The Public Accounts Committee Chairman has questioned why money is 'languishing' in banks on behalf of the Private Residential Tenancy Board and the Department of the Environment.
The money is due to local authorities to carry out the necessary inspections of properties for rent supplements
Fine Gael's Bernard Allen said representatives of local authorities have told him they are strapped for resources and can not get staff.
Mr Allen said the weakest in society were suffering and a social problem was festering as a result.
He said this money should be released to the local authorities to carry out the inspections and by not doing so a Government department and an agency are not fulfilling their obligations.
The PAC Chairman was responding to a statement by the Department of Environment's Denis Conlon who said they had been paying monies to local authorities who were carrying out a low level of inspections.
He said it was pointless to shovel out money in large quantities to local authorities who were not performing.
Mr Conlon said they have implemented a new system where they pay out a flat rate to a local authority based on the number of registered units in their area and also a further element based on performance in the previous year.
Comptroller and Auditor General John Purcell told the Public Accounts Committee that according to its 2006 balance sheet, the Private Residency Tenancy Board had €8.5m on hand at the end of that year.
The Board retains two-sevenths of the tenancy registered charges collected which they put towards their operational expenses.
The remainder is paid to local authorities to perform their inspections including the vetting of the standard of rented accommodation.
Mr Purcell said the exchequer also provides directing funding to the board and he said the level of cash on hand suggests the State is over funding the board to a considerable extent and the local authorities inspection scheme is not fully bedded in.
