IoD questions political parties' proposals on reform of State board appointments and calls for independent appointments committee

Date: 09 February 2011

IoD issues a call for an independent State Boards Appointments Committee to be established

The Institute of Directors in Ireland (IoD) has today questioned recent policies put forth by political parties regarding appointments to State boards, suggesting that they will not work and do not go far enough towards implementing real reform. The IoD is instead calling for an independent State Boards Appointments Committee to be established which would be fully responsible for all appointments to State boards.

“We need real commitment to reforming the process and putting in place long term solutions that will deliver transparency, accountability and real change in the system. If future Governments want to avoid charges of cronyism, cross-directorships and conflicts of interest with regard to board appointees, then introducing a fully transparent process, independent of Government and the political system, is the only way to do that,” said Maura Quinn, Chief Executive, Institute of Directors in Ireland.

The IoD believes that we need to completely overhaul the way in which appointments to State boards are made and the policy proposals outlined by some political parties do not go far enough and make too many assumptions. Firstly, the proposed appointment by an Oireachtas committee assumes a level of collaboration and agreement among all members of the committee, when in reality this may be difficult to achieve and still lead to decisions being made along partisan lines.

Secondly, such a proposal assumes that the committee has the requisite skills and level of expert knowledge and understanding needed to ask the right questions of potential candidates. Thirdly, public interview before an Oireachtas committee will only serve to deter highly capable and qualified candidates from going forward for these positions.

The IoD is instead calling for the introduction of a dedicated committee, recruited by and operating under the aegis of the Commission for Public Service Appointments, which would create a far more transparent process and result in better functioning boards.

A panel of interviewers should be drawn from the most expert group of professionally qualified directors, senior public servants and other relevant parties. Available State board positions should then be publicly advertised and a list of candidates drawn up for interview by the panel.

In addition, each State body should be required to have a skills and competency framework which is a matter of public record, and when appointments are being made to these boards, reference should be made to that framework, particularly and explicitly in relation to the individual appointed. 

Furthermore, as well as meeting specific skills and competency criteria, those appointed to State boards should receive induction training as a rule and appointments should be subject to a minimum standard of training in the areas of corporate governance and board performance.

Commenting on the IoD proposal, Maura Quinn said: “We need to stop the rhetoric and political jockeying and focus instead on implementing real reform. These positions are some of the most important and influential in the country and if the next Government is committed to executing its role with honesty and integrity, then it must also commit to increasing transparency and accountability with regard to how these appointments are made.

“If we want to get the best people on these boards, then we need to firstly ensure that the process for recruitment is fully transparent and independent of the political system, and secondly, that the candidates possess the appropriate skills and expertise for the positions. This election brings with it a window of opportunity to change the current system, learn from past mistakes and to get it right once and for all.”

 Ends

 

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