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COMMITTEE OF PUBLIC ACCOUNTS debate -
Thursday, 8 Mar 2012

Business of Committee

The first item is the minutes of the meeting of 23 February 2012. Are the minutes agreed? Agreed. Most matters arising from the minutes will be dealt with during the course of our agenda.

The next item on the agenda is correspondence received since our last meeting. No. 3.1 is correspondence dated 22 and 25 February 2012 from Mr. Noel Wardick, former head of the international department of the Irish Red Cross. Some members will be interested in this matter. The committee has received a considerable volume of correspondence on the Red Cross, particularly since our meeting of 19 January. We need to review this correspondence because, among other issues raised, the committee may have been misled. We are in a difficult position in that the Red Cross is not accountable to this committee. However, our examination of the issue has thrown up more questions than answers and, rather than having another wave of correspondence on the various issues raised, it behoves the Department of Defence and the Minister for Defence to arrange for a third party to review the evidence and establish definitively the position in respect of areas that are in dispute. Until we get independent assurances there is no way we will be able to sign off on the Red Cross examination.

We have several items of correspondence that contradicted the evidence presented to us. As the Chairman noted, the Red Cross is not directly accountable to the committee. Is he proposing that we conduct an investigation into the evidence we were given?

We have a number of options. We can conduct an investigation and ask the Department to examine the Red Cross. The other option is to give Mr. Wardick and others the opportunity to appear before the committee.

We have received correspondence relating to the Charities Act 2009. When witnesses from the Department appeared before us previously to discuss the Red Cross, they indicated that the Act would solve many of the problems arising in the charity sector. However, the aforementioned correspondence indicates that the implementation of the Act will not be proceeding in the near future. I do not know how it will benefit us to bring the Red Cross before us again, unless it is just to give its representatives an opportunity to tell the same story. Would it be preferable to ask the Department to investigate the issue properly? I am concerned, however, that it may take the same hands-off approach it followed previously.

We continue to receive a volume of correspondence which gives rise to further questions. We need to bring the matter to a conclusion. We can do so either by asking the Accounting Officer to conclude matters by way of an independent investigation or we can hear evidence from Mr. Wardick and others before reaching our own conclusions. I do not know if the Comptroller and Auditor General can play a role in assisting our efforts to bring the matter to a conclusion but we have to make a decision because otherwise the correspondence will continue to arrive, the accusations will continue to be made and we will not have concluded our work.

I suspect the Department will continue to take a hands-off approach in terms of investigations. I got the impression that if Ireland tried to set a precedent it would have a negative effect in terms of other countries attempting to interfere with their own Red Cross societies. If the committee proposes to invite the Red Cross to appear again I would support the proposal.

What does Deputy Eoghan Murphy suggest in regard to Mr. Wardick and others?

Would we give them an opportunity to state their case?

We could say that we are finalising matters by allowing them to state their case.

I imagine others besides Mr. Wardick who have written to the committee and its members would also like to meet us. I do not know if the committee has previously facilitated such meetings.

I will ask the clerk to examine the correspondence to determine whether it is worthwhile to invite them before us to examine the issues they have raised before referring the hearings to the Accounting Officer as part of a request that the matter be formally investigated by an independent figure. We could possibly bring the matter to a conclusion by these means.

To be clear on what we are proposing, we will ask the clerk to examine the correspondence to determine who might be invited before us. When that process is brought to a conclusion we will refer the hearings to the Accounting Officer with the suggestion that he have the matter independently investigated. Is that agreed? Agreed.

Correspondence dated 20 February 2012 was received from Mr. John Kinsella of New Ross, County Wexford, regarding Fáilte Ireland. This is to be noted and the correspondence shall be forwarded to the Department of Transport, Tourism and Sport and Fáilte Ireland for a note on the issues highlighted.

No. 3.3 is correspondence dated 13 February which was received from Mr. Donal Corcoran of Naas, County Kildare, regarding Kildare VEC. This to be noted and published. The correspondence is to be forwarded to the Department of Education and Skills for a note on the matter.

We had the VEC before us. Should we forward the correspondence to the VEC or the Department?

We can send it to both parties.

Out of courtesy, we should let the VEC know that we received the correspondence.

