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APPENDIX IX.MONARCHANA ALCOIL NA h-EIREANN, TEORANTA.FINANCIAL RELATIONS WITH EXCHEQUER.1. By section 11 of the Industrial Alcohol Act, 1938, Monarchana Alcóil na h-Eireann, Teóranta, was required to issue to the Minister for Finance, without payment by him, fully paid up shares of the company of an amount equal (in nominal value) to the sum certified by the Minister as the consideration which, in his opinion, should be paid by the company for the transfer of the undertaking. The consideration determined by the Minister under this section was the sum of £238,756, which accorded with a Statement of Affairs of the Industrial Alcohol undertaking on the date of transfer as audited by the Comptroller and Auditor-General. Fully-paid shares of £1 each, to the nominal value of £238,756, were duly issued by the company to the Minister. 2. The Minister for Finance is empowered by section 10 of the Industrial Alcohol Act to acquire shares of the company by subscription. Under this section he has subscribed for and has been issued to date 22,000 shares of £1 each. The proceeds of issue of these shares were required by the company to meet capital expenditure. 3. On the closing date of the first accounting period of the company, viz., from the 21st March, 1939, to the 30th September, 1939, the Minister’s shareholding consisted of 256,756 shares of £1 each, fully paid. On this shareholding he received, on the 18th December, 1939, a net dividend of £4,853, representing a rate of 5 per cent. per annum, less income tax. In accordance with section 16 of the Act this dividend has been paid into the Exchequer. 4. Section 20 of the Act empowers the Minister for Finance to authorise the payment of subsidies to the company out of moneys provided by the Oireachtas. This power has not been availed of, and no subsidy has been paid to the company from voted moneys. 5. Certain liabilities of the company to the Exchequer, as at the date of transfer, totalling £45,000 were not appropriate for inclusion in the Minister’s certificate under section 11 of the Act. These liabilities, the amount of which was ascertained by reference to the Statement of Affairs audited by the Comptroller and Auditor-General, included the advance voted in accordance with section 8 of the Act for the payment of the preliminary expenses of the company, the cost of patent rights, trading losses incurred prior to the transfer, interest on capital, and an amount representing the excess of the liquid assets of the undertaking over the floating liabilities at the date of transfer. The company made an early repayment of £20,000 on foot of these liabilities, and the Minister accepted a debenture issued by the company for the discharge of the balance of £25,000. The debenture provided for the repayment of this sum within a period of five years, with interest at the rate of 5 per cent. per annum, payable half-yearly. The company was entitled to make repayments at any time in multiples of £1,000 and has exercised this right to discharge the liability under the debenture, with interest, during the year 1939-40. The total sum of £45,000 has thus been repaid by the company with accrued interest, the amount received by the Exchequer being £46,278. 6. Under section 15 of the Finance Act, 1921, an excise allowance at the rate of 5d. per proof gallon is payable on spirits used in the making of power methylated spirits. Allowances paid to the company by the Revenue Commissioners under this enactment amounted to £53,855 in respect of the period from the commencement of the operations of the company on 21st March, 1939, to the 31st May, 1940. (The total payments of excise allowance by the Revenue Commissioners on the output of the factories from their inception to the 31st May, 1940, amounted to £79,613. Prior to the transfer of the undertaking to the company the payments of excise allowance were credited as Extra Exchequer Receipts in the Vote for Industry and Commerce.) 7. There is no excise duty on industrial alcohol. 8. The accounting arrangements of the company are in conformity with commercial practice, and with statutory requirements. Section 18 of the Industrial Alcohol Act imposes the obligation on the company of furnishing to the Minister for Finance, within 90 days after the end of every accounting year, a balance sheet and a profit and loss account for the accounting year, duly audited by the auditor of the company. These accounts are required to be drawn up in such manner as the Minister for Finance may direct, and the balance sheet is required to contain (in addition to any matter required by such direction) a summary of the capital, assets and liabilities of the company together with such particulars as will disclose the nature of such assets and liabilities, and the manner in which the value of the assets was arrived at. The Minister is obliged to present the accounts to the Dáil within one month after they are furnished to him. The accounts for the first accounting period were presented by the Minister to both Houses of the Oireachtas in December last. 9. One of the conditions scheduled to the Industrial Alcohol Act to which the company is required to conform is that, so long as the Minister for Finance holds not less than one-tenth (in nominal value) of the issued shares of the company, no person shall be capable of being appointed auditor of the company unless the Minister has, after consultation with the Minister for Industry and Commerce, approved of the nomination of such person to the office of auditor. The Minister, after consultation with the Minister for Industry and Commerce, has approved the appointment of the Comptroller and Auditor-General as auditor of the company. Roinn Airgeadais, 8adh Meitheamh, 1940. |
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