There is no doubt that the Irish Farmers’ Association (IFA) is facing the biggest fight in its 60-year history and it is of its own making. Grassroots members have lost trust in the association and those who have been loyal long-term advocates feel ashamed and hurt. It is a dangerous mix for an organisation whose ability to influence is so dependent on its loyal and committed membership. It was the loyalty and commitment of this membership that gave IFA its power.
This loyalty was based on trust, trust that the IFA was using the funds collected through membership and levies to advance farmers’ interests.
Amid all of the revelations around the remuneration package of Pat Smith, it is clear that decisions taken long before the current administration was in place played a significant part in the mess in which the organisation now finds itself.
Few will dispute that since taking office Eddie Downey always approached any issue with farmers’ best interests at heart. But he was effectively dealt a hand for which there was only ever going to be one outcome unless he took dramatic action within a short time of assuming office.
Downey was unable to hold back the tide of unrest from grassroots members when the pay package which he was contractually bound to pay Smith became public.
On Wednesday night he announced his resignation in the form of a press release read out to the executive board, the governing body of the organisation, during a marathon 17-hour meeting that lasted into the early hours of Thursday morning. It came just hours after the executive council learned that one of the former president’s last decisions was to agree a €2 million severance package with Smith. The executive council immediately called for the package to be stopped.
So where does the IFA go from here? Farmers need all the facts on when and by whom the governance procedures in relation to the general secretary’s salary and pension terms were agreed.
There have clearly been too many major decisions taken in the organisation without proper consultation with its governing body. Was the eight-man executive committee responsible for this lack of transparency or were many of its members also left in the dark?
Responsibility to farmers
We have repeatedly highlighted in the Irish Farmers Journal that the executive council has a responsibility to farmers to ensure proper governance. Its failure to demand information on the background to the resignation of Con Lucey, the organisation’s highly respected former chief economist, from the audit committee in August 2014 shows how it has struggled to take control of key issues in recent years. One example was the beef protest that the organisation staged last year. Its achievements were questionable and the beef forum that resulted from it has delivered little.
The focus now has to be on regaining farmers’ trust. The reappointment of Lucey to the audit committee is the first step. His remit should extend beyond the governance of the IFA itself, allowing him to investigate any associated companies with full exposure as to how they are structured and governed along with why they were established.
Farmers also need insight into management of the organisation’s pension fund. While the organisation has a clear fiduciary duty to its staff to ensure contractual agreements are met, the announcement that former general secretary Pat Smith had amassed a pension fund of €2.7 million has shocked farmers. It has been reported that about €9 million has been injected into the pension fund in recent years to shore up the deficit.
Emotion must not be allowed to cloud the need for change and divert attention from the tough questions. The farmers who give their time to take up voluntary positions within the organisation deserve great credit. But the length of time that some have served on the council and board brings into question whether the structures in place are adequate for modern conditions.
Clearly a root-and-branch review of governance structures pertaining to executives and voluntary officers at both national and county level is overdue.
The real question now is what outcome will best serve the long-term interests of Irish farmers. Even its harshest critics would have to accept that the IFA has delivered for farmers. Nevertheless, it would be foolish to think that clinging to past successes will save the IFA.
The organisation will undoubtedly lose membership and levies in the months ahead. But it is a well-financed organisation and farmers won’t judge its success by the size of the balance sheet. Farmers judge success by what is delivered. The organisation must get back on this treadmill of delivering for farm families as quickly as possible.
I have been questioned in recent days on the relationship between the IFA and the Irish Farmers’ Journal. I am very clear on where this is. Farmers need a strong, articulate and committed IFA that is focused on advancing the betterment of Irish farmers.
Well-governed organisation
It is for this reason that while the Irish Farmers Journal will continue to present the facts surrounding this disgraceful situation, we will unashamedly highlight the importance of having a well-governed farm organisation to represent the interests of farmers.
Readers of the Irish Farmers Journal are those farmers and we stand with them as their organisation faces its biggest challenge. We do so because the IFA is not a single general secretary, president or even executive council. The IFA is the farmer who gets up to calve the cow, lamb the ewe and harvest the crops.
From a financial perspective we contribute towards the cost of a range services provided to us including access to their Brussels office, articles, commodity surveys and economic research. We feel that the content we receive is valuable to our readers and over the past three years this payment has averaged €143,000 per annum. I might add either party is free to terminate this relationship at any time.
The actions of a few cannot be allowed to bring down an IFA that has been and will continue to be so important in safeguarding the income on Irish farms. This was the clear view of John Mooney when he made the decision to donate, without any payment, the Irish Farmers Journal in trust for the betterment of Irish agriculture. It remains the view today.
Justin McCarthy is editor and chief executive of the Irish Farmers Journal