Correspondence dated 17 February 2012 was received from the secretary general of the Irish Red Cross, Mr. Donal Forde, clarifying information provided in previous correspondence with the committee. This correspondence contains the details of bank accounts and we have been asked not to publish it. I presume members will agree to that request.

Correspondence dated 10 February 2012 was received from an anonymous source regarding the location of a primary care centre in Macroom, County Cork. This is to be noted and published. The correspondence is to be forwarded to the HSE for a note on the matters raised.

Correspondence dated 20 February 2012 was received from the chief executive of Ryanair, Mr. Michael O'Leary, forwarding further correspondence sent to the Commission for Aviation Regulation regarding its 2010 annual report. Members will have the opportunity to raise the issues highlighted with the commission when we examine its accounts after Easter. The matter is to be noted.

Correspondence dated 23 February and 3 March 2012 was received from Mr. Bev Cotton of Clonakilty, County Cork, regarding Cork VEC and Youthreach in Macroom and forwarding correspondence from the Minister for Education and Skills, Deputy Quinn. The correspondence is to be forwarded to the Department of Education and Skills for a note on the issues raised and appropriate follow up. The correspondence will also be forwarded to the Comptroller and Auditor General for appropriate follow up.

Correspondence dated 23 February 2012 was received from Hugh Rance of Bantry, County Cork, regarding Cork VEC. This is to be noted. The correspondence is to be forwarded to the Department of Education and Skills for a note on the issues raised and appropriate follow up. The correspondence will also be forwarded to the Comptroller and Auditor General for his response.

Correspondence dated 27 February 2012 was received from the second Secretary General of the Department of Finance, Mr. Jim O'Brien, regarding an update on the €3.6 billion error in the national accounts. That correspondence shall be noted and published. We will revisit this issue in April as part of our work programme because we should have received these two reports by that point. It has taken an incredibly long period of time.

Who sent the letter?

It is from Mr. Jim O'Brien, second Secretary General at the Department of Finance. It is an issue that has dragged on for a considerable length of time and it is incredible that the Department would take that long to prepare its report and present it. Perhaps it tells us something about the Department of Finance.

No. 3.10 is correspondence, dated 27 February 2012, from Ms Joan Russell, chief executive of County Cork VEC, forwarding correspondence from the former chief executive, Barra Ó Briain, requested at the PAC meeting of 19 February 2012, to be noted and published.

Correspondence dated 24 February 2012 has been received from Mr. Martin Callinan, Commissioner of An Garda Síochána, providing information requested by the committee at the meeting of 2 February 2012, to be noted and published.

I am shocked to read this. The fourth section of the correspondence is on compensation and legal costs. We all agree gardaí injured in the course of their duty are entitled to receive a payment for those injuries. However, the legal costs involved are 60% of the awards. The awards made in 2011 amounted to almost €6 million and legal costs that year amounted to €3.8 million. Is this scheme for the benefit of solicitors or gardaí? Is it for the benefit of the legal profession or the taxpayer? I am sick and tired of coming here and listening to organisations such as the Chief State Solicitor's office, which has almost €1 billion worth of cases on its books on behalf of the Irish taxpayer but 50% extra of everything it pays out goes on legal fees. We must stop this gravy train once and for all at this level of activity. I suggest the Chairman writes back to the Garda Síochána asking for details.

I raised the issue of legal fees with the Chief State Solicitor's office. For the past ten years we have had tribunals, and a new train has now been found to ride the Irish taxpayer in terms of legal fees for the next ten years. Whether dealing with medical negligence or compensation to gardaí I cannot accept that legal fees should represent 60% of injuries awards. Who is the main beneficiary?

The committee must deal with this urgently. One of the biggest rip-offs of the Irish taxpayer is legal fees paid through the Chief State Solicitor's office. I am delighted to receive the information and note it in public but I will certainly not let this item of correspondence go undealt with until we raise the issue again, even if we must summon the Chief State Solicitor to come before the committee again. He is always putting in place new systems and conducting reviews. I do not know what type of competitive procedure is used. No wonder the troika wants competitive tendering and restructuring in the legal profession. This is the evidence it needs. This rip-off of the Irish taxpayer must stop. I want this committee to take action. This particular issue is the tip of the iceberg.

