Batt O'Keeffe (Cork North West, Fianna Fail)

Targaím:

Go n-ainmníonn Dáil Éireann An tUasal Seán Ó Buachalla chun a cheaptha ag an tUachtarán mar Ard-Reachtaire Cuntas agus Ciste.

I move:

That Dáil Éireann nominates Mr. John Buckley for appointment by the President to be the Comptroller and Auditor General.

As Deputies know, the Comptroller and Auditor General, Mr. John Purcell, is retiring with effect from 14 May 2008. While this motion is about his replacement, it is appropriate that I begin by expressing my appreciation of the services rendered by Mr. Purcell during his time as Comptroller and Auditor General.

Mr. Purcell has been in this important position for almost 14 years and in that time he has carried out his functions in a very professional and effective manner. As we all know, the role of the Comptroller and Auditor General is a constitutional one and is extremely important in terms of public accountability and the performance of the public service. While the essential functions of the office remain as set out in the Constitution, its operation has evolved significantly during Mr. Purcell's tenure in line with developments in the general practice of audit in recent years and with various changes to strengthen accountability in Departments and other State agencies.

The year before Mr. Purcell's appointment, the Comptroller and Auditor General (Amendment) Act 1993 enhanced the nature of the audit process by giving the Comptroller and Auditor General a new statutory role in relation to economy, efficiency and effectiveness, that is to say value for money, about which I will say more later.

Mr. Purcell has, therefore, had to lead his office through a period of extensive change, with additional demands and skill requirements on him and his staff. He has fulfilled that role in exemplary fashion and leaves a legacy of considerable achievement.

The Office of Comptroller and Auditor General was originally provided for under the Exchequer and Audit Departments Act 1866. Article 33 of the Constitution sets down the responsibilities of the Comptroller and Auditor General in terms of his role as comptroller in controlling, on behalf of the State, all disbursements of moneys administered by or under the authority of the Oireachtas and in terms of his role as auditor in auditing the accounts of Departments and State bodies for regularity and accuracy. In accordance with the Constitution, the Comptroller and Auditor General is appointed by the President on the nomination of Dáil Éireann and reports to Dáil Éireann at stated periods as determined by law.

The Constitution also provides that the Comptroller and Auditor General shall not be removed from office except for stated misbehaviour or incapacity, and then only upon resolutions passed by the Dáil and Seanad calling for such removal. This underlines the independent status of this important office.

The terms and conditions of the Office of Comptroller and Auditor General are determined by law and the role of the Comptroller and Auditor General must be seen in relation to the very significant developments in the public sector since Mr. Purcell's appointment nearly 14 years ago.

As I mentioned, the Comptroller and Auditor General has a statutory mandate since 1993 in relation to economy, effectiveness and efficiency. This value for money function was an important new power given to the Comptroller and Auditor General providing him with the discretion to examine and report on the economy and efficiency of Departments and bodies, which are expected to have in place the necessary systems to evaluate the effectiveness of their operations. These systems are subject to examination by the Comptroller and Auditor General.

It is worth mentioning, however, that section 11 of the 1993 Act prohibits the Comptroller and Auditor General from questioning or expressing an opinion on the merits of policies or of policy objectives. The Act applies the same prohibition to Accounting Officers in the performance of their statutory duties. Both of these restrictions are reflected in the terms of reference of the Committee of Public Accounts.

All of this is in accordance with the long-standing tradition that, in policy matters, Ministers are answerable to this House. This also reflects the position in many other countries that the national auditor should not become involved in policy, which is the prerogative of the Government with accountability to Parliament.

Since Mr. Purcell's appointment as Comptroller and Auditor General, there have been considerable developments in public sector management systems, particularly in Departments. During that time our public services have been expanded, improved and reformed. There have been significant improvements in the areas of financial management, human resources management, regulatory reform, e-Government initiatives and customer service delivery.

