The object of these negotiations, to which I have referred already, is to agree terms for mutual recognition in relation to technical specifications laid down in the respective markets of each country and to accept the common testing, certification and marking of products. This will reduce the need for, and cost of, duplicate testing and certification, will open up those markets and facilitate trade growth between the countries in question.
The NSAI has responded to this increasing role for standardisation. As indicated, it has established 14 consultative committees bringing together interests in various industrial sectors with the objective of monitoring worldwide standards work continuously, identifying projects relevant to Ireland and developing Irish positions relating to them. The NSAI is also represented on the three European standardisation bodies — CEN — European Committee for General Standardisation; CENELEC — European Committee for Electrical and Electronic Standards; and ETSI — the European Telecommunications Standards Institute.
Each of these bodies has up to 5,000 standards projects under review at any one time. The NSAI is also represented on the two international standards organisations, the International Standards Organisation (ISO) and International Electronics Commission (IEC). While the Authority develops national standards as required, the emphasis of its workload relates to the implementation of European and international standards. In addition, NSAI publishes and distributes a wide range of Irish and international standards, guidebooks and catalogues. It also published an annual guide to products and processes certified by NSAI during the year in question. It provides an information and education service for industry relating to standards and regulations applying in various export markets.
As a result of extensive consultation and planning by the European Commission, a more clearly defined European structure for testing and certification is evolving. European standards setting out operating criteria for laboratories, certification-inspection bodies and accreditation bodies have been published as the EN 45000 series under European rules these must be transposed into national standards in each member state.
In addition, the relevant Council of Minister has adopted a resolution endorsing the key issues of the Commission's document on a global approach to testing and certification. These issues include the development of national accreditation structures, the promotion of the EN 29000 and EN 45000 series of standards, relating to quality assurance systems and the operating criteria for laboratories and certification bodies respectively, and the establishment of the European Organisation for Testing and Certification — EOTC.
Accreditation involves giving national authorities the responsibility of assessing the abilities of test laboratories and certification bodies to properly carry out their tasks. It formally recognises competence by means of third party expert technical assessment against agreed criteria. It also involves regular surveillance and periodic reassessment. Accreditation in Ireland is carried out by Forfás through another autonomous committee, the National Accreditation Board, established under section 10 of the Industrial Development Act, 1993.
A consequence of developments at European level is that national accreditation systems must comply with requirements for the establishment of "notified bodies". These are testing laboratories and certification-inspection bodies which are specifically designated by member states and notified to the European Commission to carry out the conformity assessment requirements as set out in the relevant directives.
A number of different conformity assessment procedures are set out in the directives. They vary from simple product certification to product design, manufacturing procedures and quality system certification for complex products used, for example, in the medical field.
A key requirement of notified bodies is that, apart from having the necessary technical competence, they should operate independently and impartially and have a separate legal identity. They are expected to conform to operating, including organisational, criteria laid down in the EN 45000 series of standards.
In our case this requires that testing laboratories operated by Forbairt and NASI certification procedures, and those of other bodies be accredited within an independent and impartial system. Only in this way can they comply with the EN 45000 series of standards. This also requires that the bodies concerned have a separate legal identity.
In summary, the objectives of the EN 45000 series of standards require that accreditation functions and certification functions be carried out by authorities which are absolutely independent of one another. Accordingly, under present structures, the National Accreditation Board and the National Standards Authority of Ireland — both of which now operate as committees of Forfás — do not meet the key operating and assessment criteria required by the EN 45000 series of standards for such bodies.
The National Accreditation Board cannot, in the present circumstances, accredit NSAI as a certification body and the integrity of NSAI certificates, including the one thousand ISO 9000 certificates already issued by them, could potentially be called into question in the continued absence of conformity with legal requirements related to operational independence of agencies.
Bearing in mind the necessity for accreditation, I have had a number of different approaches examined, including a number put forward by the staff interests in NSAI. I consulted my legal advisers, the NSAI itself, the National Accreditation Board, the European Organisation for Tests and Certifications and officials in Directorate — General III of the European Commission. The advice I received was that the setting up of an independent national standards body was necessary.
I am therefore, proposing, that responsibility for the accreditation of laboratories, certification bodies and inspection bodies should remain with Forfás but that Forfás's responsibility for standardisation/certification matters, at present delegated to the NSAI as a committee of Forfás, should be transferred to the NSAI as an independent statutory body under the responsibility of the Minister for Enterprise and Employment.
Provision for the welfare in all its aspects of existing NSAI staff has been a central concern of mine in drafting this Bill. Section 38 provides for the staffing of the new authority. It requires that staff currently carrying out functions related to standardisation within Forfás should transfer to NSAI.
It guarantees them the same rights which they currently enjoy within Forfás in relation to pay, pensions and equality with similar grades in other agencies. It particularly guarantees staff members the right to apply also for any promotional opportunities which are advertised in Forbairt, IDA Ireland and Forfás. The provisions of the Bill as they relate to staff matters are such as to allay any fears that personnel in the NSAI would be disadvantaged in any way when, on the passage of this Bill, the agency is established as an autonomous legal entity and is functional separate from Forfás.
The Bill also provides the Minister with the right to appoint not more than 13 members to the board of the new authority. The Bill follows the common international approach in requiring that only those persons who are already directly interested and involved in the standardisation process should be considered for representation on the board. It requires that the board should comprise the widest range of interests possible without any one section predominating. It will thus be possible to ensure that consumer interests as well as safety experts will be represented, together with a range of interests of manufacturers and industrialists. The chief executive officer will automatically become a member of the board.
The autonomous establishment of the NSAI is a significant development. It involves a necessary change in the structure and status of the organisation. That change will enhance its role and ensure that an awareness of the importance of standards and their certification is further profiled nationally and internationally. It will bring the best out of the organisation and ensure its future prosperity through the most effective delivery of its important national task.
As the responsible Minister, I can also understand how change in any organisation can give rise to concerns on the part of its employees. In my view there is no basis for such concerns by reference to the provisions of the Bill. I believe however, that the fullest involvement of staff at all levels will enhance morale and increase efficiency. Workers should be facilitated in making the fullest contribution to the operations of the NSAI and be directly involved in its decision-making processes.
Accordingly, I intend to propose an amendment to paragraph 2 of the First Schedule, on Committee Stage, to make specific provision for representation of worker representatives on the board of the NSAI so that they have the influence and authority to inform decisions, be they of an operational or policy nature.
Provision for such worker representation has not been a feature of the NSAI board to date. My commitment to provide for it now should give all employees the confidence to approach the organisational change which is in prospect with renewed assurance and the expectation of an even better working environment characterising the newly constituted NSAI.
I have outlined the main provisions of this Bill and the rationale which gave rise to its introduction. It is not contentious legislation but one which is informed by an increasing focus on the part of the European Union and international agencies on the importance of establishing and achieving product and process standards. That importance reflects the role which agreed and recognised standards now play in facilitating trade growth, economic development and employment creation.
The legislation, when enacted, will reinforce the independence of the National Standards Authority of Ireland by making its certification and standards development services totally independent of other agencies which are charged with delivering different tasks.
The importance of standards and their certification is central to the whole process of economic development. This legislation will put the NSAI on a very sound legal and administrative footing. It is important to do this quickly. I commend the Bill to the House and look forward to constructive and informative debate on its provisions.