Dáil Éireann debate -
Wednesday, 27 May 1992

Vol. 420 No. 4

Ceisteanna—Questions. Oral Answers. - Civil Servants on State Boards.

Michael Bell

Question:

14 Mr. Bell asked the Minister for Finance if, having regard to his press release of 11 March 1992 relating to guidelines for semi-State bodies, and having regard to the fact that the Official Secrets Act applies to all citizens of the State, he will outline whether there is in existence codes of conduct or legislative provisions in relation to the activities of civil servants; if he will further outline the essential matters contained therein and the responsibilities of civil servants acting on boards, authorities or companies established under statute or the Companies Acts; the date they were last updated; and if he will make a statement on the matter.

Mr. B. Ahern

The rules concerning the conduct of civil servants in the course of their official duties are contained in a number of circulars issued by my Department over the years. There are also statutory provisions, for example in the Official Secrets Act, 1963 and the Prevention of Corruption Acts, 1889-1916. Overall, the main areas covered include official secrecy, State employees and politics, conflict of interest, contracts with, purchases from or sales to government Departments, bankruptcy, use of influence and dealings with the public. The instructions seek to ensure that employees perform their duties honestly and impartially and avoid situations which could compromise their integrity.

As regards civil servants acting on boards, authorities or companies established by statute or under the Companies Acts, their responsibilities do not differ from those of any other member of the boards in question. In the case of bodies established under the Companies Acts, for instance, their responsibilities are clearly to the company in question, and the Acts make this clear.

Obviously, in the case of bodies in the State sector, board members, including civil servants are, generally speaking, appointed either by Ministers or the Government. In the case of civil servants, their presence means that Departments and Ministers can have a much better insight in regard to the progress and policies of State boards, while they can see the affairs of bodies in the context of Government policy as a whole and should be able to make a substantial contribution to the affairs of bodies in question. I might add that the report on which the guidelines mentioned in the Deputy's question are based examines the question of civil servants on State boards.

As regards civil servants acting on boards, authorities or companies in the private sector, they would be bound by the normal rules for civil servants which I mentioned earlier, where these are applicable. In particular, they would have to be certain that such involvement would not in any way conflict with the interests of their Department, or be inconsistent with their official position.

I am currently having a comprehensive review of all relevant circulars carried out with a view to ensuring that the regulations in question are fully up-to-date.

Mr. Quinn

I thank the Minister for his comprehensive reply to Deputy Bell's question. Do I take it from his reply that, following the statement of 11 March, he is now engaging in an updating and integrating into a single document of the relevant guidelines and requirements that should apply to civil servants who find themselves in these situations? Will such guidelines, when completed, be published for the benefit of the general public and be specifically brought to the attention of all civil servants and, in particular, those directly involved?

Mr. B. Ahern

That is generally correct. The document published on 11 March sets out the practice and principles to be followed by various boards and bodies. The Prevention of Corruption Acts, 1891-1916, the Official Secrets Act, 1963, and a host of circulars and memoranda in between, set down guidelines. A civil servant taking up duty at the commencement of their career in the Civil Service is given this data to decipher. My aim is to make it easier for them to decipher it.

Mr. G. Mitchell

Earlier, I argued the case for civil servants to be allowed to participate in politics. May I ask the Minister, in view of the fact that he was bringing forward legislation to deal with the declaration of interests of Members, if he would consider that that legislation should extend to civil servants and members of State boards? In that regard is he aware that Fine Gael have proposed the creation of an ethics commission composed of the Comptroller and Auditor General, the Ombudsman and a High Court judge which would set down the code to be followed by all concerned?

Mr. B. Ahern

I am aware that Deputy Mitchell has been involved in this area for some time and made this point in a recent debate in the House. At this stage my memorandum on the codes of practice for Members is almost ready. I thought it would be advisable because, by and large, it affects all Members, to bring those proposals to the Committee on Procedure and Privileges where they could be debated and any other ideas, such as those suggested by Deputy Mitchell today, could be looked at in that context.

Mr. J. Bruton

May I ask the Minister whether there is an inherent conflict of loyalty in the case of a civil servant who is serving on a board of a company where his first loyalty is to the company but who may also be responsible in his working capacity to a Minister who may, in certain cases, quite legitimately be in some form of disagreement with the company though he may be a shareholder or the shareholder in it?

Mr. B. Ahern

Civil servants previously had an involvement in some areas such as Irish Life and other companies. In ICC and ACC, for example — banking areas under my control — there are civil servants on the boards and the system works well in relation to confidential matters, although there may at times be conflicts of interest. Broadly speaking the civil servants are answerable to the company under the Companies Acts. Over the years circulars have dealt with situations where a conflict of interest could arise. They set out precisely how civil servants are to act and they have served the State well over the years.