Oireachtas Joint and Select Committees
Thursday, 13 April 2017
Public Accounts Committee
Caranua Financial Statements 2014 and 2015
9:00 am
Seán Fleming (Laois, Fianna Fail)
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In our first session we examined the Comptroller and Auditor General's special report No. 96 on the cost of the child abuse inquiry and redress scheme. In this session we will examine the financial statements of Caranua for 2014 and 2015. As I mentioned earlier, Caranua is an independent State body which was set up to help people who had experienced abuse in residential institutions in Ireland and received settlement redress board or court awards. From Caranua, we are joined by Ms Mary Higgins, chief executive officer; Mr. David O'Callaghan, chairman; and Mr. David Yeomans, director of finance and corporate affairs. From the Department of Education and Skills, we are still joined by Mr. Seán Ó Foghlú, Mr. Dalton Tatten, Mr. Martin Hanevy, Ms Catherine Hynes and Ms Mary Cregg.
By virtue of section 17(2)(l) of the Defamation Act 2009, witnesses are protected by absolute privilege in respect of their evidence to the committee. However, if they are directed by it to cease giving evidence on a particular matter and continue to so do, they are entitled thereafter only to qualified privilege in respect of their evidence. They are directed that only evidence connected with the subject matter of these proceedings is to be given and asked to respect the parliamentary practice to the effect that, where possible, they should not criticise or make charges against any person or an entity by name or in such a way as to make him, her or it identifiable.
I call on the Comptroller and Auditor General to make a brief opening statement. For this session he is joined by Ms Ruth Foley, deputy director of audit.
Mr. Seamus McCarthy:
The residential insitutions' fund board, better known as Caranua, was established, as the Chairman said, in March 2013 under the Residential Institutions Statutory Fund Act 2012. The board's financial statements before the committee in this session are for the financial years 2014 and 2015. Caranua is responsible under 2012 Act for managing and disbursing funds donated by religious congregations to support the needs of former residents of residential institutions. No Exchequer sourced funds are involved. The Act provides for the donated funds to be used to pay grants to former residents for certain approved services, that is, housing support services, health and well-being services and education, learning and development services.
Following the publication of the Ryan report in 2009, the religious congregations offered cash contributions that totalled a combined €110 million, in addition to cash contributions committed to and paid over under the terms of the 2002 indemnity agreement. By the end of December 2015, €85 million of the total of €110 million had been received into the special fund and some interest had also been earned on the balances held.
I issued a clear audit opinion in respect of Caranua's financial statements for 2014 and 2015. However, for both years, the audit report draws attention to the statement on internal financial control which discloses weaknesses in the board's controls over grant payments. The concern was that these weaknesses created a risk that grant expenditure might not have been used for the proposes intended in at least some cases. For example, for 2015, Caranua could not provide evidence that price quotations had been obtained in advance in about one third of a sample of grant applications examined in the audit. Claimants for housing related support grants had provided proof of property tenancy or ownership in only one third of a sample of cases examined in the audit and required follow up by Caranua such as the collection of receipts for grant funded work or purchases which had been completed for only around 15% of the grants paid. The statement on internal financial control sets out the steps being taken by the board to resolve the control weaknesses identified. The adequacy of the controls will be examined again in the audit of the 2016 financial statement.
Seán Fleming (Laois, Fianna Fail)
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I invite Ms Higgins of Caranua to make her opening statement.
Ms Mary Higgins:
I thank the Chairman and members of the committee for the invitation to attend to review with them our financial statements for 2014 and 2015 and giving me the opportunity to make a short opening statement. By way of context, I will give a brief overview of Caranua, its aims and application process. Caranua was established, as the Chairman said, under 2012 legislation to manage a fund of €110 million to support the needs of survivors of institutional abuse, people who had been placed in the care of State as children and experienced neglect and abuse in these institutions which had been managed by religious congregations on behalf of the State. The damaging effects of this experience are lifelong and while most survivors have led fulfilling lives, the lives of many others have been limited in multiple ways because of what they endured as children.
In setting out to design a service for survivors we aimed to base it on their expressed needs and preferences and what was known about the effects of adverse childhood experiences and how they could be addressed. This approach was helped by our having four survivors on the board. We also consulted about 200 individuals in Ireland and England during 2013. It was clear that the majority of survivors were ageing and that very many of them were disadvantaged educationally and in other ways and would find it difficult to engage with a service that was in any way bureaucratic or rigid. It was with these survivors in mind that we designed our application process on the principle that if it worked for the most vulnerable, it would work for everyone. Our central aim was, and is, to put survivors at the heart of everything we did. Our application process is values-based, needs-led and person-centred.
It is broken into different stages. When an applicant is ready to apply for services, he or she is appointed a dedicated adviser to provide support, advice and information in making an application to Caranua and, as necessary, make referrals to and-or advocate with other organisations for other services. We try to ensure there are no barriers for someone in applying to us and we pay particular attention to ensuring our application and other information materials are accessible. All are in plain English. We have easy-to-read versions and short films on our website. We organise a number of outreach events every year at which applicants and potential applicants can come to meet advisers and other staff face to face. We hold a monthly clinic with interpreting services in Dublin.
Catherine Connolly (Galway West, Independent)
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This is not the same as the written statement.
Seán Fleming (Laois, Fianna Fail)
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It is just that we are trying to follow it.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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May we have a copy?
Seán Fleming (Laois, Fianna Fail)
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When Ms Higgins is finished, we will circulate it. Is the content of the draft we received-----
Seán Fleming (Laois, Fianna Fail)
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We will keep going and listen carefully.
Ms Mary Higgins:
We organise a number of outreach events every year. We hold a monthly clinic with interpreting services in Dublin for people who are deaf or hard of hearing and offer online face-to-face assessments to them through the Irish Remote Interpreting Service. We protect and promote the confidentiality of survivors in contact with us and do not discuss individual applications without the written permission of the applicant. We receive value feedback from applicants and other stakeholders. We actively seek it through informal conversations, formal feedback mechanisms and our complaints procedure. We use feedback to review and improve our services and processes. Applicants can also avail of the independently established process to appeal decisions made by Caranua.
Engagement in consultation has continued to be a cornerstone of our approach and we work closely with survivor support groups such as the Aislinn Education and Support Centre, SOCA UK, Right of Place, the Alliance Victim Support Group, Whispering Hope, Irish welfare services in the United Kingdom and the dedicated survivor counselling services that were referred to earlier.
The length of time it takes to assess, process and complete an application varies according to the needs and circumstances of each applicant and can span a number of months and involve an average of about 30 telephone calls for each one, in addition to other written communication. We opened for applications in January 2014 and, to the end of March this year, over 5,000 individuals were eligible to apply to us. A total of 4,362 had actually applied for services, 4,000 to the point of payment. We have spent over €56 million of the fund on services for survivors.
The average number of payments each applicant receives is eight. The average value of a payment received by an applicant is €13,000. That is an average figure for a large number obviously and there are outliers within it.
Catherine Connolly (Galway West, Independent)
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We do not have the document and I would really like to have a copy.
Seán Fleming (Laois, Fianna Fail)
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We are at a little bit of a disadvantage.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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In terms of referencing, it is going to be hard.
Seán Fleming (Laois, Fianna Fail)
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I am going to ask for a copy. There will be time. As soon as Ms Higgins finishes, we will get a copy.
Seán Fleming (Laois, Fianna Fail)
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We will have copies circulated in a moment. All I can say at this stage is that members should bear with us.
Seán Fleming (Laois, Fianna Fail)
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Ms Higgins should complete her contribution and we will then make and circulate a copy.
Ms Mary Higgins:
After some time being dependent on temporary agency staff, during which there was a high staff turnover, we have, since the second half of 2016, a directly contracted full staff team in place. These staff were carefully selected for their skills, experience and attitudes. They are professionally qualified and experienced in the areas related to their responsibilities. The work of Caranua is complex and an intensive induction programme, with ongoing skills development and opportunities for internal supervision and external support, is available for all staff.
We work hard to deliver a good service, but we do not get it right all of the time. The comments made by the Comptroller and Auditor General are completely warranted. Our systems were imperfect. We accept the recommendations made and are in the process of implementing them, as reported in our briefing document.
We faced a number of significant challenges in achieving good practice standards and controls. For very good reasons, we got started quickly and organisation processes and systems have been retrofitted over time. We are trying to balance the requirements of care and compliance. In considering how best to do this we have concluded that having a range of direct contracts with preferred suppliers, whereby Caranua will contract directly with them for specified services, is the best way forward. All financial transactions are between us and the supplier and there is no need for applicants to get quotes and obtain receipts. Since the beginning of the year, we have in place a contract with the Sustainable Energy Authority of Ireland, for example, whereby it will do the work it does in terms of energy efficiency for applicants who apply to us in this regard.
Caranua is, by definition, a limited fund. It has a sum of €110 million. When that money is gone, we will be gone. We are planning to wind down the organisation by 2019, at the latest. In the interim we will continue to deliver services to survivors and work to support other community-based and specialist services to recognise and respond effectively to the needs of survivors in order that they can be cared for beyond the life of Caranua at home and not in institutions. This will ensure a lasting benefit for the people who have used our services and, I hope, contribute to the prevention of the abuse of children in the future.
I thank members for their attention. My apologies for having caused tremendous confusion. I am sorry.
Seán Fleming (Laois, Fianna Fail)
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If that is worst bit of confusion caused today, it will be quite all right. I thank Ms Higgins for her statement. Somebody will collect it from her and we will copy and circulate it. I know that we had received a briefing note. There will be votes in the Dáil shortly and we will probably have to suspend while they are taking place.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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I thank Ms Higgins and her team for coming. The reason it would have been helpful to have had her opening statement is that it is difficult for me to refer to a particular paragraph if the paragraph numbers have been changed.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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It makes my work a little more difficult at the beginning. The first thing I want to say which I said earlier in relation to the Department is that I represented around ten claimants against the redress board in 2007 in my capacity as a solicitor. I just want to make Ms Higgins aware of that. It has no bearing on the matter, but I just want to communicate it in the interests of transparency.
Ms Higgins states in the second paragraph of her written submission that Caranua "is aimed at improving the quality of life of survivors of institutional abuse". To a certain extent, there are many reports that Caranua has actually disimproved quality of life, to some degree, in the sense that there is, of course, a financial aspect to what the organisation, not Ms Higgins per se, is trying to achieve.
In many ways Ms Higgins's opening statement does not add up. She says the staff have been carefully selected for their skills, yet in the last paragraph of her written submission she states, "In addition it is planned to enhance our work with other service providers so that they can be trauma informed and recognise and respond to the needs of survivors". I know from dealing with claimants that they have suffered trauma - a heinous, horrendous trauma. In a sense, many of them are suffering from post-traumatic stress. On the one hand, Ms Higgins is talking about the fact that she has taken on staff for their skills and, on the other, accepting that she needs to look at the issue in terms of having staff who are trained in relation to trauma. Will she explain that to me? She states in her written submission that "Caranua is engaged in the delivery of a care service to people who may be vulnerable". I suggest they are and continue to be vulnerable. If it is true - I am only putting it to Ms Higgins on behalf of the Committee of Public Accounts - that they have been made vulnerable in the manner they say they have been, they have been made even more vulnerable. I would like to hear Ms Higgins' comments on that issue also.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Ms Higgins said "may".
Ms Mary Higgins:
I will explain. The reason for that is because a lot of survivors would not see themselves as vulnerable. They do not describe themselves as victims and they do not like to be put into that kind of category. It is for that reason that I am usually careful with the language that I use.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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In my book, I think "victim" and "vulnerable" are different words.
Ms Mary Higgins:
Okay, well I am just explaining the rationale for saying they are not a homogenous group of people and some of them are extremely resilient and, as I referred to in the opening statement I made, have had good lives.
In terms of the statement not adding up about the staff and the trauma-informed services, they are two different things. Our own staff are carefully selected. They are supported, managed and supervised to deliver services that are appropriate to the people we are working with. What is not well understood outside of specialist services for survivors are the effects of adverse early childhood experiences and therefore not all services are well attuned to why somebody might be behaving the way they are behaving and what their needs might be. What we are planning to do over the coming years is to work more closely with mainstream service providers and specialist services to ensure that there is an awareness of early childhood trauma and the effects that has for the rest of people's lives.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Does Ms Higgins accept that she said: "You can't control people's experience of what we do for them", some clients "will never be happy" and grievances "suit such a narrative"?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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I am just asking Ms Higgins if she made those comments about the claimants.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Perhaps Ms Higgins could clarify her comments.
