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A review of the legislation governing the Standards Commission in the Public Office (Sipo) will take place in the wake of the Michael D’Arcy case, the Taoiseach told Dáil.
The controversy over the change of D’Arcy, a former minister of state, to a new post at the Irish Association of Investment Managers (IAIM) continued Tuesday with criticism from opposition politicians and complaints filed with Sipo.
Policy towards the fund sector would be overseen by the Finance Department, where Mr. D’Arcy was Minister of State until the beginning of this year.
It was also revealed Tuesday that D’arcy, who did not contact Sipo before announcing his move, has now contacted Sipo.
In Tuesday’s Dáil, Taoiseach Micheál Martin said that he believed there should be an effective cool-down period. Mr. Martin said he was “not happy or in any way comfortable” with people taking up a position in an area for which they had responsibility immediately before or recently.
“Any period of reflection must have the force of law” and be subject to sanctions, he said.
“I do not approve of a former minister holding a position for which he was responsible as an incumbent,” Martin said.
In a statement at lunchtime, Tánaiste Leo Varadkar said that “it is appropriate for anyone, be it a former minister or any other relevant person, to engage with Sipo on matters like this.”
“I think I should have contacted Sipo before taking office. However, I am glad that this contact took place.
“I was not aware of this matter before Sunday afternoon when Mr. D’arcy called to tell me that he had resigned from Seanad and accepted a role in the private sector,” Varadkar said.
Before the Taoiseach’s announcement in the Dáil, opposition figures said D’Arcy’s move undermined the rules on a “cooling off period,” which requires a one-year gap between certain politicians and senior officials who leave office and take up a position in a private sector field.
Earlier Tuesday, Green Party leader Eamon Ryan said he was concerned about D’Arcy’s decision and felt that his Coalition partners shared his concern.
Speaking on RTÉ’s Morning Ireland, the Minister for Climate Action said: “I expressed my concern to the Taoiseach and Tánaiste and I believe they share my concern.”
Ryan said Sipo will review the appointment, but felt there must be a gap in the timeline between being a minister and taking on a new position. “There are laws and regulations, it is up to Sipo to supervise them.”
When asked if Fianna Fáil’s Taoiseach Micheál Martin and Fine Gael’s Tánaiste Leo Varadkar shared his concern about the appointment, Ryan said: “Yes, I think our partners in government are also concerned.”
The cooling-off period, which was introduced in 2015, applies to lobbying activity carried out by the person in question or by the organization for which they will be working. Sipo can modify it, but only after the interested party notifies it of the planned measure.
A spokeswoman for the IAIM said she had obtained legal advice that the appointment did not violate the lobbying act, and said that neither the organization nor Mr. D’Arcy will engage in lobbying activities for a year.
The Sipo website guide says it is the responsibility of a former designated public official, such as Mr. D’Arcy, to seek Sipo’s consent “before accepting an offer of employment.”
Publicly available statements show that D’Arcy was directly pressured by IAIM in 2017, while working as Minister of State for Financial Services.
The organization met with him and an advisor on a number of issues, including a controversial tax-exemption scheme for well-paid executives, the Special Assignee Assistance Program.
Even if no lobbying takes place, if the person believes that there is a possibility that their obligations under the law may be triggered, they should contact the commission before accepting the job offer.
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