State board appointments limited to 10 years under new code

State board appointments will be limited to 10 years under a revised code of conduct for such bodies announced yesterday.

Minister for Public Expenditure Paschal Donohoe launched the code which will come into force next month.

It requires chairpersons of boards to implement Government policy in relation to remuneration. Arrangements must be sanctioned by the Department of Public Expenditure. All State bodies are to adhere to a competitive recruitment process and to a limited contract of between five and 10 years for board members.

Statutory basis

Mr Donohoe, who expects all organisations to be compliant by next year, said the code was not mandatory because a “one-size -fits-all” policy did not work.

However, he said he would consider placing it on a statutory basis if required.

“Its implementation will be very important for Ministers when looking at the composition for State boards in the future, and there are many formal options available to Ministers if they have concerns about the operation of the State body or their board,” he said.

“However, from dealing with State boards centrally, I do expect we are going to get a positive response to this code of practice.”

The new code requires each State board to establish an audit and risk committee. It must meet four times a year and will be able to invite outsiders to attend meetings if necessary.

Conflicts of interest

Under the measures, individual codes of conduct should be drawn up for each board and its employees. These must be available on each body’s website.

These codes of conduct are to include procedures for addressing conflicts of interest.

Each board member will be required to furnish to the secretary their interests and those of their spouse and family.

“There is a greater emphasis on accountability and transparency, which is underpinned by effective relationships between the Minister/parent department and the chairperson of the State body to ensure that the body is effective in achieving its objectives,” Mr Donohoe said.

“In light of the scale and diversity of roles carried out by State bodies, the code is not a ‘one-size-fits-all’ document, but rather acts as a framework to ensure both commercial and non-commercial State bodies meet the highest standards of corporate governance commensurate with their significant public roles and responsibilities.”

* This article was amended on August 18th. It originally said State board appointments will be limited to seven years, rather than 10.