Dáil Éireann Debate, Tuesday - 23 April 2024
80. Deputy Rose Conway-Walsh asked the Minister for Public Expenditure, National Development Plan Delivery and Reform if he has engaged with the Office of the Comptroller and Auditor General on the potential of extending his remit to cover commercial public bodies in a dual-audit capacity in order to ensure greater oversight and accountability; and if he will make a statement on the matter. [17729/24]
Amharc ar fhreagraAs the Deputy may be aware, many State Bodies classified by the Central Statistics Office as commercial are already solely audited by the Office of the Comptroller and Auditor General (OCAG). While Section 1438 of the Companies Act 2014 provides that companies not trading for the gain of its members may be audited by the OCAG, only regulated private sector audit firms can act as statutory auditors for companies, including public enterprises, that have been set up for commercial gain under the Companies Acts.
Commercial State companies established for commercial gain are generally held at arm’s length by Central Government for a number of reasons. These companies are usually expected to make profits that will generate dividend payments which can be utilised to fund public services. It is, therefore, an important principle that commercial State companies should be treated the same as their private sector competitors so as not to be put at a competitive disadvantage.
Every commercial State Body is expected to meet the highest standards of corporate governance and to follow the requirements set out in the Code of Practice for the Governance of State Bodies. As the Deputy is aware, it is the responsibility of each Minister and their Department to manage each of their shareholdings in State Enterprises.
Ministers are also supported in managing the shareholdings of many State enterprises by the New Economy and Recovery Authority (NewERA) through its provision of expert advice in areas such as accounting, actuarial analysis, commercial management, economics and finance. Any expansion of the dual audit practice would also have to be evaluated in the context of Ministers already receiving professional services from NewERA.
There are a small number of State enterprises where there are dual auditor arrangements between the private sector statutory auditor and the OCAG. The further extension of such arrangements would need to be considered on a case by case basis by each Minister with policy responsibility for a particular enterprise. Such a review would be required to take into account the specific circumstances and commercial environment of the commercial body. Furthermore, in considering the business case for OCAG being dual auditors, we also have to take into account that there already exists a strong parliamentary review process in respect of commercial State bodies given the wide-ranging terms of reference of Oireachtas Committees. Following such a review, if it is considered appropriate that a particular commercial enterprise under their aegis should have the OCAG as a dual auditor, and the relevant legislation for that enterprise allowed the appointment of the OCAG, I would then engage with the Comptroller and Auditor General in regard to making the necessary legal and administrative provisions.
