IFA fallout: Hard to find any positives in the bad publicity
As if the damage arising from the pay arrangements over the two years 2013 and 2014 didn’t cause enough damage, the details of Pat Smith’s exit package — topping out at €2m plus pension — seems incredulous.
It remains to be seen to what degree the controversy will impact on the financial health of the organisation — but given that the organisation is predominately funded through membership fees and levies, any drop in membership will have a big impact on the bottom line.
Already reports are filtering in of farmers dropping membership and withdrawing levies from milk processors and meat factories.
Now that IFA president Eddie Downey has also fallen on his sword, efforts to repair the damage have begun in earnest. The remaining executive council has unanimously agreed to use all legal avenues to challenge the severance package.
Meanwhile, former IFA chief economist Con Lucey, who incidentally had resigned from the audit committee of the IFA in 2014 over his fears that Pat Smith may influence the work of the committee, has been drafted in to carry out a thorough review of the structures in the association around corporate governance and related matters, including issues around remuneration and will report to the executive council on Tuesday, December 15.
Interestingly, it appears Mr Lucey had called for the establishment of a remuneration committee at that time.
It remains to be seen whether this sticking plaster of appointing Mr Lucey (by the existing remaining members of the council) will be sufficient to heal the wounds within the general membership.
In any event, it seems a particularly tight timeframe under which any review can be carried out. Acting general secretary Bryan Barry said the IFA would issue an unreserved apology over the “serious failings” but this apology was tempered by a certain amount of circling of the wagons, with Mr Barry commenting that the remaining 64 members of staff were a very strong team.
It remains to be seen whether farmers will accept this or will be baying for more blood given that the deputy president Tim O’Leary, treasurer Jer Bergin, and acting general secretary Bryan Barry were aware of Mr Lucey’s concerns at the point of his resignation and should have made themselves aware — and indeed objected — to the severance package of Mr Smith.
So what now for the IFA? Motions of no-confidence on the entire executive board remain in suspension due to the requirement for 21 days’ notice. Mr Lucey is to report to the executive council in the interim. It remains to be seen whether the findings of this report will influence members in carrying motions of no confidence.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
