Oireachtas Joint and Select Committees

Thursday, 27 February 2014

Public Accounts Committee

Payments to Section 39 Companies: Discussion

12:50 pm

Photo of Kieran O'DonnellKieran O'Donnell (Limerick City, Fine Gael) | Oireachtas source

I have a fair idea. The point I am making is that the Rehab Group appears to contain an even mix of private and public funding, in that 50% of its turnover comes from the State, yet it is all under the one umbrella. Was separating the public side from the private side ever considered to have absolute clarity? I agree that the group delivers services, but the funding is coming from the public purse, no matter which way one looks at it, and there is a cloud. Was dividing the group to make part of it private and part of it public ever considered? That would provide absolute clarity about the public funding mechanisms.

How does Ms Kerins explain to an outsider that in respect of one element of the lottery - the scratch card - it virtually made no profit - €10,000 - in the past couple of years on a turnover of €4 million? It is a little like chasing the dragon. Is it an inefficient lottery system, with the public purse providing matching funding? How can Ms Kerins justify having a lottery scratch card resulting in a profit of €10,000 on of a turnover of €4 million? On a turnover of €3.2 million in the case of bingo cards, there was probably a profit of €450,000. I ask Ms Kerins to deal with these questions.

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