In response to this we can certainly bring the Chief State Solicitor's office before the committee again. Perhaps before we do so we will ask the Office of the Comptroller and Auditor General to do an exercise on it. Deputy Fleming is perfectly correct in what he says and it needs to be investigated. Does Mr. McCarthy of the Office of the Comptroller and Auditor General wish to respond to Deputy Fleming?

Mr. Seamus McCarthy

We have looked at this issue previously. Payments are based on the scheme for fees applied by the legal officers of the State. We keep it under review and we can raise with the incoming Comptroller and Auditor General the question of whether he or she wants to undertake an examination of the matter.

The final sentence of the letter states compensation payments and legal costs paid to members of the public for the two year period from January 2010 to December 2011 amounted to €16.6 million. At least €6 million of this was legal fees, which is another €6 million on top of the €4 million with regard to injuries to gardaí and the more than €2 million paid in 2010. Based on the last section of the reply I project that at least €12 million was paid in legal fees in those two years with regard to cases of gardaí or the public being injured. This must stop.

Mr. Seamus McCarthy

The previous committee examined the procurement of legal services. I am not sure whether a response was received from the Department of Public Expenditure and Reform.

We shall check up on the report done previously and circulate it to members. We will also seek a response from the Department. The response from the Office of the Comptroller and Auditor General is that it will be considered in terms of the new person in the role. It comes with a recommendation from the committee that urgent action be taken on it. It is a public concern and we need to bring attention to it. We will revisit the issue.

With whom will the Chairman correspond? Is it the Office of Chief State Solicitor?

First we will circulate the work done by the committee previously. Then we will write to the Minister concerned, Deputy Brendan Howlin.

I would highlight this correspondence as a further example.

Yes, and we will then take up the matter again with the Comptroller and Auditor General.

Correspondence dated 27 February 2012 has been received from Thomas Woodbyrne of Woodbyrne Estates forwarding correspondence sent to Ms Anne Marie Caulfield, director of the Private Residential Tenancies Board, to be noted.

Correspondence dated 28 February 2012 has been received from Mr. Ray Mitchell, assistant national director of the parliamentary and regulatory affairs section of the HSE, regarding the review and further development of the centralised medical card system, to be noted and published. We will return to this issue after Easter when the HSE accounts will be examined.

Correspondence dated 17 May 2012 has been received from Mr. Michael Scanlon, Secretary General of the Department of Health, regarding chapter 37 of the 2009 annual report of the Comptroller and Auditor General on the HSE SKILL programme and chapter 41 of the 2010 annual report of the Comptroller and Auditor General on partnership arrangements in the health service, to be noted and published. The correspondence will be forwarded to the Office of the Comptroller and Auditor General for inclusion in the ongoing investigation.

What is the up-to-date position of the committee on this?

We have asked the Comptroller and Auditor General to prepare a report for the meeting to include the HSE investigation, and to continue from there focusing on all of the parties involved and including the Grant Thornton report.

Mr. Seamus McCarthy

We have agreed to carry out an audit of the account. We are awaiting provision of the account. We have not had it yet.

From where will it come?

Mr. Seamus McCarthy

It will come from SIPTU. Until we see it and are able to assess the work we need to do I will not be able to give a clear date.

What is the reason for the delay? By "account" does Mr. McCarthy mean bank account statements?

Mr. Seamus McCarthy

An account, yes.

Does Mr. McCarthy mean bank account statements?

Mr. Seamus McCarthy

No, I mean an account of the transactions.

Is the office entitled to copies of the bank statements, bank drafts and cheque books?

Mr. Seamus McCarthy

We will seek material to substantiate what is in the account.

Will the office seek returned paid cheques?

Mr. Seamus McCarthy

I imagine we will.

It is important to do a full audit trail.

Mr. Seamus McCarthy

Yes, we need to get the account first and then assess what work will be necessary.

Will the Grant Thornton report form part of the investigation?

Mr. Seamus McCarthy

I understand it is being sought also.

What timeframe does Mr. McCarthy anticipate?

Mr. Seamus McCarthy

I do not have the details of the timeframe envisaged. I can certainly ask for detail on it and come back to the Deputy next week.

Will Mr. McCarthy also follow up with SIPTU on the urgency of this matter?

Mr. Seamus McCarthy

Yes.

Will Mr. McCarthy give us a report on it next week?

