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Seanad Éireann debate -
Wednesday, 8 Apr 2009

Vol. 194 No. 17

Appointments to State Agencies and Public Bodies: Motion.

I move:

That Seanad Éireann, acknowledging that an ongoing examination of State agencies and public bodies is occurring, recognising that those who are and have been appointed to such bodies have done so with the purpose of commitment and the following of principles of strong public service believes that the review should further examine how such appointments can best be made in the future.

As is usual for Green Party Private Members' time, a general motion has been tabled to allow the House to anticipate events that are taking place and contribute to better informing the process relating to such events. In structuring motions in this way, it is the Green Party's hope that the House will not divide on their subject matter. On the six or so occasions on which we have moved Private Members' motions, the House has invariably chosen not to divide on them. Unfortunately, for the second successive time, an amendment has been tabled to the motion. That amendment is in the names of the Fine Gael Members. It is the entitlement of the main Opposition party to table such amendments. I hope Members will acknowledge the spirit in which the motion was put down, namely, that we live in a time of change, that many of the matters to which the motion refers must be re-examined and that the House is in a better position than other institutions to influence the change to which I refer.

A matter of particular interest at present involves the forthcoming recommendations from an bord snip nua to the Cabinet regarding the number, role, purpose and composition of many State agencies. These recommendations will excite a debate in their own right. Many of these bodies were established for particular purposes and certain of them were only meant to be in existence for specific periods. Some of them have remained in existence for much longer than was originally envisaged. A number have acquired roles and responsibilities that are unnecessary because they duplicate the roles and responsibilities of other entities. Everyone involved in public life is looking forward to reading an bord snip nua's report and is prepared to scrutinise the recommendations it will contain.

The report should not merely focus on the number of public bodies and State agencies that should exist, it should also consider how many people are involved and assess the experience, commitment and ability to serve of those who have been appointed to these bodies and agencies. In framing the motion, we were extremely conscious to highlight that the current system, as it has evolved, has tended to serve the country well. In general, those who were appointed have served the public good. However, questions have arisen at times when access to information and the notion of accountability have changed, partly as a result of the ability of the public, through the media, to participate more in democratic structures. There is a need to change the system by which we appoint people. We must first ask why we appoint people and then inquire with regard to the purpose for which they are appointed. We look forward to Members posing questions in respect of these matters.

The traditional manner of appointment to State bodies is through being known to the person responsible for deciding who is appointed to which agency or body. That process is often informed by the Civil Service, which assists in identifying people of particular expertise and commitment in certain areas. Whether we have always achieved the best and most appropriate blend of people — by choosing those who will serve either on the basis of their backgrounds and experience or on foot of the fact that they are well known to those responsible for making the decision — is a matter for debate. I am sure several Members will comment on that aspect of the matter.

Recent attempts have been made to change the way in which we appoint people to State agencies and public bodies. The Broadcasting Bill, which was initiated in this House and which is currently before the Lower House, contains a novel mechanism whereby the Joint Committee on Communications, Energy and Natural Resources will be involved in choosing members of the RTE authority and the soon to be established broadcasting authority of Ireland. Earlier this week, the Minister for Transport placed a number of public advertisements requesting that people of suitable background, expertise, drive and commitment apply for public appointments to be made through his Department. I welcome these two approaches because they display a willingness to engage, diversify and involve as many people as possible in the process of public service on State agencies and public bodies.

A criticism that has been levelled in the past relates to the members of an identifiable and small group being appointed to several State agencies or public bodies. While these individuals have often been people of ability who have been appointed for reasons relating to their suitability for public service, their being chosen has led to a larger group of citizens who could and should have been considered for appointment being ignored.

Another matter which might be discussed as part of the debate is how best we might inform the process of appointments to State agencies and public bodies in the future. I wish to submit for the consideration of the House a number of potential methods that might be employed in this regard. The first of these relates to the establishment of a new agency that would serve as a clearing house in respect of public appointments. In the current economic circumstances the appointment of any new agency is not a runner. It might help administratively but I do not believe it would find widespread public acceptance, or even political acceptance in this House. There is a possibility that the functions of the Public Appointments Commission to appoint people to the public service could be extended to allow it to undertake a type of filtering process in terms of the appointments made to State agencies and public bodies.

The other role could be played by either of these two Houses, particularly this House, and the committees of the two Houses. It has been widely suggested that a role can be played at least in the questioning of people who are appointed chairpersons of public bodies and State agencies in that they could come before the relevant joint Oireachtas committee before their appointment. It is possible also that such committees, by way of votes, could appoint the list of people which has been suggested by the relevant Minister in each case.

In the last Seanad reform report, which was the 11th in the series, it was suggested that this House could play a particular role in the processing of public appointments. In terms of the more senior appointments to important public bodies and State agencies, that is a role well worth considering. In overall terms there are a number of options available and it could be that collectively, following the an bord snip nua report, we can decide on an approach that is a mixture of all of them but it is important to ensure that whatever system, or amalgamation of existing systems, is put in place it works, is efficient, produces the people of quality and the public has confidence in it. It must also be a system that can correct itself.

We have had difficulties with some State appointments where people have been asked to stand aside because of conflicts of interest. We would argue that the need to change our system of appointments and our system of vetting appointments before they are made would help avoid those situations if there was more clarity, openness and transparency prior to any appointment being made.

I look forward to others in the House contributing to the debate. I ask that at 7 o'clock we have some synthesis of approach because the spirit in which we are moving the motion is very much about examining how we can have better public appointments rather than being prescriptive as to how precisely we go about doing that in the future.

I second the motion. I welcome the Minister of State to the House. I welcome my party's Private Members' motion. As a member of a party that is committed to the whole process of political reform, this motion is very much in keeping with the Green Party's approach to that issue. On the day after a very difficult budget was announced, if we examine some of the provisions of that budget we can see that a process of political reform, or some of the steps that will lead to what I believe is a significant process of political reform, is in train. I believe the public will recognise that, despite the fact that so many other elements of the budget are causing a great deal of hardship and concern.

The Green Party, as a party of Government, should be an active agent in the process of bringing about political reform. We have had many debates in this House on the issue of Seanad reform. I have no doubt that the Government will leave a legacy of political reform and I hope the Green Party will have made a significant contribution to that.

Regarding the motion before the House, I want to focus on the important issue of gender balance in the way in which public appointments, in particular appointments to State boards, are made. I will begin by outlining the commitments the Government has made in the programme for Government. They include achieving a minimum of 40% representation of women on State boards. In July 2002, all Ministers were asked to review the gender balance composition of State boards and committees under the aegis of their Departments and to take measures to redress gender imbalances where the 40% target has not been reached.

In January 2005, the Government decided all nominating bodies should be required to nominate both male and female options for those appointments to State boards where they are the responsible authority but in December 2007, under this Government, Ministers agreed to take proactive steps to ensure that their nominations, and the nominations made by external bodies to boards under the aegis of their Departments, continue to reflect the Government's commitment to achieve representation of at least 40% by persons of each gender on State boards to advance the goal of equal participation of women and men in decision making. All Ministers were requested to put in place the necessary procedures to implement the Government decisions. Progress on this issue is reported to Government at six-monthly intervals. However, as I will argue later, there remains a real need for overall reform of the current system of appointments to State boards.

Why should we reform that system? The current system means that places on State boards are filled by ministerial appointment. That is a form of political patronage. It is anti-democratic and unaccountable. Although we tend to hear mainly about the influential boards such as the Dublin Transport Authority or the Broadcasting Authority, there are hundreds of executive and non-executive State boards spread throughout the country.

On the question of gender balance and diversity, despite the Government's commitment to achieving a minimum of 40% representation of women on State boards, the participation rate currently stands at 34%. In December 2009, the Department of Justice, Equality and Law Reform released the following figures for 2007: total number of State boards included was 278; total number of positions on these boards was 3,804; total number of female members on these boards was 1,293, approximately one third of the members, or 34%; the number of female chairpersons in 2007 stood at 44, or 17%; and during 2007, 1,082 appointments were made to State boards. These included 386 women, representing 36% of new appointments.

The current system also militates against increasing diversity on State boards as candidates are generally drawn from within political and civil society circles. Given the changes in the make-up of Irish society in recent years, it is important that our State boards reflect that. Any new system devised could build both gender targets and general diversity targets. This is the case in the United Kingdom.