Ms Mary Higgins:
I have it with me but I do not have it in front of me. The context is that I that I was being asked about our making people feel like they were begging. I think I prefaced it my reply by saying that I can completely understand how somebody who has to come and ask for something might feel as if they are begging but, as I described in my opening statement, we have very consciously and deliberately set out to design a service that does not do that to people. To the best of our ability we do not do that.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Is Ms Higgins saying she did not say "You can't control people's experience".
Josepha Madigan (Dublin Rathdown, Fine Gael)
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So Ms Higgins did say it.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Ms Higgins is saying she said it but she is putting it in context. Is that correct?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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No, I did not ask that, I am just asking whether Ms Higgins made that comment: "You can't control people's experience of what we do for them", as in, ergo, Caranua.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Did Ms Higgins say that or did she not?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Ms Higgins did not say it.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Could Ms Higgins tell me what she did say?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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I saw that in Ms Higgins's opening statement.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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So that is really the same thing, in essence.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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I am not saying Ms Higgins is trying to deny them anything but I think she can understand how that can come across as a pejorative and insulting statement.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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And that it has quite passive-aggressive undertones. Does Ms Higgins accept that?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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So there is an admission that Ms Higgins said it and that she did not mean anything by it.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Did Ms Higgins say the complaints about Caranua suit the narrative of the big bad State and the big bad religious congregations?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Would Ms Higgins like to explain those comments?
Ms Mary Higgins:
I think there is a narrative and for very obvious and justifiable reasons we have a situation where thousands of people were taken away from their families, as children, and put into institutions which were brutal. I do not think as a society we have processed what happened there and I do not think we have faced up to what the effects are on those people and on society as a whole. There is a simplistic kind of narrative-----
Josepha Madigan (Dublin Rathdown, Fine Gael)
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The complainants have not done anything wrong.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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I know, but by saying that it feeds into that narrative. It can come across as insensitive in effect.
Ms Mary Higgins:
Yes, I am trying not to be insensitive but what I am trying to say is that there is more to this situation than the State having done something bad and the church having done something bad. That is part of it but in order to get beyond that it is more complex and we have to come to terms with it.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Yes, I will move on but I just wanted to give Ms Higgins the opportunity to respond to those comments because they are about people who have gone through harrowing times and when they listen to that it complicates the situation for them and compounds their suffering.
In relation to the limit on the number of services one can apply for and the fact that there was a cut-off point in mid-2015, does Ms Higgins think that is directly related to the fact that Caranua itself did not get the €110 million yet? Is there a direct correlation between those factors?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Is there no correlation at all?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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What was the reason for the abrupt withdrawal of services? I will talk more about the figures in a moment. It seems to me that a lot of money was spent very quickly on a small number of claims and it was not anticipated that there would be further claims down the line. Ms Higgins accepted that. I know the Comptroller and Auditor General referred to the control over grant payments and the inefficiencies but I want to hear what Ms Higgins has to say about it.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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The files were closed, according to some claimants and they were told they could no longer avail of the services, just like that.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Ms Higgins does not know.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Does Ms Higgins think they fabricated that or that it happened?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Is there anyone with Ms Higgins who would know?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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So Caranua withheld some of the services that were originally provided? Back in 2014 it was advertised that there was no limit. The guidelines, which were published in May 2014 state that there is no limit on the number of services one can apply for. Claimants made claims and abruptly in 2015 they were told that the services could not be provided. I want an explanation for them. I am just a member of Committee of Public Accounts. This is not personal to Ms Higgins. I ask on behalf of those people.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Ms Higgins said she did not know whether they were communicated with.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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As far as Ms Higgins is aware, were there no complaints made to Caranua in relation to the services being cut off or withdrawn?
Josepha Madigan (Dublin Rathdown, Fine Gael)
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People cannot avail of them.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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That is not my understanding.
Ms Mary Higgins:
What we have done is introduced different things. We have introduced household goods. A complaint that was made to us by people, in particular those who were living in private rented or socially rented housing, is that home improvements were not a lot of use to them but that they would like furniture or to replace their kitchen or to do those kind of things.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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I will move on because I am conscious of the time. I apologise if I am being abrupt to Ms Higgins now.
I would like her to please look at the expenses, travel and accommodation costs for staff and the board from 1 January 2014 to 21 November 2016. When I looked at this initially for 2014 to 2016, staff expenses, staff accommodation and staff travel looks as if it has gone down but not if one reads it downwards.
Staff accommodation and travel expenses for 2014 and 2015 amounted to €14,834.51 and €14,788.57, respectively. Post-review, in 2016, accommodation and travel expenses amounted to €11,978.04. That does not suggest to me there has been any radical change. In regard to the board, travel and accommodation expenses in 2014 and 2015 amounted to €11,744.03 and €27,170.19, respectively. In 2016 the figure was €10,688.73 which is comparable to the 2014 figure. I will comment later on the services provided by Caranua. In terms of expenses, I do not believe there was any radical change between 2014 and 2016.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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The point I am making is that, bearing in mind the level of media coverage, the complaints made and the Comptroller and Auditor General's 2015 report, it does not appear that any of this was taken into account in 2016, given the level of staff travel and accommodation expenses.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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Yes. Prior to 2013, expenditure on salaries and wages was €188,000. Ms Higgins referred to people being at the heart and centre of the service. In 2014 expenditure on salaries and wages amounted to €791,000. For that amount, Caranua managed 33,751 calls, of which it only responded to 15,348, less than half the number of calls received. In 2015 expenditure on salaries and wages increased to €1.32 million and the service managed 67,604 calls, but, again, it only responded to half of those calls. Despite a massive increase in expenditure on salaries and wages, the service still could not manage all of the calls received. The figures to which I am referring were provided by Ms Higgins. In 2016 expenditure on salaries and wages increased again to €1.492 million and the service managed 44,582 calls, of which it only responded to 19,776.
Ms Higgins referred in her opening statement to 20 to 30 calls per claimant. Despite increased expenditure by Caranua on salaries and wages - I am not saying the 24 staff are not entitled to salary increases - the service is only managing to respond to fewer than one third of the calls it receives.
Josepha Madigan (Dublin Rathdown, Fine Gael)
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It is included in the information provided for the committee.
The information provided tracks incoming post only. In other words, there is no tracking of outgoing post. Despite Ms Higgins' comment on claimants being at the centre of the service, that does not appear to be the case.
Seán Fleming (Laois, Fianna Fail)
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As a vote has been called in the Dáil and there are likely to be a number of other votes called, we will suspend the sitting until 2.30 p.m.
Seán Fleming (Laois, Fianna Fail)
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Apologies for the lengthy suspension but the timing of the voting in the Dáil was outside of our control. In regard to the questions posed prior to the suspension by Deputy Madigan, the Deputy cannot, unfortunately, be here this afternoon but I will allow the witnesses an opportunity later to put any responses they may have in that regard on the record.
Catherine Connolly (Galway West, Independent)
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Has each of the witnesses read the Ryan report?
Catherine Connolly (Galway West, Independent)
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It is worth reading. It is the background to what we are discussing now, as it is to the redress board, which we discussed this morning. This is important for survivors because sometimes a blaming attitude comes across from institutions generally. During our earlier session, I read into the record some of the conclusions of that report, including that the deferential and submissive attitude of the Department of Education and Skills towards the congregations compromised its ability to carry out its statutory duty and so on. I do not believe that applies only to the Department of Education and Skills.
In regard to the congregations, one of the many recommendations is that they examine how their ideals became debased by systemic abuse, how they came to tolerate breaches of their own rules, and when sexual and physical abuse was discovered, how they responded to it and those who perpetrated it. It is important to reiterate that the congregations were specifically asked to examine their attitude to neglect and emotional abuse and, more generally, how the interests of the institutions and the congregations came to be placed ahead of those of the children who were in their care. Leaving aside the specifics of that recommendation, there is always a danger that an institution will become more important, particularly so in the case of Caranua.
It is a big challenge to ensure the institution does not become more important than what it was set up to do. Ms Higgins would acknowledge that. It has only been functioning for three years. Is that right?
Catherine Connolly (Galway West, Independent)
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Let me just put my questions and if I am wrong on anything, Ms Higgins can correct me. It was set up in March 2013. It did not start receiving applications until January 2014. Is that right?
Catherine Connolly (Galway West, Independent)
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When it was set up in January 2014, what did Ms Higgins do other than advertise? Obviously Ms Higgins had time in addition to advertising and making these schemes known to work out the processes, policies and mission statement.
Seán Fleming (Laois, Fianna Fail)
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May I interrupt the Deputy for one second?
Catherine Connolly (Galway West, Independent)
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Yes.
Seán Fleming (Laois, Fianna Fail)
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I have to go out for ten minutes to another meeting. Will Deputy Connolly propose that Deputy Cullinane takes the chair in my absence?
Catherine Connolly (Galway West, Independent)
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Yes. I propose that Deputy Cullinane takes the Chair.
Catherine Connolly (Galway West, Independent)
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Ms Higgins had nine months to sort out all of the procedures and policies.
Catherine Connolly (Galway West, Independent)
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Yes.
Catherine Connolly (Galway West, Independent)
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Was Ms Higgins on her own completely?
Catherine Connolly (Galway West, Independent)
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But Ms Higgins was not on her own.
Catherine Connolly (Galway West, Independent)
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How many staff did Ms Higgins inherit?
Ms Mary Higgins:
I inherited three staff from the Education Finance Board. One left in June, another left in July and one remained with us until last year. Setting up an organisation is not that easy. There is work that needs to be done. It takes time to establish policies, procedures and all of those things. Most of the time spent during 2013 was on staff recruitment and consulting and designing the application procedures and the scope of what it is we would be doing. Then we began very early in January 2014.
Catherine Connolly (Galway West, Independent)
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Very good. So Ms Higgins had a considerable period within which to look forward, anticipate challenges and problems and work them out. There were no applicants, as it were, bothering Ms Higgins during that time. I will put it slightly more positively. There were no applicants coming in taking Ms Higgins's time during that time.
Catherine Connolly (Galway West, Independent)
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Ms Higgins had ample time to foresee and plan.
Catherine Connolly (Galway West, Independent)
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Good. Then in January 2014 we start receiving applications. Anybody can answer my questions. I am not addressing them to a particular witness. There is a board. Mr. O'Callaghan is chair of that board.
Catherine Connolly (Galway West, Independent)
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He should feel free to answer these questions. From January 2014 onwards, for the following three months, the organisation is simply overwhelmed. Is that accurate? How many thousand applications came in? I think it was 2,500 in three months. The witnesses should correct me if I am wrong.
Catherine Connolly (Galway West, Independent)
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So the organisation was overwhelmed. Is that right?
Catherine Connolly (Galway West, Independent)
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Absolutely. I have to ask these questions. There were nine months in which to anticipate this. The commission had reported. Ms Higgins knew exactly how many applications were going to come before the organisation. I forgot Mr. Yeomans's role.
Catherine Connolly (Galway West, Independent)
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Where did Ms Higgins go with her difficulties when she had so few staff?
Catherine Connolly (Galway West, Independent)
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Where did Ms Higgins go? This is a major problem. The organisation is overwhelmed. What happened? Did Ms Higgins report to the board and tell it?
Mr. David O'Callaghan:
Perhaps I could come in here. I became chairman at the beginning of 2014. The previous chairman resigned on health grounds. What I found was an organisation that was overwhelmed by the number of applications. I found an organisation that was understaffed and that did not have proper processes in place. It took time to get those right. The board put them down as a priority. To give the committee an idea of how understaffed the organisation was, in 2015 we got in Mazars, which is an organisational consultant, and it said we should have 24 staff to deal with the volume of work we had. The Deputy can imagine how difficult it was to work with four or five.
Catherine Connolly (Galway West, Independent)
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When did Mazars come in?
Catherine Connolly (Galway West, Independent)
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The recruitment for Mazars-----
Catherine Connolly (Galway West, Independent)
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No. I asked when Mazars came in.
Catherine Connolly (Galway West, Independent)
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Mr. O'Callaghan was in the middle of telling me about Mazars and I interrupted him to ask him when Mazars came in.
Catherine Connolly (Galway West, Independent)
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Who were they?
Catherine Connolly (Galway West, Independent)
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That is acknowledged in the report.
