The Tánaiste has today published legislation to reform governance of Fás through the Labour Services (Amendment) Bill 2009.
The Bill provides protection for “whistleblowers”, statutory guidelines covering conflicts of interest, and will result in a new, smaller board at the organisation, with a reduction to 11 members from 17. The Bill also removes role of the social partner organisations, and Fás employees, in appointing directors.
The legislation provides that the Minister for Enterprise, Trade and Employment selects the board in a non-prescribed manner and “in consultation with the Minister for Social and Family Affairs and the Minister for Education and Science”.
Those appointed will have experience and expertise in areas relevant to the functions of Fás and in “finance, trade, commerce, corporate governance or public administration”.
The director general of Fás will serve as an ex-officio member of the board, something that does not currently happen. The Bill addresses the issue of conflicts of interest for directors and staff and provides for the disciplining of persons who breach the new guidelines, up to dismissal.
The new law will provide for the protection of employees who, on a bona fide basis, report suspected wrongdoing to the Garda or to a member of the board. It will also allow members of the board to disclose information obtained in the course of their duties to the Minister. This is restricted by the law as it stands.
The Bill will also make the director general of Fás accountable to the Dáil Committee on Public Accounts. It also stipulates that directors should only serve for two five-year terms, and provides for a rolling system of appointments aimed at facilitating the ongoing introduction of fresh ideas.
The Bill allows the Minister remove a director who is not adequately performing his or her functions or whose removal is necessary or expedient for the effective performance of Fás.
Publishing the legislation, Mary Coughlan said: “This Bill sends a clear signal to the public, and to Fás itself, of a root and branch cultural change in accountability and transparency at the organisation. A smaller board, with greater accountability to the taxpayer through the Oireachtas; the obligatory disclosure of any conflict of interests by both directors and staff; the ban on director and staff involvement on matters where they have a conflict; provision for the removal of a director, or contract termination or demotion of a staff member, in breach; and the introduction of protection for whistleblowers, are robust and significant measures that will ensure this signal becomes a reality in the organisation.
“Since becoming aware of the serious deficiencies and irregularities in financial controls at Fás following my appointment as Minister for Enterprise, Trade and Employment, it has been my consistent goal to get to the bottom of what had happened in Fás and to ensure that it can never happen again," she said.
"Changing the corporate governance structure and providing for greater accountability and transparency through enactment of this legislation, will substantially build on the improved financial and governance practices now in place across the organisation under the guidance of its new Director General, Mr. Paul O’Toole.”
However, Fine Gael Enterprise spokesman Leo Varadkar said the Bill was a "serious disappointment" and fell "far short" of what was required.
“This is a lost opportunity for root-and-branch reform of Fás, including its structures and functions. The focus in this legislation should have been on reforming Fás to ensure that it can fully support and retrain the 430,000 people currently on the Live Register.
“This Bill will politicise the Fás board more than before. All 11 positions on the new board will be in the gift of the Minister. The Tánaiste has ignored Fine Gael’s call that all new board members should be vetted by the Oireachtas Enterprise & Employment Committee. We can have no confidence that this represents anything other than the continuation of the culture of cronyism and political appointments that have flourished under 12 years of Fianna Fáil government."
The Dáil will debate today and tomorrow a Private Members’ motion from the Labour Party on Fás to do with political oversight of the body over the past decade and the retirement package given to the former director general, Rody Molloy.