However, we must also acknowledge that many more changes are both awaited and needed. This is why the Government asked the OECD to undertake a review of the Irish public service. The report of this review was published recently. It acknowledges the central role played by the public service in contributing to an economic success story that many OECD countries would like to emulate. It states we are on a sound trajectory of modernisation but that we could further improve the yield from reforms by renewing focus on their pace and sequencing in order to make them more mutually reinforcing. The review marks an important step in the ongoing modernisation of the public service.

The Taoiseach will, shortly, announce the appointment of a task force on public service reform to report to the Government with a comprehensive programme for action. There has also been a significant enhancement of governance arrangements in the public service in recent years. For example, in Departments and offices the recommendations of the report of the working group on the accountability of Secretaries General and Accounting Officers have been implemented. Internal audit services have been strengthened and audit committees with independent chairpersons have been established to support Accounting Officers in the discharge of their duties. There is now a greater emphasis on the formal identification, assessment and management of risk and on the effectiveness of the systems of internal financial control.

In the semi-State sector too, there have been moves to improve corporate governance in line with best practice in the private sector. The revised code of practice for the governance of State bodies, published in 2001, is now well established and is proving to be a sound basis for making progress towards better financial control and governance in State sponsored bodies within the Comptroller and Auditor General's audit remit. Accountability has been further strengthened with the addition of a requirement that Accounting Officers and chairpersons of State bodies submit statements of internal financial control annually with their financial statements.

An enhanced value for money framework has been put in place in recent years. The specific elements of the framework include the following: The implementation of rolling five year multi-annual capital envelopes for better management and control of public capital programmes and projects. The envelopes allow for the carryover of up to 10% of unspent Exchequer capital into the following year. They are designed to give Departments and agencies more certainty about the level of resources available to them in the medium term and more flexibility to plan and manage their capital programmes; the publication, in February 2005, of new guidelines for the appraisal and management of capital expenditure proposals in the public sector; the additional value for money measures relating to major capital projects, ICT projects and consultancies codified in a Department of Finance circular letter of 25 January 2006, in particular the appointment of project managers for all capital projects with responsibility for monitoring and managing project progress; the introduction of value for money and policy reviews, replacing the former expenditure review initiative; the establishment of the central expenditure evaluation unit in the Department of Finance to promote best practice in the evaluation and appraisal of programme and project expenditure; reforms to public procurement, including the introduction of the national public procurement policy framework for implementation by public bodies and, from 2007, reforms to public construction contracts and the system for employing construction-related consultants; and the presentation to Dáil select committees of annual output statements, together with the Estimates, which set out the public service outputs that are expected to be delivered for the year ahead with the financial resources, the inputs, that are being voted on.

These output statements were presented to the Dáil committees for the first time in 2007. The 2008 round of annual output statements, now being considered by the relevant committees, includes a report of performance against the previous year's objectives, as well as setting out new public service performance objectives for the year ahead. As the annual output statements become embedded, the focus will be on improving the quality and relevance of the output targets or performance indictors.

Taken together, these reforms mark a significant move towards best practice internationally, in terms of delivering high quality public services in an effective and efficient manner. They have helped improve the capacity of the public sector to ensure that public funds are put to good use.

As I mentioned, the Constitution provides that the Comptroller and Auditor General shall be appointed by the President on the nomination of Dáil Éireann. Members of the House, especially those who served on the Committee of Public Accounts, are aware of the responsibilities of the post. Having fully considered the matter, and following consultation with the Leaders of the Opposition parties, the Government recommends the nomination of Mr. John Buckley to succeed Mr. Purcell. Mr. Buckley is the Secretary of the Office of the Comptroller and Auditor General and director of audit. Currently, he directs the office's value for money audit function. He has many years service in the Office of the Comptroller and Auditor General and I understand that his performance in his current senior position in that office is exemplary. Over his career to date he has worked in all divisions of the office. By profession, he is an accountant and a barrister.

The new Comptroller and Auditor General will take up his appointment during a period in which increasing attention has been paid to the value for money obtained from public funds. Value for money in all sectors of the economy is key to sustaining economic growth into the future. The Office of the Comptroller and Auditor General has a key role to play in this respect. I am satisfied that Mr. Buckley will make an excellent Comptroller and Auditor General. I recommend his nomination to the Dáil.

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