Reality check

The contrast between the way wealthy and poor citizens are treated in this State is starkly exposed in the latest report by the…

The contrast between the way wealthy and poor citizens are treated in this State is starkly exposed in the latest report by the Comptroller and Auditor General, Mr John Purcell. Six successful prosecutions by the Revenue Commissioners for serious tax evasion offences in 2003 resulted in fines and one suspended prison sentence.

At the same time, 28 unemployed people were jailed for social welfare fraud involving just €1 million. After years of exhaustive and expensive public tribunals designed to clamp down on corruption and tax fraud, it is time that a more hostile public attitude - involving terms of imprisonment - was directed at those who blatantly break the law.

The size of the financial windfall secured by the Exchequer as a result of the various tribunals and investigations has been put by Mr Purcell at €1,559 million and the money is still flowing in. But, while the Revenue has pursued the owners of those bogus offshore bank accounts identified by the inquiries, there has been a fall-off in the number of its own random audits. In spite of that, the 274 audits undertaken in 2003 yielded €3.4 million. More worryingly, the level of tax compliance amongst the audited self-employed fell from 79 per cent in 1999 to 55 per cent last year, while the average Revenue yield rose sixteen-fold. It is clear that tax evasion has not gone away and the Revenue Commissioners must do more to protect the public purse.

The Government's handling of the controversy involving the abuse of young children in residential institutions run by religious orders during the last century also came under scrutiny. And while €128 million was agreed by the Government as the liability of the religious orders, the final cost in compensation and legal fees has been put at €828 million. The care of children with special needs and those in conflict with the law is still a serious concern. The State has been exposed to huge compensation bills while, at the same time, no timescale has been set for the provision of secure places of detention for 16 and 17-year-old boys and girls. And the management and funding of existing facilities for younger children is regarded as inadequate.

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Elsewhere, there were difficulties with Government grants for private marinas along the west coast. Serious inadequacies were discovered in the operation of traffic cameras and fixed speeding penalties by the Garda Síochána. And the extent of public waste in relation to a €50 million electronic voting system will only become clear when a decision is finally taken on its use. Mr Purcell's report amounts to an important reality check for this Government.