On the issue of skills and meritocracy, it appears that although many Ministers try to ensure a good mix of skills and background on State boards, where this is not set down in legislation the process tends to be arbitrary. A new system would ensure that appointments to State boards are filled by those with the necessary skills and background.

In terms of the kind of new system we should establish, there are many models we can examine, including the UK, the system proposed in the Green Party Private Members' Bill published in 2006 and the system established by the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, in the Broadcasting Bill 2008. However, any new system must be based on the following principles: merit; transparency; equality; and diversity of skills and background. The new system should be independent, efficient, proportional, flexible and fair. It should be able to administer appointments to all types of boards, executive and non-executive, prestigious and less prestigious.

In the light of current financial pressures, however, we must be careful that any new system we devise is efficient and not too costly. Some proposals might include that the Oireachtas, either through the Dáil and the Seanad or through committees, could have a role in the process. For example, it could draw up guidelines and procedures or have a reviewing role. For the more important boards, such as the Dublin Transport Authority, the Oireachtas could be given the power to nominate candidates. A special unit could be set up within the Public Appointments Service or the Standards in Public Office Commission which could establish, monitor, approve and carry out appointments procedures and codes of practices. It would advertise positions publicly. A system similar to that in Britain and Northern Ireland could be established, where a commission provides the framework, guidelines and training to Departments, which then carry out the appointments process, including advertising. The commission also has a monitoring function, ensuring that diversity targets are met and the independent process is adhered to. It would be possible to devise a system which incorporates many of the features I have outlined in a way that is efficient, not too costly and independent. It could also ensure a role for the Oireachtas.

There is a danger that a certain amount of fatigue has set in on balanced gender representation in all areas of public life, particularly in State appointments. Just because the political challenge has existed for many decades does not mean that we should not tackle the challenge with renewed vigour. The Green Party is calling today for the Government, of which it is a part, to adopt a new reforming approach to ensuring gender balance in appointments to State boards and commits itself to achieving the targets set out in the programme for Government as speedily as possible.

The economic cost of such a system has been considered and little funding would be needed to establish such a system based on the recommendations made today. We need a new system for public appointments and if the Government achieves that it will be an enduring legacy for which the State will thank us.

Senator Boyle feels there should be a cosy consensus in this House but the role of Fine Gael is to offer constructive opposition. The two Government parties have more than enough of a majority to look after their own interests. Someone must stand up for the people and show them there is also democracy here. Fianna Fáil in recent years had no problems showing it is happy for the rule of this State to go back to Dublin Castle, completely ignoring the proceedings in this House and in committees. If the Government thinks we will play along with such gombeen democracy, it can think again.

The Green Party is tied to this Government. To talk about what it would like to do and what it thinks should be done is rubbish. It should be telling us what it will do in government and how it will achieve it. We have set out our proposals clearly. I ask Senator Boyle, instead of sneering and mocking, to tell me why public appointments are not run by Oireachtas committees. Why are people who are appointed to State boards not vetted by committees to say why they are suitable for these positions? If the Green Party is so firm in its beliefs in transparency and gender equality, can it not tell its Government partner what it wants? Why is so much of the business of these State organisations and quangos not open to freedom of information requests? Too much of this is kept away from the public. That is the accountability, transparency and democracy that the people of this country want.

Fianna Fáil and the Progressive Democrats doubled the number of quangos in the ten years it was in power. In the current programme for Government, the Green Party envisaged the establishment of another 17 quangos. More important, how many quangos has it axed? How many of the changes which the party feels so strongly about have been made? The language is beautiful — Senator de Búrca obviously has a good researcher — and the desires are admirable but action speaks louder than words. That is what Fine Gael would like to see. We want to see quangos merged. We did not envisage the establishment of new organisations. Even the Green Party joined the Fianna Fáil attack on our proposals but they were not to establish new quangos, they were to merge the existing organisations, making them more accountable and forcing them to act the way the people want them to act. It is straightforward and it can easily be done.

Senator Boyle and the Green Party pretend to believe in this cosy approach to politics, even though they are as hard-nosed about politics as any other party. The most recent commissions that were set up by the Minister for Health and Children to look at health service reform and universal health insurance did not include phone calls to Opposition parties asking for nominations to them. The Government has no interest in the slightest in consensus or in asking Opposition Members if they would like to offer their views on these proposals.

Fine Gael will hold the Government to account on the changes it has introduced. This Government has been in power for two years and many of the proposals Senator Boyle is discussing now formed part of Green Party policy before the last general election. Many of the same issues have become even more serious, reaching crisis level in the past 12 months in terms of reform of the public service and making accountability a reality in all State and semi-State organisations. The delivery of those changes, however, is the most important thing and I have not seen any realistic change.

I have no problem supporting Green Party proposals for radical reform of the public service but there will be no cosy consensus on this side of the House. The Green Party should put forward serious proposals the next time it has Private Members' business, such as restoring freedom of information. Senator Boyle was a Member of the Dáil when that legislation was passed and opposed it as strongly as I did, saying that restricting the Freedom of Information Act would have a detrimental impact on the importance of democracy in our country. We could reverse that legislation for a start. The Green Party could force its partners in government, which has a Dublin Castle mentality and does not want to give information to the public, appoints its cronies to State boards and is too tied up with bankers and developers, where a small group of people dictated what happened in this country, to reopen freedom of information. That might help win back the trust of the public, which is starting to think all politicians are gangsters and crooks, which is not the case.

It is simple: no Government appointment should be made to any board without that appointment being put before the relevant committee. It does not require legislation; it simply requires anyone who is to be appointed to a board to submit himself to the committee to have his case examined. If the Green Party believes in that, let us see it act. It could amalgamate certain agencies and abolish others that have no impact on the rights of the people. We have identified a number of agencies that have no reason to exist at present but we have not seen similar action from the Government. There has been a lot of talk about quangos and the need to get rid of them but we have not seen a list of what the Government would like to get rid of.

All it has got rid of are those organisations that have become too self-confident in the way they took on the Government in recent years. The Equality Authority is being shut down and the Irish Human Rights Commission is being amalgamated with the Department. Perhaps the Government was getting a little uncomfortable with the results the organisations were producing. That is not reforming quangos but continuing the Dublin Castle mentality of the Fianna Fáil Party, a result of it being in power for so long.

The Green Party should not allow itself to become Fianna Fáil-light over the next few years. It is under threat as it already sounds like Fianna Fáil-light. The party leader submitting himself for a photograph when Deputy Bertie Ahern was resigning as leader of the Fianna Fáil Party shows the party is moving in that direction a little too quickly for its own good. It is time to pull back.

He was resigning as leader of the Government.

He was resigning as leader of his political party. The Senator can explain it to Green Party members in his own time but that is my interpretation. He was resigning as leader of the Fianna Fáil Party, not as leader of the Government. The Green Party leader submitted to being in the same photograph as all the senior members of the Fianna Fáil Party at the time.

If the Senator really wishes to make changes, we will support him in that but he must not patronise me or any Member of this House by saying we must somehow support his Private Members' motion just because it sounds nice. I will be the first to support the Senator when he seeks a reversal of the amendment of the freedom of information legislation or to have public appointees brought before the relevant committees or a reform of quangos that might be uncomfortable for some people. We will give him all the support he needs in that regard but in the meantime, it is also our job to offer constructive opposition to what the Government is doing.

As we have seen with numerous legislative measures and in a number of budgets, there is utter fabrication or Mickey Mouse politics with regard to dealing with financial issues. The Government has changed the goalposts so often, it has forgotten the side of the pitch on which it is playing. The figures on finance have been ridiculous. We must provide strong opposition because the Government, unfortunately, is all at sea. I accept that most of the problems are due to the Fianna Fáil Ministers being unsure about what they want or where they are going, but the Green Party is a contributing factor and we must hold it to account as well.

I formally second the amendment. I reserve the right to speak later in the debate.

I support this important motion. It is important that people who serve on public boards are quality appointees. We must ensure members of public and State boards have knowledge of what they are doing on those boards. In the past, Fine Gael and the Labour Party put their own colleagues and supporters on boards. I have seen the appointments down through the years. I doubt that they are in a position to lecture us about how we select people for appointment to those boards, although I have a different view of how selection should take place.

