John McGuinness (Carlow-Kilkenny, Fianna Fail) | Oireachtas source

In respect of the University of Limerick, the HEA will appear before us today. These matters are relevant and can be raised. I suggest that the Deputy seek the answers there first. After that, I agree with him that there is a need to follow through on some of the issues that have been raised with the agencies about which he speaks to determine what action has been taken, what remedies have been put in place and so on. Perhaps we need to have a general review of some of the issues that were raised and the recommendations we made, see what progress was made on each of them and then report back to the committee.

We will move on to St. James's Hospital. Before the Comptroller and Auditor General comments, the last time this matter came to light through the Comptroller and Auditor General's audit was in respect of the HSE itself, where €9 million had to be set aside to deal with compensation arising from late payment of accounts.

It appears that in this case, which is to do with St. James's Hospital, an additional €389,000 was charged to the income account to recognise the expected cost of compensation due to suppliers since the introduction of the legislation in 2013. In the Beaumont accounts, there is a further €200,000 in interest and compensation. Someone needs to get to grips with the management of the Health Service Executive, HSE, because the level of incompetence I see at these committee hearings is such that no private business could be conducted in the manner in which the executive conducts its business. This has nothing to do with the front-line services but pertains to middle management up to the senior levels. Action must be taken regarding the HSE and some structure must be put in place to transform it into a meaningful organisation that recognises the legislation Members pass in this House. My understanding of the €9 million that had to be set aside by the HSE for compensation with regard to late payments to small businesses that supplied it was it was necessary for the Comptroller and Auditor General to prove to the HSE that it was in breach of legislation. If the executive does not understand legislation, I wonder what kind of management team it has. Members can now see the same issues arising in St. James's and Beaumont Hospitals and this goes back to the concerns expressed regarding the educational sector. What sanctions can be taken against organisations like that, which appear to disregard legislation or, even worse, have no knowledge of the legislation? Private businesses are expected to have that knowledge and in this case, the suppliers to the HSE, which presumably are small businesses, all are being penalised by the late payments being made by the HSE and now by the hospitals.