Committee Reports > List of Committees > Dáil > 1996 > Committee of Public Accounts > Report - Annual Report 1995

1995 ANNUAL REPORT.

BACKGROUND

1.1The Committee of Public Accounts was set up under the Exchequer and Audit Departments Act 1866. When the Irish Free State came into existence in 1922 it continued the pre-existing Government accounting conventions and accordingly an Irish Committee of Public Accounts was established similar in size and remit to that of the British House of Commons Committee. It has been an important feature of Dáil Éireann since then.

1.2The Committee consists of twelve Members of Dáil Éireann and the Chairperson has traditionally been elected from the main opposition party. A list of Chairpersons is published in the Appendix hereto.

1.3Under Dáil Standing Order 131, the Committee is required to present an annual progress report to Dáil Éireann on its activities and plans. The 1995 Annual Report covers the Committee’s investigation into the annual Report of the Comptroller and Auditor General (C & AG) on the Appropriation Accounts 1993 and other matters, and relates to the period from 14 October 1994 to 13 October 1995.

1.4The Report of the C & AG was tabled in accordance with the relevant legislation on 7 October 1994. The Committee commenced its examinations later in October and completed them in October 1995. During this period, all Members of the Committee were discharged following the change of Government in January 1995 and new Members were appointed to the Committee on 9 March 1995. There were no meetings of the Committee between 19 January and 14 March 1995.

1.5During the period under review the Committee held thirty five meetings. Twenty six Accounting Officers covering forty Votes were examined.

REPORTS ON A CURRENT BASIS

2.1Following the introduction of a new system for publication of its Reports, Proceedings and Minutes of Evidence on a current basis, the Committee has continued to adhere to that system. Prior to its discharge in January 1995 the Committee published its First Interim Report on the Appropriation Accounts 1993 - International Co-operation - Excess Vote, and published its Second Interim Report on the Appropriation Accounts 1993 immediately following its reconstitution in March 1995, consequent on the change of Government. Since then, the Committee has also published the Final Report on the 1993 Appropriation Accounts.

2.2 The Committee commenced its examination of the Report of the C & AG on the 1994 Appropriation Accounts in October 1995. The first two Reports of the Committee on the 1994 Appropriation Accounts have been adopted.

BACKLOG OF REPORTS

3.1As mentioned in last year’s report, work is ongoing in relation to the clearing of the backlog of reports that had built up. Further progress has been made - the 1988 Report has been published, the 1989 Report has been returned to the printers for publication and work has commenced on the proofing of the 1990 and 1991 Minutes of Evidence. Following the completion of the proofing process, all that will remain to be completed at that stage will be writing of the 1991 Report. It is anticipated that all arrears of reports will be eliminated by the summer of 1996.

VISITS

OECD Symposium

4.1A two member delegation from the Committee attended an OECD symposium on “Performance Auditing and Performance Improvement in Government” in Paris on 6 and 7 June 1995. The Members who attended were Deputy Seán Doherty and Deputy Tommy Broughan. The symposium covered topics on (a) the Role of Auditing in the New Public Management, (b) the Objectives and Performance of Performance Auditing, (c) Legislatures and Performance Auditing and (d) Performance Improvement and Accountability. A fifth session was devoted to case studies.

Both members contributed to the debates and found many of the contributions of other delegations to be very worthwhile. Overall, the symposium was regarded as being interesting and useful, and of benefit to the work of the Committee.

OPW Visitor Centres

4.2The Committee visited the sites of two Office of Public Works (OPW) proposed visitor centres at Luggala, Co Wicklow and Mullaghmore, Co Clare. The interest of the Committee arose as a result of a Government decision taken in March 1995 to overturn the decision of the previous Government to build the centres. As a result, the Committee asked the Comptroller and Auditor General to produce a report on the position in relation to the centres arising from the decision. The report was presented to the Committee in April 1995 and made particular reference to (a) whether any EU funds would have to be returned, (b) the estimated cost of reinstatement of the sites and (c) the extent of any compensation claims by contractors.

4.3On their visit to the site at Luggala, the Members of the Committee were given a tour of the site by officials from the OPW who explained the original site plans and what had been proposed. The Committee was met at the site by representatives of the local community and by others who were opposed to the proposed centre. Members who visited the site were the Chairman Deputy Foley, Deputies Ellis, Batt O’Keeffe, Upton and Broughan.