Mr. Seamus McCarthy

Yes.

No. 3.15 is correspondence, dated 8 February 2012 from Mr. Joe O'Flynn, the general secretary of SIPTU, with regard to the SIPTU health and local authority fund, to be noted and published. I have written a reply to Mr. O'Flynn dealing with his concerns and I propose that we publish the committee's reply on our website. The letter was addressed to me as Chairman, but its contents were obviously meant for a wider audience. Members of SIPTU received a copy of the letter with commentary on the issue. In writing to Mr. O'Flynn, I have asked him to circulate my response to all of the members to whom he sent his letter.

No. 3.16 is correspondence, dated 8 February 2012, from the Minister for Public Expenditure and Reform, Deputy Howlin, re appointment of the Comptroller and Auditor General, to be noted and published. I will reply to the Minister today and we will publish the reply on our website.

No. 3.17 is correspondence, dated 28 February 2012, from Mr. John Moriarty, Dublin Waterworld Limited, re Campus and Stadium Ireland, to be noted and published. This correspondence is to be forwarded to the Department of Transport, Tourism and Sport for its information. I am anxious that we conclude our examination of Chapter 31 - National Sports Campus and publish a report on the matter. This might be difficult if there are outstanding issues. This relates to my point about resources. I will ask the clerk to prepare a note for next week's meeting on the Campus and Stadium Ireland issue when we will try to conclude our work. The issue is serious and many matters must be addressed. The committee needs to make recommendations on the issue. I hope we will be able to publish our recommendations by 1 April, as this situation has dragged on for too long. However, it highlights the fact that this part of our work, which is essentially concerned with recommendations on foot of our hearings, is difficult to conclude due to staffing issues. We need to resolve these matters. This is no reflection on the clerk and his two staff, who are doing an excellent job. Rather, it reflects badly on us that we cannot deal with these matters in a timely fashion. It is due to the resources available to the committee.

No. 3.18 is correspondence, dated 28 February 2012, from Mr. John Murphy, Secretary General at the Department of Jobs, Enterprise and Innovation, re forwarding a note on the use of joint investment vehicles, as previously requested by the committee. This correspondence is to be noted and published.

Correspondence dated 29 February 2012 from Mr. William Treacy re Horse Racing Ireland is to be noted and published. Mr. Treacy has been in contact with the secretariat. My understanding is that his concerns have been considered by the Joint Committee on Communications, Natural Resources and Agriculture and that he is engaged in ongoing correspondence with the Department of Agriculture, Food and the Marine. While I would like to be helpful to him, it appears that the issues raised are policy matters that will be dealt with in the forthcoming animal welfare legislation. Therefore, they are outside the remit of this committee.

Could the Chairman go through that again? I am aware of the correspondence. The issues are specific.

The matters that he raises are issues of policy. He contacted me as well. He has raised general issues of animal welfare, costs and so on.

Which committee has dealt with this correspondence already?

The Joint Committee on Communications, Natural Resources and Agriculture.

What was the outcome of its deliberations?

We will seek that information.

We should not duplicate its work.

Indeed. We would then examine the matter in the context of this committee's remit. If there was then some way for us to assist Mr. Treacy or to get further information that would help his case, we could decide on where to send that correspondence.

The Chairman wants to check with the agriculture committee to see whether it has concluded the matter. If it has, we can take it up and if it has not, we can check to see how far it has taken the matter and decide what to do at that point.

Yes. We can decide on the question of where we could forward his correspondence to, consider what issues might arise out of the agriculture committee's hearing relative to our work and review our position. The matter will be before us again.

That is important.

We can convey this message to Mr. Treacy in our response. Correspondence, dated 22 February 2012, from Mr. Owen Mullins, Dunlavin, County Wicklow, concerns alleged fraudulent accounting and-or material misstatement in the HSE annual accounts 2010 with regard to revenue granted to Care. This is to be noted and forwarded to the HSE for a detailed note on the issues raised and to the Department of Health for an appropriate follow-up. Mr. Mullins has contacted the Comptroller and Auditor General directly. He has also been in contact with my office. I understand that there are two organisations named Care. He has raised issues relative to the accounts of the Department and Care. As we need clarification, we have written to all concerned.

I agree. I submitted a parliamentary question on the topic after receiving this correspondence. The Minister stated that the HSE would respond in detail.

