Dáil Éireann Debate, Wednesday - 26 May 2010
129 Deputy Jim O’Keeffe asked the Minister for Agriculture, Fisheries and Food the measures in place to ensure that there is good governance at the Irish National Stud; the reason no effort appears to have been made to restrain certain unacceptable expenditures; and if he will make a statement on the matter. [21956/10]
View answerThe Irish National Stud Company Limited (INS) is a commercial State Body and a company registered under the Companies Act. As such, the Board is responsible for the operations of the company. My Department monitors compliance of the Irish National Stud with the terms of the Code of Practice for the Governance of State Bodies. This includes the submission by the company of their annual report, audited accounts, and the provision of a statement containing assurances by the Chairman to the Minister in the format set out in the Code. The INS has complied with these requirements and in particular the Chairman has provided annual assurances of compliance with the Code. Operational matters are the responsibility of the Board.
I was most concerned when I learned of press reports in September 2009 of certain financial matters affecting the Company, which had the potential to damage the reputation of the Company. I immediately sought and received a full report from the INS Chairman on the matters raised. The Chairman confirmed to me that:
she was satisfied that the expenses to which the Deputy refers were approved and adjudged to be necessary for the conduct of the business of the company;
international travel is an integral part of the CEO's functions;
no first-class travel was incurred by the former CEO; and
the Board has since revised its travel policy with a view to achieving greater efficiencies.
Excessive and unnecessary expenditure is not acceptable in any Government Department or State Agency and I have consistently stressed, both within my own Department and to the agencies under my Department's aegis, the need to reduce administrative costs, not least in the areas of travel, and to achieve the best possible efficiencies.
The INS Chairman has assured me the Company has in the past and will continue in the future to comply with the Code of Practice for the Governance of State Bodies. I also had discussions with the Chairman and representatives of the Company and emphasised the continuing need for the Company to ensure it fully complies with all corporate governance requirements. The Chairman and the newly appointed Chief Executive Officer have assured me this will continue to be done.
