Written Answers. - VEC Expenditure.
Paul McGrath
Ceist:
239
Mr. McGrath
asked the
Minister for Education
if the Westmeath Vocational Education Committee approved over expenditure in each of the years from 1989 to 1995 which necessitated the payment of £1.345 million for a deficit reduction by her Department; the sanction, if any, that is available to her against this committee; and the action, if any, she proposes to take against those responsible for this over-expenditure.
[6184/96]
Overall responsibility for the control and management of a vocational education committee's financial scheme lies with the committee. Day to day control and management functions are the responsibility of the chief executive officer.
As there was over-expenditure by County Westmeath vocational education committee in each of the years 1989 to 1994, such over-expenditure was approved by the committee since, at each of its monthly meetings during those years, it approved the monthly expenditure as presented by the acting chief executive officer. Approved budgets were not exceeded in 1995.
The Deputy will be aware that the inspector appointed to examine the management of its financial affairs by County Westmeath vocational education committee found that the financial information furnished to the committee — and as recorded in the minutes — was not adequate for the proper exercise of the control function.
Chief executive officers have a statutory duty under section 61 (2) of the Local Government Act, 1925, to make objection at the relevant committee meeting to any action proposed by the committee which would result in an illegal payment or a deficiency or loss in or to the committee's funds. There is no evidence in the minutes of the County Westmeath vocational education committee meetings that the acting chief executive officer exercised his function in this regard in relation to the over-expenditure.
Following consideration of the inspector's report on the management of the financial affairs of County Westmeath vocational education committee the Minister has serious concerns about the operation of the vocational education committee. A letter was issued by the Department to the acting chief executive officer expressing the concerns of the Minister. The letter also stated the Minister's intention to consider whether it would be in the best interest of the vocational education committee if the acting chief executive officer were to cease acting in that capacity. Following subsequent correspondence and submissions on the matter the acting chief executive officer was informed by letter dated 8 May 1995 of the Minister's intention to remove him from the office of acting chief executive officer. He was invited to make any further representations he might wish before the Minister proceeded with his removal. On 23 May the acting chief executive officer's solicitors conveyed his decision to take early retirement with immediate effect.
Section 108 (1) of the Vocational Education Act, 1930 provides for the dissolution of a vocational education committee by order of the Minister. The following extract outlines two of the circumstances in which a Minister may dissolve a vocational education committee:
If and whenever
(a) the Minister is satisfied after the holding of a local inquiry that the duties of a vocational education committee are not being duly and effectively discharged by such committee; or
(b) a vocational education committee wilfully neglects to comply with any lawful order, direction, or regulation of the Minister;
the Minister may by order dissolve such committee and, as he/she may think fit, either order ... a new election of members of such committee or transfer the property and the several powers and duties of such committee to any body or person or persons.
County Westmeath vocational education committee has been directed to comply in the future with its statutory requirement to operate within its approved budget. The committee has been informed that non-compliance with this direction will be regarded as wilfully neglecting to comply with a direction of the Minister under section 108 (b) of the 1930 Vocational Education Act. In such circumstances, the Minister could take action to dissolve the committee. I have received from the committee an undertaking that, in future, it will adhere to its statutory obligation to remain within its annual approved budget.