The Deputy might let us have the reply.

I will. It has been on the system for the past couple of weeks.

Correspondence, dated 27 February 2012, from Mr. Robert Watt, Secretary General at the Department of Public Expenditure and Reform, provides information requested by the committee at our meeting of 8 December 2011. This is to be noted and published.

Correspondence, dated 2 March 2012, from Ms Anne Hurley concerns payroll anomalies and pension entitlements for an individual employed by County Cork Vocational Education Committee. This is to be noted and forwarded to the Department of Education and Skills for a note on the issues raised and to the Comptroller and Auditor General for an appropriate follow-up. Is it appropriate that we write to the VEC as well and can we include it in the list?

Clerk to the Committee

Yes.

Correspondence, dated 2 March 2012, from Mr. Denis Griffin, private secretary to the Secretary General at the Department of Justice and Equality, forwards a note on the audited accounts of charitable organisations, as previously requested by the committee. This is to be noted and published.

Correspondence, dated 2 March 2012, from Mr. Pat Leahy, principal officer at the Department of Finance, re the National Asset Management Agency, NAMA, is to be noted and published.

Correspondence, dated 2 March 2012, from Mr. Padraic Carty, Kells, County Meath, re proposed betting legislation, is to be noted and published. The ongoing funding of Horse Racing Ireland is a policy matter, but we can get a note on the issue raised as it could impact on the level of subsidy paid to that body.

Correspondence, dated 2 March 2012, from Chief Superintendent M. B. Mangan, personal assistant to the Garda Commissioner, forwarding a note on the closure of Loughglynn Garda station, as previously requested by the committee, is to be noted and published. A copy will be forward to Mr. Hugh Lynn, who made the complaint.

Correspondence, dated 1 March 2012, from Mr. Tom Moran, Secretary General at the Department of Agriculture, Food and the Marine, providing updated information on matters scheduled for examination at today's meeting, as previously requested by the committee, is to be published.

Correspondence, received 6 March 2012, from Professor Alan Reilly, chief executive of the Food Safety Authority of Ireland, re opening statement, is to be noted and published.

Correspondence, received 7 March 2012, from Mr. Tom Moran, Secretary General at the Department of Agriculture, Food and the Marine, re opening statement, is to be noted and published.

Correspondence, dated 6 March 2012, from Ms Geraldine Tallon, Secretary General at the Department of the Environment, Community and Local Government, provides a note on the Eyre Square enhancement scheme, as previously requested by the committee. A copy of the correspondence will be forwarded to the original complainant, Councillor Pádraig Conneely.

No. 4 is reports and statements on accounts received since our meeting of 23 February 2012. These are 2010 accounts, listed from 4.1 to 4.12. Without reading them out, I ask that they be noted. The accounts of the National Roads Authority, NRA, will be examined by the committee after Easter. Is that agreed? Agreed.

Our work programme is to be noted. Next Thursday, we will consider our draft work programme for the period leading up to the summer recess. Is that agreed? Agreed. On the same issue, we should ask the Comptroller and Auditor General's office to carry out a report on the revenue lost to the State because of diesel laundering, a serious issue that is similar to tobacco smuggling. This matter is of grave concern to the public and the industry. We need to establish some facts and figures in order that we can know what the State is losing and what action the State might need to take to protect the revenue it earns from the sector. Perhaps the Comptroller and Auditor General's office would examine that and report back to the committee on whether that report can be completed as quickly as possible as it is a matter of urgency. The committee can then debate the matter.

The committee has received a large volume of correspondence this week. Members are aware that a large volume of paper work is coming through this committee. I am very disappointed that despite our discussions with the Minister, Secretary General of the Houses of the Oireachtas and the Comptroller and Auditor General's office, on the matter of proper resourcing of this committee, it has not been dealt with. This means it is impossible for us to do what is expected of us by the taxpayer. I take this opportunity to again highlight the need for staff to have proper resources made available to them and for a qualified person with, perhaps, forensic accountancy skills to be made available to Members and that this be done as soon as possible.

