Oireachtas Joint and Select Committees

Thursday, 18 September 2014

Public Accounts Committee

Business of Committee

10:45 am

Photo of Mary Lou McDonaldMary Lou McDonald (Dublin Central, Sinn Fein)
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Provision is made in the work programme for the holding of hearings on public procurement on 13 November. I received a communication from the clerk to the effect that another committee of the Dáil is examining the procurement issue in a broader sense. I would like to argue in favour of this committee proceeding with its hearing on public procurement, if only because we have already begun to probe these issues and have given an undertaking to particular bodies that they would be able to come before us to make presentations. The argument being made - in respect of which we must establish the facts - is that some of the practices being employed represent a loss of revenue to the Exchequer. In other words, there is a value-for-money deficit in terms of how the State is proceeding in this area.

There is another issue to which I wish to draw the attention of the committee, although I probably really do not need to do so because it is already in the public domain. I refer to school building contracts relating to the Department of Education and Skills. There have been reports of abuse of practices involving the employment of subcontractors and a resultant loss of revenue to the State in the context of PAYE and, presumably, PRSI payments. These alleged practices also give rise to associated costs, etc., with regard to social welfare payments. Some €2 billion was allocated to the school building fund when it was established either last year or the year before. Reports of malpractice in this area are giving rise to grave public concern. I am of the view that the matter merits investigation. I am seeking some guidance as to whether - if there is agreement among members - we might approach this matter by holding a hearing on it or whether there might be a need for an investigation to be carried out and a report issued by the Office of the Comptroller and Auditor General in the first instance to establish the scale of the problem. This matter is a cause of extreme concern to taxpayers, construction workers and others. I am of the view that we should give consideration to it and perhaps even prioritise it within our programme of work.