PEI

Auditor general to conduct first comprehensive review of IRAC

The Island Regulatory and Appeals Commission will soon be put under the microscope of the province's auditor general.

Commission was set up in 1991; AG office has yet to look at how it works

A comprehensive review of the Island Regulatory and Appeals Commission will be conducted by the Auditor General for the first time since it it was set up 26 years ago. (CBC)

The Island Regulatory and Appeals Commission (IRAC) will soon be put under the microscope of the province's auditor general.

Auditor General Jane MacAdam has approved a request from the Legislative Audit Committee for a comprehensive review of IRAC.

The commission is best known for setting gas prices, but also oversees some land sales, waste management and rental disputes.

Since it was set up in 1991, this is the first time the auditor general will look at how  the commission works.

According to opposition leader Jamie Fox, a review is long overdue.

"I think it's time. I think we need to look at how that organization deals with the public and the powers that are entrusted to them," said Fox, who also chairs the province's Legislative Audit Committee.

"IRAC has basically an absolute power given to them," Fox continued to say.

'I think IRAC needs to be restructured'

Fox said he would like the auditor general to look at who's on the commission, how it makes decisions and when they're made public, with the hopes the audit will highlight ways it can improved and modernized.

Leader of the opposition and member of the province's public accounts committee Jamie Fox says a total review of IRAC is long overdue. (Nicole Williams/CBC)

"I'll make no bone about it. I think IRAC needs to be restructured," he said. "I really have to wonder if politically appointed individuals are best qualified in making these decisions that they're making."

MacAdam said she hasn't started working on the review yet but will begin planning work later this year. 

"It would be an examination similar to what we would do in a performance audit," she said.

She also said the review likely wouldn't be ready for this fall's legislative sitting.