Committee Reports > List of Committees > Dáil > 1940 > Committee of Public Accounts > Interim and Final Report - Appropriation Accounts 1939 - 1940

APPENDIX VII.

SAINT ANDREW STREET, DUBLIN, POST OFFICE SITE.

For a great number of years the accommodation in the College Green Post Office has been inadequate; there is no means of extending it and the cost of complete rebuilding would be prohibitive. The Department of Posts and Telegraphs had, therefore, been seeking alternative premises in the vicinity. About 1932 the Department discovered that a suitable site in Saint Andrew Street was on the market, but before they could acquire it, the Agricultural Credit Corporation leased the site from the Dublin Borough Council.

The Department later entered into negotiations with the Corporation with a view to the provision of Post Office accommodation on the ground floor of a building which the Corporation proposed to erect. The rent demanded was, however, regarded as too high and this scheme and an alternative one, by which the Department would pay the capital cost of part of the building and a smaller rent, both fell through.

As a result of further negotiations a fresh scheme was put forward to and sanctioned by the Minister for Finance on 15th June, 1934, under which the site would be transferred to the Department in return for reimbursement of the Corporation out-goings, including cost of clearing the site, architect’s fees for building plans, rent, etc., the entire building to be erected by the Board of Works and the Department to lease accommodation to the Corporation— the possibility of the Industrial Credit Company also renting accommodation to be explored.

Plans were prepared by the Office of Works accordingly, and the Agricultural Credit Corporation agreed to lease from the Department of Posts and Telegraphs the first and second floors and half the basement at a rent of £1,450 per annum (the accommodation and the rent to be divided between the Agricultural Credit Corporation and the Industrial Credit Company).

The detailed scheme was sanctioned by the Minister for Finance on 15th June, 1935, and the initial steps regarding the transfer of the site were taken —the Agricultural Credit Corporation being asked to give a definite assurance that the Corporation and the Industrial Credit Company would enter into lease as described. The Industrial Credit Company, however, withdrew from the arrangement and the Agricultural Credit Corporation undertook by letter dated 23rd March, 1936, full responsibility for the rent, etc., of the entire upper floors on the conditions that they would be granted permission to sub-let any rooms not required for their immediate use, and that the building would be ready for occupation within two years.

The Dublin Borough Council gave their approval to the transfer of the site and consented to an extension of the building period up to 25th March, 1939. The legal formalities were proceeded with and the Deed of Assignment from the Agricultural Credit Corporation was completed in June, 1937. The Deed did not contain any stipulation as regards the renting by the Agricultural Credit Corporation of accommodation in the building.

It had been intended to commence work on the building as soon as the site was legally transferred to the Department, but owing to a dispute in the building trade progress was delayed. The Agricultural Credit Corporation then gave notice that they intended to withdraw from their agreement, on the grounds that it was not possible to have the accommodation available for occupation by March, 1938, and that as their existing accommodation was inadequate, it was necessary to make alternative arrangements without delay.

At this stage the whole position was again reported to the Department of Finance by the Department of Posts and Telegraphs. It was then clear that if buildings were erected on the Saint Andrew Street site the whole of them could be utilised for Post Office purposes, and in fact, were definitely needed for accommodation for Post Office services. In the view of the Minister for Finance on purpose would have been served by requiring the Corporation to keep to their bargain to take up accommodation in the new building. The only question which then remained for settlement was whether, in releasing the Corporation from their bargain, any fine or other consideration should not be expected of them. As to this, the considerations were:

(a) that the Department of Posts and Telegraphs would require the whole of the building, as already stated;

(b) that the Corporation was a concern in which the State owned the majority of the share capital. In view of the vital interest of the State in the Corporation, and the fact that the Department of Posts and Telegraphs badly needed the site it appeared to be a case in which a give and take attitude would best serve the general interest;

(c) that the Corporation, in their dealings with the Department of Posts and Telegraphs, had not been ungenerous. They, on their part, did not seek to make any profit on the transfer of the lease and had only asked the State to pay the Corporation’s outgoings, notwithstanding that they were aware that the Department of Posts and Telegraphs was most anxious to secure the site;

(d) that, even if it were decided to look for refund of the whole or part of the consideration money, recovery could be effected in the last resort only by recourse to legal proceedings. The result of this, in the view of the Department’s legal advisers, would be doubtful, and there seemed to be obvious objections to having recourse to them.

In the circumstances the Minister for Finance decided to release the Corporation from their undertaking without requiring a refund of the consideration money.

Roinn Airgeadais,

29adh Bealtaine, 1940.