Richard Boyd Barrett
Question:1. Deputy Richard Boyd Barrett asked the Taoiseach if he will report on the most recent meeting of the Clearing House Group; and if he will make a statement on the matter. [56787/12]
Ceisteanna - Questions (Resumed)
IFSC Clearing House Group
Gerry Adams
Question:2. Deputy Gerry Adams asked the Taoiseach if he will report on the work of the International Financial Services Centre Clearing House Group; and if he will make a statement on the matter. [2319/13]
Joe Higgins
Question:3. Deputy Joe Higgins asked the Taoiseach if he will report on the recent contacts that he has had with the International Financial Services Centre Clearing House Group. [12511/13]
I propose to take Questions Nos. 1 to 3, inclusive, together.
I have had no direct contact with the IFSC Clearing House Group recently. My last direct contact was a brief meeting when the strategy for the international financial services industry was launched in July 2011. That group is chaired by the Secretary General of my Department, as has been the case since its inception in 1987.
The Clearing House Group last met on Thursday, 7 March 2013. The main agenda item was job creation and specifically the further potential for the international financial services sector to contribute to job creation and to address the challenges of unemployment. Several areas of potential were identified in this regard and these will be examined further in subsequent meetings of the Clearing House Group.
This afternoon, along with the Minister for Jobs, Enterprise and Innovation, I was delighted to announce the creation of 112 high quality jobs in Dublin by Zurich Financial Services. We are not yet past quarter 1 of 2013 and already we have seen several highly significant foreign direct investments from companies including Quantcast, Facebook, eBay and Sanofi. During my visit to the USA last week I was pleased to announce further investment by McAfee and Yahoo, creating more than 250 jobs.
As I have referenced in previous responses on this issue, my Department has supported the international financial services industry in Ireland since the establishment of the IFSC in 1987 by providing a forum for the exchange of views and the co-ordination of effort through the mechanism of the IFSC Clearing House Group and its related working groups. During this period the IFSC has grown to employ 33,000 people and to contribute over €1 billion annually through corporation tax and payroll taxes.
The primary focus of the group is on identifying and considering issues of importance to the long-term development of the international financial services industry in Ireland in line with the programme for Government. The programme states the Government "fully supports the future development of the IFSC as a source of future employment growth, subject to appropriate regulation" and commits to the development of the financial services sector to maximise employment opportunities. In line with the Government's focus on increasing the transparency and openness of government and a commitment I gave to the Dáil on 13 November 2012, a number of measures have recently been taken with regard to the IFSC Clearing House Group to improve transparency and accountability in its work. The minutes of meetings of the clearing house group which have taken place since my election as Taoiseach to the end of November 2012 have been published on my Department's website and merrionstreet.ie. The minutes of the group's meeting on 17 January 2013 will be published next month and the minutes of all future meetings will be published online three months after the date of each meeting. A report on the work of the group during this period was also published on the websites. The Secretary General of my Department and chair of the group has written to the Chairman of the Oireachtas Joint Committee on Finance, Public Expenditure and Reform offering to brief the committee on the work of the group. I understand the committee will hold a hearing shortly.
It is vital that there be transparency and accountability in terms of the influence of this extraordinarily privileged group of bankers and financiers who have unprecedented access to the Department of the Taoiseach. The clearing house group is made up of J.P. Morgan, Citibank, State Street Bank, Barclays, Bank of Ireland, KPMG, Bank of America, Deloitte, AIB, Ernst & Young, PricewaterhouseCoopers and others. The fact that the Secretary General of the Department chairs the group, that it and its sub-committees meet in Government Buildings and that following last year's budget, the group had an effect on 21 sections of the Finance Bill to the benefit of the financial services sector is something the public needs to know. The public and I might well ask where is the group for the unemployed or pensioners-----
This is Question Time, not statements.
I have a simple question for the Taoiseach in the aftermath of the wipe-out of senior bondholders in Cyprus. Is the reason senior bondholders never took a hit in this country and that the Government will not introduce a financial transaction tax, instead of imposing a property tax on ordinary householders, the influence of the clearing house group? Is that the reason senior bondholders were never touched? Is it the reason the Government will not introduce even a small extra tax on the financial sector and just keeps hitting ordinary people? Is it the people in the clearing house group who are dictating financial policy in this country?
The answer to that question is "No."
That was an unusually short response.
It was to the point.