Catherine Connolly (Galway West, Independent)
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Caranua has acknowledged it.
Catherine Connolly (Galway West, Independent)
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When Mr. O'Callaghan says agency staff, is that to get employees in to answer the phones?
Catherine Connolly (Galway West, Independent)
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Okay.
Catherine Connolly (Galway West, Independent)
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When did Mazars come in?
Catherine Connolly (Galway West, Independent)
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Caranua has a full complement of staff now.
Catherine Connolly (Galway West, Independent)
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Mr. O'Callaghan can see the difficulty from my point of view.
Catherine Connolly (Galway West, Independent)
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Can somebody from the Department of Education and Skills explain how this was allowed to happen? Nine months after the organisation was set up it was completely overwhelmed as soon as it opened for applications.
Catherine Connolly (Galway West, Independent)
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My question was that there were nine months so how did the Department or any other Department that was relevant allow this to happen? There were staff in place, albeit not enough, and it goes on until January. I will not waste my time repeating it. How was this allowed to happen?
Catherine Connolly (Galway West, Independent)
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When did the board come into place?
Catherine Connolly (Galway West, Independent)
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Mr. O'Callaghan was not there from March 2013. Who was chairman before him?
Catherine Connolly (Galway West, Independent)
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She was there before Mr. O'Callaghan as chair.
Catherine Connolly (Galway West, Independent)
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Mr. O'Callaghan came in in January 2014.
Catherine Connolly (Galway West, Independent)
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April.
Mr. Seán Ó Foghlú:
We worked with the board and the agency to support it as best we could in recruiting staff and responding to its needs. We and the board had a strong desire to begin to receive applications because with the establishment of the board it was important that it was able to begin to receive applications. The board indicated, following engagement with the Department, that it was in a position to begin to receive applications from early January 2014 and it proceeded on that basis. We knew it would be a challenge to do that but we felt Caranua was in a position to commence doing that and beginning to provide a service to the members.
Catherine Connolly (Galway West, Independent)
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But it was not.
Catherine Connolly (Galway West, Independent)
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Mr. O'Callaghan has said it was an appalling service.
Catherine Connolly (Galway West, Independent)
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In what way?
Mr. David O'Callaghan:
In that this is not the same as an applicant filling in a form for a pension or passport or tax-free allowance. This is about dealing holistically with all the requirements of an applicant, a survivor. It is not just a form which is filled in; an assessor rings them, contacts them, and looks at all their needs and takes them through the whole process in a very sympathetic manner to find out what they need across the broad spectrum of services, whether it is housing, health or education. I do not want to overstate it but it is a very complex operation.
Catherine Connolly (Galway West, Independent)
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It is not complex at all. I appreciate what Mr. O'Callaghan says and have read about it. I realise that he is talking about a whole-life approach and I take that on board. However, it is not complex. There is €110 million to be administered to a finite number of people - it is the case we know it is finite?
Catherine Connolly (Galway West, Independent)
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And we know it is even less than the finite figure that is coming from the redress board because of death and age and people not bothering and people worn down by the system.
Catherine Connolly (Galway West, Independent)
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All that money was available before the applications opened and Caranua knew exactly what to expect. The maximum was what the redress board had told Caranua, but Mr. O'Callaghan knew from experience that was not going to happen, is that correct? All right. In the space of time Caranua has been there, which is three years, from March 2014, how many outside companies, apart from Mazars, have been brought in for auditing, control, and financial control?
Catherine Connolly (Galway West, Independent)
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Capita and Mazars were the two I came across, how many others?
Catherine Connolly (Galway West, Independent)
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And there were external reviews. List them.
Catherine Connolly (Galway West, Independent)
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Could Mr. O'Callaghan list them? In the short period of time this organisation has existed, is it correct that there was a year and a half with no financial controller?
Catherine Connolly (Galway West, Independent)
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There was no financial controller for the whole of 2015 into July 2016, despite the Comptroller and Auditor General raising issues about internal controls. In fact, he gave Caranua the thumbs up on its accounts but said there were problems with internal processes.
Catherine Connolly (Galway West, Independent)
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Caranua may well be in much better shape, but I am about to come to the survivors or the applicants who have dealt with it who might not be in much better shape as a result of the process. I am glad to hear that Caranua might be in better shape. I want a list of the reports commissioned to ensure that Caranua's processes were in order.
Catherine Connolly (Galway West, Independent)
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There were outside accountants for that.
Catherine Connolly (Galway West, Independent)
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What are they called?
Catherine Connolly (Galway West, Independent)
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What were they looking at?
Catherine Connolly (Galway West, Independent)
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What did that cost?
Catherine Connolly (Galway West, Independent)
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What did that cost?
Catherine Connolly (Galway West, Independent)
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Ms Higgins has heard my question. I have heard of Capita and Mazars and these accountants. Who else is there? List them and how much it has cost so far to ensure proper controls are in place. There is also the Comptroller and Auditor General's office. I will park that for the moment.
I reluctantly return to Ms Higgins' public remarks and my colleague raised them this morning. Does Ms Higgins think it is appropriate to give interviews of that nature and make those comments on "Liveline" and in The Irish Times? Would Ms Higgins like to apologise and withdraw them and move on or does she stick by them?
Catherine Connolly (Galway West, Independent)
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Let me quote them exactly. I want to get on to the issues. I am not a personality person and I stay with issues but Ms Higgins went on "Liveline". I do not want to insult the applicants by repeating the language that was used, that "these people are damaged, the hole in them cannot be filled by what we do, unfortunately". Did Ms Higgins use that language? Did she say that?
Catherine Connolly (Galway West, Independent)
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Did Ms Higgins take part in "Liveline"?
Ms Mary Higgins:
I did take part in "Liveline". I did not hear it. I do not know for certain that I said that, but it is the reality that the damage that was done to people placed in institutions when they were children is profound and lifelong. Part of the damage causes people to not expect other people to want to do something good. I can understand that. We are the face of the State, the State that did this to people. It is understandable that they would be angry with us.
Catherine Connolly (Galway West, Independent)
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I want to use my time for the other issues. I am asking Ms Higgins if she withdraws those comments.
Catherine Connolly (Galway West, Independent)
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Unreservedly?
Catherine Connolly (Galway West, Independent)
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Thank you. They should not have been made.
Let us move on to what happens when Caranua writes to applicants to tell them their case is closed. Has that happened?
Ms Mary Higgins:
Yes, because we complete applications when someone has gone through the process of the needs assessment and identification and agreement has been reached as to what services will be paid for by Caranua. Then the case is completed. We have a finite number of advisers and it is not possible to keep all applications open all the time.
Catherine Connolly (Galway West, Independent)
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Mr. O'Callaghan is on the board. When did he sign off on this policy that applicants would be written to and told their case was completed?
Catherine Connolly (Galway West, Independent)
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I am asking Mr. O'Callaghan as chair of the board, about the board.
Catherine Connolly (Galway West, Independent)
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This board has been set up under statute, and it has a duty. Policy and procedures are set by the board.
Seán Fleming (Laois, Fianna Fail)
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The time is up.
Catherine Connolly (Galway West, Independent)
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I would like to finish on the board. Mr. O'Callaghan is the CEO and he has a job to do. He is paid for that job. The board has a separate job. When did it meet and discuss this and change policy that applicants would be written to informing them their case had closed?
Mr. David O'Callaghan:
I do not have a date for it, but as far as I can recall, new applicants were not being dealt with. Existing applicants who had received cheques and had been satisfied in some of their requirements were reapplying and remained top of the queue. The decision we made was to prioritise the new applicants who had not got any attention or any services to date.
Catherine Connolly (Galway West, Independent)
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I understand that and the board is entitled to look at prioritising.
Catherine Connolly (Galway West, Independent)
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The board is entitled to make policy and do what it did and we are entitled to see how it arrived at that decision.
Catherine Connolly (Galway West, Independent)
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There was no decision at board level about instructing the executive to write to people to tell them their cases were completed.
Catherine Connolly (Galway West, Independent)
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This is a scheme that was set up to apply on a needs basis. Therefore, an applicant comes forward on that basis. I understand Caranua was applying the policy on that basis and that, therefore, an applicant might have come back again on that basis and been assessed accordingly. I am asking a very simple question. When did that policy change?
Catherine Connolly (Galway West, Independent)
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I asked when the policy was changed because a substantial number of letters were sent to applicants to state their cases had been closed, or they were told on the telephone that they had one bite at the cherry, or words to that effect. I see a head nodding. I am going to come back to Ms Higgins about how many letters went sent. Mr. O'Callaghan is clearly telling me that no policy decision was made at board level. There was no decision to write-----
Seán Fleming (Laois, Fianna Fail)
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I call Deputy David Cullinane.
David Cullinane (Waterford, Sinn Fein)
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As I am due to speak in the Dáil at some point, I wonder whether I could let some of my colleagues go first and then come in.
Seán Fleming (Laois, Fianna Fail)
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The Deputy will only be away for 20 or 30 minutes. We will be here at least that long.
David Cullinane (Waterford, Sinn Fein)
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I thank the Chairman.
Seán Fleming (Laois, Fianna Fail)
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The Deputy will get his chance to speak when he comes back.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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I asked these questions of the wrong group earlier. I attached them for Caranua.
On the recently introduced funeral expenses, is it true that expenses are paid in advance to undertakers?
Ms Mary Higgins:
Yes. That was an additional service we introduced as part of the 1 June changes to our criteria. It was introduced because many survivors had said they really wanted it because the fear they would have a pauper's funeral was very significant. The board considered the issue. We sought legal advice on whether we could, under the terms of the legislation, introduce funeral expenses. Caranua, obviously, is not a permanent institution. It is temporary, but we wanted to make provision for the future for people who were not at the point of passing away. The agreement was that we would prepay funeral costs to funeral directors.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Does that mean that the survivor, or any individual, is not party to the contract? He or she has nothing to do with it because Caranua is paying. The survivor has no say in the matter and cannot enforce the contract. Caranua has limited life expectancy and will close in a couple of years. How will the relatives of the survivor obtain the benefits of the service in years to come? How has it been set up? The funeral has been paid for with an undertaker of someone who is expected to die in ten, 20 or five years' time.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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It seems to be a bizarre arrangement.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Could family members look after it rather than going to the undertaker?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Is it true that some survivors are approaching undertakers and looking for some of the money? That is a bad system.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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As a layperson, the arrangements seem to be very strange.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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How are funeral expenses in five years' time known? Does the undertaker sign up to a contract?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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I want to ask about people who cannot read or write. I am told that there are some survivors who are not able to read or write and that they were looking for others to work as a third party on their behalf. Because of this, their cases have not been processed. Is that true? Does Caranua allow a third party-----
Ms Mary Higgins:
Absolutely. It would not be a barrier in somebody making an application to us because we do not require that somebody to fill in a form. We have forms and it is up to the person concerned to decide if he or she wants to do it by himself or herself, to get somebody to help or not to do it at all. We can help people over the telephone or by some other means.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Will Caranua accept a third party to represent or work on a person's behalf?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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I did not think it did. I am told about a survivor who wants to have a hip replacement but was terrified of going into hospital. The lady needs this essential surgery but is afraid. Is there any outreach service to advise and help her along? I am told she is afraid to go into hospital to have a hip replacement.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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I cannot tell Ms Higgins that. I am told that she is waiting for an operation but is afraid to go in for it. Does Caranua have a service to advise her?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Ms Higgins said Caranua would be finishing up in 2018 or 2019. What will happen after that with the funding available? How will it be allocated to survivors? What will happen after 2019, being a fixed date?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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I was.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Therefore, it will be continued by some other agency.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Does Ms Higgins think all of the money will be used by that time?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Is it true that the CEO of Caranua gave money back to the Catholic Church for counselling services for which it had already paid? Can Ms Higgins explain that?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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What kind of money is involved?
Ms Mary Higgins:
The position is not that we have been giving money back to the Catholic Church but that we will pay for counselling if that is what people are looking for. There are a number of counselling services in place. Towards Healing is one of the counselling services funded by the Catholic Church. It has a limit on the number of counselling sessions survivors are able to have and we will pay if there is a need for additional sessions. We also pay for other counselling services.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Is that all Ms Higgins means by "paying the Catholic Church"?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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On expenses, representatives of Caranua held meetings in Cork, Galway, London, Manchester and Birmingham. They involved big expenses. The figure mentioned here is €20,000. Is that normal and reasonable, or excessive?
