Oireachtas Joint and Select Committees

Tuesday, 17 December 2013

Joint Oireachtas Committee on European Union Affairs

Annual Report 2012: Discussion with European Court of Auditors

2:50 pm

Photo of Seán CroweSeán Crowe (Dublin South West, Sinn Fein) | Oireachtas source

I welcome the delegates. I do not pretend to be an expert in this area and if some of my questions are way off the mark, I apologise in advance.

Mr. Cardiff mentioned the accuracy of audit reports. That statement will probably create a number of headlines around Europe, but it is refreshing to hear him say it. One of the difficulties I have with the report is that we are told that the error rate is going up, but what will happen next? Mr. Cardiff will provide a recommendation for the Commission, but what steps will be taken, given that the rate seems to be moving in the wrong direction? Why does he believe it is going up?

Mr. Cardiff has said the sampling approach changed, but why was that? Was it inaccurate? How large is the sample in each country? Why are certain companies, farms or counties picked? Is the European Court of Auditors acting on information? Does it operate on the basis of someone looking at Google-Earth and saying, "This farm does not look the part"? Are such aids used in the court's investigations?

There was controversy here about public procurement because larger companies seemed to be getting contracts. We now discover, however, that contracts can be broken down into smaller elements. Are there different procurement rules in various countries or is there an overview? In Northern Ireland, for example, in part of any roads contract youth apprentices are required to be used. Is the court able to do this as part of an audit or can it make such recommendations in dealing with the youth unemployment crisis?

Another issue concerns the failure to fulfil the necessary conditions for projects. One hears many complaints about this. There is a difficulty with Irish companies being paid for certain projects and some have gone into receivership as a result of suppliers not being paid. Where projects are part funded by the European Union, will the court examine instances where companies are not paid? What impact would such events have on a company that may reapply for contracts in the future?

According to a report issued in October, the European Court of Auditors investigated the issue of EU aid to the Democratic Republic of Congo. The report stated the effectiveness of the European Union's aid amounting to €1.9 billion from 2003 had been limited, with fewer than half of the programmes likely to deliver the intended results. We know about the involvement of some EU member states and European companies in mining for diamonds, copper, cobalt, zinc and other minerals. It is believed such activities have helped to fuel the conflict in the Congo. One can, therefore, be seen to be working against the other and it makes it hard to undertake a straightforward audit. Does the court have recommendations to make in that regard in order that European businesses will not inadvertently fund the conflict in the Congo while taxpayers' money is being paid to prevent it? I am seeking information on the court's recommendations on the structures to be used.

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