9 Feb 2012, 17:42
The Committee of Pubic Accounts today called for a greater vigilance by VECs, the Department of Education and Skills and the Department of Public Expenditure and Reform of the €1billion in spending that is allocated to the VEC sector annually.
Following its meeting today with three VECs (Cork County, Cork City and Kildare), Committee Chairman John McGuinness, TD said: “The Committee was taken aback at the range of issues including breaches of public procurement policy, staff engaging in activities that led to conflicts of interest and failures of oversight that emerged when we examined the three VECs. Given the level of spend, which is approaching €1billion, it is clear that there is a need to review the oversight arrangements that are in place and I was disappointed that both the Department of Education and the Department of Public Expenditure and Reform had an almost ‘hands off approach’ to the issue of accountability. Basically they were saying that the it’s a matter primarily for the relevant VEC. I don’t accept that and the PAC will be asking these Departments to up their game in the area of oversight of VECs.”
At today’s hearing it also emerged that savings are unlikely to accrue from the exodus of teachers under the retirement arrangements that will come to an end on the 29th February, 2012 and nor will the State be able to make savings on accommodation costs when the 33 VECs are merged into 16 new entities.
Deputy McGuinness said: “I was disappointed that the Department has not even an estimate of the long term saving to be achieved in this area. On the retirements, it is clear that most of those who do retire will be replaced as the State will have to meet the extra pension costs of the retired teachers as well as the salaries of the newly recruited teachers. The amalgamation of the VECs will see some old headquarters being vacated but as some of these have long term leases (up to 20 years in the case of Longford, Tullamore and Kilkenny), the State is going to retain them until they know they no longer have a public use for them and at that stage, they will have to incur costs if those leases have to be broken.”
Ends
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Committee of Public Accounts
Membership
John McGuinness (Chairman)
Kieran O’Donnell (Vice Chairman)
Paul J Connaughton,
John Deasy,
Paschal Donohoe,
Anne Ferris,
Simon Harris,
Michael McCarthy,
Mary Lou McDonald,
Sean Fleming,
Eoghan Murphy,
Derek Nolan,
Shane Ross