Oireachtas Joint and Select Committees

Thursday, 19 May 2022

Public Accounts Committee

2020 Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 39 - Office of Government Procurement
Vote 43 - Office of Government Chief Information Officer
2020 Report on the Accounts of the Public Services of the Comptroller and Auditor General
Chapter 4 - Vote Accounting and Budget Management

9:30 am

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein) | Oireachtas source

We are obviously dealing with private companies. I understand that. They have shareholders and have to have profit margins and so on.

This could become an area of contention with Government Departments. The Department of Public Expenditure and Reform's role in terms of oversight is not just about authorising the signing of cheques. It must take an interest in this, which it has done over the years. In terms of reduced profit margins, dividends for shareholders and so on, that will become an area of contention because when a claim is submitted by a private company that is building a hospital, a road or some such, a percentage of that claim would be related to profit margins and dividends for shareholders. Is the Department of Public Expenditure and Reform concerned about that? Last week the Department said it was going to cover up to 70% of inflation-related costs. Is there a concern that there is a grey area here, in terms of companies saying that their profit margins have been wiped out and they cannot pay dividends to their shareholders this year? That is where the commercial world and the public purse meets and that could result in a bang or a collision.

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