TDs warn of possible €1bn black hole in tribunal costs

THERE could be a “€1 billion black hole” in Government spending plans because ministers are not keeping track of how much the Mahon Tribunal will cost, TDs warned last night.

Chairman of the Dáil’s influential Public Accounts Committee (PAC) Michael Noonan expressed surprise that the Environment Department — which has responsibility for the planning payments inquiry — had no contingency accounts to measure the final bill to taxpayers.

“The amounts of money are so large there is a fairly big black hole in the financial statements of the Department of Environment if there is €1bn out there not mentioned in accounts at all,” he said.

Appearing before the PAC, the department’s secretary general Niall Callan refused to be drawn into the bitter public row between Tánaiste Michael McDowell, who predicts the final bill will top €1bn, and Judge Alan Mahon who insists it will be less than €300 million.

PAC chairman Michael Noonan TD expressed surprise Mr Callan was unable to give any indication of final costs considering the Finance Department has said costs for all sitting tribunals would reach at least €340m.

Mr Callan said the bill for the Mahon probe stood at €7m so far, but it would be impossible to calculate an end figure accurately as many third party legal costs had yet to be applied for.

Socialist TD and PAC member Joe Higgins railed against the “rip-off” charges being paid to lawyers involved in tribunals.

The Comptroller and Auditor General John Purcell said he would speak to tribunal chairpersons with a view to looking at their costing frameworks.

He also noted that the Tribunals Inquiry Bill 2005 was before the Dáil and if enacted would provide for the Justice Minister to set new limits for counsels.

The PAC also heard 1,800 mothballed electronic voting machines had been so far transferred to army storage at Gormanstown where 4,000 such pieces of equipment are to be housed.

TDs suggested the machines should be sold for scrap to put an end to the €57m they have so far cost taxpayers. “If the word goes out our electronic voting system is now in military custody respect for this country will nose dive,” Mr Higgins joked.