I believe interviews should take place in a committee of this House before board members appointed to State boards take up their positions. I am also of the view that county councillors are best suited for appointment, provided they have the relevant knowledge for the board to which they are appointed. They are accountable, as they are elected every five years. That is more than one can say for the people currently serving on these boards. Some councillors are serving on the boards and they are doing so with great distinction.

I support a review of the board system that currently exists. There are now 1,000 quangos and it is time to review what they do and what they are worth to the country. There are three boards in the tourism sector. Let us be honest about this. There is no need for three boards for tourism. One is sufficient. This is a small country and we could concentrate more on the issue if there was one board. Even the members of the different boards say the same. I agree with the motion. It is time to review the entire system of State boards.

It is also important to examine the type of professions that are needed on the boards. That is not being done. People without the relevant knowledge are being appointed to boards. I have seen instances where people have been appointed to boards even though they do not have any knowledge of what the board or company has been set up to do. We have seen this with the health boards, where there are people on them who have no knowledge of the health system. I have eight years' experience and I was not even considered for appointment to the Health Service Executive. Despite this, people with no experience were appointed. These are the questions that must be answered.

If we do not have experienced people on the boards, how can we expect them to function properly? Some of them do not. I am aware of people on the board of the health service who do not even turn up for meetings. They might turn up for two or three meetings a year but not for monthly meetings. Attendance by a member of a board is vital. Otherwise, the person obviously is not very interested and is only there for the €22,000 or so that he or she gets for being on the HSE board. Some of them do not consider it worth their while turning up for board meetings. That must be questioned. Attendance must be examined. I agree there should be freedom of information in this regard. These people should be exposed.

I support the motion. It is important we examine the system we have and how people are appointed. There should be a committee of this House to interview the people who are appointed to these boards. That would be a more transparent way of doing business. Let us forget about the political system. We would get far better people for appointment if this House conducted the interview. There is no point in talking about the past but there was cronyism and the appointment of party members. That is happening now to a lesser extent. If good people are needed on a board, we should get them. They are the people with the expertise to run the body. They will be good for what we need them to do. If we do not have professionalism on the boards, we will not get the quality people we require.

I am happy to speak on appointments to State agencies and public bodies but I do not see the point of the Green Party motion. At least the Fine Gael Party's amendment has the merit of making some substantive proposals for reform of the cronyism that we all agree took place in the past and continues to some extent in the appointments to State agencies and public bodies. It is a little rich of the Green Party, which has been in Government for almost two years, to put forward a motion that welcomes an ongoing examination and believes that reviews should continue. That is all very well if one is a bystander, a mere observer of the process of government, but it is difficult to accept from a party that is in government. It is symptomatic of the Green Party's ostrich approach to government, that is, let it happen all around one while one sticks one's head in the sand and pretends it has nothing to do with one. Senator Boyle is smiling. I am glad he finds it amusing. There are too many examples of this attitude being taken by the Green Party in government, as if it sees it as something that happens around it and not something for which it is willing to take responsibility or in which to accept active participation. That has to be challenged by those of us on this side of the House.

The appointment of individuals to State agencies and public bodies is an urgent matter. It is not something we can all simply agree should be subject to ongoing review and examination. Considering it as we must do in the light of the budget and the current financial situation, we can see a failure to regulate appointments to State bodies as lying at the root of the current problems. Would we now be in the dreadful financial situation in which we find ourselves today if we had a properly constituted Financial Regulator who had put under proper scrutiny the activities of the banks?

I was in the Dáil Chamber yesterday for the reading of the Minister for Finance's statement when he admitted at last that there are €80 billion to €90 billion worth of toxic and bad debts on the books of the banks. The extent of debt is extraordinary. It puts into perspective the figures we have been given that the Government's spending for the year is to be €60 billion. Tax revenues are less than €40 billion so we know there is a shortfall, yet according to the Minister, "The potential maximum book value of loans that will be transferred to the agency is estimated to be in the region of €80 billion to €90 billion".

Any person on the street would ask how a regulator could allow a situation to arise where developers were allowed to take on liabilities that are worth significantly more than the entire Government spend in one year. It is an extraordinary amount of money and I do not think enough emphasis has been put on those relative figures. When we talk in billions it is difficult to get any notion of what we are really talking about and the context for it, which is extraordinary. According to The Irish Times the estimate of €80 billion to €90 billion represents one fifth — 20% — of all loans across the six financial institutions. If that is correct – we are all speaking in somewhat speculative terms — it is extraordinary to think any regulatory system permitted that level of bad loans to be issued.

Likewise, we were not told to how many people the bad loans were issued. If, as some reports have suggested, it is to a small number of developers, a question must be asked as to how any regulatory system could allow such an enormous level of liability to be permitted by the banks, which has now exposed all of us as taxpayers to that level of liability. I am sure that in his response the Minister will say the national assets management agency will not pay €80 billion to €90 billion, even if that is the full figure of the value of the loans. The point I make is about the regulation of the banks' activities in the past that has led us into this situation. If it is true that the banks' liabilities for the bad or toxic assets is as much as €80 billion to €90 billion, it is a frightening scenario that such a level of liability was allowed to be incurred.

There is a question to be asked therefore about the Financial Regulator's role in permitting bank lending to that extent, which brings us to the point of regulation and the scrutiny of public appointments. At least the Fine Gael amendment suggested some changes to the system of public appointments that would allow for greater transparency and, in particular, for scrutiny by the Oireachtas. The Bill that was put forward by Fine Gael in July of last year, the Public Appointments Transparency Bill, would put in place a scrutiny system whereby the relevant Oireachtas committees would scrutinise appointments. Alternative suggestions were put forward that the Seanad would be the forum for the scrutiny of public appointments, which might be a useful role for the Seanad.

For major appointments such as the Financial Regulator it would be important that we would have an open and public debate about the persons to be appointed and their qualifications, and how effective they could be in carrying out their functions. That is not a novel idea; it is something that is done in the United States and South Africa. I met some of the South African judges on the constitutional court who were appointed after a process of public scrutiny. It is an instructive process to learn about the public scrutiny of those kinds of appointments whereby all manner of issues and personal matters are raked over in public where individuals are to be appointed to judicial office. That is perhaps beyond what is proposed here but it is something that brings into the open any bias judges may have. Among others, judicial appointments are subject to public scrutiny in other systems. When we talk about chairs and chief executive officers of public bodies and statutory agencies such as the regulatory authority in the financial sector, or the Equality Authority to which I will come in a moment, it is important to have some system of Oireachtas scrutiny in place as a matter of urgency.

I wish to speak a little more about the Financial Regulator before turning to the Equality Authority. There are now proposals to change the method of financial regulation. Reference was made in the Minister's speech yesterday, and it was flagged by the Government previously, to a proposal for a new regulator with much greater powers to replace the existing system. A new head of regulation is to be recruited under the auspices of the Central Bank and Financial Regulator. That is all we have been told about the recruitment process, other than that we will have an adviser for the recruitment process called Sir Andrew Large, who it appears is the former deputy governor of the Bank of England, but we have not been told what level of public scrutiny will be applied to this vitally important individual who will be charged with ensuring that the €80 billion to €90 billion worth of toxic assets will not be allowed to be built up in the future.

That is a very important role and it is urgent that legislators and the public should be told how the process of recruitment is to take place. It does not inspire confidence to be told it will take place under the auspices of the current Central Bank and Financial Regulator. The former deputy governor of the Bank of England is undoubtedly an expert and it is good to have experts from other jurisdictions to advise on the recruitment process, but we need to hear in more detail about how the recruitment will take place and what levels of public scrutiny will be applied in the appointment of this new individual. The timeframe is also vital and we need to know the answer to that also.

Senator Bacik has one minute left.

I will not be able to say all I wished. I hoped to ask questions also about the new commercial semi-State agency to be set up, namely, the national assets management agency. Again, questions must be asked about the recruitment of the individuals who will fulfil the important roles of chair or chief executive officer and members on the board of that institution. It is a matter of urgency that we have a system of public scrutiny of appointments to that new agency in terms of trying to ensure greater public confidence and greater confidence in the international markets about how we regulate our financial system. We must ensure that appointments are made that are effective and are seen to be such.

