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Football Association of Ireland

Dáil Éireann Debate, Tuesday - 2 April 2019

Tuesday, 2 April 2019

Ceisteanna (2)

Imelda Munster

Ceist:

2. Deputy Imelda Munster asked the Minister for Transport, Tourism and Sport the engagement he has had with an organisation (details supplied) regarding compliance with the governance code for the community, voluntary and charity sector, as endorsed by his Department; the actions he plans to take to ensure good governance in view of recent financial irregularities at the organisation and recent changes in personnel; the oversight he has to ensure compliance; his views on the policy of potentially withdrawing funding, as previously stated by him in cases of non-compliance; and if he will make a statement on the matter. [15372/19]

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Freagraí ó Béal (8 píosaí cainte)

What engagement has the Minister or his Department had with the Football Association of Ireland, FAI, on compliance with the governance code? What actions does the Minister intend to take to ensure good governance in light of recent financial irregularities at the FAI and recent changes in personnel? What oversight, if any, does his Department have to ensure compliance? Will he comment on his Department's policy of potentially withdrawing funding in cases of non-compliance, to which he referred previously?

Sport in Ireland is generally organised and governed by autonomous national bodies.  The governance of these national governing bodies of sport, NGBs, is a matter for the governing bodies. While the Government does not regulate sport, Sport Ireland is an independent statutory body whose functions include responsibility for governance oversight of NGBs.  All of the sporting bodies that are funded by Sport Ireland are required to comply with high standards of good governance, including appropriate financial oversight. Sport Ireland periodically reviews governance and oversight in the bodies it supports.

I have made it clear that all sporting bodies in receipt of public funding must take appropriate steps to adopt the governance code for the community, voluntary and charity sector. The Government’s National Sports Policy 2018-2027 recognises the importance of good governance for the effective and efficient running of sport and it includes an action that Sport Ireland will oversee a process to have all national governing bodies and local sports partnerships, LSPs, adopt the governance code by the end of 2021. The Minister of State, Deputy Griffin, Sport Ireland and I have made it clear that future funding for NGBs and LSPs will be conditional on compliance with the principles of the governance code.  After 2021, NGBs and LSPs that are not fully compliant with the code will be at serious risk of losing their Sport Ireland funding and will be required to explain their position.

While I have had no direct engagement with the association mentioned by the Deputy regarding its compliance with the governance code, at my direction, officials in my Department contacted the association to underline the importance of introducing maximum term limits for members of its board.  A decision on term limits was taken in early February at an extraordinary general meeting of the association and brought the association into compliance with one of the requirements of the governance code.  The association is not yet fully compliant with all of the requirements of the code.  In the current circumstances, I would welcome full compliance sooner rather than later.  Clearly, the recent media reports regarding the organisation have raised serious questions about governance and financial controls in the organisation. Sport Ireland is engaged with the organisation to clarify these matters and when the necessary clarifications have been received, Sport Ireland will report to me.

In the interests of due process and natural justice, it is important that Sport Ireland’s engagement with the organisation be given the necessary time to ensure that all matters are addressed thoroughly by the association.  I do not wish to comment today on any possible outcome from this ongoing process.  However, I can say that I will publish the material that I receive from Sport Ireland.  I expect to receive material from Sport Ireland this week and I will publish that material as soon as possible, most likely by the end of this week.

This is similar to a question I asked last month on the Department's role in ensuring compliance with the governance code. I put the question in light of the news that the Football Association of Ireland had just recently changed its rules to allow long-serving board members to remain in situ for an additional four-year term. Of the 11 members of the FAI board, seven have served more than 11 years, two have served more than 15 years and John Delaney, who was on the board, served 17 years, including 14 as chief executive officer. This clearly contradicts the governance code because the recommended term limit is nine years or three terms of three years.

I also ask the question in light of the recent financial irregularities which have come to light since I asked my question a month ago. The response of the Minister of State, Deputy Griffin, at the time was that governance was a matter for the FAI and Sport Ireland and he had no engagement with the FAI regarding the code. He also said he understood that the FAI is on a journey to the adoption of the code. Given all that has recently come to light, that is one hell of a journey the association is on. Does the Minister stand over that response?

The Deputy knows I cannot possibly comment on current events because Sport Ireland is clarifying them and will report to me. As I said, I will release whatever material Sport Ireland sends to me to the Deputy and anyone else who wants it, hopefully by the end of the week.

As the Minister of State correctly informed the Deputy, Sport Ireland is responsible for governance. I understand the FAI has established a governance committee whose remit is to ensure the association is compliant with the code. The Deputy will know that on Monday, 4 February, members of the FAI ratified the introduction of eight-year term limits for board members. Sport Ireland understands this to be a maximum of two four-year terms. As part of the rule changes and in order to avoid an immediate loss of experience and expertise, it agreed that any board member who is a chairperson of a standing committee or the national league executive committee and who has served for more than ten years on the board may be re-elected for up to four years. Sport Ireland supports the adoption of the governance code and views the introduction of term limits for directors as an important step for all funded bodies on the journey and transition to adoption of the governance code by 2021. As I said, I would prefer if the FAI had been fully compliant by now but it will be fully compliant by 2021.

Last month, I also asked the Minister of State what authority he had to impose penalties in the event of poor governance and compliance. He did not answer that part of the question. I ask the Minister to take the opportunity to do so today.

The Minister referred to imposing penalties. If, for instance, the bridging loan of €100,000 is deemed to be in breach of the governance code on the basis that Sport Ireland was not informed, at what stage would the Minister consider imposing penalties? What must happen before the Minister will consider imposing penalties as this is not clear?

Is the Minister satisfied that Sport Ireland's oversight procedures are sufficient given that all of this happened while it was responsible for oversight and under its watchful eye, as it were?

I certainly cannot comment on part of what the Deputy said, as I made clear. The Deputy knew that when she asked me the question. I will not comment on any specifics.

For clarification, I asked the Minister about penalties.

If I may answer, I will not comment on any of the specifics of any issue currently being investigated by Sport Ireland or anyone else. That is out of the question. Sport Ireland has robust arrangements in place attached to the funding it provides to sporting bodies, including the Football Association of Ireland. As part of Sport Ireland's normal processes and procedures relating to the annual grant cycle, national governing bodies in receipt of grant funding are required to submit a copy of their financial statements. This must include a statement from their auditor that each grant was expended in accordance with the approved submission of the grant funding. An absolutely compelling case has been made over the years that funding should be held from any national governing bodies that are not abiding by the governance rules established for their particular category. That is a principle that we must keep to and we will do so. We are giving some of them, perhaps a large number of them, a little time to get their corporate governance into order. If they have not done so by 2021, funding should be withheld.

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