Treasury chiefs have been quizzed about claims government departments spend end of year surpluses on ’vanity projects’.

The issue was raised as Treasury Minister Alfred Cannan and chief financial officer Sheila Lowe were questioned by the Public Accounts Committee about the latest government audited accounts.

Committee member Rob Callister cited the case of the Sloc Road being resurfaced - a decision that may well have dashed the then infrastructure minister Phil Gawne’s 2016 election hopes.

Mr Callister asked: ’Obviously there was an incident with regard to the tarmacing of a road in the south of the island.

’The Treasury does check there are not these vanity projects at the end of the financial year in order to use up any surplus funds they have.?’

Mrs Lowe replied: ’No, each chief executive is responsible for their own budget. They are the accounting officer of the department. If I thought there was something I thought didn’t look particularly good I would ask about it.’

Mr Callister said: ’I know there is evidence going back a couple of years where one particular minister actually tarmaced the Sloc because he had some extra funds at the end of the year so he said "I had to spend it on something so I tarmaced the Sloc".

’You are actually ensuring that surplus funds come back to the Treasury so they can utilised somewhere else such as the health service?’

Mr Cannan replied: ’Do Treasury try and ensure public funds are being spent wisely? Yes. But ultimately it is for the chief executive and the minister and politicians to determine.’

Tim Crookall MLC asked if there was a policy with regard to surpluses. ’Should or shouldn’t they be ringfenced - or is it given back to Tynwald, back to Treasury basically?’

Mrs Lowe replied: ’A department surplus just goes back to Tynwald. You would want that money to go back to ensure it was given to where Tynwald believed it should be directed.’

Juan Watterson SHK also asked about ’pet projects’ and cited the case of previous Health Minister Kate Beecroft who said she would fund the drug Translarna.

He claimed the chief executive had requested a ’direction’ as they felt value for money was not demonstrated. But Mrs Lowe said: ’I don’t think it was reported to Treasury.’

Treasury Minister said receipts for 2016-17 were above forecast but there was greater expenditure. The previous government had on balance met its targets, he said.

Mrs Lowe said there had been a significant increase in indirect tax receipts as FERSA, the new VAT revenue sharing formula, had been signed after the budget was put together.