Full text of letter from Tom O'Higgins to Kieran Coughlan: Secretary General of the Houses of the Oireachtas Commission,
27 July 2009
Dear Mr Coughlan,
The Audit Committee of the Commission
Thank you for meeting me recently, when we discussed the role and performance of the Commission's Audit Committee and my own position as chairman of the Committee since its inception. At our meeting I expressed my disappointment that some of the concerns and reservations I had raised, on a number of occasions, in relation to the continuing issue of members' allowances and the reimbursement of expenses, without an adequate vouching scheme, had not been accepted by the Commission.
I mentioned too that this apparent lack of interest in my views appeared to me to be reinforced by the Commission's decision, earlier this year, to recommend to the Minister of Finance, the introduction of "a monthly all-in standardised parliamentary allowance," without first sending it to the audit committee for comment. In my experience, as chairman of four other departmental or state-sector bodies' audit committees, this was quite unprecedented.
I remain concerned about the deficiencies in the present arrangements for members' allowances and the reimbursement of expenses, notwithstanding the reduction in some of the limits of the allowances and the planned attendance of monitoring arrangements. I am well aware of the series of recommendations for changes to the current members' expense arrangements and the significant efforts made by you and your senior management team to reform these arrangements. Despite these developments, and the progress made, I continue to hold the view that without further transparency and vouching the current and proposed arrangements still retain the potential for reputational damage to the Houses, the Commission, and the members. The current economic environment, reports of abuses of parliamentary allowances in the United Kingdom, and adverse reports and comments in the Irish media about members' expenses, serve only to reinforce my view of the need for further reform.
Since the commencement of my term on the Audit Committee, I have expressed my reservations about the members' allowances and the reimbursement of expenses arrangements. I believe that, as Chairman of the Audit Committee, it was my duty to make these reservations known to the Commission. It is apparent to me that the Commission is still reluctant to accept my opinion that further significant changes to the arrangements are required to bring greater transparency and to mitigate reputational risk for the institution and its members. In the circumstances, as I told you during our meeting, I wish to step down as Chairman of the Audit Committee following its next meeting, planned for September.
I want to thank you and your staff for the courtesy and assistance that I have received since I commenced to work with you, prior to the establishment of the Commission, and then as Chairman of the Audit Committee. I have been impressed by the calibre and dedication of your senior management team and their support staff. Above all, I am most appreciative of the consideration and friendliness that you have shown me at all times.
Kind personal regards,
Sincerely,
Tom O'Higgins
O'HIGGINS PROFILE
A partner at PricewaterhouseCoopers from 1969 to 2000 where he was a senior audit partner and Head of Human Resources, Mr O'Higgins has acted as a specialist in corporate governance in a number of State and semi-State bodies. A chartered accountant, he has served as a member of the Irish Human Rights Commission, chairman of the Coombe Women's Hospital, and a member of the board of Concern Worldwide.