I will conclude with a brief reference to the Equality Authority. We had an exemplary public servant in the person of Niall Crowley who fulfilled his role with great efficiency and effectiveness. He gained an international reputation in promoting equality and ensuring that the Equality Authority was an active and effective body. What happened to him? As we are all aware – references have been made to this in the debate – he was forced to resign in December due to the swingeing cuts of 43% imposed on the Equality Authority, in addition to various other measures that made his work impossible.

Questions must be asked about cases where a person is effective in his or her role as chief executive officer of a State body and is doing the job in a professional and expert way and if he or she is seen by the Government to be too challenging of the State and therefore singled out by it for punishment. We must remember that the Equality Authority supported a number of cases taken against Civil Service entities and public bodies. The contrast between the principled resignation of Niall Crowley last year and the failures to resign of various people in high office in the financial regulatory system until they were often pushed is notable when we are debating the issue of public appointments and the scrutiny thereof. We need to see action on this as a matter of urgency. It is simply not good enough to suggest, as the ostriches on the other side have done, that we can simply depend on an ongoing review. We need more than ideas and there must be action by way of implementing measures to ensure greater scrutiny of public appointments.

I thank the Green Party for tabling this important motion for debate. The political process is such that I will be supporting the Fine Gael amendment but if we are fair and honest we must concede that the gulf between the motion and the amendment is not the widest to be bridged in politics. The Fine Gael amendment, which derives from our Public Appointments Transparency Bill of last year, as referred to by Senator Bacik, is a bit more advanced than the thinking to date of the Green Party and the Government but I hope we are all moving in the same direction and that we will arrive at a solution resulting in full confidence in the appointments process. Thus, the best possible people will be appointed to what are generally regarded as important roles.

We are debating this motion at a time when the political process is subject to considerable scrutiny, as has been the case for quite some years. The public has become very cynical about the political process and political parties. All the individuals appointed to high office by political parties seem to come under the same spotlight or radar. It is only fair to agree with the motion's contention that the vast majority of people appointed, politically or otherwise, to various State boards and agencies are of the highest standing, have the best intentions and put the country first.

The Minister of State was in this House and, I presume, the other House on many occasions when Members were debating Bills providing for the establishment of agencies or groups. A common cause of disappointment among all politicians, particularly Senators given their close connection to local authority members, including county councillors, is that many new Bills prescribe that public representatives, namely, local councillors, not be appointed to certain State boards and bodies. In spite of this, we can all make the Minister of State aware of very many local councillors, of all parties, who have served various State agencies, boards and bodies to very great effect and prioritised the interests of their constituents and country very much above those of their political party.

When debating the subject of State boards, agencies or quangos, we must acknowledge that while there have been a number of difficulties and a small number of appointments that may not have been the most appropriate or ideal, the vast majority of appointments were positive, constructive and helpful and resulted in much good work being done. However, there is a new political and economic environment in which the concept of transparency has become very important, and we must therefore appreciate the need to do business differently and better. The Fine Gael amendment, based on our legislation of last year, places a much stronger obligation on the political establishment, including the Members of the Oireachtas, to examine appointments in more detail.

I was interested in the contribution of Senator Butler, whose comments were quite similar to some of the views contained in our amendment. He argued, as did Senator Bacik, that the Seanad could be used as a vehicle for scrutinising prospective appointees. I do not see it taking on a role such as that of some of the big committees in the US Congress, which ask every sort of question and examine every angle. However, the Seanad could validly and effectively hear the cases and views of nominees when appointments to a senior position on a State board are being considered by the Government. The Opposition amendment refers to the relevant committee having this function but the Seanad could fulfil it also. We could have an interesting exchange of policy positions, ideas and ideology. This would be a step in the right direction in ensuring transparency and accountability.

The backdrop to this debate is the questioning of the role of many State agencies, committees and advisory groups. While Fine Gael has its own view on how certain appointments could be made, the Minister of State, Deputy Mansergh, and Senator Boyle, will be well aware of Fine Gael's strong view, publicised very much over the past 12 months or so, particularly on foot of the work done by my colleague, Deputy Varadkar, that there should be a significant examination of many of the agencies and their roles. Every effort should be made to reduce the numbers to the maximum degree.

If one considers all Departments and all the various advisory groups, boards and consultative agencies, one will realise there is some scope, if not significant scope, for reform and for trimming down. We sometimes debate the role of Ministers, and Ministers of State in particular, and complain about the role of advisers and programme managers, but at least most of these people are tightly tied to the political process and are in some way accountable to this House and the other. Sometimes the agencies and support groups that advise the Government and often influence policy significantly are not accountable to the same extent and this is why I hope that, over the coming years, we will thoroughly review the role of agencies and reduce their number in a meaningful, effective and reasonable fashion.

There will always be State boards and bodies that will need to be staffed by part-time employees. Board members, chairmen and chief executives will have to be appointed and it is important that we put the very best people forward. The day of making political appointments through political cronyism must come to an end. As a country, it is in our absolute interest to ensure the best possible people are appointed, be it to the smallest board or largest agency. I acknowledge that some recent appointments made by the Government, particularly by the leader of Senator Boyle's party, seem to be very fair, reasonable and appropriate. I congratulate the Minister on his endeavours in this regard and I wish his appointees well.

A fortnight ago, a difficulty arose on which we reflected in this House in a very measured fashion. We expressed certain concerns over the media hunting the gentleman in question. The appointments made by the Government over the past five, six or 12 months are less likely to be regarded as totally party political than those that may have been made prior to this period. That is certainly a step in the right direction.

I recall the debate some months ago on transparency and generating public confidence. While I have not fully digested the content of the legislation proposed by Fine Gael in this regard, for which I apologise, I know it is a step in the right direction. It is possibly the most appropriate response to the broader issue of making political appointments. I accept that the motion before the House is moving in the right direction but we must progress at a faster rate. In the new political and economic circumstances, which have resulted in such a significant spotlight on the political establishment, of which we are all part, and in the demand that we all ensure the right thing is done for the country, political appointments, even to the most junior positions, must be made fairly and properly. Our Public Appointments Transparency Bill would be positive and welcome in this regard.

I wish to share time with Senator Jim Walsh.

Is that agreed? Agreed.

I join others in welcoming the Minister of State. I am glad to have the opportunity to make a few brief points on this motion. I thank the Green Party for framing the motion in the way it did. It is provocative and should yield interesting ideas. Perhaps we should consider framing more Private Members' motions in this way.

In line with ongoing reform of the public services and appointment of bodies with regard to efficiency, we wait eagerly to see what proposals various review groups including an bord snip nua and others will bring forward on how we can make the public service system more efficient and use the numbers to obtain maximum results in terms of the public services we require.

I am most interested in speaking about how we appoint people to boards. Senator Ivana Bacik touched on this earlier. When one considers the public perception of the Seanad, the difficulties in appreciating the work that goes on here and the fact the media do not cover it, a key reform I would like to see implemented is that appointments to a list of prescribed bodies, State agencies and perhaps semi-State bodies would be scrutinised for ratification or veto here, similar to the move made by the European Parliament with regard to the appointment of European Commissioners. Proposed appointees should make themselves available to the House for appropriate questioning to tease out any concerns.

The days of political cronyism are gone and so they should be. It is most important that we get the right people to do the right jobs at the right time. In this context, I am mildly concerned that while we have some excellent people in the public service serving on State boards and doing extremely good work, which in many instances far outweighs the level of remuneration they receive for it in terms of their commitment and contribution, a number of the same people keep popping up on various boards. We need change and to freshen up many of the agencies and boards and bring in — not that I am ageist and I am conscious of the previous debate on elder abuse — fresher and younger people to refocus and give more energy to these institutions.

I regret the practice of excluding as a matter of form local authority members from serving on any State agency or board. Senator Bradford also raised this matter. I would not like to see them there for reasons of political cronyism but local authority members are in the front line and are ideally placed to be representative of the public interest. In this context, it must become the practice to seek to include them and not to exclude them. Consistently over the past number of years, and perhaps it was a reaction to the levels of corruption we saw exposed through tribunals, we have sought to subcontract power away from the people's representatives. This is fundamentally wrong. We should seek to enhance democracy and ensure that power and decision making lie with the people which is in the Houses of the Oireachtas.