I welcome the initiative taken since this matter was last raised in the Dáil to publish the minutes of meetings of the clearing house group on the website of the Department of the Taoiseach. The minutes are interesting and reveal how the industry lobbied to have IFSC-based international insurers excluded from the Quinn insurance levy. As we know, a 2% levy was imposed on all non-life Irish insurance policyholders, but the Government changed legislation in order that foreign policholders whose insurance companies were based in the IFSC would not be levied. This demonstrates an interesting link between lobbying and the result.
I remind the Deputy that this is Question Time.
The minutes also reveal the extent of the industry's access to senior officials in the Departments of the Taoiseach and Finance, the Central Bank and the industry's regulator. The minutes of the meeting of 17 January 2013 are not yet available online. However, the minutes of the previous meeting, on 22 November, indicate that a number of-----
The Deputy should, please, put her question or Deputy Adams' question to ask the Taoiseach to report on the work of the IFSC Clearing House Group, not go through the minutes of meetings in the past few months.
I am giving a flavour of what is contained therein.
A question, please; this is Question Time.
A number of pre-budget submissions were received from the IFSC working group. Will the Taoiseach indicate precisely how many of these pre-budget submissions were received and elaborate on their main focus? With regard to the strategy the Taoiseach launched for the IFSC in July 2011, a commitment was given at the time to create 10,000 new jobs. How many of these new jobs have materialised since the launch of the strategy?
I do not have the details to hand of the number of pre-budget submissions made, but I will have it determined and come back to the Deputy on the issue. The question has been asked many times whether the special assignee relief programme, SARP, was introduced at the request of the IFSC Clearing House Group. It was introduced in the Finance Bill 2012 and no changes were proposed in the Finance Bill 2013. It is relevant to a range of priority areas heavily dependent on highly skilled personnel. They include the IFSC, but it is not a specific measure for it. It applies as much to the ICT sector or the life sciences, as it does to financial services. The strategy we launched sets out the scale of the potential to create new jobs determined by the industry on the basis of areas of expansion considered appropriate for the creation of new jobs. I will get back to the Deputy with an accurate figure for the number of jobs created since the document was launched some time ago.
Apart from representing the selfish interests of the financial services industry which comprises the main players in the world's financial markets, what benefits to society has the IFSC delivered for the people of Ireland in the past ten years? The Taoiseach has said the clearing house group has been meeting since 1987 when the IFSC was set up. Does he know whether, at any stage during the property bubble and the reckless speculation in the financial services and property sectors, this group alerted the Government to the disaster in the making to try to avoid the inevitable crash, or was it too engrossed in the profits that would be created for the industry? Does he agree that the IFSC Clearing House Group which met 29 times in 2012 and which offers ready access for the biggest players in the financial services industry - the major banks, bondholders etc. - to the Government and the most senior civil servants is nothing other than a massively glorified lobby group? Is it not the nirvana of lobby groups in that it has such incredible access to the Government at the highest level? If the Taoiseach believes this is constructive, would he consider creating similar facilities for groups such as homeowners in mortgage distress or people suffering from the horror of unemployment? Does he not see the huge dichotomy, divergence and inequality in this regard?
The Deputy has raised an interesting point about the IFSC Clearing House Group which is chaired by the Secretary General of the Department of the Taoiseach but which does not include Ministers in its attendance. Ministers, therefore, must read who was in attendance and what was discussed.
He has also raised an interesting point about those who are in mortgage distress, those who are unemployed and those who have societal problems. People in these sectors have direct access to the Government. They meet Ministers and members of the Government on a regular basis. I meet them all the time. We are unashamedly pursuing the creation of jobs and job opportunities. That is why the Minister for Jobs, Enterprise and Innovation has published his second action plan for jobs, with particular reference to the role of small and medium-sized enterprises in increasing indigenous confidence. The Government has proven that it is more open to job opportunities than most Governments over many years. It is working with small and large businesses in the interests of job creation and opportunity.
The Deputy asked what the IFSC Clearing House Group has been doing since 1987. Over many of those years, it has been working with the financial services industry, which has grown to substantial proportions. It now employs 33,000 people in well-paid jobs. The international finance industry provides an enormously important service for us here in Dublin and in Ireland. I have to testify, on the basis of my dealings with our counterparts in Britain, Europe and the United States, that the IFSC's reputation is exceptional. It is a small but critically important element of Ireland's reputation as an advantageous centre in which to conduct financial services business. That is why, for example, Zurich Financial Services announced today that it intends to employ 112 specialist personnel in the area of cyber-defence analysis. It would not have made that decision if it did not feel Ireland was an appropriate country for those positions to be located, or if it thought the required quality of personnel was not available.
