Leo Varadkar (Dublin West, Fine Gael)
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Question 64: To ask the Tánaiste and Minister for Enterprise, Trade and Employment if she has full confidence in the chairman and board of FÁS; and if she will make a statement on the matter. [45383/08]

Mary Coughlan (Donegal South West, Fianna Fail)
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The current chairman and board of FÁS were appointed by the Minister for Enterprise, Trade and Employment in 2006, in accordance with the provisions of the Labour Services Act 1987.

I met with the chairman and some members of the board of FÁS on 28 November and expressed my strong dissatisfaction at the events that had taken place in the public affairs division in FÁS. At the meeting the board assured me that action had been taken to deal with these matters. It also assured me that more robust structures with enhanced controls are now in place. This will help accelerate the audit work already under way in the corporate affairs area. It also will help FÁS to interface with the Comptroller and Auditor General in his examination of the effectiveness of the management and control systems in FÁS, which I understand he is to begin shortly. The FÁS internal audit function is also being strengthened.

In addition, the board agreed that a full examination of past practices is required to ensure the organisation can move forward with best practice, corporate governance procedures in place. I understand the normal annual internal audit examination by the Comptroller and Auditor General is already under way in FÁS. This audit will include an examination of internal procedures and governance arrangements within the organisation.

In my view, FÁS should continue to remain focused on its core mission, given the employment and training challenges currently facing the country. I express my strong support for the work of the new interim director general, the chairman and the other members of the board in that regard. In particular, I wish to acknowledge the ongoing commitment and importance of the staff of FÁS in helping us to meet the labour market challenges we face now and into the future.

Leo Varadkar (Dublin West, Fine Gael)
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I note the Tánaiste did not answer my question which asked if she had full confidence in the chairman and the board of FÁS. Without impugning the character of any individuals, it is important the question is answered. I appreciate from the Tánaiste's remarks that there is at least some expression of regret from her for having given full backing to the director general of FÁS in June, when we first raised these issues.

In terms of follow up I have two key questions to ask the Tánaiste in respect of the board and the chairman. Does she not have any concern about the fact the board and chairman signed off on the annual accounts, this year and last year? They said: "No weaknesses were found in the system of internal financial controls". Does the Tánaiste have no issue of confidence concerning the board in that regard?

There is the issue of the use of first class travel. As Members know, the first class travel used by board members and by FÁS officials was in contravention of the Department of Finance's guidelines on travel and subsistence. When he spoke to the Committee of Public Accounts, the chairman of FÁS admitted that such travel had been inappropriate. However, in my hand I have the invoice for €7,000 that covered his first-class flight to Florida. Does the Tánaiste not think that inappropriate? Arising from these two matters, perhaps she might answer my question, even with a yes or a no, as to whether she has full confidence in the chairman and the board.

Mary Coughlan (Donegal South West, Fianna Fail)
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As the Deputy knows, I expressed my dissatisfaction with matters and on investigation was taking place. An audit commenced in November 2004 arising from issues raised with my predecessor. In June 2004, information was passed to the Garda and a final audit report was supplied in May 2006. In February 2007, the FÁS internal audit report raised further concerns. These were referred to the Comptroller and Auditor General.

As the Deputy knows, on my appointment in May this year, the report was noted by the Comptroller and Auditor General. In June I met with the chairman and director general of FÁS to discuss the report and to seek assurances that matters were being addressed. Those assurances were given in writing to my Secretary General in July this year. In September, following further concerns, I asked the Comptroller and Auditor General to report on the effectiveness of the management and control systems across the organisation. As the Deputy knows, in October, November and December of this year there were ongoing discussions with the Committee of Public Accounts.

It is important to say, therefore, that there had been disquiet and that concerns were raised a considerable period ago, in 2004, arising from notification to my predecessor at that time. The process was ongoing. Matters have been investigated and I have consulted the Comptroller and Auditor General, who agreed he will move forward on the basis of his completed work with the Committee of Public Accounts. That will probably be brought to finality at the end of next week.

It is on that basis I must say that the issues that have been raised are of grave concern. As a consequence, they are being dealt with, and have been dealt with, pro forma, since 2004 when the information was provided. I have been given assurances by the chairman of the board, by the board and by the director general that the regulations as set down by the Department of Finance are being adhered to. As I indicated in my initial response, the issues that were raised are now being addressed and the internal audit aspect of the organisation is also being expanded in order to be more robust.

Brendan Howlin (Wexford, Labour)
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I will take a brief supplementary from Deputy Varadkar.

Mary Coughlan (Donegal South West, Fianna Fail)
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With regard to the overall issue, I welcome that the Comptroller and Auditor General will now carry out his investigation. Arising from the outcome of that, the matters will be dealt with again.

Leo Varadkar (Dublin West, Fine Gael)
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The reality is that this has been going on for a long time. There have been reports from the European Commission, internal audit reports, reports from the Comptroller and Auditor General, whistleblowing letters and concerns raised in this House. The only reason any action was taken in recent months is that information was given to us and to others under the Freedom of Information Act. This is an issue the Tánaiste might raise on our behalf, because FÁS continues to evade its responsibilities in terms of openness.

Some weeks ago we sought the details of HR2, the second human resources investigation into Mr. Gregory Craig. The freedom of information officer in FÁS approved that request but under the new closing-down, darkening and tightening procedures introduced by the organisation all freedom of information requests must go to Mr. Cooney, the assistant director general, before being released. That particular report has been on his desk for more than two weeks and, as a result, the deadline has expired. Under the freedom of information legislation this is now classed as a technical refusal. It was suggested to us that we should appeal the matter so it can be reviewed by somebody else in FÁS.

Essentially, what we see in FÁS is secrecy getting worse. Items that would have been released by the freedom of information officer in the past are now being sent to Mr. Cooney who is blocking them. I hope the Tánaiste will raise that matter with the interim director general on behalf of the public.

Mary Coughlan (Donegal South West, Fianna Fail)
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Prior to Deputy Varadkar's election last year, this matter was being dealt with. It did not take his evangelical appearance for this matter to be addressed by the appropriate authorities, namely, my two predecessors, the internal audit committee and the Comptroller and Auditor General. Just in case the Deputy feels he is the archangel——

Leo Varadkar (Dublin West, Fine Gael)
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It has not achieved very much.

Mary Coughlan (Donegal South West, Fianna Fail)
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When the Deputy arrived in this House last year these matters were under way. I appreciate very well that he does not believe in due process. That said, I must say it is totally inappropriate, with matters before the Committee of Public Accounts which will form part of an investigation by the Comptroller and Auditor General, that an accusation is made in this House that FÁS is hiding freedom of information——

Leo Varadkar (Dublin West, Fine Gael)
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It is a fact.

Mary Coughlan (Donegal South West, Fianna Fail)
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As the Deputy knows very well, the Freedom of Information Act offers a process whereby information is obtained by members of the public. There is a procedure which must be followed so that we do not——

Leo Varadkar (Dublin West, Fine Gael)
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Which has been breached by the agency in the past.

Mary Coughlan (Donegal South West, Fianna Fail)
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It has not been breached. I have to ensure these matters are investigated, that the outcome is obtained as soon as possible and that it is dealt with particularly on the basis of governance and procurement. However, given the current economic difficulties, it is more important that we give direction and support to the people who work in FÁS — we all interact with them on a daily basis and they do a fine job — while ensuring the core business of FÁS is dealt with as quickly as possible.