Strengthen Statutory Framework for Ethics in Public Office (IE0058)

Brief Description of the Commitment

To bring forward legislation to modernise and simplify the statutory framework for ethics in public office, with the aim of creating a ‘fit-for-purpose’, user-friendly regime that contributes to strengthening the public’s trust and confidence in public officials and the democratic process by enhancing transparency and accountability of elected and appointed public officials.

Problem Definition

1. What problem does the commitment aim to address? Ireland’s current statutory regime for Ethics in public life (the Ethics Acts) dates originally from the mid- 1990’s As well as disclosing interests, this statutory framework provides that evidence of tax compliance must be furnished to the Standards in Public Office Commission (SIPO) by all members of both Houses of the Oireachtas, the Attorney General and appointees to senior office in public bodies. The legislation also requires the drawing up of codes of conduct for ordinary members of the Houses, for office holders (e.g. Ministers of the Government and Ministers of State) and for public servants. These codes are published by the Standards in Public Office Commission. Instances of potential gaps in the framework for ethics have become matters of public debate. Relevant recommendations of the Review of Structures and Strategies to Prevent, Investigate and Penalise Economic Crime and Corruption (the ‘Hamilton Report’), published in December 2020, also fall to be considered in the context of reform of the statutory framework. If, in due course, legislation is passed by the Oireachtas, elected and appointed public officials will be subjected to enhanced accountability and transparency obligations and procedures in order to help bring to light and address conflicts of interest issues and thereby support the public’s trust and confidence in public officials and the democratic process.

2. What are the causes of the problem? Minimising the risks arising from conflicts that can occur between the interests that public officials are elected/employed to represent and their personal interests is a challenge common to all public administrations. These conflicts are natural and, to a greater or lesser extent, the inevitable consequence of the fact that public officials occupy more than one social role. Ireland’s current statutory framework for addressing these conflicts of interest has a number of points that require attention: • there are separate regimes at national and local level in regard to ethics requirements; • lack of knowledge and understanding among public officials in regard to ethics requirements and rules that apply to them; • uncertainty regarding responsibilities for advice, development of guidelines and Codes of Conduct; • anomalies that may impact on the credibility of the ethics regime; • uncertainty surrounding the effectiveness of penalties for persons who are found to have breached ethical requirements; • bureaucracy and effectiveness issues – processes are paper based and there are no review obligations.

Commitment Description

1. What has been done so far to solve the problem? The 2015 Public Sector Standards Bill (the PSSB) represented Government’s initial proposals for a comprehensive overhaul of the Ethics regime. Introduced in January 2016, this legislative proposal was last discussed in the Dáil at Committee Stage in April 2017. As it had not completed the legislative process, it lapsed when the Dáil was dissolved in January 2020 in advance of that year’s General Election. The Government made a further commitment in the 2020 Programme for Government to ‘reform and consolidate the Ethics in Public Office legislation’. The Minister for Public Expenditure, NDP Delivery and Reform subsequently carried out a comprehensive review of the statutory framework for ethics in public life in 2021/2022. This review element’s included: • Review of the existing ethics legislative framework and reassessment of the 2015 Public Sector Standards Bill; • Review of the recommendations of relevant Tribunals of Inquiry; • Review of recommendations of the Standards in Public Office Commission (SIPO) based on operation of the current regime; • Review of current EU/International best practiceand; • Public Consultation - Consultations with various parties. This Review completed, a Report was submitted to the Government in December 2022. The Government approved the publication of the report and agreed to the preparation of draft legislation to reform the regime informed by the outcome of the Review. In line with this, the Department of Public Expenditure, NDP Delivery and Reform is currently preparing a general scheme of legislation, using the lapsed 2015 Public Sector Standards Bill as the point of departure. The intention is to bring proposals for reform to Government for approval to publish by end quarter 1 2024. Engagement is ongoing with various stakeholders to ensure that a new statutory framework will be effective and efficient to implement/administer and that it effectively addresses the needs of the public.

2. What solution are you proposing? The Department is preparing legislative proposals to reform, up-date and consolidate Ireland’s legislative framework for standards in public life. The intention is to provide a uniform and values-based framework covering the ethical conduct of public officials, which will cover inter alia various situations of conflicts of interest such as; gifts and other advantages, and post-employment situations. This will include new statutory prohibitions on the use of insider information; seeking or accepting benefits (including gifts and favors etc.) to further private interests; and local elected representatives dealing professionally with land in certain circumstances. Under the proposal, the legal obligation for public officials to disclose as a matter of routine, actual and potential conflicts of interest that arise in the context of the performance of their duties will be strengthened. This will include shared definitions, previously agreed, applying at national and local level. In particular, greater consistency and certainty on the rules governing limits on the receipt of gifts and travel benefits by public officials will be clearly outlined. The intention is that this will be complemented by a more effective, streamlined and efficient process for the submission of periodic statements of interests, notably providing that no declaration (or nil statement) will be required unless there has been a significant change and a streamlined and improved complaints and investigations procedure. Statutory offences are envisaged for breach of obligations in relation to gifts; ad hoc disclosure, use of confidential information; tax compliance and periodic disclosure. It will also seek to provide for high quality and effective training for public officials on issues such as ethics, conduct in situations of conflicts of interest. Overhaul of the oversight structures, new responsibility for advice and guidance and significant streamlining of declaration processes are also envisaged.

