Committee Reports > List of Committees > Dáil > 1947 > Committee of Public Accounts > Report - Appropriation Accounts 1945 - 1946

REPORT.

PART I.—GENERAL OBSERVATIONS.

MINUTE OF THE MINISTER FOR FINANCE DATED 4th DECEMBER, 1947.

Supplies.

1. The Committee notes that the Minister does not wish to offer any further comment on its observations regarding the procedure adopted in connection with the transfer of the shares in Irish Shipping, Ltd. It trusts, however, that should any similar case arise in the future, the views expressed by the Committee will be borne in mind.

Public Works and Buildings.

2. The Committee is glad to observe that the Minister for Finance agrees with its view that contracts on a cost plus profit basis can be justified only by very exceptional circumstances. It trusts that every effort will be made to reduce to a minimum the number of contracts placed on other than a fixed price basis.

Children’s Allowances.

3. The Committee notes that as a result of the enactment of the Children’s Allowances (Amendment) Act, 1946, and the making of the Children’s Allowances (Normal Residence) Rules, 1946, an employer is not now entitled to a children’s allowance in respect of a child employed by him unless the child’s parents are no longer entitled to the custody of the child, and that if the parents are entitled to the custody the allowance can be paid only to them.

Army.

4. The Committee is not clear as to the position regarding the respective liabilities of the State and of the owners in connection with damage by fire to occupied premises. It notes that, in accordance with established practice, the State carries its own insurance and assumes liability for any damage resulting from military occupation. It further notes that, in the particular case in question, the Minister for Defence and the Minister for Finance considered that the fire was due to accidental causes and, as the Committee understands it, sought to disclaim liability on that ground. It would thus appear that a distinction is drawn between damage arising from the normal risks of ordinary occupation and from the special risks attendant upon occupation by military personnel. In these circumstances, and in view of the fact that there was a conflict of evidence at the hearing in the High Court regarding the nature of the liability undertaken, the Committee hopes that the possibility of defining more precisely the position regarding liability for damage will be considered when premises are being taken over in the future.

Army Pensions.

5. The Committee notes that power has now been taken in Sec. 3 of the Army Pensions Act, 1946, to review pensions and allowances granted under the Army Pensions Acts by reference to subsequent awards of compensation from other sources.

PART II.—PARTICULAR ACCOUNTS.

Garda Siochana.

6. In connection with the suspension of the activities of the Local Security Force and its subsequent disbandment, the Committee was informed that the “stand-at-ease” order came into effect on the 8th January, 1945, but supplies of uniform clothing for which orders had been placed and executed were delivered up to 22nd February, 1945. Unissued articles of clothing were subsequently sold for considerably less than the purchase price. Losses of this nature may be unavoidable where the cessation of a service is the result of an unexpected decision, but the Committee feels that in this instance the cessation of activities might have been foreseen and that steps could have been taken to terminate contracts for supplies not likely to be required, with a consequential saving to public funds. The Committee would like to be assured that where public services fall to be terminated, official procedure is adequate to ensure that expenditure which is no longer necessary is not incurred.

District Court and Circuit Court.

7. Six cases of misappropriation by Court clerks involving considerable sums are referred to in the notes appended to the accounts. In five of the cases referred to the full amounts involved were made good, but in the sixth case, a charge of over £70 fell to be borne on public funds. It appears that the moneys received by Court clerks are made up of small amounts which are paid in at various times, mostly in cash, but that it is difficult to ensure that all are regularly accounted for. The Committee was informed that in the case of the ordinary District Court clerks the State is protected against loss as the clerk, on appointment, is required to enter into a fidelity bond, and also that the regulations now in force are calculated to prevent any large sums from accumulating in the hands of the clerks. The Committee is satisfied that the system of control is having the close attention of the Department, and it trusts that every effort will be made to prevent the recurrence of cases of misappropriation.

Primary Education.

8. The method of departmental control over the working of the farms attached to the Preparatory Colleges was the subject of discussion before the Committee and attention was drawn to variations, as reflected in the statements of receipts and payments, in the yields of crops and in prices obtained for animals and produce from the different farms. The Committee was informed that it had been the practice to have the farms visited and inspected by an agricultural expert who was on the staff of the Department, but that since his retirement a suitable person was not available for the work, and the Department was considering an alternative arrangement. In the view of the Committee efficient departmental control of farming operations would be rendered difficult in the absence of a system of periodical survey of the farms by an officer with the requisite knowledge of agriculture, and it would like to be informed when a decision has been come to by the Department in this matter.

Transport and Meteorological Services.

9. A sum of £2,000 was paid from this vote towards making good the loss incurred in maintaining the Catering Service at Shannon Airport. The Committee notes that the charges against this service for rent and electricity have not yet been finally determined and that the amount of the deficit on the service as shown in the appropriation account is, therefore, only provisional. The Committee feels that this position cannot be regarded as satisfactory and that every effort should be made to expedite the definite determination of these charges.

Children’s Allowances.

Appendix XII.