The IFSC Clearing House Group conducts regular meetings with the financial services industry, and rightly so, in the interests of increasing and expanding those opportunities. It reports to me and publishes its minutes publicly. The challenge for everybody is to provide jobs and thereby reduce the number of unemployed people on the live register. I am glad that an average of 1,000 jobs a month have been created in the private sector over the last 15 months. We hope to make an impact through the expansion of the IFSC and the opportunities that will come from the action plan for jobs. It is a challenge for everybody. Like all the members of the Government, as Taoiseach I am very open to receiving proposals, ideas and contributions from individuals and small or large businesses and organisations about how this might be put into practice. It is in everybody's interests for the vast majority of people - the maximum number possible - to be able to contribute to the economy and to the quality of their own lives.
Does the Taoiseach agree that the level of influence and privileged access given to the Clearing House Group is completely disproportionate to that given to other sectors? I ask that question with particular reference to what has happened in Cyprus. The people of Cyprus have learned to their cost what can happen as a result of over-reliance on a financial services sector that is involved in trading money across global markets, etc. We have also learned from Cyprus that it is possible to burn senior bondholders. We were told that could not happen here.
Will the Deputy get back to Dublin?
Is it not a dangerous strategy for this country to give privileged access to a group that has clearly had a major influence on policy, for example, in the case of the proposed financial transactions tax? A new tax exemption in the area of derivatives and securitisation was introduced in the recent Finance Bill. Some 21 amendments were made to last year's Finance Bill. This group gets more privileged access to the Department of the Taoiseach and the Government than other sectors of our society. Is that not an accident waiting to happen?
My party initiated the financial services centre in Dublin over 25 years ago. The IFSC has created sustained and significant employment for more than 25 years. I am sure the Taoiseach will agree that it is important, as a policy objective, for this country to keep track of the issues and the evolution of the industry. This is one of a range of industries that need to be maintained and sustained in employment terms.
I have many misgivings about the Cypriot deal. A Rubicon has been crossed with the decision to raid deposits. More fundamentally, it seems that the troika and the European institutions have essentially dealt a death blow to the financial services industry in Cyprus.
That is a separate question.
It is not, actually. I would like to make my point. I know an argument can be made about Russian money, etc. Some high profile banks from mainland Europe have been found guilty of massive money-laundering as well. Have the Taoiseach and the clearing house assessed the implications of the consequences of the Cypriot deal for the financial services centre there? Have they reflected on the potential for the future evolution of troika and EU policies that might apply to the financial services centre to have a negative impact on our financial services? The proposed financial transactions tax is one such policy. We know the Germans tried at an early stage to blame the centre for what happened in one or two banks, even though much of the fault lay closer to home than they liked to admit. There are concerns that a fairly brutal decision was made to take out the financial services sector of the small Cypriot economy, which does not have much else - tourism and a few other industries - to sustain it into the future. At least we have had the technology and life sciences industries here for the last 30 years. They have helped us during this crisis. Other countries do not have such industries. I suggest there is a certain callousness in the approach that is being taken.
I assure Deputy Boyd Barrett that there is no privileged access in this regard. I made the point to Deputy Higgins that the Clearing House Group dealing with the IFSC has played an important role over the last 20 years or more. It is not a question of privileged access. It is able to discuss the expansion of the industry, which has grown from employing very small numbers to employing more than 33,000 people at present. I think Deputy Boyd Barrett will agree that these jobs make an important contribution. This is a mobile industry, as the Deputy is aware, so it is in Ireland's interest to continuously monitor the issues that affect the financial services sector. That is why the Clearing House Group meets as representatives of the industry. I have met them on two or three occasions. It is important to hear their views. As I said to Deputy Higgins in response to the suggestion that this constitutes privileged access, any citizen in the country can access the Government directly by meeting Ministers. The Deputy is aware that this happens on a regular basis.
Clearly, Cyprus is in a very different position from Ireland. It is now entering a very difficult and challenging programme, whereas we are exiting our programme. Our banks have been recapitalised. The Minister for Finance has made the Government's attitude towards small and large depositors in this country perfectly clear. The measures in the Cypriot programme reflect the disproportionate size of the banking sector in relation to the Cypriot economy as a whole. The nature of the liabilities in this case become clear when one considers that the Cypriot banking sector is eight times the size of the Cypriot economy.
