Cheaper flights for staff of State bodies under new rules

EXECUTIVES AND staff of State bodies will have to take cheap flights and stay in budget accommodation when they travel on business, under a new code of practice for the sector.

The Department of Finance yesterday published a revised Code of Practice for the Governance of State Bodies, aimed at ensuring they are run transparently and with no waste of taxpayers’ money. It applies to all such bodies, including commercial and non-commercial State organisations.

Its publication follows a report into the management of State training and jobs agency Fás by the Dáil Public Accounts Committee, which found that Fás failed to get full value for €40 million of taxpayers’ money when buying goods and services, including advertising, and that it wasted at least €2 million.

During the enquiry, it emerged that the former director general of Fás, Rody Molloy, took 16 trips abroad in three years, and that the agency provided free flights for other board members and journalists at the State’s expense. Mr Molloy said he was “entitled” to first-class travel.

The new code includes a travel policy aimed at ensuring that State agencies obtain the best value for money for each trip taken, and that they find alternatives to travelling where possible.

It recommends that public transport be used where at all possible for domestic travel.

For flying abroad, it recommends cheaper restricted internet fares or flexible economy flights be used.

It indicates that individual State bodies should outline the exceptional circumstances for using more expensive business-class flights, and states “the use of premium rates can rarely be justified”. For accommodation, the code says that, unless the employee is required to stay in a particular hotel, the standard used “should not be extravagant, eg, that three or four-star hotels should be used”.

In terms of procurement, that is buying goods and services, it states that competitive tendering should be standard practice, with management and ultimately the board ensuring that good practice and procedures are in place.

It also reminds State companies that EU and domestic law oblige them to follow certain advertising and tendering procedures.

The code applies to Anglo Irish Bank, which the State rescued at the end of January and now owns. It demands that all State bodies have risk management policies and appoint a chief risk officer.

It also states individual bodies should consider establishing a risk committee or make it a specific function of the audit committee.

The code deals with all aspects of State bodies and their conduct, including the make up and pay of their boards and executives.