Louis O'Hara (Galway East, Sinn Fein)
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14. To ask the Tánaiste and Minister for Justice and Equality the action he will take in relation profiteering in the international protection accommodation sector, including in the context of significant concerns raised in the Comptroller and Auditor General's annual report about the spending of public money; and if he will make a statement on the matter. [53889/25]

Louis O'Hara (Galway East, Sinn Fein)
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Will the Minister of State outline actions he is going to take in relation to profiteering in the international protection accommodation sector, especially in the aftermath of significant concerns raised in the Comptroller and Auditor General's report about the spending of public money?

Colm Brophy (Dublin South West, Fine Gael)
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I thank the Deputy. My Department is taking action across all aspects of international protection accommodation to provide value for money, strengthen governance and compliance, and renegotiate contracts with providers. This forms part of the overall reform of the international protection system that is already working to speed up processing of applications and move from commercial provision to State provision. These reforms will help to drive down costs and curtail the growth seen over recent years in the accommodation system.

The Department has worked closely with the Office of the Comptroller and Auditor General in carrying out an extensive review of costs and processes within the international protection accommodation system. A report on this matter was published last week as part of the C and AG’s annual report for 2024. All recommendations in the report have been accepted and implemented by the Department, with implementation of one recommendation being further developed into early 2026. The report looked at overall processes and sampled 20 IPAS contracts. It acknowledged the extensive challenges posed to the State in sourcing accommodation during the unprecedented surge in applications from 2022 to 2024. During that period, over 45,000 international protection applicants arrived in Ireland. Prior to this, there were 8,000 or 9,000 in a typical three-year period. Today’s standards of pre-contract assessments and negotiations could not be applied to accommodation that had to be sourced during the period from 2022 to 2024.

While applications this year have decreased, they remain high compared to pre-2022 norms. However, they have given us sufficient space to put in place greater controls over IPAS and the accommodation portfolio. A range of updated systems and procedures have been put in place and are already having an impact. IPAS has improved its processes for appraisal, validation, contracting and payments. A new rate-card pricing structure is being applied to all new and renewing contracts, which has led to savings of over €52 million on 104 contracts. This reform within the accommodation system is on track for continued process improvement and costs savings as we move into 2026.

Louis O'Hara (Galway East, Sinn Fein)
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This review is a damning indictment of the Government's failure to address profiteering and cost overruns within the IPAS system. The report outlines evidence of private operators overcharging for the provision of accommodation, including companies charging for beds that were not provided and charging VAT in circumstances where accommodation is exempt from VAT, signed contracts and proof of ownership going missing and no copies of leases. There seem to have been no records kept whatsoever in many cases. One operator overcharged the State to the tune of €7.4 million in respect of VAT, yet still has a Government contract. The report outlined that in this case the Department of Justice, Home Affairs and Migration has stated recovery of the remaining VAT overcharged is under review. Does the Minister of State take responsibility for this blatant abuse of taxpayers' money? What actions has he taken to ensure that this money is returned to the State? Will there be a review of all IPAS accommodation contracts?

Colm Brophy (Dublin South West, Fine Gael)
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The Department has accepted the recommendations of the Comptroller and Auditor General's report and has put in place a set of updated processes and standards which will appraise offers and manage and oversee contracts. Extensive new checks and balances have been put in place to ensure high standards of oversight on invoicing. Queries and irregularities have been identified through a checklist process. These have been reviewed and recoupments made to the Department.

Treatment of VAT is a matter between the relevant providers and Revenue. As discussed in the report, there is variance in how different aspects of IPAS may have applied that.

In relation to food accommodation and other subheadings, within payments to one provider group issues relating to VAT charges arose and were reviewed. My officials understand that this provider has completed a self-correction exercise with the Revenue on the matter and that no funds are outstanding to the State. The Department continues to conduct ongoing process improvements in relation to management and oversight of invoices and all related tax matters.

Louis O'Hara (Galway East, Sinn Fein)
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The Minister of State has thrown around a lot of blame instead of accepting that he and his Department are responsible for this waste of taxpayers' money. Where is the oversight on the part of the Department? I fear the report has revealed only a fraction of what has been happening. The Minister of State needs to get to grips with the issue and put an end to the squandering of public money.

The Minister of State stated that contracts are reviewed when they have concluded. Why is there no review during the lifetime of the contracts, especially when the Minister of State has been provided with this kind of evidence? It should be obvious that where there is evidence of mismanagement of taxpayers' money, contracts should be ended. Given the level of mismanagement revealed, does the Department intend to review all IPAS accommodation contracts to ensure there is no further abuse of taxpayers' money?

Colm Brophy (Dublin South West, Fine Gael)
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The Department is always vigilant about taxpayers' money and it is important to note we have achieved €52 million in savings in terms of contracts this year. There is a new rate card in place delivering real savings. One of the most important things we are doing is moving to State-owned, which will bring a real saving in terms of taxpayers' money. When the migration pact comes in, we will be moving to a shorter timeframe in terms of processing people, which will also save money. We are determined to reduce the overall number coming in and that, again, will help save taxpayers' money.