I am sure the Deputy can empathise with the distraught citizens of Cyprus in regard to the decisions taken, whereby banks have been closed and are still closed, and capital controls will apply in respect of ATM machines, albeit for a limited period. This country is in a very different position from Cyprus. Clearly, it is in the interests of Europe that there be stability and understanding of the challenges that any country faces in having to deal with a situation on the scale of what Cyprus is now having to deal with.
The issue here is that the decision made on 29 June last to break the link between sovereign and bank debt was made by the European Council. That decision stands and has not been altered by the comments of anybody since then. Because that is so, that decision leading to the possibility of recapitalisation by the ESM is important because Ireland was mentioned specifically in that decision. That is now the focus of the discussions at the Eurogroup in regard to single supervisory mechanisms leading to banking union, and our challenge is to retrieve as much as we can for the taxpayer out of that proposition. It will, of course, have to define what legacy assets are, and that is part of the nature of the discussions that will take place.
In Ireland's case, this is now an historical fact that is over but not done with in terms of our people. That is why it is necessary that we continue to focus on the fundamental issue of that decision and on the fact Ireland was specifically mentioned and had its particular and unique circumstances referred to by both the French President and the German Chancellor in regard to their being taken into account as part of those discussions. There is obviously now a very difficult position for the citizens of Cyprus but, as I said, they are beginning to enter a programme and a very difficult challenge whereas Ireland is about to exit its programme, hopefully, by the end of this year and return fully to the bond markets next year.
The part played by the IFSC in our economy and the position about transparency, openness and accountability is there for all to see in regard to the publication of the minutes, and that will continue. As I said, I believe I have met with the IFSC Clearing House Group twice over the past 18 months or so and will continue to meet and engage with it as might be appropriate.
To clarify, I asked the Taoiseach about any pre-budget submissions that might have been made. Clearly, I do not simply want the number of submissions that were made. What would be interesting, useful and essential to have on the public record would be the nature of those submissions and what exactly they asked for.
It is reasonable that the Government would meet with representatives of essential sectors of the economy - that stands to reason. The worry here is that this kind of privileged access - I believe that is the right terminology - affords to this sector privileges that are not enjoyed by others. In addition, given the economic catastrophe that has been visited on this State because of the bad behaviour and, in some cases, the corruption of financial institutions, there is now a more acute sense among the public of the necessity to have plain dealing and transparency, particularly around the financial services sector. When he responds, will the Taoiseach confirm that he will give full details of any pre-budget submissions and their content?
As a matter of curiosity, would he have had sight of any such submissions? Is it simply officials who deal with them or would he have had occasion to read and consider these types of documents?
I would put it to the Taoiseach straight that it is time to stand down this IFSC Clearing House Group in its present manifestation and that it cannot be defended in view of the gross inequality vis-à-vis the rights of citizens and the bulk of taxpayers, who do not, in any sense, have such structured, high level and regular access to Government. It flies in the face of any concept of equality and simply provides a gilt-edged opportunity for those seeking massive profits in the financial services industry to seek and to achieve the change of Government policy.
In terms of looking into the future and learning from the past, is the Taoiseach aware that the massive deregulation and liberalisation of the financial sector in the 20 years preceding the crash of 2007 led directly to that crash, with horrific consequences for hundreds of millions of people around the globe - the poor, the oppressed and working people? Is he aware that this deregulation and liberalisation was a direct result of the huge influence achieved by the financial industries on an international basis, with leaders going back to Prime Minister Thatcher and President Reagan onwards to their successors, including President Clinton, who appointed some of the highest bankers in the United States to his own Administration? Can the Taoiseach not learn from that experience to ensure there is not a repetition as a result of this kind of inordinate influence by major profit-seeking entities, which have wrought huge suffering on society already?
In respect of the point raised by Deputy McDonald, I will give some information regarding employment. From 1999 to 2012, the employment levels grew from 8,500 to 33,000. The IDA produced a significant number of investments and more than 3,000 jobs have been approved in the international financial services sector since January 2011.
I do not know that the IFSC Clearing House Group receives individual pre-budget proposals. Clearly, quite a number of firms will send pre-budget proposals to, I would assume, the Department of Finance, which is a matter for them individually, but I do not believe they submit pre-budget submissions to the IFSC Clearing House Group. For example, I meet with the American Chamber of Commerce Ireland a couple of times a year. It co-ordinates its activities in regard to issues it would feel important, such as clarity about the corporation tax rate, which is 12.5% and is not being raised, and other issues as it would foresee opportunities for development of jobs beyond the current position here in Ireland.
Deputy Higgins referred to regulation over the years in different locations around the world. Clearly, greed was an issue as well as the incompetence which led to the collapse of the positions of banks in various locations.
