Fergus O'Dowd (Louth, Fine Gael)
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Question 1: To ask the Minister for Transport his views on the Baker Tilly report on procurement processes and fraudulent activity at Iarnród Éireann; and if he will make a statement on the matter. [39930/09]

Noel Dempsey (Meath West, Fianna Fail)
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The report referred to by the Deputy, which was commissioned by Irish Rail, raises serious concerns about procurement practices in Irish Rail. My initial reaction to the report is that the weaknesses in Irish Rail's procurement policies and practices that are identified in the report represent a cause for grave concern. The systemic deficiencies and weaknesses that have been identified, including a lack of management supervision and direction, poor training, inadequate monitoring and controls and lack of adherence to procedures, created the opportunity for employees and suppliers to misappropriate funds and materials. The report pointed to a high incidence of non-compliance with procedures and referred to many recorded instances of inadequate audit trails. In such cases, there was either a lack of documentation, or documentation was present but was improperly completed. These cases suggest that there is a serious problem in the company in terms of adhering to established procedures.

When I discussed the matter with the chairman of CIE on 22 October last, I expressed my concern about the weaknesses that had been identified and the failure to inform me or my Department. The chairman briefed me on the background to the report, indicated that the actual loss was limited to €2.6 million and confirmed that almost all of the recommendations in the report have been implemented. He informed me that certain staff members have been sacked and some cases have been referred to the Garda. Nevertheless, I have sought a full report from the board of CIE on the circumstances giving rise to the report, the extent to which progress has been made in implementing the report's recommendations and the measures being taken to ensure adequate controls in expenditure areas not covered by the report. In light of the report from the board, I will consider any necessary action on my part.

Fergus O'Dowd (Louth, Fine Gael)
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It is a shame that this report, which was published by Iarnród Éireann on 10 June last at a cost of almost €500,000, never saw the Minister's desk. He did not ask for it because, like many of his colleagues, he does not hold the State companies under his remit, such as CIE, Iarnród Éireann and the National Roads Authority, to account. The hidden agenda of CIE was to use a veil of secrecy to hide this report from the Minister and the Oireachtas. If it were not for the work of Senator Ross and his Sunday Independent colleagues, we would not even know about this report.

The key question the Minister needs to answer relates to his plans to hold his State companies accountable. Over the past five or six years, more than €1.1 billion in taxpayers' money has been invested in CIE companies. The audit under discussion looks at certain aspects of the company only. Will the Minister ensure that any further audits in the possession of Iarnród Éireann or CIE, relating to any or all of their activities, are given to him and to the Members of the Oireachtas? When one considers that the word "fraud" is mentioned 17 times in this report, it is clear that public money needs to be spent in a more transparent and accountable manner. The Minister does not know about these matters because CIE is hiding the details from him. It is the taxpayer who ultimately loses in all circumstances.

James Bannon (Longford-Westmeath, Fine Gael)
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Hear, hear.

Noel Dempsey (Meath West, Fianna Fail)
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All that rhetoric is very nice, but any objective analysis will confirm that it is difficult for a Minister to seek a report from a company if he does not know it has been commissioned and is with the company.

Fergus O'Dowd (Louth, Fine Gael)
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Ask and you shall receive.

Noel Dempsey (Meath West, Fianna Fail)
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As I said to the Deputy in my initial reply, I have asked for a full report on the circumstances that gave rise to the report, which was commissioned by Iarnród Éireann. I am also keen to learn more about the progress being made in implementing the report's recommendations and the measures being taken to ensure that the expenditure controls in areas not covered by the report are adequate. I am confident that I will get a full report from the company on all of those matters. When I get such a report, I will decide on the most effective thing to do.

Fergus O'Dowd (Louth, Fine Gael)
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The key point is that €1.1 billion of taxpayers' money has been given to CIE companies in the recent past. Will the Minister ask for any other audits that may exist in those companies to be brought to his attention and that of the Oireachtas? Will he ask for an exercise to be undertaken setting out the top ten procurement contracts that have been awarded for rolling stock and buses, etc., in each of those companies over the past two years? We need to look at the totality of procurement policy in all the CIE companies. The Minister did not know about this report because he did not ask. He is not holding State companies like CIE and the NRA to account. It is all very well for the Minister to cut ribbons and avail of photo opportunities with the chairman of CIE. The Minister should be aware that the wool is being pulled over his eyes and the eyes of this Government.

James Bannon (Longford-Westmeath, Fine Gael)
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He is blinkered when it matters.

Noel Dempsey (Meath West, Fianna Fail)
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I am not sure that Deputy O'Dowd asked a question.

Fergus O'Dowd (Louth, Fine Gael)
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I asked about the top ten contracts.

Noel Dempsey (Meath West, Fianna Fail)
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I have told the Deputy twice that I have asked for a report on the measures being taken to ensure adequate controls in areas of expenditure that were not covered by the Baker Tilly report. The report will cover the work of audit committees, etc. When I get that information, I will decide what I need to do.

Fergus O'Dowd (Louth, Fine Gael)
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The Minister should ask for a list of the top ten procurement contracts to be compiled.