Mr. Tony Murphy:

This particular one was about bringing the overall corporation tax rate to a minimum of 15%. The Commission considered that this was a medium-term objective and we concurred with that. However, in that case it should not have been part of this milestone. It should have been a later milestone. We considered that this is not fulfilled at this point in time. That was the issue. To finish on the Spanish case, we were still able to say that there was a clean opinion because this was only one part of one milestone out of 52.

Perhaps to complete the picture, we could still have more problems in the 2022 report because the Commission has not put a methodology in place for how much should be retained if a milestone is not met. Instalments are based on different targets and milestones but there is no price tag for each individual element. It can therefore be difficult to assess the importance of one or more of them in the overall payment claim.

Another important part of our work, in which we have to use our professional scepticism, is when we come across suspected cases of fraud. We dealt with 15 such cases in our 2021 audits, the European Anti-Fraud Office, OLAF, has opened five investigations and another case has been reported to the European Public Prosecutor's Office, EPPO. We have streamlined the procedure and we now report cases simultaneously to OLAF and EPPO as we have a memorandum of understanding with both. The only cases that do not go to EPPO are those in which the member state is not a member of EPPO. There are a variety reasons for suspected fraud cases. I will put a figure on it. For our work in a ten year period, OLAF has recommended the recovery of €537 million relating to 43 cases.

I will wrap up on the annual report. We gave a clean opinion on the accounts and the recovery and resilience facility, RRF, expenditure although I have to say that is limited to the Commission's assessment that milestones and targets have been met. We still have an issue in ensuring the interests of the EU budget are protected subsequently which is an ongoing challenge. The level of error for payments is approximately 3% and the weaknesses in the control system remain. Our high-risk sub-population is 63% of our audit population and because of this being affected by a material level of error, we give an adverse opinion on the EU budget expenditure.

Our main product is our annual report and we have a treaty obligation to give a statement of assurance. In addition, we publish approximately 30 special reports per year and they cover a broad range of topics across different policy areas. The flag on the slide shows if Ireland was sampled or the report is relevant for Ireland. For instance in 2021 we published reports on long-term unemployment; CAP and climate; milk and dairy production; and a more general one on passenger rights. In 2022 we published reports on the procurement of vaccines against Covid-19, which was topical not so long ago; data in the CAP; European regional development fund, ERDF, support for SME competitiveness; and 5G roll-out in the EU. A report on gross national income, GNI, verification, which will be of interest, is ongoing and due to be published in December. Budget galaxy is a technical term. We are concerned that many different bodies are being set up outside the EU budget and examining whether there is an accountability gap, who is ensuring the accountability of these bodies and whether we should have a mandate for them. Audits of the climate targets and of the RRF control system are ongoing and the RRF will feature prominently in our work programme for the next few years. In the 2023 programme we are looking at energy union, rule of law in the EU, the CAP strategic plans, which are of interest to Ireland, and public procurement. These are general topics we will cover in 2023 and beyond.

I will move on to additional EU funding sources. As I said, the multi-annual financial framework, MFF, budget goes mostly to agriculture. We are also due to receive up to €915 million for the national recovery and resilience plan, NRRP, between 2021 and 2026. The first payment was due in the third quarter of 2022 but it has been slightly delayed and we do not know when it will be made. The plan comprises reforms and investment that cover three main priorities, namely advancing the green transition; accelerating and expanding digital reforms; and social and economic recovery and job creation. As I said, Ireland has not yet requested the pre-financing and its first instalment of €396 million was due in the third quarter but is now likely to be paid in 2023. Under the Brexit Adjustment Reserve, BAR, overall we will receive approximately €1.165 billion in grants between 2021 and 2025 to mitigate the adverse economic, social and territorial consequences of the UK withdrawal. The Commission approved a total of €920,400,000 pre-financing for Ireland that is payable in three instalments between 2021 and 2023. The first two instalments were received in December 2021 and May 2022 of €361 million and €277 million respectively. We are due to receive the final pre-financing payment of €282 million in 2023.

I will move on to an overview of Ireland in the Court of Auditors. Currently, 22 Irish staff members are working at the court. We are looking for a number of new seconded national experts from all member states so we hope we might get another Irish staff member. The Government's A Career for EU strategy aims to increase the number of people successfully applying for such positions and we are behind that action. Of the 22 staff members, four belong to the gaeilgeoir section. They are Irish translators and since 1 January all our documents are translated into Irish.

I thank committee members for their attention and we look forward to questions.