10. The attention of the Committee was directed to awards of children’s allowances in certain cases in which the claim forms had not been signed by the claimants or had not been received in the Department before the commencement of the relevant payment period. There appeared to be an element of doubt whether the awards in these cases were valid under the Children’s Allowances Acts and in the course of the discussion before the Committee the Accounting Officer undertook to get legal advice on the points at issue. The Law Officer has since been consulted and his opinion is set out in Appendix XII to this report. Having regard to the views expressed by the Law Officer the Committee considers no further action necessary.

Public Works and Buildings.

11. Irregularities in connection with the employment and attendance of workmen in a district workshop were brought to the notice of the Committee. It appears that some workmen were employed on unofficial work during official hours and the wages sheets were irregularly certified in respect of them, and, further, that some items of equipment were unaccounted for. Other irregularities involving the misappropriation of receipts from certain grazing lettings were also under discussion. The Committee notes that disciplinary action was taken in these cases, but it feels that the irregularities point to defects in the existing arrangements for supervision, and it would like an assurance that effective measures have been taken to render the system of control more efficient.

Agriculture.

12. The Committee was informed that the operation of the compulsory tillage order for the 1945 season resulted in a net loss and that it was not possible for the Department ultimately to make a profit in connection with the enforcement of the orders relating to compulsory tillage as surpluses, in individual cases, after meeting the Minister’s expenses and the claims of other State departments and of local authorities, are paid over to the occupiers of entered holdings. The Committee trusts that in these circumstances every effort will be made to keep losses at a minimum.

Fisheries.

13. The attention of the Committee was drawn to a case in which a Board of Conservators was recouped the costs of legal proceedings in connection with a conviction in the District Court for the unlawful possession of salmon illegally captured. The conviction referred to was quashed in the High Court on the ground, inter alia, that it had not been recorded in proper form and an appeal to the Supreme Court was dismissed. The Committee notes that the Department of Finance is in communication with the Department of Justice with a view to ensuring that convictions will be properly recorded in future.

Army.

Qns. 623-632. and 704-706.

14. In connection with the disposal of surplus motor vehicles, arrangements were approved for the sale to a public company of 300 lorries at prices to be determined by Arbitrators to be appointed by the Minister for Finance. It appeared that when the valuations became available the company decided to accept only 35 of the lorries at the prices indicated, and the balance was eventually disposed of by public auction. Valuers’ fees and expenses amounted to £1,484 18s. 9d. and as this expenditure was incurred solely for the purposes of the proposed sale of the 300 lorries it would appear to have been rendered nugatory to a considerable extent by reason of the fact that only 35 lorries were accepted. In these circumstances the Committee cannot regard as satisfactory the arrangement by which this relatively large expenditure was incurred in the absence of a definite agreement with the company that it should accept all the vehicles valued at the prices fixed by the Arbitrators.

15. Reference was made to payments of emergency gratuities to soldiers who had been convicted by courtsmartial on charges of desertion and had been sentenced to terms of imprisonment. The payments were based on periods of service subsequent to release. Section 71 (4) of the Defence Forces (Temporary Provisions) Act, 1923, provides for automatic discharge on sentence to imprisonment and accordingly the retention in service of the soldiers concerned was irregular. The Committee was informed that the failure to effect discharge was due to an administrative oversight; it desires to stress the importance of strict compliance with the statutory provisions relating to the service of Army personnel.

16. Reference was also made to payments of emergency gratuities to two soldiers whilst they were awaiting trial in the civil courts on charges on which they were subsequently convicted and sentenced to terms of imprisonment. It appeared that, through oversight, the military authorities failed to advise the administrative branch of the Department of the facts concerning the charges pending against the men, and that payment would not have been authorised had the position been disclosed. The failure to notify the facts resulted in a loss to public funds and the Committee trusts that steps will be taken to ensure that Routine Orders shall, in future, disclose all relevant information.

17. In according sanction for the purchase of clothing to fill the year’s requirements the Department of Finance stipulated that the demand for certain articles should be met from stocks in hands. It appeared that through inadvertence contracts for the supply of quantities of these articles were placed and the Committee was informed that the covering sanction of the Department of Finance has been sought for the excess expenditure involved. The Committee has, in previous years, referred to the necessity for strict adherence to the terms of Department of Finance sanctions for expenditure and it desires again to emphasise the importance of this matter.

18. In connection with a claim for compensation for damage caused to certain premises whilst in military occupation an offer of £842 0s. 9d. was made in settlement and, of this amount, the sum of £174 2s. 2d. was regarded as being attributable to wanton damage and was recovered from the troops concerned. The offer was not accepted and the claim was eventually settled by payment of £2,500, the amount assessed against the troops remaining unaltered. The Committee was informed that the assessment of £174 2s. 2d. was regarded as reasonable in all the circumstances and it accepts that view. It would appear to be desirable, however, that assessments in respect of wanton damage should be made on a provisional basis in cases where the amount of the Department’s liability had not been finally determined, in order that public funds may not be called upon to bear charges in respect of wanton damage which should properly be recoverable from occupying units.

(Signed) LIAM COSGRAVE,

Chairman.

10th December, 1947.