Astonishing health service spending losses over two decades in report on 'lost' public money - highlighted by Laois TD

It is difficult to put into cinto context the amount of public money that is lost or revenue that is going unclaimed according to Laois Offaly Sinn Féin TD Brian Stanley.

He made comment as Chair of the Public Accounts Committee (PAC), in also expressing concern at a number of areas outlined in the Comptroller and Auditor General’s (C&AG) Annual Report where the taxpayer is failing to achieve value for money. 

These include the Sustainable Energy Authority Ireland’s (SEAI) retrofit scheme, increasing HSE debt, failure to deliver social housing units and €112m non-compliant procurement within the Department of Children, Equality, Disability, Integration and Youth.

Dep Stanley spoke at the launch of the the report which highlighted an accumulated deficit in the health service. An accumulated deficit occurs when a company has incurred more losses than profits since its inception. The defecit at the HSE is huge.

“The HSE’s finances were also identified by the C&AG as an area of concern. The report reveals that the HSE has carried an accumulated deficit since 2005 that now stands at €1.24 billion for incurred expenditure. The report states that this deficit will eventually require state funding to meet the liability. It is essential that we halt this deficit from increasing further and see a strategy for its reduction," he said.  

He also spoke about housing spending.

“The Land Aggregation Scheme’s (LAGS) failure to deliver social housing units was once again highlighted by the C&AG. The examination found that 13 years after LAGS was established, no development plans have been produced for almost half of its portfolio despite the potential for an estimated 5,365 social housing units – just 676 units have been delivered since 2010. Once again, the Government has failed to deliver on social housing," he said.

A huge amount of money is left on spent for training.

“The C&AG also highlights the National Training Fund as an area for significant improvement. The organisation now has an accumulated surplus of €1.37 billion that could be used to implement training programmes. This is of significant concern considering our chronic shortage of mechanics, construction workers and key tradesmen. We need to see a more strategic focus on expanding apprenticeship programmes, the funding is clearly there," he said.

More than €100 million was spent by one Government Departyment without complying with the rules

“Finally, further information is required following the discovery of €112m of non-compliant procurement within the Department of Children, Equality, Disability, Integration and Youth. This is a huge amount of public funding within one financial year to fall under non-compliant procurement. We need answers from the Department on the nature of this spending and why it could not have been procured through the correct channels," he said.

The TD said these are just five areas of concern that highlighted from the 25 chapters identified by the C&AG. 

“It is difficult to put into context the level of expenditure that is being lost by the state each year and the level of potential revenue that is being forgone. 

“It will be the work of the PAC over the course of the next 12 months to scrutinise these areas of concern and to deliver outcomes that will provide the taxpayer with value for money,” he said.

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The PAC is a standing committee of Dáil Éireann which focuses on ensuring public services are run efficiently and achieve value for money.