Michael McGrath (Cork South Central, Fianna Fail)

I welcome the opportunity to speak on the nomination by the Dáil of Mr. John Buckley to the important Office of Comptroller and Auditor General, as provided for by Article 33 of Bunreacht na h-Éireann.

I pay tribute to the work of Mr. John Purcell, the outgoing Comptroller and Auditor General, who has held this post for the past 14 years. He carried out his functions with professionalism and competence during the course of that period. During that time, Mr. Purcell has overseen very significant changes in auditing techniques, with a growing emphasis on technology and computer systems auditing. The workload and responsibilities of his office expanded significantly in that time and the office has responded well to these demands. The work of the Office of Comptroller and Auditor General should challenge all of us in public life to work towards the highest standards of financial probity among all public sector bodies.

I wish Mr. Buckley every success in his new post. He is well qualified for the position and has accrued a wealth of experience in his time working at the office. I know that he will have the full support of the Oireachtas in carrying out his important functions. The expenditure of public funds must be fully accountable and transparent in all respects. Value for money must be the cornerstone of all expenditure decisions. While the work of the Office of the Comptroller and Auditor General has become synonymous with ensuring value for money in recent times, the auditing and oversight role of the office is equally important. The office audits over 350 public bodies, with 142 non-commercial State bodies being the largest bloc. It carries out an enormous amount of work in auditing alone every year, not to mention value for money and special reports. My background is in auditing, accounting and finance and I appreciate the importance of examining and reporting on the books and records of an organisation but also the financial processes and systems used, which are constantly evolving. The auditing function can lead to real improvements to the financial administration of organisations by identifying system weaknesses and recommending improvements. Thereby, it can save money for the taxpayer if public sector bodies can implement improvements. It is essential that proper internal controls are designed and implemented. The Office of the Comptroller and Auditor General is placing particular emphasis on this, particularly in recent times.

In the private sector we have seen the growth of importance of internal controls, having checks and balances so that deficiencies are identified prior to the annual statutory audit. Departments and public sector bodies are now operating in an environment where compliance is increasingly important. The requirements for proper risk assessment, compliance with modern corporate governance and legislative requirements are placing a serious onus on all budget holders and Accounting Officers in the public and private sectors.

Public bodies should not view scrutiny by the Comptroller and Auditor General as a burden but as an opportunity to improve the way they do business. They may identify steps that result in improvements in service efficiency and financial administration. The work of the Comptroller and Auditor General should not be seen as a bulwark of bureaucracy and procedure for the sake of it. The public service should not be bogged down in form filling and requisition reports and lose sight of the real role it has, serving Irish citizens. Embracing the spirit of the work of the Comptroller and Auditor General means that those benefits can be tangible and can deliver real improvement to the people.

Value for money is at the centre of the work of the Office of the Comptroller and Auditor General, particularly in recent times. Some of the speakers on this motion have alluded to the significant reports on that area. It is essential that all public sector bodies ensure that value for money is the number one priority. I welcome the value for money and policy review initiative of the Department of Finance. Some 92 reports were completed in 2006-08 and by the end of 2008 a number of significant additional reports will be completed on mental health services, the efficiency of long-stay residential care for adults, special needs assistants and grants to first and second level schools. This work will be undertaken under the value for money and policy review initiative, which underlines the value of the work done under this initiative.

The Department of Finance has established the central expenditure evaluation unit, which will carry out important work on expenditure on a range of projects. I recognise the important role of the Committee of Public Accounts in liaising with the Comptroller and Auditor General in scrutinising his reports, along with the value for money reports and the special reports. He has completed important work on a number of special reports and one recent report, Special Report 10: General Matters arising on Audits — Non-Commercial State Sponsored Bodies, Health Sector Bodies, Vocational Education Committees, is an example of the importance of the work of the office. The Comptroller and Auditor General was critical of the fact that expenditure of some public bodies was done without the necessary agreement of the relevant funding Department. This is a fundamental issue, picked up on by the Comptroller and Auditor General in the report, which also identified shortcomings regarding procurement, governance and financial management. The Comptroller and Auditor General has done us great service by identifying these issues but it is important that the recommendations are embraced and changes implemented to improve the efficiency of the way they do business and provide services to the public within a financial framework that is efficient and ensures value for money.

In the private sector, where an external auditor issues a management letter to a company arising from an interim or final audit, one of the first things the auditor will do when he goes back the next year is to check that the recommendations have been acted upon. I hope a similar approach will be adopted in a rigid manner by the public sector.

I am pleased that the new Taoiseach, Deputy Cowen, identified public sector reform as a priority for his Government. I welcome the publication of the OECD report on the public service, commissioned by the Government. I believe it will implement the recommendations arising from it. The Taoiseach will appoint a task force on public service reform shortly. This was an important step in moving to an era where value for money is at the centre of all public expenditure decisions.

I wish Mr. John Buckley every success in his new role and I look forward to interacting with him as a public representative.

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