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Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: It is important that this figure is well publicised before we enter it. It may provide a restraint against what we have seen in previous investigations and tribunals, which climbed to a figure that was never intended.

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: To come back to it, and not to go into the policy area, it is a huge concern of mine and, I am sure, as Deputy Deasy has said, other members of the committee, that we are now entering two inquiries without being able to define in a reasonable way - I know there is risk in it - the exact extent and cost involved. This does not sit well with me. What Mr. Watt said in his opening statement is...

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: For the information of members and those who may wonder about this, while it went to the Department of Public Expenditure and Reform this week-----

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: -----it was with the Department of Justice and Equality and the Courts Service prior to that. It has gone around the houses a little, although I understand the Department of Public Expenditure and Reform only received it-----

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: What of the Central Bank report this morning?

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: Does Mr. Watt think it is, if it is paying retention?

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: However, the Department of Public Expenditure and Reform has a role in this regard, does it not?

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: Yes, so long as this does not mark the start of the banking structures in Ireland giving the two fingers to the Government again, as they did previously. Perhaps there should be an early indication from Departments that this kind of retention payment, or the other areas into which they entered, will not be tolerated again. Otherwise, they will revert to the same kind of culture from which...

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: No, I am not.

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: No, if I wanted to be brusque or to say anything about it, the Secretary General knows I would say it quite clearly. On the other matter of looking at accounts as they are spent, I have some figures to hand from the Comptroller and Auditor General. I believe approximately €2.6 billion is going to Irish Water up to 2016 in various amounts. These are the kind of figures that...

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: Would they be advised of the risk?

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: On the issue of procurement, I do not expect the Department to police every contract or arrangement that is entered into, but for recent years, particularly the last two, we have had to examine accounts of various Departments and agencies and in most of those accounts we identified cases in which procurement was not carried out properly, as agreed with Mr. Watt's Department. In 2014, for...

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: Yes, or that they had to deal with the matter urgently. This is similar to the explanation given in one set of accounts presented to us this morning, in which just over €400,000 was spent on procurement without the appropriate process being followed. That sends out a very negative signal about procurement processes. In the education sector, for example, UCD applies a threshold of...

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: Within the Departments alone the figure is €77 million.

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: That is just the Departments. There are agencies too-----

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: I will explain the issue in terms of the overall scheme of things. We often hear figures of €8 billion and €9 billion quoted here. Mr. Watt has just said €10 billion in terms of the spend on public procurement. I absolutely accept Mr. Watt's opening remarks that, in the general scheme of things and in the context of a budget of €54 billion, mistakes will be made...

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: Let me finish. In terms of the ten reasons stated here, almost two thirds fall into the category of "the dog ate my homework".

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: It is.

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: Let me finish and then I will allow you to answer. I have the floor and I will ask the question.

Public Accounts Committee: 2014 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 11 - Office of the Minister for Public Expenditure and Reform
Vote 12 - Superannuation and Retired Allowances
Vote 18 - Shared Services
Vote 41 - Office of Government Procurement
Chapter 4 - Vote Accounting and Budget Management
Chapter 5 - Management of Government Grants
Chapter 6 - Payroll Accrual for National Accounts
Chapter 7 - National Lottery Fund
(19 Nov 2015)

John McGuinness: While the performance is good, it could be a hell of a lot better. It is not acceptable. I say that in the context of what is being offered as an excuse for not procuring goods and services properly. Deputy Deasy raised the issue of the Aran Islands in the context of procurement and there are many examples of procurement that fall way short of the mark. When that happens and it is clear...

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