Seanad debates

Thursday, 10 March 2005

10:30 am

Michael Finucane (Fine Gael)

Yesterday was a bleak day for the Irish taxpayer. We had the publication of the report of the Committee on Public Accounts on the redress scheme. It provides a very interesting insight, given that in 2001, when the redress scheme was approved, the estimated costs were €254 million. On that occasion, the religious orders were legally "fireproofed" regarding damages, and the estimate was €128 million. The Comptroller and Auditor General now estimates the cost at €828 million, with the result that the taxpayer is liable to pay out over €700 million.

Also yesterday, the Travers report, which we will be discussing shortly, was published. It is worth bearing in mind its implications, since at this stage we do not know the quantification of costs, with estimates varying from €500 million to €2 billion, depending on what route the Government takes regarding the Statue of Limitations and so on. We may not know the full cost for another three weeks.

When it comes to policy decisions, there seems always to be a serious underestimating of the associated costs. In the middle of 2001, when medical cards were introduced for the over 70s and put on a statutory basis, the cost was underestimated by €50 million, as more than 30,000 people were eligible. Many of us who are in contact with the Department of Social and Family Affairs know it has excellent records of people in receipt of pensions. I cannot understand why the figures were not right at that time following discussions between the Department of Health and Children and the Department of Social and Family Affairs to quantify the costs.

It is worth remembering in this debate, which has emerged over the past few days, that last December the Tánaiste tried illegally to take back the money to which those elderly people in nursing homes were entitled. We all know the Supreme Court struck down that decision, leading to the current situation, whereby people have a better appreciation of what is happening. I could say a great deal more regarding the former Minister for Health and Children, Deputy Martin, and his Ministers of State, but I will await the debate on the Travers report, which is to proceed shortly.

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