€9m for securing defences remains in council coffers

MORE than €9 million given to councils for flood defences will remain unspent this year.

The Comptroller and Auditor General (C&AG) strongly criticised the way funding is “parked” by local authorities before work commences.

Waterford city had €4.9m advanced to it for flood relief in 2007, but will not spend the money until 2009. Similarly, Carlow — which was the scene of significant flooding this summer — will have €1.75m meant for relief schemes still locked in its coffers by the end of the year.

Dublin City Council will be sitting on €2.24m in the same way and Fingal County Council €250,0000. The Office of Public Works (OPW) told the auditor it considered the practice of advancing funds for projects before contracts for the work had been signed was the most practical way of doing things.

The OPW stated that in flood-ravaged Carlow, delays in finalising contracts led to delays in spending the money as the matter was put to arbitration. While in Waterford, heavy rainfall and near flooding in the early part of this year meant that defence plans were changed and therefore delays occurred.

“I was concerned at the level of the advances made in the light of the slow progress made in commencing the works,” the C&AG noted. The auditor demanded a change in the system.

“The practice of advancing funds to local authorities before formal contracts are concluded by them needs to be reappraised,” he said.

He indicated it was not acceptable for money to be advanced to local authorities for specific projects which were still not being undertaken a year later. Labour’s environment spokeswoman Joanna Tuffy said such delays were “unacceptable”.

“The finding that more than €9m of the €13m allocated by the OPW to local authorities under the Flood Relief scheme will go unspent this year requires an immediate explanation.

“From the point of view of the C&AG, the fact that this money has accumulated in council bank accounts represents a shortcoming in financial controls, which is certainly a matter of concern. However, what it means to people living in flood-prone areas is that action that should and could be taken to reduce the risk to their property and their livelihoods, has never been carried out, despite the fact that the required money is available. That is completely unacceptable.

“The C&AG argues that monies should not be handed over until the local authority is in a position to spend it and that is not unreasonable.

“But the Government has a responsibility to make sure that whatever administrative, technical and legal arrangements that may be required, are made without delay, so that local communities can get the flood protection that they deserve,” said Ms Tuffy.