Oireachtas Joint and Select Committees

Thursday, 7 July 2016

Public Accounts Committee

Work Programme

9:00 am

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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I concur with what Deputy David Cullinane said about the sample. I am aware of other Departments, albeit not on the same scale as the HSE, which have had a light shone on their practices. I also agree with the Deputy on the need for further evaluation. Within an annual budget of approximately €14 billion, it is, frankly, alarming that a base sample of €30 million in procurement shows an anomaly of 30%. I suspect that a figure of several hundred million euro might be involved. If there is a saving to be achieved for the taxpayer, it is something to be looked at. There is a procedural question for the HSE to answer to the committee, given its role and, potentially, the health committee, given some of the work it does on the HSE. It is something at which we should look as a priority, given the sums involved.

With regard to the discussion on late payment regulations, as somebody who worked in the profession for many years before I became involved in politics, the variances in Departments and the treatment of suppliers are, frankly, shocking. I say this wearing my former credit manager and credit director hat. I will not dwell on the legal variances, other than to say there should be one interpretation across Departments and it should apply to all Departments. Several Departments write cheques on behalf of the State when it suits them. I will not go into which Departments are involved, but it is the case. Therefore, they avoid late payment fees in paying invoices. A series of sectors need to be examined in this regard. I appreciate that it is probably not the role of the Comptroller and Auditor General to standardise this practice, or perhaps it is. Perhaps the legislation needs to be examined.