Mr. Seamus McCarthy:

I have a couple of observations on hospitality spending. The level of hospitality spending in organisations is generally a function of the culture. It may not be a lot of money in itself but it tells one a little bit about how governance is managed in an organisation. We examine expenditure on hospitality as part of a set of propriety tests we do every year. That process in itself acts as a control over the level of spending. However, sometimes we find something that looks to us to be excessive and in a situation like that we push for publication. With the revision of the code of practice, the Department of Public Expenditure and Reform has required organisations to publish where there is any significant level of hospitality.

They have got to declare what the spend has been. Questions then can be asked here by the committee or others who look at the financial statements, because it can clearly be seen what the level of spending is and justification can be sought. While there is not a provision for a direct sanction, the fact that the committee takes it seriously and regularly raises it has an effect of adding to that control that is exercised. Most public sector organisations are very careful about not spending in an extravagant way because this committee and our office are interested in it.