Departmental Staff Rehiring

Dáil Éireann Debate, Thursday - 21 February 2013

Thursday, 21 February 2013

Questions (103)

Seamus Healy

Question:

103. Deputy Seamus Healy asked the Minister for Finance in view of the recent resignation of a senior official (details supplied) who was head of shareholder management unit in his Department to take up a senior position at Bank of Ireland and his possession of vital up-to-date information which might be of advantage to the now privately owned Bank of Ireland and its North American investor, the fact that the current Government had agreed to the sale of over 35% of BOI to North American investors for €1.1 billion though the State had invested circa €5 billion in BOI and now holds a mere 15% share of ownership, less than half that owned by the North American investor, the possession by the senior official of knowledge of the affairs of competitors of BOI, including the State-owned Allied Irish Bank and Permanent TSB which may be of advantage to BOI, the prohibition on senior civil servants taking up employment in private sector for 12 months after resignation from the public service to avoid such conflicts of interest, the fact that the senior official in question was employed by the National Treasury Management Agency and seconded to his Department, if he will state if the senior official concerned and-or the section of his Department of which he was head was involved in any way in the process that led to the sale of 35% of BOI to the North American investor in Summer 2011 whether by advice or otherwise; if he will extend the 12-month stay on senior public servants taking up employment in private sector employments to those on secondment in order to preclude conflicts of interest; and if he will further extend the same 12 month stay to senior employees of the National Treasury Management Agency. [9532/13]

Written answers

Minister for Finance

The Civil Service Code of Standards and Behaviour contains provisions regarding acceptance of outside appointments and of consultancy engagement following resignation or retirement. The code does not apply to directors or employees in State bodies in the wider public service. I am informed by the National Treasury Management Agency (NTMA) that NTMA employees have notice periods of one or three months and six months in the case of the Chief Executive. All NTMA employees are subject to section 14 of the National Treasury Management Agency Act 1990 which prohibits an employee from disclosing any information obtained while carrying out their duties as employees of the NTMA. NTMA employees are also subject to the Official Secrets Act. Contravention of the NTMA Act and the Official Secrets Act is a criminal offence and that the prohibition on disclosing confidential information applies indefinitely and extends to former employees.

I understand the Chief Executive of the Agency is reviewing NTMA policy in this area.

The following information was provided under Standing Order 40A

The Civil Service Code of Standards and Behaviour contains provisions regarding acceptance of outside appointments and of consultancy engagement following resignation or retirement. The code does not apply to directors or employees in State bodies in the wider public service.

I am informed by the National Treasury Management Agency, NTMA, that NTMA employees have notice periods of one or three months and six months in the case of the chief executive. All NTMA employees are subject to section 14 of the National Treasury Management Agency Act 1990 which prohibits an employee from disclosing any information obtained while carrying out their duties as employees of the NTMA. NTMA employees are also subject to the Official Secrets Act. Contravention of the NTMA Act and the Official Secrets Act is a criminal offence and the prohibition on disclosing confidential information applies indefinitely and extends to former employees.

I understand the chief executive of the Agency is reviewing NTMA policy in this area.

The official concerned was the head of the NTMA banking unit when I welcomed the successful conclusion of negotiations with a group of investors on 25 July 2011 who, subject to appropriate regulatory clearances being obtained, had committed to buy up to €1.123 billion of the State’s shares in Bank of Ireland. In that capacity, the official was involved, in conjunction with my Department, in the sales process.