Ms Mary Higgins:
That would not be the cost per session but the cost over a period of time which might be one year. Mr. Yeomans will have the exact figures. We are in a situation where we know that there are about 15,000 people who are eligible to apply to us. We even know their names and addresses, but we cannot use that information for any purpose other than verifying that they are eligible to apply to us. We cannot contact them directly or write to them. As we cannot make any contact with them, we are very dependent on trying to raise awareness. We are also conscious - this is the feedback we have received from survivors - that they want to see people. They do not want to deal with them on the telephone. Our outreach clinics and events are one way we do this. We organise the events and publicise them through survivor support groups and in other ways. Advisers are present and they can be in a private room and see people individually. It also gives survivors an opportunity to meet other members of staff and, on occasion, members of the board.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Do Caranua representatives travel to London, Manchester and Birmingham on a regular basis to meet people?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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I am sure there are big costs involved.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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I am sure there would be costs involved in flying and staying overnight.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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With regard to eligibility and the draft terms of reference, the Minister is reviewing them. As it is a review, certain things could be examined. Will the potential to make a one-off payment to remaining survivors be considered?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Is Caranua open to suggestions?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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All of the proposals I have to make could be examined. They have probably been made already, but I do not know.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Caranua would look at and take them on board.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Caranua is still subject to the Comptroller and Auditor General's report every year.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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Therefore, the money would have to be spent every year.
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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I thank Ms Higgins.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I am sorry I was not present for the opening statement. Matters moved quicker than anticipated this morning. I thank the witnesses for attending.
The opening statement mentioned the importance of protecting the confidentiality of survivors. The board meeting of 23 March 2017 confirmed the view that Caranua had the authority, in cases where applicants had not provided receipts, to go directly to the supplier without the permission of the applicant. What impact has this had on the survivors? Does it threaten their confidentiality? Is there not a breach in that regard?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Yes.
Ms Mary Higgins:
In terms of financial controls, not having both is not very good. We have been prevented from following up on receipts because of the way the legislation is drafted and the fact that under section 23 we cannot betray a connection between an applicant and us. It has never been possible for us to go to suppliers to get receipts. We are in a situation where the return of receipts is quite low relative to the number of payments made. That has been pointed out by the Comptroller and Auditor General and is something on which we must take action. We cannot ignore it. One of the ways we can do it is by going directly to the supplier where receipts have not been returned. We would not do this in every case and would not do it without telling people that we would be doing it.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Has it been done so far in any case?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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What impact does Ms Higgins think it will have on the survivors?
Ms Mary Higgins:
I imagine that some people will be quite pleased because they will not have to go to the bother of getting receipts and sending them to us. However, we have not started it yet and will have to do something about it. As I said, the tension between delivering care and being compliant with good financial controls is ever present.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Is the balance wrong?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Notwithstanding that Caranua is doing its best and the Comptroller and Auditor General is doing his best under the rules that govern him, is it fair to say the system, as it stands, is inadequate for Caranua to do its work?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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No, the system. The Comptroller and Auditor General has a job to do which involves receipts, auditing and so forth. Given the delicate job Caranua has, is the system inadequate in providing care for the survivors?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I know all of that. However, the answer is yes.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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That is fine. I will move on. I presume the impact of auditing might add stress.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I know that is how the world is. However, the system is inadequate for Caranua to do its job, notwithstanding that the Comptroller and Auditor General has done an excellent job under the rules that govern him.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Okay, but that is a nice way of saying it is inadequate.
With regard to the €15,000 limit and bearing in mind that some of the matters included in the Act are extensions, home improvements, upgrades and the like, in a layman's view, €15,000 will not cover much work. Realistically, is that limit prohibitively low in terms of the vision and ambition of the types of service that should be available under the Act?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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What does that mean?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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How did Caranua come up with the figure of €15,000?
Ms Mary Higgins:
I was just about to say that. Obviously, we have a fund that is limited. We have a number of people and do not know exactly how many of them are likely to apply. We were looking at a situation where a small number of applicants had received a large amount of the fund and said that if we were to continue spending money in that way, it would be spent very quickly and that, perhaps, we might not reach all of the people who could potentially apply to us. Under the legislation, we are required to deliver our services in a way that is fair and equitable. To address this, we looked at the sums and decided on a figure of €15,000. In fact, the average value of payments to date is €13,000.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Was it a case of drawing heads together at the board and deciding to divide the number of likely applicants-----
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Was actuarial expertise used in the determination?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Was it financial expertise in terms of actuarial or certified accountants?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Effectively, an accountant made a pitch.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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What analysis was used in terms of the survivors? Were there accountants for them?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Okay, but there were no financial people specifically to indicate the types of things that could arise. Unless one is talking about very limited works to a new home, €15,000 will not cut it.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Realistically, the schedule of services prescribed under the Act is not available because €15,000 is too low-----
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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What proportion of decision-making is weighted towards the budget rather than care?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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However, Caranua does not have the money to do what it wants to do.
Ms Mary Higgins:
Yes, but we have to see ourselves in the context of the overall range of services available for survivors. We are in place and time limited. There are public services available. There are possibly other services that could be made available to them also. Part of our role in dealing with individual survivors is ensuing they are getting what they should get. If somebody is looking for home improvements, for example, we will not just say, "Yes, there you are." We look at who else should be providing for them. We look at what the local authority or somebody else is doing also and will continue to do so.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Will Ms Higgins explain the new system of prioritisation?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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What are they?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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On what basis does Caranua consider prioritisation of new applicants, considering the purpose of a needs-based scheme?
Ms Mary Higgins:
New applicants are people who have not received anything from us at all. What we call "repeat applicants" are people who have made applications, gone through the process, received payments and whose applications have been completed. As the Chairman described, we were constantly dealing with repeat applicants who were returning for more, which meant that new applicants were not getting a look in. The decision was made - I believe it was in July 2015 - to prioritise new applicants over repeat ones.
Catherine Connolly (Galway West, Independent)
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When was that?
Seán Fleming (Laois, Fianna Fail)
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July 2015.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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How many applicants were left outstanding by that?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Ms Higgins stated that there were repeat applicants. Since they were not new, they fell down the-----
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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They all get done.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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How many have been affected by that?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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What efforts did Caranua make to consult survivors, notwithstanding the four on the board who have a say, before the implementation of the prioritisation policy or the introduction of the financial limits?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I know that, but did a specific consultation process on this €15,000 limit and the prioritisation take place?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I am not saying that Caranua did not have to do it. Clearly, it may have been necessary, but was it an oversight not to enter into consultation before determining a prioritisation policy and a €15,000 limit? The accountants were there and there were four survivors on the board, but what of the broader-----
Seán Fleming (Laois, Fianna Fail)
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What was the largest payout?
Seán Fleming (Laois, Fianna Fail)
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Did many receive more than €50,000?
Mr. David Yeomans:
This is a list by volume and by value. In bands, two people received more than €100,000 each. There were three in the band up to €90,000. Three received between €80,000 and €85,000. All the way down to approximately €35,000 accounts for 5% by cumulative volume, but that 5% received approximately 20% of payments.
Seán Fleming (Laois, Fianna Fail)
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How many received more than €50,000?
Seán Fleming (Laois, Fianna Fail)
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No. In numbers.
Seán Fleming (Laois, Fianna Fail)
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When did the penny drop with Caranua that that could not continue, given the potential of 14,000 further applicants?
Seán Fleming (Laois, Fianna Fail)
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Could Caranua not foresee some people returning? I will allow Deputy MacSharry back in, as I am probably cutting across his question.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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No bother, and I am sorry for flustering Ms Higgins.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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We do not want Ms Higgins flustered. I have lost my train of thought, though. Could the Chairman remind me-----
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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The Deputy is flustered now.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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-----what it was before he took over?
Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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We are all flustered.
David Cullinane (Waterford, Sinn Fein)
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I will take over if Deputy MacSharry wants.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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No, Deputy Cullinane will not. We were on consultation and the lack thereof.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Would Ms Higgins accept that it was not the best way forward?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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There was no formal process. When Caranua was speaking to people, it might have asked them what they thought of €15,000.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Might I suggest that-----
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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-----Caranua should adopt one?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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There is no shortage of survivors.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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There are support groups and Caranua knows that they exist, but will Caranua adopt a formal, periodic process?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Is there any timeframe for that?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Make it more formal and so on.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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There were changes to the classes of service allowable under the scheme, but I thought that these would have required statutory approval. What changes were made in 2015? This is not Caranua's specific function, but were the changes laid before the Houses of the Oireachtas?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Under the Act.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Caranua could reduce or increase services in line with its own views without consulting the Minister or the Oireachtas.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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The board decides it.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Were classes determined in the Act excluded or added to?
Ms Mary Higgins:
We have added to them. The Act sets out many health services that are somewhat equivalent to those set out in the Health (Amendment) Act. It also refers to housing and education services. We still do housing. Our objective in helping people with housing supports is to ensure that they can remain at home safe, warm and secure so that they are not returning to institutions late in life. Our health objectives - being active and socially connected - are based on evidence of what worked for people suffering the effects of adverse childhood experiences. These are not specified exactly in the legislation, but we have included a number of services that can be claimed under them. I am referring to, for example, social clubs, gym memberships and services like that that are low cost but valuable in terms of their impact on people. Our education objective includes self-development.
The classes of service have not strayed from the legislation. We have strayed a little in terms of funeral costs. They did not clearly fit, but we argued that they fitted in under health and well-being because applicants would feel happier if they knew that their funerals would be paid for.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I have two final questions. Evidence from a health professional is required for all housing and health-related services. Does Caranua pay for that or does the survivor?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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In all instances.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Even though my application might not be granted, Caranua pays for-----
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I understand that, but in the event that I apply and am not approved,-----
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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What problems were there with preferred suppliers and survivors? Did any arise?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Did survivors raise issues about that?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Yes.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Not necessarily them. Has Caranua a broader list? This is not just about occupational therapists, but other services.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Has any survivor indicated to Caranua that this is a problem or concern?
Ms Mary Higgins:
When we undertook a pilot project in 2015, a couple of people felt that their independence was being challenged by our having preferred suppliers.
We are trying to balance these things all the time. The Comptroller and Auditor General had difficulties with not having quotes and receipts and preferred suppliers is the one of the ways we can do that. If we have panels, there is a choice within them.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I am guessing consultation was not a formal part-----
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Of the organisation's entry into that.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Notwithstanding that, is it fair to say that there was no formal consultation process?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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I am not saying Caranua is. It is not a question of sticking to the rules; it is a question of providing the best service that the organisation can. It is not a box ticking exercise. Is it true that its procedures manual to ensure transparency of decision-making is kept secret?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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Is there a procedures manual that is not given out?
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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No, I just wanted a "Yes" or "No".
How is success measured? What metrics are used to establish whether the organisation has met the wishes of survivors under the scheme?
Ms Mary Higgins:
We are about to tender for somebody to do an evaluation of the impact of our service on the quality of life and well-being of survivors. That will be one thing that we will do but we are constantly gauging the temperature of satisfaction through our interaction with survivors and we have an internal complaints mechanism. Our statistics show that since we started that in 2015, we have had 154 complaints. Our mechanism has three stages - one is where it gets sorted out where the complaint arose; two is where a manager is involved; and three is where it goes to internal investigation. We have had five internal investigations. Relative to the number of transactions and activities that occur within the organisation, there are few complaints. That is not to say there might be people who are dissatisfied but if they do not come to us, we will not get to hear about it and we are then unable to do anything about it.
Marc MacSharry (Sligo-Leitrim, Fianna Fail)
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This is back to consultation. It seems there is a great deal about to happen.
David Cullinane (Waterford, Sinn Fein)
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I welcome the witnesses. What was Ms Higgins's role before she took up her position in Caranua?
David Cullinane (Waterford, Sinn Fein)
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Regarding the first post, who did Ms Higgins work for?
David Cullinane (Waterford, Sinn Fein)
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What about before that?
David Cullinane (Waterford, Sinn Fein)
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Ms Higgins did a report in October 2010 for St. Stephen's Green Trust.
David Cullinane (Waterford, Sinn Fein)
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What is St. Stephen's Green Trust?
Ms Mary Higgins:
The trust is a philanthropic body which asked me to develop a socioeconomic profile of survivors of institutional abuse because they were thinking of looking at this group for their grant programme, which is how I came to read the Ryan report so thoroughly. Much of what I reported on was based on that.
