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APPENDIX XIV.CONTINGENT LIABILITY TO ROSCREA MEAT COMPANY.Clerk to the Committee of Public Accounts. With reference to the inquiry as to the contingent liability of the Department of Agriculture in regard to the Roscrea factory which was made at the meeting of the Committee of Public Accounts on Thursday, the 18th November, when paragraph 46 of the Report of the Comptroller and Auditor-General on the Appropriation Accounts for the year 1935-36 was under consideration, I have to state, for the information of the Committee, that, under the existing Agreement with the promoters of the Roscrea Meat Company, in the event of the Minister for Agriculture determining the obligation to supply cattle to the factory, compensation would be payable on the following basis:— (i) should such determination take place within 36 calendar months from the date on which the Abattoir and Factory of the Company commenced operations, i.e., 29th July, 1935, the compensation would be a sum equivalent to 50% of one year’s net profits on the average of the two years’ working of the Company as shown by their books, together with a sum of £5,000; (ii) should such determination take place within 48 calendar months from the date of commencement of operations, the compensation would be 25% of one year’s net profits of the Company, on the average of the three previous years’ working of the Company as shown in their books, together with a sum of £5,000. So far as one can foresee at present, it does not appear that the contingent liability provided for in the Agreement is likely to become actual, either in the current or the next financial year. In this connection, however, it may be well to mention that a claim for compensation has been submitted by the Company in respect of an extension to the factory which is not provided for in the existing Agreement. This claim is at present under consideration in the Department of Agriculture. (Signed) SEÁN Ó BROIN, for Accounting Officer. |
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