Defra has ‘casual approach’ to use of public funds, says MP
South Norfolk MP Richard Bacon, a member of the Commons public accounts committee, has said that the Department for Environment, Food and Rural Affairs (Defra) has a ‘casual approach’ to the use of public money, as a report finds financial management failings at the Department.
Mr Bacon said: “It is common sense that if you keep spending more than you have, you will get into financial trouble. This doesn’t appear to have occurred to Defra, which blew its £3.6 billion budget two years running.
“Sound financial management was just not a priority for those running the Department. The Treasury quite rightly says it is important to maintain sound public finances. However, Defra’s management board was simply not willing or able to tackle budgetary problems.
“Taxpayers have a right to expect value for money but this will be impossible while departments like Defra have such a casual approach to public funds”.
Mr Bacon was speaking as the Commons public accounts committee published its report on the management of expenditure by the Department for Environment, Food and Rural Affairs (Defra).
In 2007-08, the Department received £3.6 billion from the Treasury, but failed to allocate final budgets to each of its business areas until five months into the financial year. This was because Defra’s planned expenditure was in excess of funds provided and budget holders did not immediately declare all their financial commitments. Additionally, severe flooding and animal disease outbreaks in 2007 added further unforeseen costs. A similar situation arose in 2006–07, forcing Defra to make £170 million worth of cuts.
The report finds that Defra’s financial management failings arose largely from unwillingness within the Department’s management board to tackle budgetary problems and a failure to instil a culture of tight financial management throughout the organisation.4 September 2008
See also:
PAC REPORT: Defra: Management of expenditure
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