A Dail committee today begins an inquiry into why a Government decision almost three years ago to remove control of EU grants from the Department of Agriculture has not been implemented.
The former Progressive Democrats leader, Mr Desmond O'Malley, claimed yesterday that the Department of Agriculture had in fact blocked the implementation of the decision. Mr O'Malley will give evidence at today's Public Accounts Committee inquiry.
The Rainbow government decided in March 1996 to set up an operationally independent unit to administer the FEOGA funds - EU intervention funding, export refunds and other agricultural grants - worth almost £2 billion annually. This followed the imposition of a £70 million fine on Ireland by the EU Commission arising from breaches of beef intervention and other regulations in the early 1990s.
However, the Secretary-General of the Department of Agriculture, Mr John Malone, confirmed last month that this decision was never implemented. Under questioning at the Dail Public Accounts Committee from the Democratic Left TD Mr Pat Rabbitte, Mr Malone said that while the decision was not implemented, it had not been reversed by the Government either.
Last night Mr O'Malley claimed that the Department of Agriculture had in fact blocked the decision's implementation. He called for its implementation, saying "there is a serious need for reform in the administration and regulation of the beef industry".
The ail Public Accounts committee begins its two-day examination of the administration of EU grants by the Department of Agriculture this afternoon. The second part of the examination will take place this day next week.
Mr Malone and a number of senior officials are expected to give evidence and be questioned by committee members during the inquiry. As well as examining the particular issue of the non-implementation of the decision, the inquiry will consider other matters relating to the administration of FEOGA funds.
The Government decision to set up the independent unit would have involved the appointment to it of a director by open competition. The director would manage its budget and be obliged to account directly to the Public Accounts Committee.
At a Public Accounts Committee meeting in early December, Mr Rabbitte closely questioned Mr Malone about the matter. Asked why the decision had not been implemented, Mr Malone referred to the change of government which took place in June 1997, suggesting this was a factor.
He also said the decision was "not a decision for me to implement", and that his Department was still charged with administering EU funds. It did not emerge, however, why this was so.
"The last Coalition made a decision in 1996 to split up the Department because of pressure applied by the European Commission, which was unhappy with the abuse of the EU grant system in Ireland. It still hasn't happened because the Department has blocked it," Mr O'Malley said.