A £750,000 fine imposed on the Police Service of Northern Ireland (PSNI) over a major data breach will be paid to the Treasury in what has been described as a public sector “money-go-round”.

PSNI Chief Constable Jon Boutcher has been outspoken about funding challenges for the force, warning of serious understaffing.

It is now set to pay the £750,000 fine, issued by the Information Commissioner’s Office (ICO), following a major data breach last year which saw details of almost 10,000 officers and staff published online.

During a meeting of the Northern Ireland Policing Board on Thursday, Sinn Fein MLA Gerry Kelly asked the Information Commissioner John Edwards where the money will go.

Mr Edwards said all fines go to the Crown Account, adding it will be paid to the Treasury.

Mr Kelly queried where there is an argument against that, given that police resources are “at rock bottom”.

Mr Edwards said he is constrained by legislation.

“The point you’re making is one of policy,” he responded. “I might well agree with you but the law in the UK GDPR provides for these penalties.

“It does not differentiate between public authorities and private so it’s not within my gift to say, ‘there is a money-go-round that makes no sense so I’m not going to execute Parliament’s will in relation to a public authority,” he responded.

“I have taken the opportunity to revise our approach to the public sector, recognising exactly the point you make. I am concerned at the money-go-round aspect that you describe.

“I am also very concerned about, particularly in devolved communities, where taking money out by way of a monetary penalty actually impacts the individuals concerned by withdrawing services from their communities.

“So in many senses, take for example an NHS Trust in Scotland, if I fine them for a breach which has affected the individuals in that community, I’m basically re-victimising those victims by punishing them twice.

“So I recognise the anomaly you describe but I have to work within the framework that parliament has delivered.”

Also appearing at the board, Mr Boutcher said the fine is something he would not have wanted, but said the seriousness of the data breach is “well understood by everyone here”.

“The impact on our staff will never be forgotten and will not be underestimated, this should be a lesson to every organisation in policing and beyond,” he said.

“The majority of the cost of that fine, £610,000 was accounted for against last year’s budget.

“A further £140,000 will now be charged against our budget in the current financial year.”