With regard to the green IFSC and green finance, which are now an inherent part of all of this, the report from Ernst & Young noted that the clean and green tech sector has a capacity to create 80,000 jobs by 2020, and this is an important part of the Government's services centre strategy, to which the Deputy referred and which was published. The various types of green climate finance and asset management are a key focus of that. This includes back, middle and front office asset management and builds upon Ireland's existing fund industry, which services more than €2 trillion in assets and supports 12,000 jobs directly. The green IFSC is a strategy and a context, building the public private partnerships of the IFSC Clearing House Group.
It reports to the clearing house group itself. The activities of green IFSC are led by a steering group comprising the Government, enterprise agencies, the Department of the Taoiseach and leading financial institutions and professionals. That is on the basis of the potential for 80,000 jobs.
The fact that we look continuously for new areas of opportunity within the financial services industry is important. Areas being explored at the moment are financial services technology, intellectual property, e-finance and electronic trading, debt capture and predictive analytics, risk management, service innovation, collaborative research development and innovation, pensions and green finance. They all complement existing opportunities being pursued by the IDA with the IFSC.
Clearly, this is an important and potentially expanding area of financial services with great possibilities for future employment. The fact that the minutes are published means there is no secrecy about it, because the issues are there for people to tease out. I will check whether individual pre-budget submissions were made by the IFSC. To my knowledge, that is not the case, but I understand that many individual firms may make submissions to the Department of Finance in the context of the preparation of the budget and the Finance Bill.
Appointments to State Boards
Gerry Adams
Question:4. Deputy Gerry Adams asked the Taoiseach if he will report on the appointments he has made to State boards. [2302/13]
Gerry Adams
Question:5. Deputy Gerry Adams asked the Taoiseach if he will report on the new procedures introduced for appointments to State boards. [2303/13]
Gerry Adams
Question:6. Deputy Gerry Adams asked the Taoiseach if he will report on the role of his Department in co-ordinating a whole of Government approach to appointments to State boards. [2304/13]
Joe Higgins
Question:7. Deputy Joe Higgins asked the Taoiseach if he has made any recent appointments to State boards. [12513/13]
Richard Boyd Barrett
Question:8. Deputy Richard Boyd Barrett asked the Taoiseach the appointments he has made to State boards and the process being employed in these selections; and if he will make a statement on the matter. [15010/13]
I propose to take Questions Nos. 4 to 8, inclusive, together.
The National Economic and Social Council, NESC, is the only State body under the aegis of my Department. The NESC provides guidance to Government on strategic issues for Ireland's economic and social development. Since coming into office on 9 March 2011, I have made appointments to the NESC, which are set out in the table. The appointments were made in accordance with the National Economic and Social Development Office Act 2006 and SI 603/2010, National Economic and Social Council (Alteration of Composition) Order 2010. I appoint members specifically on the basis of nominations from business and employer interests, the Irish Congress of Trade Unions, farming and agricultural interests, the community and voluntary sector and the environmental sector. I may also appoint up to six public servants, of whom at least one shall represent the Taoiseach and one shall represent the Minister for Finance. Those appointed represent the relevant Departments to ensure the NESC's work is integrated with Government policy-making. I also appointed eight independent members to the NESC in 2011, in most cases from the academic sector. These appointments were made following careful consideration of the necessary skills, knowledge and expertise relevant to the functions of the council, as required by the legislation.
There has also been one appointment to the National Statistics Board, NSB, since I took office. An assistant secretary at my Department was appointed to the NSB in line with the provisions of section 18(1)(b) of the Statistics Act 1993.
In 2011, the Government made a number of changes to the system for making appointments to State boards. Under these new arrangements, Departments now invite expressions of interest from the public in vacancies on the boards of bodies under their aegis on their websites. In making their decisions, Ministers are not necessarily confined to those who make expressions of interest but must, of course, be satisfied that appointees have relevant qualifications. The Government also decided that persons being proposed for appointment as chairpersons of State boards would be required to make themselves available to the appropriate Oireachtas committee to discuss the approach they would take to their role as chairperson and their views about the future contribution of the body or board in question. Following that discussion, decisions would be taken by the Minister or the Government, as appropriate, to confirm the nominee as chairperson.
My Department's role has been to apply these new procedures itself as appropriate and to communicate them to other Departments. It is, of course, a matter for each Department to implement these new procedures themselves. Any questions about the application of procedures should be tabled to the relevant Minister in each case.