3. What results do we want to achieve by implementing this commitment? • An up-to-date, ‘fit-for-purpose’, easy to understand and user-friendly statutory framework for standards in public life that continues to ensure that conflicts between the public interest and private interests of public officials are regulated correctly, ensuring accountability and thereby contribute to the quality and efficacy of public administration. • A streamlined, improved and transparent investigations procedure. • A more effective and efficient process for the submission of periodic statements of interests. • Consolidated local and national ethics requirements ensuring accountability at all levels. • Enhanced knowledge and understanding among public officials with regard to ethics requirements and rules that apply to them. • Over-arching integrity principles established in legislation to apply to all public officials. • Enhanced transparency and public accountability that contributes to strengthening the trust of citizens in democracy and its institutions.

Commitment Analysis

1. How will the commitment promote transparency? Declarations of interests by senior elected and appointed officials would be published by SIPO. Private declarable interests (such as liabilities over certain thresholds and, as the case may be of interests of their spouse, civil partner or of a child of the person or his or her spouse) would also be disclosed confidentially to SIPO for review, but maintained on a confidential basis. Subject to data protection considerations, the declarations of interests by senior elected and appointed officials would be published and made available online by SIPO. This will help improve citizens’ access to information, whilst also making elected public officials more transparent to their electors.

2. How will the commitment help foster accountability? An enhancement of legal obligation for public officials at national and local level to disclose as a matter of routine actual and potential conflicts of interest that arise in the context of the performance of their duties can foster greater accountability to the public and facilitate transparent monitoring and evaluation systems. Building on the existing regime, it is intended that there will be further statutory prohibitions on matters such as: the use of insider information; seeking or accepting benefits (including gifts and favours etc.) to further private interests; and local elected representatives dealing professionally with land in certain circumstances. This can also help reinforce accountability.

3. How will the commitment improve citizen participation in defining, implementing, and monitoring solutions? Citizen participation underpins a thriving democracy. The legislative proposals are informed by the recommendations of the Review of the statutory framework for ethics in public life undertaken by the Department in 2021/2022. This Review included a public consultation process as well as consultations with various parties. As a result, it had access to up-to-date evidence to inform its policy and legislative recommendations. Responses were received inter alia from non-government organisations (NGOs) such as Transparency International Ireland. As previously stated, declarations of interest by senior elected and appointed officials would be more accessible to inter alia citizens, citizen groups and act as an incentive for them to proactively engage with Government.

Commitment Planning (Milestones | Expected Completion Date)

Publication of a General Scheme of legislation for reform of the statutory framework for Standards in Public Life (subject to Government approval) | Q1 2024

Preparation of a Standards in Public Office Bill with the Office of the Attorney General and pre-legislative scrutiny of the General Scheme if elected to do so by parliamentary committee | Q2/Q3 2024

Publication of the Standards in Public Office Bill and its introduction to the Irish Parliament for consideration (subject to Government approval) | Q4 2024

Consideration of the Standards in Public Office Bill by Dáil and Seanad Éireann (subject to Government and parliamentary approval) | 2025

Action Plan Review

Commitment 5. Development of a modernized ethics statutory framework

Commitment 5: Modernized ethics statutory framework
Department of Public Expenditure, NDP Delivery and Reform (DPENDR)

For a complete description of the commitment, see Commitment E in: https://www.opengovpartnership.org/documents/ireland-action-plan-2023-2025-december.

