The Public Accounts Committee has agreed to investigate spending at a Hepatitis C support group.

The decision comes after the group Positive Action spent over a quarter of a million euro in travel expenses.

An audit of the now-defunct group says it spent State funds of €2.3 million on the likes of lobster meals, dog kennels, manicures and relaxation weekends.

€100,000 was spent on therapies including angel healing and card readings.

At the PAC this morning, Independent TD Shane Ross asked the chairman John McGuinness and clerk Ted McEnery to investigate:

Earlier, the PAC was told it does not have the power to interview the head of Irish Water.

The Dáil's legal advisors wrote to the committee saying Irish Water is outside their remit.

But TDs are angry about the letter - saying they had not arranged a meeting, and did not ask for legal advice about it.

Committee chairman John McGuinness said he does think Irish Water should come in, but he does not know who asked for the legal advice.

"I had no hand, act or part in any of this, and I was surprised and disappointed to get that letter," he said.

"Secondly, I'm not speaking for the clerk, but I am aware he did not instigate this either," he added.