Annual Report 2006

Scope of the Ethics Acts

The Standards Commission welcomes the introduction in 2006 of two sets of regulations by the Minister for Finance under the Ethics in Public Office Act 1995. S.I. No. 677 of 2006 prescribes designated positions in Civil Service Departments and Offices and S.I. No. 678 of 2006 prescribes public bodies, designated directorships and designated positions in organisations in the wider public service. The Regulations came into effect on 1 January 2007 and added 51 bodies, increasing the number of prescribed bodies in the civil and public service which are within the scope of the Ethics Acts to around 530. The Standards Commission considers that it is extremely important that the Regulations be kept up to date.

In its Annual Report for 2005, the Standards Commission noted that a number of public voluntary hospitals such as St. Vincent's Hospital, the Mater Misericordiae Hospital and Mercy University Hospital, were not included in the 2005 Regulations as they do not fall within the definition of a public body. The 2006 Regulations have brought twelve additional public voluntary hospitals, including these, into the scope of the Ethics Acts.

Some public bodies have been removed from the scope of the Ethics Acts. These include Aer Lingus, in view of its flotation in October 2006, and a number of bodies which were dissolved during 2006, including the National Safety Council, the Dormant Accounts Fund Disbursements Board and the Land Registry and Registry of Deeds. In some cases where bodies are dissolved, the functions may be taken over in whole or in part by a newly established body, which may also be staffed by former employees of the dissolved organisation.

The manner in which the Regulations are updated on an annual basis can give rise to a period in which persons who have previously had disclosure obligations do not have such obligations until the enactment of new Regulations. For example, under the National Cultural Institutions Act 1997, the National Library of Ireland and the National Museum of Ireland were established as non-commercial semi-state cultural institutions with effect from 3 May 2005. Prior to that date, the staff of the National Library and the National Museum were civil servants and under the Regulations then in force, certain positions of employment within the National Library and the National Museum were prescribed as designated positions. The application of the disclosure obligations of the Ethics Acts on these designated employees ceased on 3 May 2005 on the establishment of the National Library and the National Museum as non-commercial semi-state cultural institutions, when the staff were transferred to the new bodies.

The National Library and the National Museum were included in new Regulations with effect from 1 January 2006. Positions of employment were prescribed as designated positions for the purposes of the Ethics Acts from that date. In addition, the new Regulations also prescribed the Chairpersons and Board Members as designated directors. However, no disclosure obligations applied to directors or employees of the two bodies in the period from 3 May 2005 to 31 December 2005.

The Standards Commission considers that it is in the public interest that the application of the Ethics Acts should be consistent and, where possible, continuous where a new body takes over some of the functions of another organisation. In any event, there are strong arguments in favour of ensuring that all new public bodies are included within the remit of the Ethics Acts as soon as they are established. Where a new body is being established, it is important that persons who are charged with making decisions during the process of establishment should be fully accountable for their actions and should appropriately disclose any relevant interests. The Standards Commission, therefore, recommends that where a public body is being set up, consideration should be given by the Minister for Finance to the introduction of regulations which, if he considers it to be in the public interest to do so, would prescribe directorships and/or positions of employment within the body for the purposes of the Ethics Acts with effect from the date of the body's establishment.

The Standards Commission wishes to repeat the comments made in its Annual Report for 2005, regarding the necessity for public bodies to ensure that persons who have obligations under the Ethics Acts in relation to disclosure of interests or to the provision of evidence of compliance with taxation legislation are notified of their responsibilities in good time to allow for compliance. All designated directors and designated employees should be briefed on their obligations as part of induction training and there should be structured follow-up, at least once a year, to remind them of the steps which are required to be taken to ensure compliance with the legislation. The Standards Commission is available to assist in this process and to provide direct guidance and advice on any issue relating to the provisions of the Ethics Acts as they may apply to individual designated directors and employees.

Back to contents