Additional information not given on the floor of the House
Table: Details of appointments made by the Taoiseach to NESC since 9 March 2011
|
Name |
Organisation |
Date of appointment |
|
Mr. Martin Fraser, Chairperson of NESC |
Secretary General, Department of the Taoiseach |
August 2011 |
|
Mr. John Shaw, Deputy Chairperson of NESC |
Assistant Secretary, Department of the Taoiseach |
January 2012 |
|
Prof. Edgar Morgenroth |
Associate Research Professor, Economic and Social Research Institute |
June 2011 |
|
Prof. John McHale |
Economist, National University of Ireland, Galway |
June 2011 |
|
Prof. Mary Daly |
Professor of Sociology and Social Policy, Senior Research Fellow of Green Templeton College, Department of Social Policy and Intervention, University of Oxford |
June 2011 |
|
Prof. Anna Davis |
Department of Geography, Trinity College Dublin |
June 2011 |
|
Prof. Seán Ó Riain |
Department of Sociology, National University of Ireland, Maynooth |
June 2011 |
|
Dr. Michael O’Sullivan |
Head of Portfolio Strategy and Thematic Research, Credit Suisse, London |
June 2011 |
|
Ms. Mary Walsh |
Chartered Accountant |
June 2011 |
|
Dr. Michelle Norris |
Senior Lecturer, School of Applied Social Science, University College Dublin. |
July 2011 |
|
Mr. Shay Cody |
IMPACT |
September 2011 |
|
Mr. John Murphy |
Secretary General, Department of Jobs, Enterprise and Innovation |
November 2011 |
|
Mr. Seán Ó Foghlú |
Secretary General, Department of Education and Skills |
February 2012 |
|
Mr. John Moran |
Secretary General, Department of Finance |
March 2012 |
When Fine Gael was in opposition, it and the Labour Party were quite animated about the issue of cronyism and corruption as it pertained to Fianna Fáil and State boards. The Minister for Transport, Tourism and Sport went so far as to publish a Bill proposing publication of the qualifications of each candidate nominated for a role on a State board, which was not a bad proposition.
Of the people appointed by the Government in the past two years, more than 60 have had links to Fine Gael or the Labour Party. The Taoiseach spoke about the new procedures for appointments that have been put in place, but Ministers have essentially ignored applications through the public advertisement system established by the Government. I will provide some examples. Only 15 of the 64 people appointed to State boards under the auspices of the Minister for Jobs, Enterprise and Innovation applied through the public advertisement system. Fifteen out of 64 is a very bad record. Of the 40 who applied for positions on the board of HIQA, only one was appointed. The Minister for Health appointed 52 people to State boards recently, including a Fine Gael councillor who was appointed to the board of St. James's Hospital and a former Fine Gael programme manager who was appointed to the board of HIQA. The Minister for Education and Skills has appointed just five of the 190 members of the public who applied to sit on the three education boards under his remit. I refer to Léargas, Quality and Qualifications Ireland and the Higher Education Authority. None of the 49 who applied through the Public Appointments Service to sit on the board of Léargas was deemed appropriate to be appointed.
Would it be better if the Deputy put those questions to the individual Ministers?
They relate clearly to the question that has been asked. I am giving the Taoiseach examples of the shortfall in the system. He spoke about the appointments he has made in respect of the NESC, but I have a broader question for him as Head of Government. What role does he have or what actions will he take to ensure that Departments and Ministers in his Government make full use of the new public system? How can he ensure that people who put themselves forward for these appointments are given full, due and fair consideration? I raise this issue not to cast aspersions on the qualifications or suitability of anybody appointed to date but because the Government was so keen to get away from the cronyism, real or perceived, of the previous Administration and put a new system in place to increase transparency and open up the process, yet Ministers are not playing ball. All the evidence reflects that while applications are being taken, the insider system of appointment is very much alive and well on the Taoiseach's watch. What will he do about that?
I was interested in the Deputy's initial comment because she referred to appointments in the context of what she described as cronyism and corruption. If she has evidence of corruption with regard to any appointment made by the Government, I would certainly like to hear it. If she has that evidence, she should send it to the appropriate authorities forthwith. I know she does not mean it in that sense, but somebody outside the House might take the view that when she mentioned that word, she had evidence of corrupt practices of persons who might have been appointed.
With regard to her comments about the Minister for Jobs, Enterprise and Innovation, more than half of those appointed to agencies of his Department were available for appointment from off the list. Clearly, public servants who do not apply are appointed to these boards, and if a person is reappointed, he or he does not apply either.
