Government to review legislation after Michael D'Arcy quit Seanad to join lobby group

Michael D'Arcy, who resigned his Seanad seat to join an investment fund lobby group. File Picture: Leah Farrell / RollingNews.ie

The Government has agreed to review standards in public office (SIPO) legislation following the appointment of former minister Michael D'Arcy to a lobby group.

It is understood that Tánaiste Leo Varadkar this morning apologised to his Cabinet colleagues for the controversy and said he had no knowledge that Mr D'Arcy was planning to resign.

Micheál Martin has told the Dáil that he is "not happy, or in any way comfortable" with politicians leaving public office to join interest groups.

Mr D’Arcy, who was a minister of state in the Department of Finance in the last government, has resigned his Seanad seat to join the Irish Association of Investment Managers (IAIM).

"I believe the legislation should be reviewed, the Government has agreed this morning that the Minister of Public Expenditure would initiate a review of simple legislation but also more widely," Mr Martin told the Dáil. 

"Any cooling off period should be one that has the force of law and that has sanction and penalties attached to it, and that review is underway by government now."

The Taoiseach added: "I don't approve of a former minister going into a post that he had responsibility for as an officeholder, I do not approve of that."

Sinn Féin president Mary Lou McDonald said struggling homeowners have been refused further breaks on their repayments at the same time as a "big job for a former minister" was announced.

"What does this say to families and businesses who are relying on the Government to stand up for them, to go and bat for them? This is the second former minister at the Department of Finance to go through the revolving door from government into the world of high finance," said Ms McDonald.

She said SIPO has asked for changes to legislation to give them powers to investigate and prosecute ministers who don't adhere to the cooling off period but these calls have been "consistently ignored".

Turning the heat back on Sinn Féin, Mr Martin said Ms McDonald's party has raised $15m over the years in the United States.

"I've long been concerned about the fact that parties and movements can raise foreign donations to an extraordinary amount. I think that should be investigated by SIPO.

"I worry about that," the Taoiseach said adding that "money has been raised from construction and financial elites in the United States" but Ms McDonald "seems to have no difficulty with" this.

In a statement, Tánaiste Leo Varakdar said Mr D'Arcy has now contacted SIPO.

In my view it is appropriate for any such individual, whether that’s a former minister or any other relevant person, to engage with SIPO on matters such as this.

"I believe he should have contacted SIPO prior to taking up his position. I am however glad that this contact has now taken place."

Mr Varadkar said he had no knowledge of this matter prior to Sunday afternoon when Mr D’Arcy called him to say he had resigned from the Seanad and has accepted a role in the private sector.