It is wrong that a body such as the Health Service Executive effectively has control over 30% of the State's money. We should seek to review this. I liked the old health board model, as flawed as it was, but we have what we have. We could improve upon the way we seek to push power and responsibility to third-party organisations. Departments and the Houses of the Oireachtas are the appropriate vehicles for taking many of the decisions.

I feel there is duplication in a wide variety of agencies. I am conscious that some bodies will be amalgamated through the budget of last October but there is scope for further amalgamation. Many agencies seem to be doing work which local authorities could do. Perhaps we can examine this. If we were to achieve anything from this debate it should be that we push for the Seanad being the appropriate forum to ratify or scrutinise public appointments across the range of State agencies.

Ba mhaith liom mo bhuíochas a ghabháil leis an Seanadóir MacSharry as deis a thabhairt dom cúpla focal a rá ar an ábhar seo.

I welcome the Minister of State. I also compliment Senators Boyle and de Búrca of the Green Party for tabling the motion. It is opportune and timely that we discuss this issue. Reference was made to the public service in general and the OECD review of the public service which acknowledged the central role played by the public service in our national development but stated we needed a more integrated public service and greater performance focus. Undoubtedly this is the case. I and many people took issue with the OECD on specific parts of the review but this is for another debate.

The propensity to establish boards in a wide range of areas has led to a lack of cohesion in certain areas and a lack of accountability for those bodies. It is interesting that now when one writes to various Ministers or Departments about functions and responsibilities which should attach to them one is referred to some of these agencies. As a consequence accountability is diminished and this needs to be examined.

I heard mention of the change introduced by the Minister for Communications, Energy and Natural Resources, Deputy Eamon Ryan, which is innovative and a good idea. He will look to the Joint Committee on Communications, Energy and Natural Resources to make recommendations to him with regard to appointees to the boards of the RTE authority and the broadcasting authority. Today, in a private meeting with the Minister we debated how to go about this. There is an interest in ensuring that the process is transparent and fair and meets the aspirations of the Minister in this regard. I must state that I detected a certain reluctance on behalf of Members of the Opposition to fully embrace the opportunity we were given. This would be a pity. We will be the first committee to consider this and if we do so in a way which subsequently proves to have been done very well it will provide a template for dealing with other boards.

Having stated this, I am very firmly of the view that Ministers and the Government are the people to make appointments to those boards. They should be able to stand over the appointments and be accountable for them. It should be on the basis of the people being appointed having the abilities, capacities and skills to make the necessary contribution to the boards to which they are being appointed. This should be done in a transparent way. I agree that either the joint committees or, as has been suggested by many of my colleagues, the Seanad or a sub-committee of the Seanad, would have the nominees come before them and they would be subject to recommendation or veto. This might be useful but the people should be nominated by the Minister.

I compliment Senator Bacik not so much for what she stated but for the fact she had the ability to say it with a straight face. She mentioned cronyism with regard to appointments. From 1994 to 1997, her party, Democratic Left, which is now called the Labour Party——

I have never been a member of Democratic Left.

A Senator

She is an Independent Member.

On a point of order, I have never been a member of Democratic Left. I am a proud member of the Labour Party and I have never been a member of Democratic Left.

That is not a point of order.

If I am allowed to finish my point, the Democratic Left party, which is now called the Labour Party——

No, it is not.

There was a reverse takeover.

That is not true; it was a merger.

During that period 1994 to 1997, I noticed the carve-up and I spoke to Ministers in Government at that time when they had difficulty carving up various boards because all three parties, Fine Gael, Labour and Democratic Left, had to be catered for. In many instances they appointed good people and perhaps this is a preferable way to do it than the way we are doing it. To some extent over the past ten years, we have allowed the permanent government, the public service, to be so influential with regard to many of those nominees. I agree the public service should have an influence but ultimately the Government is the primary body. I do not agree that it should be delegated to some unelected authority to be accountable for it.

The Senator has an even straighter face now.

I concur with those who said that local representatives should not be automatically excluded. Many of them have the commitment and are imbued with the spirit of public service. I note that they are much more the active members of any boards to which they are appointed compared with some other members. They should not be excluded simply because they are involved in local politics. There has been an inclination to do this. People should be appointed on the basis of their expertise and ability to make a positive contribution and these should be the only criteria. The responsibility should rest with the Department but should be subject to the approval of the Government and checks by these Houses to ensure the people meet the criteria.

I welcome the Minister of State to the House and I thank the Green Party for raising this issue. I am a little disappointed that a motion on transparency should be couched in such nebulous language. I am glad Senator Boyle outlined some detail because the motion contains very little firm detail, unlike Fine Gael's proposed amendment which sets out some very concrete proposals on how to change and improve the current system.

I agree with the point that party's Members made about putting people before the Oireachtas when deciding whether they should be appointed to the boards of public bodies. This function could be undertaken by committees or by the Seanad. This point was raised by Senator MacSharry. If the franchise of the Seanad were to be expanded to include all the electorate, it would mean that the public would be given an oversight function regarding appointments to the boards of public bodies and Senators would rightly be held accountable for any decisions taken about appointments to such boards. This would help to give greater public confidence in how the Seanad operates. It would be an ideal example of how Senators could bring their experience and skills to bear on the public good.

It is a common claim that appointments to public boards are not motivated by the public interest but rather by the desire to perform some act of political patronage. They are to ensure a party's influence continues on past the date of an election and this was a point made by Senator Walsh. It is clear that different Governments of all persuasions have used political appointments to ensure their members and supporters are in place after an election and have a place at the top table. We all recognise now that time has moved on and it is time to remove party politics from the appointment of people to these boards.

The Public Appointments Service and the Commission for Public Service Appointments were created to prevent political patronage and the tactical positioning of friends in public bodies. The commission states its mission is to support a process which upholds the principles of probity, merit, equity and fairness in recruitment and selection. However, this is contradicted and undermined by the non-transparent way in which the boards of such bodies are constituted. In fact, the most transparent method was in recent times when Deputy Bertie Ahern admitted he appointed his own friends to such positions.

This is the reason Fianna Fáil is so resistant to any change and the Green Party's motion supports the absence of probity, merit, equity and fairness in appointments to boards. This is a motion of inaction and not action, a piece of coalition bonding. Even the text of the motion suggests there has been interference. It asks us to recognise those who are and have been appointed to such bodies have done so with commitment and the following of principles of strong public service. The semantic non-sense of this phrase betrays the nonsense it appears to be articulating, namely, that appointees were selected on the basis of their commitment to public service. This is plainly not true, as Deputy Bertie Ahern himself has admitted. Senator Walsh said that people should be appointed on the basis of ability, capacity and skills but to date, there is no firm evidence that this has been the case.

Reform of the system is needed and has never been more timely. The Government is to set up the national asset management agency which will have the responsibility of buying up loans and property developments of up to €100 billion or perhaps less, as some Senators have argued. I do not wish to argue about the actual amount. It is clear we need to ensure appointments to and the operation of that agency must be completely transparent. We cannot afford to have this agency stuffed with friends of Fianna Fáil. It cannot be a place to put Cairde Fáil members. It has to be fully independent and non-political. It must serve the interests of the public and not the interests of the Galway tent or, as it is now, the Leopardstown tent. We all know the Galway tent has not disappeared; it has just moved 100 miles down the road. If the Green Party Members are serious about their motion, they will fight for the new agency to be put on a proper footing to ensure it is non-partisan and non-political and serves the public interest.

While I listened to Senator Boyle's contribution and I appreciate the arguments he made, the motion is too watered down and therefore we will be voting against it and with the Fine Gael amendment.

I welcome the Minister of State to the House. There is no doubt he has given considerable time to this House on many occasions in recent months and it is to his credit.

This motion is about appointments to State agencies and public bodies. There is no doubt that State agencies have served us very well. From the very outset, the Cumann na nGaedhal Government set up the Shannon scheme in 1925 which subsequently became the ESB. At a time in the 1930s when there were not opportunities in the business world and when the Great Depression had hit, the Irish State established a number of companies, including Bord na Móna, the Irish Sugar Company, Irish Shipping, Aer Lingus, with the result that a significant number of State companies were involved in the economy. Across all sectors by and large, although there are always exceptions, the people who served on these boards served the State and those companies well. For instance, ESB is now a major national company.