Five questions were put to me.
The first question was about the appointments I had made to State boards; the second was about new procedures; in the third I was asked for a report on the role of my Department in co-ordinating a whole of government approach; while the fourth was about recent appointments to State boards and any appointment I had made to a State board. I have answered these questions.
On the question about the public advertising of vacancies, the Department of Transport, Tourism and Sport published on its website an advertisement seeking expressions of interest in appointments as chairpersons of the boards of CIE companies and the Railway Procurement Agency and also to the boards of agencies under the aegis of that Department. It also advertised on its website vacancies arising before the end of 2011 on the boards of bodies under its aegis. These included An Post, Bord na Móna and Ordnance Survey Ireland. The Department of Arts, Heritage and the Gaeltacht advertised for board members for the National Concert Hall, the Irish Museum of Modern Art and the Arts Council. The Department of Finance sought expressions of interest in appointments to the boards of directors of the recapitalised banks. The Department of Agriculture, Food and the Marine advertised vacancies on the boards of Bord Iascaigh Mhara, Coillte and the National Stud. The Department of Children and Youth Affairs advertised vacancies in the Family Support Agency and the National Educational Welfare Board and so on. The Department of Social Protection advertised vacancies at the Citizens Information Board.
People were appointed following requests for expressions of interest in the filling of vacancies. I will cite some examples. The chief executive of Fujitsu was appointed to EirGrid. The head of regulation and public policy at O2 Ireland was also appointed to EirGrid. The chair of the Accenture Institute for Public Services Value, a member of the Smurfit Business School advisory board, Vivienne Jupp, was appointed as chairperson of CIE. The chairperson of Bord Bia is the chairman of Jacob Fruitfield in Ireland, Mr. Michael Carey, who has held senior positions in a number of multinational food companies. The managing director of Global Intelligence, Ms Rhona Holland, was appointed to Bord Bia. People with exceptional competency and experience cannot be forced to apply for these positions.
The responsibility of the Department of the Taoiseach is to set out the requirements. Ministers bring forward nominations for chairpersons of boards who make themselves available to Oireachtas committees. This is a valuable progression. They express their views and inform the committees of what they intend to bring to the board in question. The committee concerned and the Government then consider their applications.
If Deputy Mary Lou McDonald has evidence of corrupt practices engaged in by anyone, I suggest she send the information to the appropriate authorities.
I suggest we leave the word "corruption" out of it. Will the Taoiseach agree that he entered government promising a revolution in how the State was governed? Really, we did not get a revolution but rather more of the same and a counter-revolution in many areas in economic and financial matters. In view of the fact that so few of the people who applied to be considered for membership of State boards were appointed by the Taoiseach's Ministers - for example, there were 49 applicants for Léargas, none of whom was appointed by the Minister for Education and Skills - and that many Fine Gael and Labour Party activists, supporters and members have been appointed to the board, is it not true that there is the same old patronage by the Government in making appointments to State boards, with a light coat of varnish of pretend consultation and democracy being the best way to put it? In the two years since he was elected Taoiseach, has he written or spoken to any Minister to look for particular individuals to be appointed to State boards? Who were they? What were their political affiliations? Were they appointed?
The only body directly under the aegis of my Department is the NESC, National Economic and Social Council, of which the chairperson is the Secretary General of the Department. The deputy chairperson is also in the Department of the Taoiseach. I do not think the Deputy would object to the trade union members who have been appointed to that body. These individuals are nominated by the trade unions. I will cite some examples. They include Ms Sally Anne Kinahan of the ICTU; Mr. Shay Cody of IMPACT; Mr. David Begg of the ICTU; and Mr. Manus O'Riordan of the Services Industrial Professional and Technical Union. The agricultural and farming organisation members appointed include individuals from the Irish Co-operative Organisation Society, ICOS; the Irish Creamery Milk Suppliers Association; the IFA and Macra na Feirme. The community and voluntary sector members are from Social Justice Ireland, the INOU, the Society of St. Vincent de Paul and the National Youth Council of Ireland. The environment sector members are from Friends of the Earth, the environmental pillar of social partnership. There are representatives of the Departments of Finance, Jobs, Enterprise and Innovation, Education and Skills, the Environment, Community and Local Government. Independent members include Professor Edgar Morganroth, associate research professor, ESRI; Professor John McHale of NUIG; Professor Mary Daly, professor of sociology and social policy, senior research fellow of Green Templeton College, department of social policy and intervention, University of Oxford; Professor Anna Davis, Trinity College Dublin; Professor Seán Ó Riain, NUI Maynooth; Dr. Michael O'Sullivan, head of UK research and global asset allocation, Credit Suisse; Dr. Michelle Norris, School of Applied Social Science, Geary Institute, University College Dublin; and Mary Walsh, chartered accountant. These individuals have been nominated by organisations or following careful consideration by the Department. They are all eminently qualified to contribute to the council.
