Code of practice review considered

The Government is to consider whether to change the code of practice for the governance of semi-State bodies in the wake of the…

The Government is to consider whether to change the code of practice for the governance of semi-State bodies in the wake of the controversy over the presentation of Cartier watches to members of the Aer Rianta board.

A spokesman said yesterday that the Government would be "addressing the implications and making any changes to procedures that may be necessary".

He said the Department of Finance would consider what implications, if any, the controversy had for the governance of State bodies.

Last week the Taoiseach described as "inappropriate" the presentation of Cartier watches worth €9,000 each to retiring and outgoing Aer Rianta board members.

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The current code of practice was approved by the Cabinet in October 2001.

It requires State bodies to establish practices covering the giving and acceptance of gifts in the context of real or perceived conflicts of interest.

Government sources said yesterday another provision of the code - covering the need to stay within Government guidelines for the remuneration of directors - could also be relevant, as it could be argued that expensive gifts amounted to extra remuneration.

The spokesman said the board of the Dublin Airport Authority was engaged in a separate exercise of reviewing the procedures and practices it had inherited from Aer Rianta, "including recent events that have attracted controversy".

The board would implement any new procedures it decided were necessary, he said.