By and large and despite the shadows that have been cast about political appointments, no matter who was in Government and despite that others may have appointed the directors from a particular business section of their political party, these appointees served the State first. This is a feature of the public service. I am conscious of the need for reform of the public service. During the good days we ensured the money was spent in Ireland. The national debt was very low, our tax wedge was exceptionally low and we put money aside in the National Treasury Management Agency but we also provided jobs for people in the public service. It sometimes disappoints me to see how easily people take a swipe at the public service.

France has a large public service and does not have the same banking crisis as the British have. It is possible to see that State intervention and the involvement of the State in agencies can be a good thing with some balance. More important and perhaps even against the tide, it is time to remind ourselves how well the public service has served the country. The gains to date would not have been made without the Ken Whitakers of this world and the sacrifice of public servants throughout the years. In earlier days the terms and conditions were only a fraction of what they are now. There has been consistent development and growth.

I question how far we can go with the procedures in place. Let us consider when someone is going through what is supposedly an independent process to determine whether there should be appointments to a State board by a Minister. There are valid reasons a Minister would seek appointments to a State board no matter who is in power. This is because those appointed by another party previously in power will serve the Minister well. We have seen something of a circus in other countries where people were questioned about events that occurred 20, 30 or 40 years ago. They may be completely different people now but were still not allowed to take up the position applied for or the position they were asked to take up. There were three candidates for the position of Secretary of State for the Treasury in the United States of America who were not appointed because of various findings of committees. Who guards the guardians? Who decides who should be on the committee to decide who sits on a State board? Before we throw out everything that took place in the past and elect for sweeping reform we would be well advised to take incremental steps.

There have been suggestions that the Seanad with a universal franchise would be an ideal place to vet appointments. I am especially against a universal franchise for the Seanad. This is not because I have no wish to stand for election. I have already done so, I was elected to a council and I would not fear it in any way. However, given a universal franchise for the Seanad with 60 Members as opposed to the Dáil with 166 Members, there would be of necessity a higher quota to be elected. There may be nothing to stop someone from the Seanad who may have been elected with 40,000 votes from telling the Taoiseach with his great vote of 20,000 — perhaps twice the quota — that there is no reason he should not deal with financial matters and that he has the mandate to do so.

We should work things out very carefully and slowly and take incremental steps as necessary while recognising the way the State has been served in the past. It is also a good benchmark for us. If the economy had turned as bad as some people had feared, there would always have been the option to start again as we did in the 1920s with State boards providing jobs for people. In a sense it is a comfort to know that if world economies ever again fell into a depression, we have the template for the way out of the problem through these boards. Many people have served with distinction and some may have had very strong connections with different parties, including those of Fine Gael and the Irish Sugar Company. Let us be careful.

I refer to the duty of directors, including fiduciary and corporate governance duties, which are becoming more important. I further refer to the question of whether directors should serve on cross-directorships. Such questions would need to be closely examined as well as the question of a person serving as chief executive and chairman at the same time. We must ensure the highest standards are always maintained and that we move with the times. Many people in the State would regard it a singular honour to serve on a State board. For those who do so, in many cases it is not for the money. Such people serve the State in many other ways and bring years of experience to bear with a full interest in the company and in the State.

Given the motion before the House one wonders whether the Green Party is in Government. It does not seem to have any input into reform and it is looking for ideas from other parties. We are quite willing to provide those. We have put forward our own ideas in the Public Appointments and Transparency Bill and the Green Party would do well to adopt it. That would solve many of the problems. We suggest the chief executive or chairperson should appear before the relevant Oireachtas committee to be questioned regarding his or her capability. That would be fair and would give more meaning to Oireachtas committees. Others suggest this could be done by the Seanad and perhaps this could take place in the context of Seanad reform. That said, I have no problem whatsoever with Ministers appointing directors, provided they are people of high calibre, well versed on the functions of the board.

The Minister for the Environment, Heritage and Local Government, Deputy Gormley, had an embarrassing situation in which he appointed a councillor to a board. Since councillors were precluded from sitting on a board he had to remove the person following the initial appointment. I believe that councillor was eminently qualified to be on the board in question. However, because he was a member of a local authority he was precluded from doing so.

In Bills before this House, local authority members may as well be treated as criminals because they are excluded from membership of boards in every case. If people are well qualified with an interest in a given area, they should not be excluded. I do not imply local authority members should be on boards by right. However, if they are people of good calibre they should not be excluded and should be allowed to sit on boards.

I have seen such exclusion in Bills before the House dealing with, for example, Aer Lingus and the Harbours (Amendment) Bill was the most recent example. In that case, local authority members have been removed from the boards on which they have served and of which they have been throughout the years and since the formation of the port companies the best attenders and, possibly, in many instances the best contributors. However, simply because such people are members of local authorities they have been removed from the boards. I question this policy.

Senators Butler and Walsh spoke in the same vein, but when it came to the crunch and to voting on whether to retain local authority members on boards, they voted against the retention in line with their party and for the Bills in question. Obviously, they did not have sufficient influence within their parties to keep local authority members on the boards. I challenge the Fianna Fáil Members in this regard that if they believe local authority members should be on boards, let them bring proposals to that effect to the House and we will support them. However, upon scrutiny, their record is in question regarding the way they have voted on the question.

Senator MacSharry's contribution was interesting. He practically stated that there was a cosy cartel whereby unions and employers had their representatives on various boards and that there was a duplication of membership on a number of boards. These are facts. There should not be such duplication and the social partners should not have so great a hold on the positions in question. I have no problem with a Minister appointing people of the highest calibre who have an interest in the boards to which they have been appointed, but the chairman and chief executive should come under greater Oireachtas scrutiny via committee or the Seanad.

Young, enthusiastic and energetic people must be placed on the boards, many of which need to be freshened up. There is no doubt that Ministers of every political ilk have appointed their supporters. I have no problem with that provided the supporters are qualified to sit on the boards. As I have often stated, I am perturbed by calls in the House for the exclusion from boards of local authority members. I do not know why the Civil Service seems to want to exclude them, but I would hope the Government would agree that there is no reason for a Minister not to choose them if they are eminently qualified. I gave a specific example of an eminent local council member who, after being appointed by the Minister and despite being qualified to sit on the board, was removed from it.

I look forward to the Government's proposals. My party's Public Appointments Transparency Bill 2008 should be examined in detail. The Government has asked this side of the House for ideas on many matters and we have risen to the challenge, be it in terms of the Bill, our own budget or other measures. We have not been found lacking when debating or proposing ideas, but I hope they will be better received than our previous suggestions have been, especially those on the economy. The country could have been in a better position as a result. Ideas are grand when they suit the other side. When they do not, the Government tells us that it will run everything its own way. I am sceptical of this motion and I hope that the Green Party will accept our amendment, which would fit the motion well. The Green Party looked for ideas and we supplied them. We have even drafted a Bill to which Green Party Members can table amendments if they wish. We on this side of the House have not shirked our responsibilities and we never will.

I welcome the Minister of State to the House. I also welcome the opportunity to speak on this motion. I congratulate Senators Boyle and de Búrca on tabling the motion, as it provides the House with an opportunity to discuss an important matter. However, I will support the Fine Gael amendment.

This discussion is timely, given that the economy is going down the tubes. There must be reform, not only of the Seanad but of the Civil Service. I agree with several Senators and would see no problem with placing the appointments of chief executives and chairmen of State boards before the Seanad or one of its sub-committees. This good idea would, as Senator Hannigan stated, enhance the Seanad and make us accountable for our actions to the public, given that we would need to stand over the decisions of the House.

I agree with Senator Cummins and others concerning the drafting and passage of legislation that prohibits local authority members from being on State boards. For the life of me, I do not know why local authority members would be prohibited, given their vast experience and different backgrounds in all aspects of society and their election by and accountability to the people. It is not necessarily that they would want to be on those boards, but the legislation prohibits them from doing so. Some time ago, a motion was passed in the House to ensure future legislation would not contain such a prohibitionary measure. However, such a measure has often been before the House.

