Central Bank Grounds Spouse Flights

After yesterday's outrage over misuse of taxpayer's money, the new governor of the Central Bank, Patrick Honohan, has released a statement banning the use of the bank's expenses to bankroll expensive flights for spouses.

Yesterday, a report from the Office of Comptroller and Auditor General revealed the Central Bank had used taxpayers' money to fly employees' spouses on 71 foreign trips, leading to outrage within the Daíl.

In response, governor Honohan has today said he has decided that spouse travel will no longer be paid for.

Speaking today, Mr Honohan said: "Over the period 2007 to 2009 I am informed that the Central Bank and Financial Services Authority of Ireland paid for the travel of accompanying spouses to business meetings on 71 occasions.

"I was not aware that the organisation had been covering the cost of so many spouse trips. While some of this expenditure could perhaps have been justifiable in the past, the practice does not seem appropriate in present circumstances. Accordingly I have decided that spouse travel will no longer be paid for."

The state owned bank's governor went on to reveal the total cost of the flights was €67,450 of public money. He said that of the trips 62 were within Europe with an average cost of €435. The other 9 trips were long haul and came to €4,515.

The procedures of the Central Bank state that "Where a formal spouse’s/partner’s programme is provided by a host institution, as an adjunct to a conference/meeting, the travel and accommodation expenses of a staff member’s spouse/partner may be allowed on an exceptional basis (usually once a year). The prior approval of the Director General/Chief Executive is required in such cases."

Yesterday's report, prepared by the Auditor General John Buckley, exposed the level and nature of spending within Government owned agencies throughout the state and chiefly within the recently criticised FÁS state training agency. However, the revelations over the Central Bank's conduct invited the most audible criticism.

The report found that total flight costs for the 20 state owned organisations looked at by the report were €8.6 million of taxpayers' money for the two-year period. Four organisations accounted for two-thirds of the expenditure – Enterprise Ireland; the Industrial Development Authority (IDA); the Dublin Institute of Technology and the Central Bank of Ireland.

A total of 18 organisations reported that they paid for flights for people other than staff members, while some organisations reported they were reimbursed for some non-staff flights. Around €1.5 million was incurred for 4,000 flights for non-staff members that was not reimbursed.

(DW/GK)