Minister defends OPW over spending accusations

The Minister of State at the Office of Public Works (OPW), Tom Parlon, has clashed with members of the Dáil Public Accounts Committee over a highly critical report which says that millions of euro have been wasted on the acquisition and management of properties for the State around the country.

The report says that over €19 million has been spent acquiring accommodation for asylum seekers which was never used. It also says it is likely that a considerable amount of this investment will be lost when the properties were sold.

The report also says that the cost of renovating a property for the Probation and Welfare Service ran to 10 times the original estimate of €150,000.

It also criticises a lease arrangement, originally entered into by Cork County Council , for the provision of temporary premises for Cork courthouse.

The report also reveals that the provision of overtime cover for prison officers on sick leave cost €8.6 million in 2002.

Speaking at the launch of the report, the chairman of the Public Accounts Committee, Michael Noonan (FG), said there had been "serious waste for the taxpayer and institutional incompetence" at the OPW over the management of properties.

He said the committee believed the OPW should review whether it had the experience necessary to undertake complex property transactions.

Mr Noonan said the committee largely examined expenditure that had taken place in the past. He suggested day-to-day spending was, in the first instance, a matter for ministers but that the Dáil should also conduct greater monitoring.

Mr Noonan said that in relation to the prison officers' overtime there was a strong suspicion that "a carousel was operating to engineer extra overtime by people going on sick leave to accommodate colleagues".

The vice-chairman of the committee, John McGuinness (FF), said there had been a number of "ridiculous decisions" taken by the OPW in relation to property projects. He said that he hoped that the same would not happen in the roll-out of the Government's decentralisation programme.

Mr McGuinness said he believed that if the OPW was a private company that it would be closed down as it could not go on with such losses. He said if Mr Parlon did not believe there were problems he should "take his head out of the sand".

However, Seán Ardagh (FF)said that he would not accept that there was incompetence within the OPW.

Mr Parlon told The Irish Times yesterday the committee's report was dated and unfair to the OPW.

He said the OPW had been involved in the provision of accommodation for asylum seekers in 120 locations around the country and the committee had highlighted five centres which were held up due to local legal challenges.

Mr Parlon said the OPW had generated €100 million last year from sales of State property. He said that if OPW was a private company he would be in line for a bonus payment. Mr Parlon described Mr McGuinness as "an opposition spokesman within the Government". He said that Mr McGuinness was a constant critic and that he did not know what axe he had to grind.