A new code of practice for the governance of State bodies has been issued by the Minister for Finance, Mr McCreevy.

The new code updates and clarifies the existing 1992 guidelines and takes into account the Ethics in Public Office Act, 1995, which was originally launched in January 1997 and revised in 2000, and the Standards in Public Office Act, 2001.

Among the significant revisions to the 1992 guidelines is a requirement that State bodies would obtain the approval of the relevant minister where they intend to diversify their activities. The Finance Minister's approval would also be required if such diversification would have significant financial consequences.

A Department of Finance spokeswoman said this provision was not prompted by the controversy in June surrounding a Government decision to block the ESB from making a bid in excess of £1 billion (€1.27 billion) for eight electricity distribution companies in Poland. The Government vetoed the Polish project because it was too financially risky, the Taoiseach said at the time.

The code of practice is directed at both commercial and non-commercial State bodies.