Oireachtas Joint and Select Committees

Thursday, 6 December 2012

Public Accounts Committee

2011 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Chapter 6 - Financial Commitments under Public Private Partnerships
Chapter 16 - Central Government Funding of Local Authorities

12:50 pm

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein) | Oireachtas source

I understand all of that. Ms Tallon is saying a lot of interesting things that are tangential, but I am troubled nonetheless. She says these decisions are made on a whole life model and the basis of value for money, which is as it should be. However, now she tells us that the revenue generated from these contracts is not known to her and, therefore, not quantified by her or her Department and not factored into the whole life model. That seems to be an incredible omission. I am not in a position to make a judgment plant by plant or decision by decision. However, I am alarmed that in the case of service infrastructure that generates revenue and profit - that is why these private operators are involved in the game - the quantum of profit is not calculated. A balance needs based on common sense to be struck to see if it is the best value for money model for the State to manage, maintain and operate this infrastructure, or would it, in fact, make more sense for the private entity to carry it out? The only way one can make that decision and have a fully thought out value for money appraisal is to have an understanding of the profit margins being generated.

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