Dáil Éireann debate -
Tuesday, 10 Apr 2001

Vol. 534 No. 3

Written Answers. - State Bodies.

Paul Bradford

Question:

131 Mr. Bradford asked the Minister for Finance the action the Government is taking to provide a code of corporate governance for public boards, authorities and bodies; and the instructions which are given in this regard to non-executive directors, chairpersons and chief executives of such public bodies at the time of their appointment. [10432/01]

Minister for Finance (Mr. McCreevy)

In March, 1992, a set of guidelines, entitled "State Bodies Guidelines", was issued by the Department of Finance. These guidelines set out the underlying principles which should govern relationships between Departments of State and State bodies under their aegis. The guidelines advise, inter alia, written codes of conduct for directors. The guidelines are non-statutory and are intended to complement statutory requirements in this area.

The guidelines should be brought to the attention of directors on their appointment. It is a matter for each State body to do so. The guidelines recommend that the chairperson of each State body reports on an annual basis to the relevant Minister on the extent of compliance with the guidelines. Work is almost complete on a revised code of practice for the governance of State bodies, which will update, clarify and expand the 1992 guidelines. The code sets out the principles of corporate governance which State bodies will be required to adopt

I intend to seek Government approval for the revised code of practice shortly. On receipt of this approval, the code will be circulated to Government Departments and all State bodies. I also intend to make the revised code available on the website of the Department of Finance.

The Standards in Public Office Bill, 2000, provides for the development by the Government, the relevant Oireachtas Committees and the Minister for Finance, of codes of conduct which will apply to Ministers and office holders, Members of the Oireachtas, employees and directors of public bodies respectively. These codes of conduct will deal with the standards of conduct and integrity appropriate to the persons to whom they relate in the performance of their public duties. The codes will form part of the terms and conditions of public service employees and directors, and will provide guidance for them in the performance of their functions. The Bill provides that the Minister for Finance may accept an existing code as meeting the requirements of the Bill. Therefore, a code of conduct for directors that is introduced under the existing State bodies guidelines or the forthcoming code of practice may be so recognised.