David Cullinane (Waterford, Sinn Fein)
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Is it correct that Mr. O'Callaghan worked for more than 30 years in the public service, mainly in Revenue?
David Cullinane (Waterford, Sinn Fein)
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Mr. O'Callaghan described the service that Caranua provided earlier as "an appalling service". Could he elaborate on that?
David Cullinane (Waterford, Sinn Fein)
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Will Mr. O'Callaghan elaborate on "not treating people properly"?
David Cullinane (Waterford, Sinn Fein)
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There was a dire staff shortage that led to pressures on staff.
David Cullinane (Waterford, Sinn Fein)
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Did that pressure impact on interaction between survivors and staff in terms of the quality or the professionalism of the service?
David Cullinane (Waterford, Sinn Fein)
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That would be an understatement.
Seán Fleming (Laois, Fianna Fail)
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Was Mr. O'Callaghan chairman of the board when he said this? When did he make this statement?
David Cullinane (Waterford, Sinn Fein)
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He made it earlier when the Chairman was absent. I was in the Chair.
Seán Fleming (Laois, Fianna Fail)
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My mistake. Did Mr. O'Callaghan make that statement earlier?
Seán Fleming (Laois, Fianna Fail)
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I am sorry. I was out for a few minutes.
David Cullinane (Waterford, Sinn Fein)
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Musical chairs. I would like to acknowledge Mr. O'Callaghan's honesty and the fact that he has put that on the record. That is important because we all have received correspondence from survivors who have raised concerns about the level of service they received, the quality of the service, and their interaction with the organisation. There is some acknowledgement that there were problems, albeit that they are primarily being put down to staffing pressures. Mr. O'Callaghan has at least acknowledged that it was an appalling service. Would Ms Higgins describe the service as "an appalling service"?
Ms Mary Higgins:
I would not describe it as an "appalling service" because when people get service, they get a very good service, by and large. The fact that people were waiting and we could not tell them how long they would have to wait is definitely not good but I would not like to give the impression that in terms of the interaction with applicants-----
David Cullinane (Waterford, Sinn Fein)
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But Ms Higgins's chairman did and he talked about the treatment of people. I asked him to elaborate.
David Cullinane (Waterford, Sinn Fein)
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Not necessarily. He elaborated a little more than that. If the chairman is saying it was "an appalling service" but the chief executive officer does not agree, that troubles me. Why is there a conflict in this regard?
David Cullinane (Waterford, Sinn Fein)
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I would rather that Ms Higgins did not defend anything; I would rather that she would be honest with us when questions are put if she-----
David Cullinane (Waterford, Sinn Fein)
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By extension, that is not a good service.
David Cullinane (Waterford, Sinn Fein)
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Because if someone is waiting too long, it cannot be described as a good service.
David Cullinane (Waterford, Sinn Fein)
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Would Mr. Ó Foghlú describe the service as "an appalling service"?
Seán Fleming (Laois, Fianna Fail)
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Mr. O'Callaghan has indicated he would like to contribute.
David Cullinane (Waterford, Sinn Fein)
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I am sorry.
David Cullinane (Waterford, Sinn Fein)
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I will not be unfair to anybody. I heard exactly what Mr. O'Callaghan said and I understand the context.
David Cullinane (Waterford, Sinn Fein)
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I understand the context in which Mr. O'Callaghan said this but from its conception until now at some point he said the service was "appalling". I understand the context in which he said that and the time to which he referred. I acknowledge that but I am putting the same question to Mr. Ó Foghlú.
David Cullinane (Waterford, Sinn Fein)
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Given the pressures on staffing levels, the high volume of requests, the difficulty in processing all the information, the tension with the survivors who were trying to access services as quickly as possible, and the organisation not being able to deliver on its mandate, would that have led to an adversarial system?
Ms Mary Higgins:
No. I have described the number of complaints we have received. It was very fraught at the beginning. Survivors were very frustrated because the residential institutions statutory fund had taken a long time to be established. They were impatient and they were more impatient when we opened and we were not able to respond.
David Cullinane (Waterford, Sinn Fein)
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Who was impatient?
David Cullinane (Waterford, Sinn Fein)
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"Frustrated" would perhaps be a more appropriate word.
David Cullinane (Waterford, Sinn Fein)
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Okay.
I want to draw Ms Higgins's attention to two areas. She spoke about consultancy firms that were appointed to do certain jobs of work. Mazars was one of them and Capita was the other.
David Cullinane (Waterford, Sinn Fein)
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Okay. How much did Mazars-----
David Cullinane (Waterford, Sinn Fein)
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An organisational review, which was essentially to tell Ms Higgins how to do her job. Would that be a fair assessment?
David Cullinane (Waterford, Sinn Fein)
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Were terms of reference set out for Caranua? A mandate was given to Ms Higgins in terms of her role. Was that given by the Department?
David Cullinane (Waterford, Sinn Fein)
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The legislation does that. I am wondering why Ms Higgins would have a needed a company to inform her as to what she needed to do. She was employed because she applied for the job, she has a certain skill set, she went for interview and got the job. Other people were working there and with the mandate she was given, she should have been able to do her job. Why was there a need to employ the services of this company and how much did that cost? Did that cost come from the budget or was it a separate cost? Ms Higgins may have applied to the Department to cover those costs.
David Cullinane (Waterford, Sinn Fein)
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Some €24,000 was spent on consultants. Has Ms Higgins project management experience?
David Cullinane (Waterford, Sinn Fein)
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Have other staff in the organisation project management experience?
David Cullinane (Waterford, Sinn Fein)
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Ms Higgins can understand why these questions would be put. This seems to be coming up a great deal in organisations funded by the State. We employ people to do a job and they go off and employ consultants at more cost.
Ms Mary Higgins:
I think it is true and it is a very good point. There seems to be a pattern of establishing State bodies and each State body seems to go through the same early pain of establishment and trying to get everything in place. That is a good point and perhaps there is a way that could be streamlined for everybody.
David Cullinane (Waterford, Sinn Fein)
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How much of the work of Caranua was outsourced? Ms Higgins mentioned something about that earlier.
David Cullinane (Waterford, Sinn Fein)
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Outsourced as in work being done by outside organisations.
David Cullinane (Waterford, Sinn Fein)
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None.
David Cullinane (Waterford, Sinn Fein)
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Yes. How many agency staff would it have provided?
David Cullinane (Waterford, Sinn Fein)
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Twelve. On page 6 of the briefing note that Ms Higgins provided, there is table 1 and I ask if it could be put up on screen. I want to raise an issue that is important in terms of doing a look back exercise which, unfortunately for us, is all that we can do. It has been acknowledged that the level of the service for survivors was poor and appalling in the past and, for them, this adds insult to injury. We need to make sure that mistakes are not made in the future in terms of any organisation. There is a pattern here when we see what is revealed by a look back exercise. From table 1 we can see that the audited accounts for 2014 show that the cost of salaries and wages was €791,000, that figure increased to €1.3 million in 2015 and to €1.492 million in 2016 and it is now at its highest in 2016. When we note the volume of work which is set out underneath, it shows there was much more activity going on in 2015 than there was in 2016. At a time when the number of people applying for the service, the number of applications to be processed, the number of telephone calls received and so on are reducing, staffing costs have increased. It strikes me that we have gone the wrong away around on this. At a time when staff were needed, we did not have them and now when the service is starting to be scaled down, the cost of staff salaries is at its highest. Can Ms Higgins see that problem in the first instance?
David Cullinane (Waterford, Sinn Fein)
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Can Ms Higgins stick to the question I asked? I draw her attention to table 2, on the screen, which covers applications by years and associated activity. In 2015, the cost of salaries was €1.3 million, having jumped from €791,000 the previous year. The cost of salaries was €1.3 million in 2015 and €1.492 million in 2016. If we note the activity, 1,228 people applied for the service in 2015 and 585 applied in 2016-----
David Cullinane (Waterford, Sinn Fein)
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-----which was fewer than half number the previous year yet staff costs have increased. In 2014, 3,821 applied for the service and at that time the cost of staff salaries was only €791,000. At a time when 3,821 were applying for the service, the cost of staff salaries was €791,000 and at a time when 585 people were applying for the service the cost of staff salaries is €1.492 million. I am not necessarily blaming Ms Higgins for this, it goes back to points that were made earlier. I suggest that again this is another botched job. We do things backwards. When the organisation needed the staff, it did not have them, and when the activity of the service is beginning to wind down staff costs have increased. Can Ms Higgins appreciate that point?
Seán Fleming (Laois, Fianna Fail)
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The Deputy has made the point and he might let Ms Higgins explain the position.
Ms Mary Higgins:
The people who came into the service in 2014 did not necessarily get dealt with from beginning to end in 2014 and so they move across the years and we have been carrying a backlog. These are activities that relate to services. Because people come into the service, it does not mean they have come in and gone, they come back. The Deputy is right. I completely understand what he is saying, namely, that if we had the staffing at the beginning, we would not have had the backlog, the quality of services would have been better and perhaps we would be winding down staffing at this stage. We are where we are and we need to realise the opportunity presented by the staff that we have to really make a difference to the lives of survivors.
David Cullinane (Waterford, Sinn Fein)
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I do not doubt that is Ms Higgins's intention but the phrase "we are where we are" refers to a situation where the overall cost here is €1.5 billion of the overall cost of dealing with abuse.
David Cullinane (Waterford, Sinn Fein)
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We dealt earlier with the contributions we are getting from the religious congregations, which is quite a small amount. Again, I do not accept the argument that we are where we are. Why do we always end up in that space? We get the forecasting wrong. We did not anticipate the level of activities there would be when the organisation was set up. The same problems keep recurring. People appear before the Committee of Public Accounts, they acknowledge mistakes were made and they go out the door. The Secretary General, who is the Accounting Officer will go out the door, and we could be back here in one, two or five years if the same problems arise. It gets a bit tiring and it is difficult for us because all we can do is put questions.
Ms Mary Higgins:
I completely accept that and I can understand that would be frustrating. The evidence is very clear here. In organisational terms, we are a very young organisation and, for us, 2013 was not a full year. We have only a few years under our belt. I agree completely with the Deputy that there are ways that we can collectively do more to get those things right in the first instance.
David Cullinane (Waterford, Sinn Fein)
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Okay.
Ms Mary Higgins:
The only thing I can say in this case is that the Comptroller and Auditor General made recommendations and we are in the process of implementing them. We are not going away and not doing anything about them. Similarly, Mazars made recommendations and we have implemented all of those.
David Cullinane (Waterford, Sinn Fein)
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I accept that.
I have two more questions. The first concerns the counselling services that were provided. Were some of those provided by organisations funded exclusively by the religious orders, or organisations which are an extension of religious orders?
Ms Mary Higgins:
There is the National Counselling Service, which is funded by the HSE and the Connect counselling service, which is an offshoot of that, and it is simply a telephone service. There is the Immigrant Counselling and Psychotherapy service, ICAP which is based in the UK, although it deals with people here and there is Towards Healing, which is the organisation that is funded by the religious orders.
David Cullinane (Waterford, Sinn Fein)
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Would survivors have been made aware that Towards Healing was funded by and was an extension of the religious orders?
David Cullinane (Waterford, Sinn Fein)
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I am not saying there was a secret. I am asking if, when the service was provided, people were made aware, given the sensitivities involved. Does Ms Higgins understand what I am asking? Were they made aware?
David Cullinane (Waterford, Sinn Fein)
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Does Ms Higgins think they should have been made aware?
David Cullinane (Waterford, Sinn Fein)
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Will Ms Higgins find out if they were made aware?
David Cullinane (Waterford, Sinn Fein)
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Will Ms Higgins find out for the committee if they were made aware?
David Cullinane (Waterford, Sinn Fein)
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Then it comes down to choice.
David Cullinane (Waterford, Sinn Fein)
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It is important that people be given information in that respect. Does Caranua have a budget for foreign travel for staff and others?
David Cullinane (Waterford, Sinn Fein)
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Where in the United Kingdom?
David Cullinane (Waterford, Sinn Fein)
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When Ms Higgins says survivors-----
David Cullinane (Waterford, Sinn Fein)
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Right.
David Cullinane (Waterford, Sinn Fein)
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I am not talking about them. I am talking about staff, including Ms Higgins and other board members.
David Cullinane (Waterford, Sinn Fein)
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Is there a budget for foreign travel?