Pat Kenny, the presenter of the "Late Late Show" and his own radio show, issued the far side of the House with the ultimate insult. On this side, there are barristers, stockbrokers, bankers, doctors, nurses, lecturers, business people, teachers and trade unionists. We have different personalities and backgrounds and the highest level of education. I am sure those on the far side of the House are just as qualified. On Mr. Kenny's "Late Late Show" and radio programme, he stated that two Senators on the Government side should resign and be replaced by Taoiseach's appointees who could be drafted into the Government to help in rectifying our economic problems. This and the fact that others have suggested the necessity of a national Government led me to believe that the Government has failed. It is an insult to Members of the House, especially those on the Government side. Mr. Kenny should withdraw his comments because both sides comprise highly qualified people. While I understand his argument, the Taoiseach could find two highly qualified people on the far side to appoint to the Government if he so desired.

There are 1,000 quangos. The debate on the national airwaves would give one the impression that the people want to abolish Seanad Éireann or Dáil Éireann before any of the quangos. This is because ministerial responsibility is lacking and Ministers are hiding behind some of the aforementioned quangos such as the Health Service Executive or the National Roads Authority. As for the taxi regulator, problems exist in respect of taxis in every city nationwide. On "Prime Time", Katie Hannon reported that one quango that was due for abolition by a Minister is costing €9 million per year to run and employs 90 people. While it was due either for abolition or assimilation into another section of the relevant Department, that has not taken place.

However in the late 1980s, Ray MacSharry as Minister for Finance and his ministerial colleague, Pádraig Flynn, got rid of committees themselves. They did not wait for the recommendations of an bord snip or the Commission on Taxation to hide behind before doing what they were obliged to do. Ministerial responsibility is lacking, which is the reason so many quangos exist at present and Ministers are not making the decisions that should be made. I do not doubt that the requisite experience and qualifications exist within the various Departments of the Civil Service to make such decisions and there is no need for many such quangos. Reference was made to the existence of three tourism boards in Ireland and I question the need for them. I cannot discern a reason for three such boards as I understand that tourism has fallen by 11% at present.

I congratulate the Green Party on providing Members with the opportunity to debate this issue. I will support Fine Gael's amendment to the motion and hope that even at this late stage, Senator Boyle will take it on board.

I am pleased to be here today to have this opportunity to discuss the ongoing review of State agencies being carried out by the Government. As Members will be speaking on the budget tomorrow, I do not propose to discuss it now except where relevant to this debate. I thank Senators Boyle and de Búrca for raising this important topic which is under active consideration and forms part of the Green Party's contribution to improving the governance of this country. Perhaps Senator Boyle and I can share a small piece of the credit for the revised numbers of Ministers of State that will come into effect in a few weeks' time.

The value of the Seanad is enhanced when a more dispassionate and less relentlessly political approach is adopted. That is or should be a distinctive feature of its proceedings. I note, in idle mental calculation, that one fifth of the Seanad's membership has contributed to this evening's debate.

The Minister of State should stay on because no one will come into the House if he goes.

One fifth is quite a lot. Since the foundation of the State, public bodies, State agencies, State-sponsored bodies and semi-State bodies, however described, have made a tremendous and indispensable contribution to our national development. Within a year of independence, the first agencies had been established, among them, the Irish Film Censor's Office, with the support of, I am sure, a majority in the Free State Senate and with James Montgomery at its head. In 1923, imminent dangers to the moral fibre of our people took precedence even over material needs. While it still is there 85 years later, what Lemass called "the green curtain" has been lifted and now it is called the Irish Film Classification Office and operates without censoriousness. The continuing importance of agencies in our public service was highlighted as recently as yesterday when the Minister for Finance announced the establishment of a national asset management agency under the aegis of the National Treasury Management Agency to address the issue of asset quality in the banking system which is at the centre of debate in the budget, of which more tomorrow.

In the early years, there was recognition by the State that the Ministers and Secretaries Act 1924 did not provide enough flexibility for the performance of certain functions by the State. The 1920s and 1930s saw the establishment of very important bodies such as the ESB, Aer Lingus, Aer Rianta and Bord na Móna, to name but a few, which have contributed greatly to national development. These bodies established a model that was replicated over the following decades. In the non-commercial field, State agencies have contributed to industrial and agricultural development and promotion, the provision of services, the regulation of economic and professional activities, research, education and training, the promotion of employment, as well as our cultural, artistic and sporting life.

I am a strong supporter of the independence of, for example, the Arts Council. It is not appropriate for Ministers to become too involved in deciding which artist, drama company or whatever should or should not be supported and there is a case in certain instances for a certain arm's length relationship. Unlike many Members of all parties in both Houses, I am a great admirer of the professionalism and efficiency of the National Roads Authority, even if I occasionally have had disagreements with it on particular points.

Unlike in some other jurisdictions, State bodies in Ireland have largely been established for practical rather than ideological reasons. A particular need was identified and an organisation was established or taken into State ownership to deal with it. Agencies have been established as a pragmatic and flexible response for provision of support to the Government and services to the public. However, this approach has not always been characterised by sufficient coherence. Freedom from Civil Service constraints, while necessary and desirable in many respects, has nevertheless led to a wide variety of agency forms. Since the early 1990s, as the business of Government has expanded, so too has the number of agencies.

I have never shared the view of some commentators who habitually characterise agencies as bloated and inefficient, probably as a means to appeal to newspapers' readerships. While the reform of State agencies is necessary, one also should recognise the important contribution that such agencies have made to the country and national life and should acknowledge the hard work of their dedicated staff. The Green Party motion recognises the commitment and ethos of strong public service displayed by those who have served and continue to serve on State boards. A strong public service ethos has been one of the striking features of State agencies down the decades and the Government values their contribution.

As someone who has been a public servant for some three and a half decades, as a permanent civil servant, a special adviser and latterly as an elected Member of this House and then the other House and now as an officeholder, recently resigned but with delayed effect, I consider that by and large, the public service has served this country exceptionally well, with loyalty, ability and integrity and has made a major contribution to major national achievements, such as the peace process, Ireland's successful membership of the European Union, and the exceptional economic and social progress that characterised the past 20 years, even if that has been abruptly brought short for the moment.

On the other hand, I also am conscious of the type of considered critique that was made in Ronan Fanning's history of the Department of Finance and in Ireland 1912-1985, which was written by former distinguished Senator and historian, Professor Joe Lee, and that such critiques undoubtedly also could be made today. The present challenge for our public service is to contribute to charting a way out of our current economic difficulties, which it is doing, as I have had many opportunities to observe. We have been through dark times in the past and have come through them and we will do so again.

Since the launch of the strategic management initiative approximately 15 years ago, there has been significant progress in the ongoing modernisation programme of the public service. There has been improvement in areas such as the delivery of quality customer services, regulatory reform, financial management and human resource management. Implementation of the modernisation agenda has been underpinned by the various partnership agreements across the public service. I consider that, notwithstanding present crises and difficulties, social partnership has an important future role to play.

No organisation, public or private, can afford to stand still and many more changes are both awaited and needed. In 2006, the Government turned to the OECD and asked it to undertake a comprehensive review of the public service. What the Government wanted the OECD to do was to examine how its priorities and decisions are translated into services and outcomes for citizens and how these processes can be improved. While much change has taken place, there is a need to ensure delivery on the ground. The OECD review was intended to highlight what was working and what was not, and help the Government make better informed choices about where to allocate resources. Put simply, the Government wanted to know how the decisions it is making in Cabinet are translating into services for the citizen and how this process can be improved. Where things are not working properly, the Government wanted to know.

In general, the OECD gave the Irish public service a clean bill of health. As part of its review the OECD carried out a study of State agencies. It found the agencies gave the Irish public service additional capacity and flexibility to deliver services during a time of major growth in public spending and increased citizen expectations. However, the OECD believed that, when compared with international experiences, we may have set out to achieve too much. There is a need for an improved governance and performance dialogue to address what it described as the current disconnects between the central Civil Service and the broader public service. It notes that there are neither formal nor informal criteria for establishing agencies in Ireland, either at the national or local level. The opportunity should now be taken to rethink the agency system to take better advantage of this organisational form. The Government supports the need to take a hard look at the approach to agencies, why and how they are set up and the proper reporting relationships with parent Departments.

The Government responded to the OECD review by establishing a task force to prepare a comprehensive framework for renewal of the public service. It was asked to recommend an appropriate framework for the establishment, operation and governance of State agencies.