Did the Taoiseach look for-----
I do not have the information sought on appointments made by Ministers to State boards under the aegis of their Departments. I do not write to Ministers about their business, except to ensure they fulfil their responsibilities in so far as the programme for Government is concerned. The change in procedure, whereby chairpersons of State boards are called before Oireachtas committees to make their case for appointment and set out their qualifications for appointment, is an important progression. I hope to keep this system running as effectively and competently as possible.
They did a lot of caffling.
The claim that there would be a democratic revolution in how government was conducted has not translated into reality. It appears as if the cronies of one tribe are replaced with those of the other. The hope was that there would be a genuine opening up of the process to allow people who were outside the cliques and the networks, outside the existing organisations, to have a real input into how the different agencies and sectors linked with the Government were overseen, managed and developed. I have deep concerns about the management of the harbour company in my area.
The Deputy asked a question. I remind him that he asked about the appointments the Taoiseach had made to State boards and the process employed.
Yes, the process employed.
Can we, please, stick to that question?
We have seven and a half minutes left and there are other questions to deal with. We can spend the seven and a half minutes on a discussion of this issue but it means we will have discussed eight questions in the space of an hour. Will the Deputy please stick to the appointments the Taoiseach is making? He does not appoint the chairman of the board of a harbour company.
He has a role in the process through which-----
The Deputy did not ask that question.
He sets an example. I was just giving it as an example of the process through which selections for State boards occur and saying that it is the case that it does not match up to the promises of a democratic revolution. I do not want to cast any aspersions on the people the Taoiseach himself appointed. I am sure all the people the Taoiseach mentioned are very capable. It is interesting, however, that almost all of them are full-time officials or academics. They are full-time officials of NGOs and unions, academics and business people.
Another tribe.
They are important sectors and that is civil society. While I accept that it is right and proper that they should be represented, where is the opening up of appointments to those who are not within those loops? I am talking about ordinary people who are a bit further down society's hierarchy and who might have a real interest in and knowledge of these areas. They may work on the shop floor and the front line but they never get access to boards. They never really have input into these areas. Until people see a change there, the perception will continue that the cronies of one political tribe or another dominate these boards.
Ordinary people, whatever Deputy Boyd Barrett means by that, are appointed to and serve on boards depending on their competence, expertise and experience.
I mean people who are not full-time officials or part of the academic elite.
Everyone will agree that those appointed to a board should have a degree of competence and experience to offer. Long before the Deputy was elected to the House, there was extensive lobbying for multiple appointments to boards. If the Deputy were to examine the record, he would find that circumstances have changed very much.
Not really.
The Constitutional Convention chose 66 citizens at random - ordinary people as Deputy Boyd Barrett says - to deal with and make recommendations on very important constitutional issues. I do not have any complaint about any of those ordinary citizens. I am sure they contribute in important ways to the recommendations. The board of the NESC which operates under the aegis of my Department is composed of business and employer interests. Looking at the board members, I do not know Karin Dubsky of the environmental pillar but perhaps Deputy Boyd Barrett does. Michael Ewing is appointed under the environmental pillar of social partnership, Oisín Coghlan is from Friends of the Earth and Siobhan Egan is appointed under the environmental pillar. I am sure they are very competent people who have something to offer the NESC. I do not know if Deputy Boyd Barrett would classify them as "different", "extraordinary" or "ordinary". They contribute very well to the environmental pillar as part of the NESC. Far be it from me to make any disparaging remarks about any of them. They are all eminently qualified, ordinary or not as Deputy Boyd Barrett likes to categorise them. They make a valuable contribution to what we are at here.
I can only speak for the personnel appointed by my own Department. These appointments represent a very broad swathe of Irish society and Irish competence. I am sure Deputy Boyd Barrett agrees with the appointments under the environmental pillar and probably knows each of the individuals involved. He would not cast any doubt on their ability to contribute well to the NESC.
There are just two minutes left. If I proceed with questions, there will be no time for supplementaries. If the House is agreeable, I will move on to the next business. Is that agreed? Agreed. That completes Question Time for today.
Written Answers follow Adjournment.