David Cullinane (Waterford, Sinn Fein)
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How much is it? The committee might be furnished with a breakdown of the budget. I do not want to pry into people's travel arrangements.
Mr. David Yeomans:
We presented our projections for expenditure in the next two and a half years. For travel and subsistence for staff and the CEO, we have budgeted for a figure of about €18,000 a year. That is based on an average figure for the past three years. Every year the board reviews the particular outreach programme and every year the plans would be approved. They keep them under review.
David Cullinane (Waterford, Sinn Fein)
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I thank Mr. Yeomans.
Caranua has at least acknowledged today that there were issues with the service, although they have mainly been put down to huge pressures in terms of staffing and the volume of requests coming in. As elected representatives and committee members, we have received correspondence from individuals who feel aggrieved and upset. What measures has Caranua taken to reflect its acceptance, as a corporate entity, that there were failures? How has it communicated this to survivors, given the sensitivities involved? We all know that we needed to make sure survivors would get the best possible service. However, that does not seem to be the case in this instance and it is troubling, notwithstanding the reasons. Has the board of Caranua reflected on this and discussed how it can communicate with survivors that it got it wrong? Without acknowledging that it was necessarily at fault, Caranua should communicate that it just got it wrong and that the service was not what it should have been. Was that message ever communicated to survivors?
Ms Mary Higgins:
If the Deputy looks at our annual reports, it is stated very clearly up until this year's report. I think we are saying in the report for 2016 that we have finally got to the point where we are really doing things properly. The 2014 and 2015 reports stated very clearly that the waiting lists were far too long and that people were waiting far too long. We have always accepted that. We apologise to those who are waiting and do stay in touch with them.
David Cullinane (Waterford, Sinn Fein)
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Does Caranua apologise to them personally? How is the apology communicated to them?
David Cullinane (Waterford, Sinn Fein)
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Does Ms Higgins understand most people do not read annual reports of any organisation?
David Cullinane (Waterford, Sinn Fein)
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It would not be the best way to reflect an acknowledgement that there were failures.
Ms Mary Higgins:
The point I want to make is that we are in touch with survivors on a daily basis. They are in contact with our office and we are talking to them all the time. There is ongoing communication with survivors, of whom 6,000 have applied to us. We have dealt with about 150 telephone calls to our freefone number. We are constantly in contact with people.
Catherine Connolly (Galway West, Independent)
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I have a number of quick questions. The telephone calls were primarily answered by agency staff?
Catherine Connolly (Galway West, Independent)
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I am sorry; I was indistinct. The number of agency staff was extraordinarily high, given the pressure. Caranua had no staff and went for agency staff. Is that right? What was the highest percentage of agency staff?
Catherine Connolly (Galway West, Independent)
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What was the highest percentage?
Catherine Connolly (Galway West, Independent)
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While he is getting the figures, I want to know the highest percentage and the cost. In addition, I asked a direct question. I hope Mr. Yeomans is coming back to me with the list of external and internal audits - all of the reports. There was one from Mazars and I heard another one mentioned in answer to Deputy David Cullinane. Please give me a list and the price. One figure has been given. If the witnesses could do that before the end of the meeting, I would appreciate it. This is all about value for money. What was the highest percentage of agency staff?
Catherine Connolly (Galway West, Independent)
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That is table 4 in the briefing document.
Catherine Connolly (Galway West, Independent)
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It covers temporary agency staff. Will Mr. Yeomans take me through it?
Catherine Connolly (Galway West, Independent)
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The figures for temporary agency staff are 7.7 and 13.8. Is that right?
Catherine Connolly (Galway West, Independent)
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Therefore, at one stage Caranua had 13.8 agency staff, meaning that the majority of its staff in 2015 were agency staff?
Catherine Connolly (Galway West, Independent)
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There is a huge turnover of staff. Is that right?
Catherine Connolly (Galway West, Independent)
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What is the total cost of agency staff? While Mr. Yeomans is getting that figure, he might get the information required on the other matter also.
Catherine Connolly (Galway West, Independent)
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That is okay. I am sure the Chairman will facilitate Mr. Yeomans. The witnesses should have these figures. This is a value for money committee. In January, at 14, the figure was appalling. Let me continue with my questions while Mr. Yeomans is looking for the information. Is there rent involved?
Catherine Connolly (Galway West, Independent)
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Is the organisation based in an Office of Public Works building?
Catherine Connolly (Galway West, Independent)
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It was rent free until this year.
Catherine Connolly (Galway West, Independent)
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Why is rent payable now and what is the cost involved?
Catherine Connolly (Galway West, Independent)
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Has Caranua moved buildings?
Catherine Connolly (Galway West, Independent)
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Why?
Catherine Connolly (Galway West, Independent)
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Why is the Department of Education and Skills not renewing the lease?
Catherine Connolly (Galway West, Independent)
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Can Mr. Ó Foghlú throw any light on it?
Catherine Connolly (Galway West, Independent)
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Caranua is introducing limits and restrictions to its scheme and it will now have to pay market rent on a building? Does Mr Ó Foghlú think that is appropriate?
Catherine Connolly (Galway West, Independent)
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Was this matter brought to the attention of the Department before?
Catherine Connolly (Galway West, Independent)
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Does Ms Higgins know what rent Caranua will be paying?
Catherine Connolly (Galway West, Independent)
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That is €240,000 for-----
Seán Fleming (Laois, Fianna Fail)
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Therefore, it would out at €750,000.
Catherine Connolly (Galway West, Independent)
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I am sorry; I did not hear the answer.
Seán Fleming (Laois, Fianna Fail)
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She said the figure would be €240,000 per annum, or €750,000 from the survivors' fund.
Catherine Connolly (Galway West, Independent)
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Let us move on. Under the Act, if local authorities are so directed, liaison officers are appointed. How many liaison officers have been appointed?
Ms Mary Higgins:
I think initially all local authorities appointed liaison officers.
The HSE has appointed a high level group.
Catherine Connolly (Galway West, Independent)
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Has Caranua contacted all local authorities to appoint liaison officers?
Catherine Connolly (Galway West, Independent)
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I checked with the city council today. It does not have a liaison officer in Galway.
Catherine Connolly (Galway West, Independent)
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I ask Ms Higgins to please listen to me. I know that it is Thursday afternoon and we are all tired and mad keen to get home for Easter, none more so than myself. The question is how many local authorities has Caranua contacted to ask who is their liaison officer and state it wants them to have a liaison officer. That is the question and Ms Higgins is not answering it. Weill she, please, come back to me on it? The next question is-----
Seán Fleming (Laois, Fianna Fail)
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Does Ms Higgins know the answer?
Catherine Connolly (Galway West, Independent)
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How many?
Catherine Connolly (Galway West, Independent)
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This is really important - having a liaison officer in a local authority - because part of Caranua's role is to access other services.
Catherine Connolly (Galway West, Independent)
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Ms Higgins understands it all. I want a list of liaison officers.
Catherine Connolly (Galway West, Independent)
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When did Caranua update it since 2013? The city councils are constantly understaffed and staff are constantly moved. Has there been a designated person who stays as the liaison officer and gains experience? If Ms Higgins does not know the answer, she should, please, come back and tell me.
Catherine Connolly (Galway West, Independent)
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What is the name of the counselling group Ms Higgins mentioned? Is it a survivors group?
Catherine Connolly (Galway West, Independent)
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My next question is for Mr. Ó Foghlú. According to the Comptroller and Auditor General's report the counselling is provided utterly free - wrong word - it is provided by the congregations. They pay for the counselling. The previous organisation was Faoiseamh and this one took over. I have a difficulty with it for some reason. What is the name of it?
Catherine Connolly (Galway West, Independent)
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All of Towards Healing's activities are funded by the congregations, is that right?
Catherine Connolly (Galway West, Independent)
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The Comptroller and Auditor General might comment because I think it is mentioned in his report. Will he clarify the position for me?
Catherine Connolly (Galway West, Independent)
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I am reading page 36: "In 2011, a new service provider – Towards Healing – replaced Faoiseamh and is funded exclusively by the religious congregations and the Irish Conference of Bishops". Is that Mr. McCarthy's understanding?
Catherine Connolly (Galway West, Independent)
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I understand the permission of the Minister is needed when Mr. O'Callaghan and the Department of Education and Skills seek contracts. Is that right?
Catherine Connolly (Galway West, Independent)
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What contract, if any, did Caranua sign with Towards Healing?
Catherine Connolly (Galway West, Independent)
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Why not?
Mr. David O'Callaghan:
We did not see it as a contract as such in terms of a contract to purchase goods or services, no more than we seek sanction to go to the HSE or a local authority in respect of building works or anything like that. This was a service provider we were using to which some of our survivors opted-----
Catherine Connolly (Galway West, Independent)
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Did Caranua discuss the matter at board level?
Catherine Connolly (Galway West, Independent)
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When did it discuss it at board level?
Catherine Connolly (Galway West, Independent)
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There was a memorandum of understanding, is that right?
Catherine Connolly (Galway West, Independent)
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Will Mr. O'Callaghan tell me a little about it? There is no date on the one I have.
Catherine Connolly (Galway West, Independent)
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I beg Mr. O'Callaghan's pardon. There is a date, 8 October 2014. Will Mr. O'Callaghan tell me a little-----
Catherine Connolly (Galway West, Independent)
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Will Mr. O'Callaghan give me the gist of what he understood in the memorandum of understanding?
Mr. David O'Callaghan:
My understanding is that some of our survivors opt to go to Towards Healing for counselling. This counselling service provides 80 sessions free, after which Towards Healing requires payment. Some of our survivors wish to have more than 80 sessions. In these circumstances Caranua has agreed with Towards Healing that it will pay.
Catherine Connolly (Galway West, Independent)
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How much has Caranua paid to this organisation?
Catherine Connolly (Galway West, Independent)
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The minutes are all available to us.
Catherine Connolly (Galway West, Independent)
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That was in 2014. How much money has been paid over to the organisation?
Catherine Connolly (Galway West, Independent)
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I do not know why Caranua would need a memorandum of understanding. Does the Department know anything about this?
Catherine Connolly (Galway West, Independent)
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Does Caranua hand over money to this organisation?
Catherine Connolly (Galway West, Independent)
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No, the financial controller, please.
Catherine Connolly (Galway West, Independent)
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What is handed over? How and when is it handed over?
Catherine Connolly (Galway West, Independent)
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I am sorry; I missed that.
Catherine Connolly (Galway West, Independent)
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The applicant gives permission to share.
Mr. David Yeomans:
Correct. The second stage is that Towards Healing and its independent clinical psychologist recommend that the person should continue to receive counselling beyond the 80 sessions. The third stage is ensuring there is approval for the eligible applicant. We can then settle the matter.
Catherine Connolly (Galway West, Independent)
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Every applicant has a choice which is made known to them.
Catherine Connolly (Galway West, Independent)
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I apologise to Ms Higgins, but I am going to stay with the financial officer for the moment. There are six monthly invoices.
Catherine Connolly (Galway West, Independent)
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That has been happening in the past few years. By whom are the invoices issued?
Catherine Connolly (Galway West, Independent)
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Caranua has no up-to-date figures for the amount that has been paid over.
Catherine Connolly (Galway West, Independent)
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Please, Ms Higgins. These are practical questions.
Catherine Connolly (Galway West, Independent)
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Has Mr. Yeomans any idea or an estimate? Can he remember, as financial officer?
Catherine Connolly (Galway West, Independent)
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At one point €96,000 was paid.
Catherine Connolly (Galway West, Independent)
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Mr. Yeomans will give us a list and have the figures very quickly for us.
Catherine Connolly (Galway West, Independent)
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I understand from the Comptroller and Auditor General's report that this organisation is providing free services. Was he aware that it was receiving payments?
Catherine Connolly (Galway West, Independent)
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We do not know if it has provided services to a value of €10 million. We do not know if the figure is less or more.
Catherine Connolly (Galway West, Independent)
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I interrupted Ms Higgins. I am now going to give her a chance. I put it to her that letters were sent to tell applicants that their applications were closed or complete. How many such letters have been sent?
We have completed over 2,000, about 2,020, applications. Our practice in terms of completions is that a completion occurs when somebody has gone through the process and has received payments. It is done in conjunction with the applicant and the adviser-----
Catherine Connolly (Galway West, Independent)
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Ms Higgins, please listen to me. There is huge upset. I realise some people are very happy with the service. Other applicants are not. I am simply reflecting what I have read and heard so I am asking Ms Higgins-----
Catherine Connolly (Galway West, Independent)
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Ms Higgins referred to 2,000 letters.
