The arm's-length principle operates on the basis of a framework of accountability for the provision of State services, whereby the Oireachtas legislates for the establishment of State bodies to deliver specific public services in accordance with their stated remit. Decisions of these bodies are a matter for their boards and executives. The bodies, in turn, operate within a policy framework laid down by Government Departments and are accountable to Departments and the Oireachtas for ensuring sound financial management of public funds, including value for money for the tax payer.
These principles are set out in the Code of Practice for the Governance of State Bodies which requires the establishment of Oversight Agreements and Performance Delivery Agreements. Arrangements relating to each individual body vary in accordance with those agreements as well as any specific legislative provisions. For example, the Arts Act 2003 specifically states that decisions in relation to funding are a matter for the Arts Council.