrity are followed throughout the public sector. In addition, I am also in the course of meeting with the chairmen of each of these bodies during which the existing procedures and systems in place in the bodies to ensure the maintenance of the highest standards of conduct are being discussed.
From the discussions I have had to date, I am satisfied that the procedures in place are adequate for the maintenance of the highest standards of integrity.
I expect that the recently completed report by the Secretary of the Department of Finance concerning the principles which govern the relationship between Departments of State and State bodies under their aegis, together with subsidiary and associated companies, will be considered by Government shortly.
