MAYOR John Moran’s first major row with local councillors came during the summer when he raised concerns about how board members are appointed to Council-run designated activity companies (DACs).
These are, in functional purposes, companies created and run by the local authority for a designated activity – in the case of Limerick Twenty Thirty, for example, the task of planning and developing key strategic sites across the county.
It is the tradition of local authority-run DACS that elected representatives are appointed to the board of such companies to help steer them.
At the first full meeting of the new council in July, however, Mayor Moran stated that in his mayoral position as a shareholder of Limerick-linked DACS, he would be looking to find a middle ground between appointing local representatives and appointing those with what would be, in his opinion, the correct skillset or competence for the post.
“It is the prerogative of the shareholder to choose directors that can best serve that company. In order to do that, I think it is appropriate that we actually take into account the skills of the various people. They should only serve on those boards if they can bring specific knowledge,” he told Council members at the time.
Councillors and Council management have since sought legal advice in relation to nominations to boards of DACs, and the powers of Ireland’s first directly-elected mayor to enforce such a position.
At November’s full meeting of Limerick City and County Council, Sinn Féin councillor Ursula Gavan asked Mayor Moran about his plans for the DACs following the legal advice coming in.
The Mayor revealed that he proposes to carry out a short independent review of each of the Limerick-linked DACs to confirm that they are fully in line with best governance practice and applicable governance codes for State bodies.
“I have no reason to believe that they are not, but I think it is only appropriate to confirm as we start out on the next chapter for them,” he told the Council chamber.
He said the independent review should “give clear guidance and recommendations about the role for the shareholder, the board, the management team of the DAC, and the elected representatives”, as well as “how to avoid unnecessary conflicts of interest and ensure that the oversight role of the elected representatives can be fulfilled”.
Limerick’s democratically-elected first citizen said that DAC boards have important responsibilities to carry out, and that it is important that they are fully enabled and supported to do that.
“Everyone will know that I believe in maintaining transparency and accountability in any public role. I believe the DACs in so doing can lead in public disclosure in company documents and websites.”
Fine Gael councillor John Sheahan agreed regarding technical expertise required within DAC boards, and wouldn’t disagree that this kind of advice is needed.
However, he insisted, “I would also like to say that outside of the technical expertise, you need the man on the street expertise as well”.
“We are in an elected chamber, and I would ask that you reflect on how you set up the board of directors, and remember that the people in front of you have mandates and their input into any of these DACs will be absolutely imperative going forward.”
