Paul Kehoe (Wexford, Fine Gael) | Oireachtas source

As stated at the outset, the Government recognises the need at all times to meet the highest standards regarding transparency, oversight and financial disclosure and recognises the intention to address such issues in the Bill proposed tonight.

The Government will abstain on the vote to oppose the Private Members' Bill, the Comptroller and Auditor General (Amendment) Bill 2017, sponsored by Deputy Dara Calleary. I will reflect further on the issues raised in advance of the next Stage of parliamentary consideration.

The current legislation, namely, the Comptroller and Auditor General (Amendment) Act 1993, was developed with a particular focus and so far has stood the test of time. The framework of accountability and control is a well-established framework encompassing the role of the Comptroller and Auditor General as reflected in the Constitution. The Comptroller and Auditor General's role is to provide independent insurance that public funds and resources are used in accordance with the law, managed to good effect and properly accounted for to contribute to improvement in public administration.

My colleague, the Minister of State, Deputy D'Arcy, noted that there is no need to consider the provisions made in this Bill as the powers are already provided for in the Comptroller and Auditor General (Amendment) Act 1993. Under section 9 of the 1993 Act, the Comptroller and Auditor General can examine the economy, efficiency and use of resources and effectiveness of certain management systems or carry out a value for money audit of a certain person. Therefore, section 9A(1) of the Bill may not necessarily add any more power to the Comptroller and Auditor General than is already provided for in the current Act. However, having heard the issues raised by Members on this point, we will reflect further on how they should be addressed as the Bill proceeds through the Oireachtas.

The Minister of State also noted the issue with the proposed new section 9A(2) of the Bill and its possible impact on the independence of the Comptroller and Auditor General. As drafted, it would seem to give the Minister the ability or discretionary basis to direct the deployment of the Office of the Comptroller and Auditor General's resources. As a principle, this is problematic, particularly given the Mexico Declaration on Supreme Audit Institutions Independence. One of the eight core principles of this document, principle 3, states that a supreme audit institution, SAI, should have a "sufficiently broad mandate and full discretion" in the discharge of its functions. In addition, principle 6 states that the supreme audit institution should have the "freedom to decide the content and timing of audit reports". This concern is further highlighted and heightened by the proposed scope of the section. In practice, it would have a significant impact given the limited resources the Office of the Comptroller and Auditor General has for its value for money work and the proposed scale of the required work at the direction of the Minister. One possible outcome would be that the Comptroller and Auditor General would be severely constrained in the value for money examinations he could carry out at his discretion.

All Deputies will recognise the key constitutional role of the Comptroller and Auditor General and the need to take great care in considering any changes that might materially affect the scope of the Comptroller and Auditor General's work. The Comptroller and Auditor General has played a critical role in reviewing Government spending and its effectiveness for many years and we do not want to diminish that role. In that context, we have heard the perspectives and views put forward by Members of the Opposition on this issue during this debate and we will reflect further on them before the next stage of consideration of the Bill. Deputy Calleary may also care to reflect on these points as the Bill progresses.

A brief initial consideration suggests there may be a cost to the Exchequer if the Bill is enacted as it would have resource implications for the Office of the Comptroller and Auditor General. It is not possible at this stage to quantify the estimated costs but the Bill has the potential to result in additional costs to the Exchequer. Therefore, a money message is required in respect of this Bill. The Government will consider this further in advance of any Committee Stage hearing.

I thank Members for their views and observations on this draft Bill and the wider issues they raised during this debate. The Government fully recognises the importance of the role of the Comptroller and Auditor General in our system of public accountability and we will consider the issues raised in advance of the next stage of consideration of the Bill. I thank all Deputies for their contributions to this Bill, some of which very good and pointed. We will consider all points as the Bill progresses through the House.

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