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COMMITTEE OF PUBLIC ACCOUNTS debate -
Thursday, 8 Oct 2009

Business of Committee.

Yesterday, the committee sat in private session to discuss documentation received from the Department of Finance, as well as the Department of Enterprise, Trade and Employment and FÁS, arising from its meeting on 24 September 2009. The committee is conscious of the review ordered by the Tánaiste and Minister for Enterprise, Trade and Employment into the retirement package given to the former director general of FÁS and will ask for its report in advance of dealing further with these issues. The committee has decided that in advance of future hearings it will require further information. Therefore, it will write to Mr. Niall Saul about his recent comments to the effect that the board has not been informed by the executive of FÁS and to tell him that we have afforded him an opportunity to give a report to the committee on the matter. Second, we will write to the former director of corporate services to afford him the opportunity to give evidence to the committee, if he so wishes. Third, we will write to FÁS for details of the internal audit investigations, of which there are 23 modules, into procurement within the corporate affairs division.

The committee has also agreed that issues which have arisen in FÁS throw up two broader concerns. We shall write immediately to the Minister for Finance to call for changes in relation to these two issues: the terms of the package available to outgoing chief executives of State bodies, as set down in the Department of Finance guidelines of 1998 which I believe allow generous top-ups to be given to those whose contracts have been terminated by boards and the application of provisions regarding the disclosure of information by a board member to the relevant Minister, as provided for in section 8 of the Labour Services (Amendment) Bill 2009 and which should apply to all State boards.

In relation to the first matter, the packages available, the committee is concerned that the situation as regards FÁS is not unique and that its director general is not the only one to have benefited from a generous package. We question, for example, the retirement packages given to others which have been of high profile in recent times. Given the likelihood of future payments, the committee will be calling on the Minister to review these arrangements and issue new guidelines. It is also of the view that ministerial representatives on State boards are either not performing or may be prevented from performing an effective role as the eyes and ears of the Minister. Therefore, the provision contained in section 8 of the new Bill on FÁS should have broad applications to all State boards.

Mr. John Buckley (An tArd Reachtaire Cúntas agus Ciste) called and examined.

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