10/09/2009

Reform Of FÁS Practices 'Underway'

Tánaiste and Minister for Enterprise Mary Coughlan has said work is already underway to address bad practice at FÁS.

Mary Coughlan was responding to a report published today from the Comptroller and Auditor General highlighting wasteful spending on advertising and promotion by the state training agency.

Ms Coughlan today welcomed the report saying FÁS had already cut its advertising budget and eliminated the use of corporate credit cards.

She also said the new FÁS Director General, Paul O'Toole, would be questioned about the report by the Oireachtas Public Accounts Committee later this month.

The Tanaiste went on to say she would be implementing many of the recommendations made by the Public Accounts Committee (PAC), and that the legislation would include a restructuring of the FÁS board to reflect best corporate governance practice.

Also responding to the report's publication, PAC said it would resume its investigation into FÁS following "some alarming findings" in the C&AG report.

In a statement, Committee Chairman Bernard Allen said the report again highlighted "many disturbing aspects" about the way FÁS operated over recent years, in particular showing that "lack of controls and poor corporate governance" has led to a waste of taxpayers' money.

"These revelations have highlighted lax practices and disregard for public sector policy in areas such as procurement and foreign travel," Mr Allen said.

(DW/KMcA)

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