4.4On the visit to the site at Mullaghmore, the Committee met with opposition groups both before and during the tour of the site. Members who travelled to the site were the Chairman Deputy Foley, Deputies Ellis, Batt O’Keeffe, Ned O’Keeffe, Upton and Doherty.

In both cases, there had been complaints that there was a lack of consultation with interested parties. As a result of what had transpired in each case, the Office of Public Works has assured the Committee that a more structured approach will be adopted with such projects in the future, involving a greater level of prior consultation.

4.5While no definitive decision has been taken as regards the future of both sites at this stage, the Committee is concerned with the prospect of further expenditure in the event of the sites being restored to something resembling their original state by the removal of all constructed or partially constructed buildings. It is not proposed, however, to remove the car parks and roads that have already been constructed.

Custom House Docks

4.6Following the Committee’s concerns regarding the downward revision of the proposed return to the State on its investment in the Custom House Docks Site, which was as a result of the slowdown in development on the site, the Members of the Committee were invited to visit the Site to see at first hand the progress that had recently been made on development. Ten Members of the Committee made the visit. They were the Chairman, Deputy Foley, Deputies Batt O’Keeffe, Doherty, Ellis, Upton, Broughan, Byrne, O’Malley, Ned O’Keeffe and Finucane. A tour of the site was given by the Chairman of the Custom House Docks Development Authority, Professor Dervilla Donnelly. The Committee was impressed by the obvious progress on the project and has referred to the situation in its Final Report on the 1993 Appropriation Accounts.

Incoming Delegations

4.7The Committee received a delegation of eleven from the National Democratic Institute, five of whom were members of the South African Parliament. They were visiting this country to examine the Parliamentary process and the Committee system which is in operation here. A meeting with the delegation was held and was chaired by Deputy Doherty in the absence of the Chairman, Deputy Foley.

A general discussion took place during which Deputy Doherty explained the operation of the Committee and the C & AG explained the Statutory provisions and the functions of his Office.

VALUE FOR MONEY

5.1 Under the terms of the Comptroller and Auditor General (Amendment) Act 1993, the C & AG is empowered to examine areas of expenditure for value for money. To this end a new division within the Office of the C & AG was established solely for this purpose. To date, there have been four value for money (VFM) reports examined by the Committee - LEADER Programme, Energy Management in the Health Services, Garda Transport and the Gas Interconnector. Reports on Management of Telephone Facilities in the Civil Service and Means Testing have recently been presented to the Dail and the Committee will be examining the relevant Accounting Officers in due course.

COMPELLABILITY OF WITNESSES

6.1The Committee welcomes the introduction of the Committees of the Houses of the Oireachtas (Compellability, Privileges and Immunities of Witnesses) Bill, 1995. Until now, witnesses appearing before Committees have only been protected by qualified privilege. When the legislation is enacted, however, witnesses will have a greater level of privilege than heretofore. It is also intended that witnesses directed to appear before Committees will be legally obliged to do so. These provisions should result in the proceedings of Public Accounts Committee being televised, a longstanding wish of this and previous Committees, leading to increased openness and transparency to the public.

PLANS FOR THE FUTURE

7.1 The Committee of Public Accounts has, as a result of the wider remit given to the C & AG under the terms of the 1993 C & AG (Amendment) Act, also extended the scope of its examinations. In addition to the Departments and Offices of State examined, the Committee now also has the power to examine Health Boards, VECs and some State-Sponsored Bodies and intends to do so over the coming months. The results of the audits of these bodies are issued from time to time in separate Reports of the C & AG, which, once presented to the Dáil, can then be considered by the Committee.

7.2It is intended that there will be a number of further VFM reports laid before Dáil Éireann during the next twelve months or so. Among the subjects that will be addressed are FEOGA Borrowing and Regional Development Measures (ERDF). Work is in progress on a further eleven areas including the Use of Administrative Budgets, VAT Administration, Arterial Drainage, Gulliver - the Irish Tourist Information System, Computerisation in the Department of Social Welfare and the Development of General Practitioner Services, which will result in a number of reports in due course.

Reaction to the reports published to date has been very positive both by the Committee and by Departments themselves and the Committee looks forward to its future consideration of these valuable reports by the C & AG.

Denis Foley T.D.

Chairman.

7 March, 1996.