Catherine Connolly (Galway West, Independent)
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I did not ask what Caranua had completed. I asked Ms Higgins how many letters were sent out to applicants telling them that their application was complete.
Catherine Connolly (Galway West, Independent)
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A total of 2,219 telling the applicants. On every single occasion, was there a discussion with the adviser?
Catherine Connolly (Galway West, Independent)
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We are up to here with procedures and policies from every single institution that comes before us. I am talking about the implementation of the policy.
Catherine Connolly (Galway West, Independent)
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When Caranua's staff wrote to 2,219 people saying their applications were complete, was that the policy? What does it mean to say their applications were complete? Is that the end? Is it the case closed?
Catherine Connolly (Galway West, Independent)
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When did this policy come into being?
Catherine Connolly (Galway West, Independent)
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That is not correct. These letters were not sent out from day one.
Catherine Connolly (Galway West, Independent)
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Could Mr. Callaghan state when this was discussed at board level?
Catherine Connolly (Galway West, Independent)
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If I interrupted Ms Higgins, I apologise. I thought she was finished.
Ms Mary Higgins:
I had not completed. It is an interesting thing that has happened to Caranua. As I said at the beginning, we really understand the difficulties that people experience in reading and getting letters. We know that people are very discommoded, and they will say that to us. They are distressed when they get letters if they do not understand them or they are not able to read them. Our practice at the beginning was to talk to people, to telephone them and to advise them on what we were doing. We did not necessarily then send letters. However, it happened that we then got into trouble for not sending letters because we were accused of not advising the applicants of the decision that we had made. Hence, we had to start sending letters.
Catherine Connolly (Galway West, Independent)
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The most basic requirement is that one would write and convey a decision. What does it mean to say Caranua got into trouble because it did not do it? Is it not the most basic requirement that an organisation would write a letter stating its decision, stating the decision may be appealed, giving the time within which the appeal should be made and stating the appeals officer's name and how to do it? Is that not the most basic requirement?
Ms Mary Higgins:
We did not actually see it as a decision because the conversation was to the effect that we had done this and that, telling the applicants they were going to get these payments and that all their needs were met and asking them whether that was okay. That would have been the procedure. We did not actually see it as a decision on an application because it was the end of the application.
Catherine Connolly (Galway West, Independent)
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Ms Higgins-----
Catherine Connolly (Galway West, Independent)
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Could Mr. O'Callaghan state whether this was discussed at board level?
Catherine Connolly (Galway West, Independent)
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Can I explain the significance of a decision? Somebody is allowed to appeal that so if they are not told in a letter, is that not a difficulty?
Catherine Connolly (Galway West, Independent)
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Let me just quote:
Dear [G],
Further to your conversation with your adviser, I am writing to confirm that your application with Caranua is now complete. As you know, we require receipts for all payments that we make to you and I would be grateful if you could return any outstanding receipts to us using the enclosed envelope. We are delighted to have been able to respond to the needs that you presented to us and hope that you will be able to enjoy the benefits of the assistance you have received into the future.
There are a number of difficulties with that letter. First, Caranua is telling the applicant the application is complete. Second, it is not telling him or her that it is a decision that can be appealed and, therefore, the person cannot bring an appeal to the appeals officer. Some people did and the appeals officer said he or she was awfully sorry as that was not a decision or a determination so he or she could do nothing. Does Mr. O'Callaghan understand the significance of those types of letters?
Catherine Connolly (Galway West, Independent)
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Good.
Catherine Connolly (Galway West, Independent)
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No, no, no. The happiness is happiness coming from Caranua.
Catherine Connolly (Galway West, Independent)
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I did not say anything of the sort. I am reading from a letter that Caranua sent out, the important point being, "Further to your conversation with your adviser, I am writing to confirm that your application [...] is now complete."
Catherine Connolly (Galway West, Independent)
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Caranua does but it does not tell the applicant this is a decision and that it can be appealed. Therefore, that applicant and the other applicants do not know where they are. They are being told it is complete. They cannot appeal it. The appeals officer will not entertain it - I am sure Mr. Ó Foghlú will confirm that - unless a decision is made and an explanation is given. Mr. O'Callaghan does not seem to be aware of that. I will come back to Mr. Ó Foghlú in a minute, if I can, in relation to a review of the board and who is going back on the board and so on.
In relation to the difficulties that have arisen from the Comptroller and Auditor General's viewpoint and the lack of receipts and internal controls, this does not reflect in any way my reading of his report on the survivors or the applicants; it reflects on Caranua. Caranua's change of policy is now to go directly to the suppliers and it feels that is not in conflict with the Act, and that it is able to disclose. Even though there is a confidentiality section, a decision was made at board level that it can be breached. Is that not right?
Catherine Connolly (Galway West, Independent)
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The Caranua briefing document states the board noted this would not be a breach of confidentiality. Did the board make the decision it would not be a breach?
Catherine Connolly (Galway West, Independent)
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That is exactly what I am asking about. Caranua is having difficulty with receipts.
Catherine Connolly (Galway West, Independent)
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I beg your pardon. I meant receipts in relation to anything and the procurement of receipts. Obviously, some of us, myself included, have a difficulty keeping receipts. The Comptroller and Auditor General has asked how the organisation knows how the money was spent if it does not have receipts. Does Mr. O'Callaghan accept that?
Catherine Connolly (Galway West, Independent)
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Then Caranua set about getting receipts. One of its solutions to that at board level is to say it interprets the Act in such a way and can go direct to the supplier to get the receipt? Is that right?
Catherine Connolly (Galway West, Independent)
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And that does not breach confidentiality. That decision has been made at board level.
Catherine Connolly (Galway West, Independent)
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Let me continue. I am only quoting. I will give the delegates plenty of time, subject to the ruling of the Chairman. I refer to the briefing document's reference to Caranua's board meeting and the thing about receipts. The delegates' document states the board noted that this would not be a breach of confidentiality and that the board agreed to provide this authority and so on, subject to limits. The board noted that this would not be a breach of confidentiality. Is it or is it not, according to the board?
Catherine Connolly (Galway West, Independent)
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That is right. I am not trying to catch the delegates out; I am only trying to clarify something. The board made a decision that this was not a breach of confidentiality. Is that right?
Catherine Connolly (Galway West, Independent)
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That is right. Ms Higgins, on the last page, the second paragraph from the top, of her three page opening statement dated 13 April 2017 states:
Caranua is engaged in the delivery of a care service to people who may be vulnerable. .... We do require receipts but we are prohibited by the confidentiality provisions of our legislation in seeking these from suppliers and are dependent on our applicants providing them.
That paragraph clearly contradicts what Mr. O'Callaghan has just told me.
Catherine Connolly (Galway West, Independent)
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Let me read it again.
Catherine Connolly (Galway West, Independent)
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I understood exactly what has been said. The paragraph states: "We do require receipts but we are prohibited by the confidentiality provisions of our legislation in seeking these from suppliers."
Ms Mary Higgins:
Yes. What I was trying to do was address directly the key concerns. The major concerns of the Comptroller and Auditor General's report were in relation to the lack of quotes and the lack of receipts. I was addressing myself to that in particular by way of explaining the difficulty that we have. Under the legislation we cannot go to suppliers directly and get receipts. Our solution to that is, as the Deputy has just discussed with the Chair, the board can make a decision in certain circumstances. If the board instruct that something can be done then we are not in breach of the legislation and that is what the board is proposing to do.
Catherine Connolly (Galway West, Independent)
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The briefing document was written on 13 April and the opening statement by Ms Higgins was written on 13 April but one contradicts the other. I am glad that Ms Higgins has clarified the matter. She has said that the board has made a decision and the organisation is guided by that.
My next question is on receipts and limiting the suppliers. One of my colleagues has asked the same question. Has Caranua restricted the number of suppliers to applicants?
Catherine Connolly (Galway West, Independent)
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Has Caranua begun the restriction of suppliers?
Catherine Connolly (Galway West, Independent)
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Does that come down to small builders?
Catherine Connolly (Galway West, Independent)
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Has Caranua put a limit on who applicants can approach?
Catherine Connolly (Galway West, Independent)
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Forget that for the moment. I am talking about extensions and similar work in a house. Are the applicants limited?
Ms Mary Higgins:
No. We have a contract with the SEAI. That is the only contract that we have at the moment. The SEAI do specific works in relation to energy efficiency. If somebody is looking for those works then that would be our preferred supplier in Ireland. We are also in contact with the City and County Managers Association and looking at their lists of builders so that we can use those lists because that assures the quality of services and that there are checks and oversight of the work that is done. It means that we can be billed directly and that applicants are not involved in having to get quotations and receipts.
Catherine Connolly (Galway West, Independent)
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Let us say somebody goes back to Caranua and claims he or she has not experienced a good service and the quality was not checked in terms of the chosen project. Will Caranua listen to the complaint?
Catherine Connolly (Galway West, Independent)
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In terms of receipts, did it occur to Caranua to say to applicants, "Look, if you are like me then don't worry about receipts but give us permission and we will get them directly to save you that hassle" and give applicants choices?
Ms Mary Higgins:
What we were doing was giving applicants authority over their own affairs. They took responsibility to return receipts to us and many people do. Obviously there is a time lag between the time we approve and make a cheque available to somebody, the time the work is done and when the receipt comes in. We did not assume that we would not get receipts back. We assumed that we would get receipts back.
Catherine Connolly (Galway West, Independent)
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This is an organisation that was in trouble from day one, not because of applicants and receipts but because of internal controls. I am still waiting on the figure for the number of companies that Caranua had to bring in to put things right.
The Comptroller and Auditor General has asked how can one know whether there has been an overpayment or underpayment without receipts so this problem has been flagged. In all of the consultations by Caranua, informal and formal, did it ever occur to the organisation to discuss the issue to decide whether the situation is a burden and, if it was, seek permission to do this work directly? Did that occur to the organisation? I presume it is not necessary to say there was a choice. Part of the whole set-up of Caranua is to treat people with dignity and respect. "Empower" was the word uttered by the witnesses.
Catherine Connolly (Galway West, Independent)
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Very good.
Catherine Connolly (Galway West, Independent)
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Great. I am almost finished, Chairman. Have conflicts of interest been declared?
Catherine Connolly (Galway West, Independent)
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Is there a policy and procedure in place to deal with conflicts of interest?
Catherine Connolly (Galway West, Independent)
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I wish to discuss the board and the three policy changes. This starts off in 2014 and there is no limit. Is that right? Caranua is overwhelmed and at some stage the policy changes to limit the amount of money. Was the decision made at board level?
Catherine Connolly (Galway West, Independent)
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Ms Higgins, did the policy work on the ground?
Catherine Connolly (Galway West, Independent)
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Yes.
Catherine Connolly (Galway West, Independent)
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That is all right.
Catherine Connolly (Galway West, Independent)
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Was the decision to prioritise made at board level?
Catherine Connolly (Galway West, Independent)
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Did the priority system operate on the ground before the board made a decision?
Catherine Connolly (Galway West, Independent)
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I shall again ask both witnesses a specific question. In July 2015 the board made a decision about a priority system. Presumably it was brought to Mr. O'Callaghan's attention. As Ms Higgins has just said, they were under serious pressure and they had to prioritise. Can I presume the matter was put tothe board and that is why the board agreed to have a priority system?
Catherine Connolly (Galway West, Independent)
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Can we see all of that in the minutes?
Catherine Connolly (Galway West, Independent)
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Are they?
Catherine Connolly (Galway West, Independent)
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I will be able to see that in July 2015 the decision was made to prioritise. Ms Higgins, as I have asked already, was the priority system in place, informally or otherwise, prior to the board's decision in July 2015?
Catherine Connolly (Galway West, Independent)
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It was not.
Catherine Connolly (Galway West, Independent)
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If applicants come forward and say that some member of Caranua communicated with them about this priority list prior to the board's decision in July 2015 then that is inaccurate?
Catherine Connolly (Galway West, Independent)
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I am asking black and white questions at this point. We have been told that applicants were told that before the board's decision. Is that wrong?
Catherine Connolly (Galway West, Independent)
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Did Caranua implement the decision before that date?
Catherine Connolly (Galway West, Independent)
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Definitely not?
Seán Fleming (Laois, Fianna Fail)
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The Deputy can ask her question later if it is not answered.
