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HSE slow to act on €245m overrun: Report

Health Service Executive - 'wait and see culture'
Health Service Executive - 'wait and see culture'

The State's financial watchdog has strongly criticised HSE managers for failing to act promptly to address a budget overrun of €245m.

In his annual report for 2007, Comptroller and Auditor General John Buckley also criticises them for assuming they would be 'bailed out' with extra funding.

He describes elements of the health service as fragmented, disjointed and difficult for patients to access.

Mr Buckley says that by November 2006, the HSE knew that its 2007 allocation for existing services would be around €341m short.

But senior management did not implement a breakeven plan to secure those savings until July 2007 - in the end securing savings of only €96m.

He said previous practice on budget overruns had led to the expectation by certain managers that they would be 'bailed out' with extra funding. He says this 'wait and see' culture must be discouraged.

Revenue made voluntary settlement

Taxpayers will also be fascinated to learn that the Revenue Commissioners made an undisclosed voluntary settlement of almost €1.7m with the Inspector of Taxes.

Mr Buckley's report says the payment related to unpaid benefit-in-kind tax for the Revenue's own staff.

His report also says 200 garda cars costing €3.8m lay idle for 14 months after they were purchased - because the garda garage could not cope with fitting out such large numbers of vehicles.

Free election literature for Oireachtas members cost the state up to an extra €3.3m because, for legal reasons, the State did not qualify for a bulk discount available to other An Post clients.

Mr Buckley criticises the continuing payment of special border duty allowances to Defence Forces personnel long after the original reason for them no longer applied.

He highlights the savings scheme that cost €1m a year to administer, despite generating less than €4.5m annually.

Over €9m was advanced to local bodies for flood relief despite the fact that it will not be utilised until 2009.

Mr Buckley raises concerns about the lack of competitive processes in the procurement of goods and services in the prison service.

Click here to read the full report.