Departmental Bodies

Dáil Éireann Debate, Wednesday - 9 June 2010

Wednesday, 9 June 2010

Ceisteanna (329, 330, 331)

Michael Creed

Ceist:

329 Deputy Michael Creed asked the Minister for Agriculture, Fisheries and Food if, further to Parliamentary Questions Nos. 175 to 181, inclusive, of 2 June 2010 relating to the Irish National Stud, annual reports received by him under the code of practice for the governance of State bodies and separate assurances received from the chairperson referred to in his response to Parliamentary Question No. 181, he believes the allegations of corporate governance failings at the Irish National Stud are unfounded; if he will insist on an independent investigation on these matters, in view of the vital national interest at stake; and if he will make a statement on the matter. [24782/10]

Freagraí scríofa

Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith)

The Chairman of the Irish National Stud Company Ltd. Has provided annual assurances that the Code of Practice for the Governance of State Bodies was adhered to.

As I indicated last week, I have been in contact, in particular, over the past four months, 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. I have also sought a report on how the Company intends to address the current financial difficulties and am awaiting this report.

Michael Creed

Ceist:

330 Deputy Michael Creed asked the Minister for Agriculture, Fisheries and Food if, arising from his correspondence of 18 September 2009 and 13 January 2010 with the chairman of the Irish National Stud and the reports received subsequently from the chairman, he is satisfied that in the annual report provided to him from the chairman and provided for under the code of practice for the governance of State bodies he had been kept adequately informed of issues, including those of corporate governance, human resources and legal cases; and if he will make a statement on the matter. [24783/10]

Minister for Agriculture, Fisheries and Food (Deputy Brendan Smith)

Human resources issues arising in the Irish National Stud Company Limited are matters for the Board of the Company. Apart from the correspondence referred to in the question I have been in discussions with the Chairman of the INS about the necessity to ensure full compliance with the Code of Practice for the Governance of State Bodies and I reminded the Chairman that matters which affect, or could potentially affect, the reputation, the administrative or financial stability of the INS be brought to my attention.

I have been assured that the Company has in the past and will continue in the future to comply with the Code. While I accept that operational matters are the responsibility of the Board I have sought a report of the manner in which the Board intends to address its current financial position and I am awaiting this report.

Michael Creed

Ceist:

331 Deputy Michael Creed asked the Minister for Agriculture, Fisheries and Food his views on whether it is acceptable that the first occasion he heard of alleged breaches of corporate governance issues at the Irish National Stud was via a press article of 18 September 2009, in view of the presence of the code of practice for the governance of State bodies and assurances that he received via annual reports that the code was being complied with; if reports which he has since received regarding corporate governance at the Irish National Stud confirms that the code was not complied with; and if he will make a statement on the matter. [24784/10]

Minister of State at the Department of the Agriculture, Fisheries and Food (Deputy Ciarán Cuffe)

The Irish National Stud Company Limited (INS) is a commercial State Body established in 1946 and is a company registered under the Companies Act. The Board of the Irish National Stud is responsible for the operations and management of the Company.

The Government has put in place a system of corporate governance to ensure that State Agencies are directed and managed in such a way so that they serve the interests of the State. A Code of Practice or the Governance of State Bodies issued in 2001 and an updated version of the Code issued in 2009. The revised Code is evidence of the Government's recognition of the need to adapt to a changing environment setting out, as it does, an enhanced system of corporate governance for State Agencies for the future.

I was most concerned when I learned of press reports in September 2009 of certain financial matters affecting the Irish National Stud Company Ltd., 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. In these circumstances these were operational matters within the remit of the Board.