In the budget last autumn the Minister for Finance announced a process for the rationalisation of State agencies and the decision to proceed with 30 rationalisation proposals that will reduce the number of bodies by 41. To date, nine of the proposals announced have been completed with a further eight targeted for completion in 2009. This is only a first step. To this end, the terms of reference of the special group on public service numbers and expenditure programmes is required to examine and make recommendations for further rationalisation and report by the end of June 2009. Without going into detail, a process is under way and a Cabinet sub-committee is examining this. As Senator Boyle stated, this is under active review and in gestation. Various comments made by Senators in this debate must be taken into account.

Currently, the arrangements for appointments to the boards of State bodies are normally set out in the legislation establishing the bodies in question and are aimed at ensuring the efficient management of the organisation. Appointments to the boards are generally made by the Minister with responsibility for the body in question, subject to the consent of the Minister for Finance. In making appointments, Ministers seek to ensure the people appointed bring a diverse range of relevant skills and experience to the body. The decisions are approached in a conscientious manner, following consultation, and usually take time.

The ministerial freedom to make appointments is not unfettered. They must take account of any specific legislative requirements that exist, such as requirements to appoint worker directors or representatives of nominating bodies, and of relevant Government policies, such as the policy on gender balance on State boards considered by Senator de Búrca. I am in agreement with her and the reasonably long-standing policy of 40% should be implemented. Where appropriate, Ministers also consider representation from the different strands of society such as the business community, consumers, trade unions, the other social partners, or other stakeholders depending on the nature of the agency.

State agencies in most cases exist to execute Government policy with a delegated power to make more detailed decisions and policy choices or to act in an advisory or consultative capacity. Subject to legislative requirements, Ministers will generally seek out people willing to work in harmony with the objectives, both statutory and policy, that have been set out. In many cases, Ministers have a Civil Service representative on the board. Many of the appointments are of people who are not primarily political at all but who have a reputation in the field in question. Sometimes figures associated with Opposition parties, like a former Fine Gael Leader of the Seanad who was chosen as first head of the Irish Human Rights Commission, are appointed. To be fair to Fine Gael, a former Fianna Fáil Cathaoirleach was reappointed by a Minister to the board of a State company.

There have been arguments about the element of patronage. All parties in a coalition are involved in the nomination process, not necessarily to a particular body, but overall. There has undoubtedly been some disquiet from time to time over whether a particular individual is the best qualified for the job but the vast majority of appointments are not the subject of criticism, unless something subsequently goes badly wrong, which has been the exception. Some of the criticisms would apply with at least equal force to non-executive nominees to private companies where there have been many problems in certain instances in recent times. It is important to state that involvement in our democratic political life should not be regarded as a disqualification. Most people, even with strong political backgrounds, will try to serve to the very best of their ability in a non-partisan and public-spirited manner.

While the current arrangements have worked reasonably well, I recognise the need to examine how best such appointments can be made in the future. Senator Boyle detailed the procedures adopted by the Minister for Communications, Energy and Natural Resources in the Broadcasting Bill 2008.

The political vetting of appointees by Oireachtas committees, as proposed in a Private Members' Bill by Deputy Leo Varadkar and reflected in the Fine Gael amendment to the motion, was not pressed by the Deputy's party in the Dáil. It would be akin to the American confirmation system. It would require further consideration as it might tend to politicise such appointments and deter suitable candidates. The notion that all appointees, which could run to several thousand, could be overseen by the Seanad or either House is not feasible. There would be far too many and it would clog up the system. The issue of chairpersons and chief executives is a more limited proposal.

I am glad to have had the opportunity to take part in this debate. The report of the task force highlights the need review the governance arrangements for our State boards. We should recognise that we are fortunate in this country to have a strong tradition of public service where people of proven ability are prepared to give the very best of their talents, experience and energy for relatively modest reward to lead State agencies and account for their stewardship in these demanding roles. Any reforms should try to enhance that ethos.

I thank the Members who contributed and the Minister of State for his contribution. That 11 Members contributed to this debate in the limited time for Private Members' business shows the degree of interest in the subject. I and Senator de Búrca are grateful that such an interest is taken.

Some who contributed misunderstood the spirit in which the motion was tabled in pointing out our role as a party in government. It would have been easy for Senator de Búrca and I to be very prescriptive and to divide the House on a particular basis. It would have been churlish of me to point out that I was the first Member of the Oireachtas to publish legislation in this area with the Appointments to Public Bodies Bill in the other House. We wished to point out that a process is ongoing and will come to a conclusion very soon. It is in the interests of this House to inform that process. Several speakers referred to the important role this House can play. One of the purposes of the debate is to work with the Seanad reform group to make specific proposals on how a reformed Seanad may operate in this way in future.

Several methods have been suggested for providing greater scrutiny in the public appointment process and while those alternatives are out there and in need of further scrutiny, a vote would not be of service. I ask that the amendment be withdrawn on that basis. Rather than inform the wider process, it seeks to put forward the singular view of a particular party, which does not help initially, however valid many of the ideas in the amendment might be. I make that appeal before the House is asked to divide on the matter.

It is an amendment which can be amended.

I ask that this be considered, particularly with the Seanad reform group due to report on recommendations of this type in the very near future.

I was particularly disappointed with some of the other contributors who obviously did not hear my opening comments in this debate and the way I was trying to frame it. The spirit of most of the debate was welcoming to what was being achieved and I hope we will leave the discussion on that basis.

There are two subsequent points to cover. One concerns the role of local authority members, which I know, given the method of election of the majority of Members in this House, comes up for regular consideration. I am agnostic on the question of whether there should be specified within individual pieces of legislation a set number of local authority members or none for particular State bodies and agencies.

We just ask that they should not be excluded.

That is the question which has been raised. One consideration that needs to be borne in mind is that, while involving people in State bodies and public agencies, we try to make the process as diverse as possible. This is one of the reasons there is, unfortunately, specification regarding local authority members. Just as there was an ongoing debate concerning dual membership of the Houses of the Oireachtas and local authorities, there is a degree of cross-over with public bodies that are regionally and locally based that should not be interfered with. The maximum involvement of individual citizens would help that process. At the same time, if there are people of ability and experience who are members of a local authority, that should not necessarily be a disqualifying factor.

The other issues concern more current events and the ongoing nature of particular agencies. There will be another debate in this House and the other House when recommendations are made by an bord snip nua regarding rationalisation and the existence of particular boards. The Minister of State has indicated how this is progressing. Such comments and recommendations should await that further debate.

Taking into account the order today, I will bring the debate to a conclusion. I ask that, having had the opportunity for this debate, the House would return to it at another time and support the motion as presented.

Amendment put.
The Seanad divided: Tá, 16; Níl, 28.

  • Bacik, Ivana.
  • Bradford, Paul.
  • Burke, Paddy.
  • Buttimer, Jerry.
  • Cannon, Ciaran.
  • Coffey, Paudie.
  • Coghlan, Paul.
  • Cummins, Maurice.
  • Fitzgerald, Frances.
  • Hannigan, Dominic.
  • Healy Eames, Fidelma.
  • McCarthy, Michael.
  • McFadden, Nicky.
  • Regan, Eugene.
  • Ryan, Brendan.
  • Twomey, Liam.

Níl

  • Boyle, Dan.
  • Brady, Martin.
  • Butler, Larry.
  • Callanan, Peter.
  • Callely, Ivor.
  • Carty, John.
  • Cassidy, Donie.
  • Daly, Mark.
  • de Búrca, Déirdre.
  • Ellis, John.
  • Feeney, Geraldine.
  • Glynn, Camillus.
  • Hanafin, John.
  • Keaveney, Cecilia.
  • Leyden, Terry.
  • MacSharry, Marc.
  • McDonald, Lisa.
  • Ó Domhnaill, Brian.
  • Ó Murchú, Labhrás.
  • O’Brien, Francis.
  • O’Donovan, Denis.
  • O’Malley, Fiona.
  • O’Sullivan, Ned.
  • Ormonde, Ann.
  • Phelan, Kieran.
  • Walsh, Jim.
  • White, Mary M.
  • Wilson, Diarmuid.
Tellers: Tá, Senators Maurice Cummins and Liam Twomey; Níl, Senators Déirdre de Búrca and Diarmuid Wilson.
Amendment declared lost.
Motion put and agreed to.

When is it proposed to sit again?

At 10 a.m. tomorrow.

Members should take note of the earlier start time for tomorrow's proceedings.

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