Billions in taxpayer's money 'wasted' by civil service

A lack of specialist expertise in the civil service led to a waste of billions of euro taxpayers' money, it emerged tonight.

A lack of specialist expertise in the civil service led to a waste of billions of euro taxpayers' money, it emerged tonight.

The Public Accounts Committee blamed a catalogue of errors and poor budgeting for a massive overspend on road building schemes, the provision of medical cards for over 70s, and the complex River Nore drainage project in Kilkenny.

Michael Noonan, PAC chairman, said the cross-party report on Government spending for 2001 highlighted serious mismanagement of public funds.

"What strikes me most is that as you read it you see a theme, a trend developing - there's an awful lot of waste of taxpayers' money," he said.

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"If we were not in the middle of the Celtic Tiger boom with money flying into the Exchequer at higher levels... I don't think the road programme could have gone ahead.

The PAC chairman claimed Government decisions were being made on the back of low estimates which were often compiled by civil servants and others with little or no accountancy experience.

The report noted massive under-budgeting by the NRA since 2000. From initial estimates of €5.6 billion for national roadworks, the figure was re-estimated at more than €7 billion only 18 months later.

Ultimately a total of €15.8 billion was budgeted for in July 2004.

The cross-party group noted overspending on the complex drainage scheme on the River Nore to ease flooding in Kilkenny.

While the work that was carried out in the medieval city was commended, the report highlighted the scheme was budgeted for at €7 million, but the final cost topped €48 milion.

Developments at Beaumont Hospital were also criticised. A car park facility was built at the north Dublin site with an overspend of 13m euro, yet hospital management forked out thousands in fines to developers to cover illegal parking costs.

The report noted doctors received an overpayment of €6 million under an extension of the medical cards scheme.

The IMO have so far rejected calls to return the money, Mr Noonan claimed.

But while he accepted changes had been made in the five years since the committee began its work he warned agencies had to be willing to improve their budgeting on their own accord rather than wait to be rapped by the PAC.

PA