Jan O'Sullivan (Limerick East, Labour)
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Question 8: To ask the Tánaiste and Minister for Enterprise, Trade and Employment when she expects to receive the report commissioned from the Comptroller and Auditor General into the effectiveness of FÁS's financial management and control systems; if, pending the receipt of the report, she will take action arising from allegations of financial irregularities; and if she will make a statement on the matter. [41765/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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In his report on non-commercial semi-State bodies published in May 2008, the Comptroller and Auditor General reviewed the issues raised in one specific FÁS internal audit report.

I discussed this matter with the director general of FÁS and have expressed my concerns about the issues raised by both the Comptroller and Auditor General and the internal audit report, and in particular, the need to secure value for money in public expenditure. On my instruction, the Secretary General of my Department wrote to FÁS on 30 June 2008 seeking the formal assurance of the director general that the practices outlined in the audit reports of FÁS and the Comptroller and Auditor General had ceased and that adequate systems and controls were in place to prevent any recurrence and requesting details of the remedial actions taken by FÁS in respect of the issues raised by the audit reports, with quarterly progress reports on the implementation of the audit reports' recommendations. The director general replied on 1 July confirming that the unacceptable practices referred to in the audit reports had ceased. A further response was received at the end of October, which set out the progress being made on the issue of controls on procurement and the observance of the procurement policy of FÁS.

Following discussions with the chairman and director general, I decided that there should be an external investigation into the effectiveness of the financial management and control systems generally in place in FÁS, rather than be limited to aspects raised in the internal audit report that gave rise to the special report. The Comptroller and Auditor General has acceded to my request to consider doing such a review. My intention in requesting this review is to ensure that appropriate public procurement procedures exist to prevent or detect irregularities or wrongdoing and to examine and report on the activities of the FÁS corporate affairs area since 2000 to achieve reasonable assurance as to whether there were any occasions of potential fraud or irregularity in that area other than those already brought to light by the FÁS internal audit unit.

It is a matter for the Comptroller and Auditor General to determine the scope of his investigation. He has indicated that, in doing so, he will take into account the deliberations at the Committee of Public Accounts hearings on the FÁS element of his special report. The timing of the investigation is a matter for him but, as the Minister responsible for FÁS, I am understandably anxious for it to proceed as quickly as possible so that I may address any issues arising in respect of the financial management and control systems in place within the organisation.

Willie Penrose (Longford-Westmeath, Labour)
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It would appear that the Tánaiste wants a specific investigation. From her inquiries with FÁS and her Department, is she satisfied that the steps taken on new procedures in accountancy and auditing will be put in place, thereby ensuring no recurrence of a matter that may be the subject of an investigation? We should not prejudge an outcome until after a full investigation has been carried out.

Some 500,000 people must be retrained and reskilled. The Minister of State, Deputy Haughey, is involved.

Mary Coughlan (Donegal South West, Fianna Fail)
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Yes.

Willie Penrose (Longford-Westmeath, Labour)
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I do not want to cut across him, but will the Tánaiste ask the Minister of State to set out a programme whereby this aspect of FÁS's mandate can be accelerated? It will not be an easy task, but it could be worthwhile. FÁS has done much positive work and many fine people work for it, but perhaps more people should be on the ground. One of the Ministers of State referred to how many people there are on the ground as opposed to in offices, which is important.

Leo Varadkar (Dublin West, Fine Gael)
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The Tánaiste has overall responsibility for FÁS, but we should not ignore the importance of the role of the director general and the board in being on top of these issues. The board may have been able to do a better job in preventing problems. Does the Tánaiste still have full confidence in both?

Mary Coughlan (Donegal South West, Fianna Fail)
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It is a matter for Deputy Penrose to make his own determinations. I have received a written assurance from the director general that the matters raised in the audit committee have been addressed and that correct procedures have been put in place.

Regarding the board, I have met its chairman regularly, who every Deputy would agree is a fine individual, and its director general. I have also met senior staff members of FÁS in the context of driving its agenda of targeting and supporting people. We have greater interaction with the Department of Social and Family Affairs. The Minister of State, Deputy Haughey, is driving the issue of lifelong learning and reviewing labour market measures to determine where there are greater opportunities, particularly between the Department of Education and Science and my Department. Like the House, I do not want training for training's sake.

Willie Penrose (Longford-Westmeath, Labour)
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That is right.

Mary Coughlan (Donegal South West, Fianna Fail)
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Nor should scarce resources be targeted anywhere other than at those most in need. It is the intention of the Minister of State, Deputy Haughey, and the rest of our team to progress matters as expeditiously as possible.

Leo Varadkar (Dublin West, Fine Gael)
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Does the Tánaiste still have full confidence in the director general and the board?

Mary Coughlan (Donegal South West, Fianna Fail)
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I have answered that question.

Leo Varadkar (Dublin West, Fine Gael)
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Does she?

Jimmy Devins (Sligo-North Leitrim, Fianna Fail)
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She just answered.

Leo Varadkar (Dublin West, Fine Gael)
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I did not quite hear a "Yes" or "No".

Mary Coughlan (Donegal South West, Fianna Fail)
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I appreciate the Deputy's views and I know that FÁS offered to take him and his party's leader through the issues, but that only his leader took up the offer. I believe the Deputy indicated that he was not interested.

Leo Varadkar (Dublin West, Fine Gael)
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That is not the case. We were supposed to go this afternoon, but FÁS cancelled. The Tánaiste is quite wrong.