In a week when report cards are being issued, I am giving the Minister, Secretary General and Comptroller and Auditor General's office a D grade because not enough effort is being made to resolve this issue. As long as it continues, staff will be under pressure and the committee will not be able to make recommendations. The Minister, Deputy Howlin, stated that if we get recommendations to Ministers in the manner required, it would then be up to each Department to respond in a timely fashion. If we cannot do our job in a timely fashion the process will not start early enough. I take this opportunity to highlight the positive work being done by this committee and to request that we be given adequate resources. The committee has been in place for nine months. I have had ongoing discussions on this matter, including with the former C&AG, Mr. John Buckley, Mr. Kieran Coughlan when before the committee, and publicly with the Minister when before this committee.

I will request the clerk to write to each of those individuals asking that this matter be given priority and resolved as soon as possible.

The Chairman is correct and I support his remarks on this issue. The committee has previously discussed the matter of proper resourcing of members of this committee and of the committee given the volume of work it has to deal with. People expect more from us. We will fail in our duty if we do not address this matter. The possibility of the Oireachtas, as the legal entity, employing people through the JobBridge scheme and assigning them to this committee until such time as we received extra resources was mentioned. Has any progress been made in that regard?

No. It is a valid point but we have not yet had a response on the matter.

That is unacceptable. It is some time since that request was made. Are we being ignored?

We will follow up on the matter. If the Government and the Houses of the Oireachtas want this committee to carry out its duties properly, as we are expected to do by the public, they will then have to make adequate resources available to it. It is unacceptable that this matter has not been addressed. Members might consider requesting the assistance of their parliamentary colleagues in this matter. I have had discussions with everyone concerned. It may be the case that they do not want us to complete our work.

Mr. Seamus McCarthy

Perhaps I can update the committee on some developments in this regard. I met last week with Mr. Peter Finnegan from the Houses of the Oireachtas Commission to discuss the ongoing discussions between the Chairman and clerk in regard to the appointment of a liaison person. We have agreed to draw up a job specification for the secondment of a person from the Office of the Comptroller and Auditor General to the committee and to make a simultaneous approach to the Department of Public Expenditure and Reform from the Office of the Comptroller and Auditor General and the Houses of the Oireachtas Commission on the basis that there will be a contribution from the Houses of the Oireachtas Commission to the C&AG's office to cover the cost in that regard. We are making progress.

That suggestion was made a number of months ago. The Minister, Deputy Howlin, stated that there are enough qualified staff within the Houses of the Oireachtas to allow someone to be made available to the committee and to support the clerk in his work. With respect, I have heard that before. I am now asking that some form of action be taken and that this matter be resolved as soon as possible. I will revisit this matter at each meeting. The public needs to know whether we are being supported in our work.

The volume of correspondence being received by the committee has increased considerably during the past few months as has the workload of the committee. As access to the C&AG's work is the Committee of Public Accounts, it is critical this committee can carry out its work in a cohesive manner. If there is a lack of resources - there does not appear to be a huge gap - a letter should issue from the Chairman, with the backing of Members of the committee, to the effect that this matter be resolved within a specified timeframe. I am great believer in deadlines. We need to indicate a deadline within which this matter needs to be resolved.

I would like to raise another matter.

We can state we would like a resolution of this matter by end March. Is that agreed? Agreed.

I would like an update on when it is proposed the committee will revisit the issue of the banking situation.

The sub-committee agreed a course of action at its last meeting. It was agreed to examine a gap analysis in terms of the information that is already in the public domain, which is what we are going to do. The sub-committee will meet again next week to determine that gap analysis to ensure we have a speedy resolution to the work of the committee. It is hoped to complete that work next week, following which we will know the extent of the analysis required. This process will not delay this committee in making its final recommendations.

On the work of the committee, if we do agree to bring in Mr. Wardick and others, this will require meetings outside of the usual Thursday sitting because our workload is backing up. Bringing in other witnesses will mean further work for the committee. I need to make members aware that in this regard the committee may be required to convene outside of the usual meeting on a Thursday. Finally, I will ask the clerk, with the agreement of the committee, to write to the troika to arrange a meeting with its representatives and see what impact its work with the Government in the expenditure area and the different direction of our affairs management will have on this committee. We should meet representatives of each of the three components of the troika and I want to explore ways of doing so. I will ask the clerk to make the appropriate arrangements and inquiries and we will report to the committee.

It is a good suggestion and it should be pursued.

If that is agreed, we will call the witnesses.

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