Context and objectives

Ireland's statutory regime for ethics in public life (i.e., the Ethics Acts) has existed since the mid-1990s. However, issues with the framework have sparked public debate on the efficacy of penalties for breaches of ethical requirements and a lack of understanding among public officials regarding ethics rules. [5] The findings of the Mahon Tribunal on political corruption [6] underscored the need for comprehensive reforms and influenced efforts to introduce updated and more fit-for-purpose legislation. [7] In 2015, a new bill was introduced but did not pass through the legislature. [8] Under the previous action plan, a review of the statutory framework for ethics in public life was published in February 2023. It reiterated the need for this legislation and provided substantive inputs based on international best practices and public consultation. [9]

Under this commitment, the Department of Public Expenditure, NDP Delivery and Reform (DPENDR) seeks to introduce legislation to strengthen, modernize, simplify, and streamline the statutory framework for ethics in public life. The aim is to create a user-friendly regime that enhances public trust in government officials by improving transparency and accountability. [10] In response to the Mahon Tribunal and other inquires, [11] the legislative proposal seeks to implement stricter regulations, clearer guidelines, and more effective penalties to prevent corruption and ensure public trust in political institutions. This legislative effort is part of a broader movement to modernize governance and reinforce ethical standards across public office.

Potential for results: Substantial

This new legislation has been anticipated for nearly a decade, reflecting the urgent need for reform. Since the 2015 Ethics in Public Life Bill failed to pass, significant gaps have remained in the framework for transparency and accountability in government. The current legislative effort aims to address these longstanding issues and implement necessary changes to strengthen ethical standards across all levels of government. As of July 2024, the DPENDR was developing a general scheme for the legislation, informed by the recommendations of the 2023 review. [12] If approved, it will be followed by a Standards in Public Office Bill prepared alongside the Office of the Attorney General.

One key change suggested for this reform would involve establishing a unified legislative framework for ethics in public life. [13] Currently, the national framework is a complex and somewhat outdated patchwork legislation, which includes the 1995 Ethics Act, the 2001 Standards in Public Office Act, and the Local Government Act. It is envisaged that new legislation would consolidate these fragmented regimes into a single, coherent framework that will apply uniformly at both the national and local levels. By streamlining and simplifying the existing system, this unified approach would improve the understanding of both government officials and the public as well as lay a crucial foundation for further substantive reforms. [14]

Based on the model of the previous Public Sector Standards Bill and the Review recommendations, the regime would be strengthened by expanding the requirements for declarations of interest. Public officials would be required to disclose their own income sources and those of their spouses and families. The new provisions would differentiate disclosure obligations based on the seniority and decision-making autonomy of the officials. High-ranking officials, including ministers, department heads, ministers of state, and parliamentary party chairs, would need to declare assets and liabilities exceeding €50 thousand. [15] These enhanced disclosure requirements aim to increase transparency and accountability within the public sector.

It is foreseen that the reform will contain mandate to favour provisions for electronic disclosure arrangements on secure online platforms that would replace traditional paper-based processes. This mandate requires all related processes to be conducted digitally, which support the government’s broader digital agenda across all areas of public life. [16] This transition is expected to enhance the efficiency and accessibility of compliance while streamlining procedures, reducing bureaucratic burdens, and simplifying the responsibilities of public officials. A civil society stakeholder highlighted that the electronic system would also facilitate public oversight through data mining and analysis. [17]

To address ethical breaches effectively, the new legislation is expected to introduce a range of clear and appropriate sanctions, including fixed fines for various infractions. It would define specific offenses, such as retaining gifts above a designated threshold and seeking inappropriate remuneration, with sanctions scaled to the severity of each breach. Additionally, it would require public officials to declare conflicts of interest and recuse themselves from related duties. Failure to comply would be subject to prosecution, which could ensure comprehensive enforcement of ethical standards. [18]

It can also be foreseen that investigative powers would be significantly increased under the new legislation. The Standards in Public Office (SIPO) Commission would gain enhanced authority to hold hearings, make findings, and impose sanctions directly. In the current regime, SIPO can only conduct investigations, make findings, and issue recommendations. If they identify potential criminal activities, they would refer the matter to the Office of Public Prosecutions. Under the new regime, SIPO would have the concrete power to refer cases for prosecution and prosecute directly, thereby streamlining the enforcement process and increasing accountability. [19]

Additional reforms include extending the tax clearance requirement from a pre-election check to an annual process. Further, a cooling-off period would be introduced to address post-term employment obligations not covered by existing legislation.

Civil society stakeholders view this commitment as promising, although they have expressed concerns about tracking progress and ensuring accountability in developing and approving the legislation. As noted by Transparency International Ireland, there is a strong need for more rigorous and detailed requirements concerning the declaration of interests. Enhanced provisions are necessary to improve transparency and effectiveness in public officials' disclosure of their financial interests and potential conflicts. [20] Overall, this commitment’s comprehensive reforms could substantially enhance the ethics framework, ultimately strengthening public trust in government.

Opportunities, challenges, and recommendations during implementation

The new regime offers an important opportunity to enhance transparency and accountability through a more robust ethical framework for public officials. Passage of new legislation could face political challenges [21] and the 2025 election could also introduce delays. To fully realise this commitment’s potential for results, the IRM offers the following recommendations: