The code of practice for the governance of State bodies, issued under Government decision dated 2 October 2001, directs that the highest standards of business conduct should apply in the corporate governance of State bodies. Particular importance is attached to the ethical behaviour of those appointed to positions of director in these bodies. The code contains an appendix setting out a framework code of business conduct for directors and employees.
To provide for greater transparency, I have proposed the introduction of a requirement whereby all those to be appointed or re-appointed to positions of director in the State bodies under the aegis of my Department will be required to produce a valid tax clearance certificate from the Revenue Commissioners. Existing directors, however, would serve out their terms under the conditions that applied when they were appointed. In addition, I have also proposed the introduction of a provision that all directors of State bodies under the aegis of my Department would sign an annual compliance statement on a personal basis in regard to the code of practice.
The Deputy is aware that my Department is not the only one with responsibility for State bodies and, in this context, the Department of Finance has convened a cross-departmental committee to consider the implications for the wider State body sector should this initiative proceed. The Deputy will appreciate that the question of examining a possible independent appointments system for directors of State bodies is one that would require cross-departmental consideration and is more appropriate a matter for my colleague, the Minister for Finance.