Catherine Connolly (Galway West, Independent)
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Can Mr. O'Callaghan tell me when the limit was discussed?
Catherine Connolly (Galway West, Independent)
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What was the reason for the discussion? Why was the limit reached? What was the context? What advice was given to the organisation?
Catherine Connolly (Galway West, Independent)
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Yes.
Catherine Connolly (Galway West, Independent)
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Who told the organisation that was the case?
Catherine Connolly (Galway West, Independent)
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Mr. Yeomans.
Mr. David O'Callaghan:
There were forecasts made as to how, if we went on the way we were, we would run out of funds at an early date. We decided that to be fair and equitable, and at the same time to take advantage of or use the input and feedback that we received from survivors, that the supply of things like white goods, funeral expenses, which were not allowed should be. The whole thing was packaged together. The feedback that we have been getting is very positive.
Catherine Connolly (Galway West, Independent)
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How much money has been spent out of the €110 million?
Catherine Connolly (Galway West, Independent)
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That leaves €50 million.
Catherine Connolly (Galway West, Independent)
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Where did Caranua get the idea that it was running out of funds?
Catherine Connolly (Galway West, Independent)
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Funnily enough, we had financial forecasts from the Department of Education and Skills back in 2002 that were completely wrong in the opposite direction because they underestimated. It seems to me that the number of applicants consistently dropped.
Is that not right? The lowest figure was in 2016.
Catherine Connolly (Galway West, Independent)
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I hope there will be more. However, a sum of €50 million remains. Have applications closed?
Catherine Connolly (Galway West, Independent)
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Are they ongoing?
Catherine Connolly (Galway West, Independent)
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When was the meeting at which the presentation was made?
Catherine Connolly (Galway West, Independent)
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Are there minutes of that meeting?
Catherine Connolly (Galway West, Independent)
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It went to the board. There is €50 million in a fund at a time when there is a declining number of applications. Where did Caranua get the notion that there would not be enough money? Was it from an accountant?
Catherine Connolly (Galway West, Independent)
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I know that it is late, but I am unhappy. Have 2,000 files been put away complete?
Catherine Connolly (Galway West, Independent)
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They cannot come back again because Caranua is writing to tell them that their file is complete. It is simple English. Caranua is writing to them to state, "Your file is complete". Mr. O'Callaghan has confirmed that 2,000 have been put aside and are complete. At what stage will the organisation make it known to the applicants that they can come back if their needs have not been met?
Catherine Connolly (Galway West, Independent)
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I refer to the people with whom there is no mutual agreement. They have come to us and, possibly, every Oireachtas Member to say they have gone forward and: "They said they met my needs. I was informed that there was a limit on the services that could be received ... told that there was no hope in hell Caranua would pay for it ... told "wasn't entitled". They said they have dealt enough with me and I had to make an appeal ... said I had reached my limit ... said they were prioritising first-time applicants". I do not wish to interfere with any board decision, but I would like to see decisions based on some evidence that a fund is in trouble, which it is not, and a justification for a change in policy on a number of occasions, I believe, retrospectively. However, I take Ms Higgins' word that it was not retrospective and that it did not happen, but there were different changes of policy over a number of years. How is that communicated to the applicants who believe their needs have not been met, despite having received a payment or two or more? There was no policy in the beginning. Applicants came forward and their needs were met in respect of the initial application. They then came forward with others. At some stage, Caranua's policy changed and officials decided that they were in trouble and would limit the money, notwithstanding the fact that the number of applicants was reducing and there was €50 million in a fund, presumably plus interest as a result of investments.
Catherine Connolly (Galway West, Independent)
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I am asking Mr. O'Callaghan to answer that question.
Catherine Connolly (Galway West, Independent)
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Is the forecast-----
Catherine Connolly (Galway West, Independent)
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That would be helpful.
Catherine Connolly (Galway West, Independent)
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Caranua was not running out of money.
Catherine Connolly (Galway West, Independent)
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Caranua was not running out of money when it made this decision.
Catherine Connolly (Galway West, Independent)
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I do not object to Caranua making decisions; I seek clarification-----
Catherine Connolly (Galway West, Independent)
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Let me finish, please. I am trying to find out how Caranua arrived at the decision and why it was worried that it would run out of funds. That is what I am trying to establish. On the basis of what I have in front of me, I cannot make head nor tail of how one would think the organisation was running out of funds.
Seán Fleming (Laois, Fianna Fail)
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What was the payout in 2016?
Seán Fleming (Laois, Fianna Fail)
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I can see where Deputy Catherine Connolly is coming from. In 2015 Caranua paid out approximately €30 million. In 2013, over nine months, it paid out little or nothing when it was starting off. In 2014, according to the summary presented by the Comptroller and Auditor General an hour ago, the total payout was €10 million. In 2015 the total for grants and administration costs was €30 million. In 2016 the total for grants and administration costs was €15 million. How many years will the remaining €50 million cover?
Seán Fleming (Laois, Fianna Fail)
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Therefore, it is a figure of €25 million. Has there been a remarkable increase in payouts this year so far?
Seán Fleming (Laois, Fianna Fail)
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Of the 4,000 cases to which Mr. O'Callaghan referred as not being fully complete, is there much to be paid out? Very few people are now coming forward.
Ms Mary Higgins:
We are still receiving applications and part of what we will do in the next year is make a significant effort to try to reach people who have not come to us yet. We will then have to set a closing date beyond which people will be unable to apply. That will help to bring people to us also. People have made initial applications and think they will come back at some point in the future. They need to know that there is a closing date. That will help to bring them to us also.
Seán Fleming (Laois, Fianna Fail)
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I am sorry for cutting across Deputy Catherine Connolly.
Catherine Connolly (Galway West, Independent)
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The Chairman has been generous with time. I am finished. I would like the other matters I raised to be addressed by the agency staff. They should have had that information today. Will Mr. Ó Foghlú confirm there will be a review of Caranua and the board and what is involved? Mr. O'Callaghan should review procedures as a matter of urgency and, at the very least, write to every applicant, whether repeat or otherwise, to clarify that his or her case has not been completed if he or she considers his or her needs have not been met. The procedures should be clarified. The term "case complete" is not appropriate and gives the wrong message.
It was said that the organisation had only had three years and that it was a new organisation but it was never going to be an old organisation because it was given a specific period of time in which to do its work. The extra nine months at the beginning was very helpful and then there were three years to roll out the process in the fairest and most consistent way possible but policy changes have built inconsistency and unfairness into the system. Some applicants have been allowed to apply for more while some have been given a limit. This has built inequity into the process which is totally and utterly against the letter and the spirit of the legislation under which the organisation operates.
Ms Mary Higgins:
The Deputy made a number of references to our applicants coming to her or to other people. If people do this and they have concerns and questions, I appeal to the Deputy to make contact with us as we cannot do anything about them if we do not hear about them. We are completely committed to listening to what people have said and to putting right anything that is not right.
Catherine Connolly (Galway West, Independent)
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I specifically mentioned cases where people had written letters to the Department of Education and Skills, such as one on 16 October drawing its attention to the difficulties, but without reply. These difficulties have been brought to Caranua's attention. The various appeals that have been made have also brought matters to the witnesses' attention and I understand the appeals officer is in constant contact with them.
Catherine Connolly (Galway West, Independent)
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You will, then, be fully aware of these things.
Seán Fleming (Laois, Fianna Fail)
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Caranua is going to have to pay rent from this summer for the next two or three years and it will have to come directly out of funding that would have previously been available. I am going to ask the Department of Education and Skills for full clarification of that and to see if a public building is available. We have been talking about transferring and receiving assets but it is a bit absurd that part of the scheme is for assets to be transferred to the State while some of the money for the survivors' fund will have to go in rent. We want to avoid this if possible.
Mr. Seán Ó Foghlú:
The system does not work like that any more. The OPW provided funding for Departments to rent accommodation but that has now changed and, even where the OPW provides accommodation, the Department or agency has to pay. We will look at the question the Chairman has asked but the system has changed.
Seán Fleming (Laois, Fianna Fail)
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Mr. Ó Foghlú said there was a simple answer. We wanted him to explain the current situation and we will raise the issue again.
Catherine Connolly (Galway West, Independent)
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Has a contract been signed?
Seán Fleming (Laois, Fianna Fail)
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I ask the Department of Education and Skills to weigh in behind Caranua to see if anything can be done.
Seán Fleming (Laois, Fianna Fail)
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I do not know what the answer will be but it would be foolish not to at least ask if another option was possible. Do not tell the Comptroller and Auditor General that the OPW is not charging commercial rent, however.
I am a bit confused about confidentiality. Deputy Aylward asked about the people who had work done. Were cheques paid to individuals or the company?
Seán Fleming (Laois, Fianna Fail)
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Who is the third party?
Seán Fleming (Laois, Fianna Fail)
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It is like a bank draft.
Seán Fleming (Laois, Fianna Fail)
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The person does not go in with a Caranua cheque and the person at the other end does not know it is a Caranua cheque. That is important.
The witnesses do not need to go through the report of the Comptroller and Auditor General now but on page 36 it mentions that An Bord Pleanála refused planning permission for a memorial to survivors and the Department was considering how best to progress the project. What is the update on that?
Seán Fleming (Laois, Fianna Fail)
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When was that?
Seán Fleming (Laois, Fianna Fail)
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What is the explanation for the three-year delay?
Ms Catherine Hynes:
The winning design was only suitable for a particular site, that is the Garden of Remembrance. We had an excellent memorial committee chaired by Sean Benton. After the planning process there was a final report, one of the suggestions in which was to hold negotiations with Dublin City Council to see if there were alternative sites but none was possible because of the fact that the original design was site-specific. The winning design followed a protracted international competition but the memorial committee considered that only one of the designs submitted was suitable to be built. There was no need for a second round and no other design was even ranked in second place. We considered running another international competition but it would have been another four-year process and we decided our energies would be better directed towards looking at alternatives. We looked at a permanent exhibition to tell the stories of survivors as a permanent memorial to what happened to people who lived in institutional care in Ireland. Our next step will be to see if the memorial committee would be interested in exploring this possibility.
Seán Fleming (Laois, Fianna Fail)
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There is a long way to go.
Seán Fleming (Laois, Fianna Fail)
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It was said that four survivors were on the board of directors. It was also said that 61% of applicants had residency in Ireland so why are three of the four in question based in England?
Seán Fleming (Laois, Fianna Fail)
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If the majority of survivors are based in Ireland why is only one of them on the board of directors of Caranua?
Mr. Seán Ó Foghlú:
It is because of the selections made by the previous Minister. We are in a process with the Public Appointments Service and the date for applications has passed. The process is under way to enable the service to advise the Minister on the next round of board membership. We expect to hear from the service in the near future.
Seán Fleming (Laois, Fianna Fail)
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Would Mr. Ó Foghlú expect changes in the membership as a result of the new process?
Seán Fleming (Laois, Fianna Fail)
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How much is outstanding? The briefing note states that €110 million was yet to be realised.
That is roughly where we are at. Some of that is outstanding for 15 years. As Accounting Officer, does Mr Ó Foghlú have an date for when he expects the issue to be closed?
Mr. Seán Ó Foghlú:
It is not possible for me to have a definitive end date for the land transfers because we are working them through. Complex issues might remain to be addressed. However, the majority of the 11 outstanding properties are well advanced and we hope to have them over the line within the next year or so. There may be one which does not happen and there will have to be a cash contribution instead if it comes to that.
Seán Fleming (Laois, Fianna Fail)
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Is that €110 million outstanding listed as an asset in the Department's balance sheet in the appropriation account or is it an intangible asset?
Seán Fleming (Laois, Fianna Fail)
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Not directly to the Department, but to, say, the local authority or the HSE.
Catherine Connolly (Galway West, Independent)
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Can we get a list of the properties?
Seán Fleming (Laois, Fianna Fail)
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Please send an update on the properties at least every three or six months, to come to this committee as a matter of course.
Seán Fleming (Laois, Fianna Fail)
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We are not asking for every month. We would like six-monthly updates, that is not unreasonable.
It has been a long day. We want to dispose of the financial statement for Caranua for 2014 and 2015, we will agree on that.
On behalf of the Committee of Public Accounts I sincerely thank everyone for their forbearance. It has been a long day, we are here since early this morning. I thank the witnesses from Caranua, the Department of Education and Skills, the Department of Public Expenditure and Reform and the Comptroller and Auditor General's office. I wish everyone a relaxing Easter.