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REPORT.PART I.—GENERAL OBSERVATIONS.Minute of the Minister for Finance dated 31st December, 1946.SUPPLIES.1. The Committee notes the reasons given for the procedure adopted in connection with the transfer of 98,000 £1 shares of Irish Shipping, Ltd., from Grain Importers (Éire), Ltd., to the Minister for Finance for a nominal consideration. It appears clear, however, that, in effect, the purchase of the shares was made from moneys available for flour subsidy, and having regard to the terms of Article 9 of the Emergency Powers (No. 72) Order, 1941, the Committee considers that the purchase of the shares should have been financed directly from voted moneys, thus ensuring that Dáil Eireann was given full information regarding the transaction and that the terms of the Order were being complied with. PART II.—PARTICULAR ACCOUNTS.Public Works and Buildings.Qns. 87-95 400-408. 2. The Committee has had under consideration the procedure adopted in connection with certain construction works at Shannon Airport. It understands that in relation to all public contracts the system of open competitive tendering on a lump sum basis has invariably been followed by the Commissioners of Public Works and that they were reluctant to accept responsibility for any departure from this system in connection with the works in question. In consequence responsibility for the execution of the works was, with the concurrence of the Department of Finance, accepted by the Department of Industry and Commerce which on grounds of extreme urgency proposed to have them executed on a cost plus profit basis by a contractor selected after competition from among a small number of approved contractors. It was represented to the Committee that though the method adopted was more costly it affected a considerable saving of time, and that the early completion of the works was of prime importance. The Committee would like to be informed of the nature of the checks on expenditure on these works. It considers that the placing of contracts on a cost plus profit basis can be justified only by very exceptional circumstances and it trusts that consideration will be given to the adoption of the system of fixed price contract in connection with any further works which may be undertaken. 3. The management of the Bourn Vincent Memorial Park at Killarney is entrusted to the Commissioners of Public Works, and the receipts under various heads of revenue—dairy produce, tillage, fishing, admission tickets, &c.— are appreciable. As the outgoings appear under various subheads of the vote it is not possible to ascertain readily whether the estate is profit earning or, alternatively, a charge on public funds. The Accounting Officer furnished, for the information of the Committee, a statement of receipts and payments, which showed an excess of payments amounting to over £4,000, but it is not clear whether this sum may be regarded as the loss incurred during the year, and the Committee recommends that a comprehensive annual account of all the revenue and expenditure showing the net financial result of the working of the estate in each year be presented to the Committee. 4. In its report dated February, 1939, the Committee had occasion to refer to the absence in the Office of Public Works and the Department of Defence of a permanent record of State properties and it expressed the opinion that it is desirable that complete registers and rentals of all State lands and buildings should be compiled by the Departments charged with their administration and that a regular perambulation of State properties should be carried out periodically. The Minister for Finance expressed his agreement with the Committee and informed it that in the case of the Office of Public Works arrangements were being made to carry through certain proposals in this matter which he considered satisfactory. The Committee appreciates that the conditions obtaining through the intervening years would have militated against the completion of the work, and it is pleased to note that definite progress has now been made by the Office of Public Works, the survey of five counties being practically completed and arrangements made for the perambulation of all the properties in the other counties. The Committee will be glad to be informed from time to time as to the progress made in the work until its completion. SCIENCE AND ART.5. With reference to the scheme for the preparation and publication of translations and original works in Irish the Committee was informed that a number of works for which fees were paid in 1931 and subsequent years had not yet been published and that a final decision on their publication has not yet been taken. The Committee also notes that the number of copies of works printed for sale in the early years of the scheme was in many instances considerably in excess of the number which could be sold resulting in a large accumulation of stocks. While the Committee appreciates the difficulties inherent in a scheme of this kind it is concerned to find that considerable ineffective expenditure was incurred on the acquisition of works without any definite plan for their publication within a reasonable time. The Committee would like to be informed in due course of the amount of any loss arising out of non-publication of manuscripts which have been paid for, and the disposal of surplus stocks. TRANSPORT AND METEOROLOGICAL SERVICES.6. The catering service at the Shannon Airport is carried on under an arrangement with the catering controller providing for the recoupment to him of the actual loss incurred each year in operating the service, and the Committee is informed that the loss for the year ended 31st January, 1945, was £6,909 and that for the year ended 31st January, 1946, it amounted to £9,666. It understands that these losses were due to the uncertainty and irregularity of the traffic during these periods, and that the facilities were provided so as to have them for the time when the traffic developed. In this connection the Accounting Officer submitted a statement for the information of the Committee which showed that the passenger traffic had increased from 6,000 in the year 1944 to over 86,000 in the first ten months of 1946, and the Committee is assured that as a result of the increased traffic the service is now paying its way. It hopes that every effort will be made to maintain this service so that further charges on public funds in respect of it may be avoided. CHILDREN’S ALLOWANCES.7. The attention of the Committee was directed to a case in which an employer included in his claim for children’s allowance a child in his employment, and the Committee understands that for the purposes of the Children’s Allowances Acts the employed child was regarded as maintained by the employer and that employed children as such cannot be excluded from the provisions of the Acts. While the Committee agrees that the fact of employment should not disqualify a child who otherwise qualified for an allowance, it assumes that children should benefit by the allowances paid in respect of them, and it appears to the Committee that in the circumstances of employment the employer is the sole beneficiary. Consequently the Committee is in some doubt whether the admission of a claim by an employer in respect of an employed child is in strict conformity with the provisions of the Acts, and it suggests that the matter be further examined. ARMY.8. Attention was drawn to a case in which it had been established that the clothing accounts submitted in respect of a certain unit had been falsified. It appeared that the accounts had been supported by fictitious vouchers which purported to cover issues of articles of clothing which had not in fact been made, and it was stated that these vouchers were prepared with a view to adjusting the accounts in relation to bona fide issues made previously but not vouched at the time. The Accounting Officer stated that he was satisfied that there was no intention on the part of the officers concerned to defraud. The Committee desires, however, to record that it takes a serious view of any attempt to rectify accountancy errors by irregular entries rather than by a full disclosure of the position to the proper authority. The Committee notes that the question of disciplinary action is still the subject of discussion between the Departments of Finance and Defence. 9. Following a judgment of the High Court compensation amounting to £25,000, and costs, was paid to the owners of certain premises which had been damaged by fire whilst in military occupation. The Committee understands that in taking over the premises the Department had accepted responsibility for any damage which might arise as a result of the occupation and this liability was held to include damage resulting from accidental fire. The premises in question were insured against fire risk by the owners, who, it appears, continued to pay the premiums during the period of the letting, and it is considered that, in these circumstances, the position regarding liability for fire damage should have been clearly defined when the premises were being taken over. ARMY PENSIONS.10. The Committee has had under consideration a case in which allowances were granted under the Army Pensions Acts to the widows of Marine Service personnel who lost their lives as the result of a collision in Cork harbour between an official vessel and a ship, the property of Irish Shipping, Limited. The amount of these allowances was not included in the claim made against the Company in respect of the loss arising out of the accident. The Committee is informed that legal advice on this aspect of the matter was subsequently obtained and that it was held that no action lay against the Company in respect of the award of these allowances. Proceedings by the widows against Irish Shipping, Limited, in the High Court were decided in favour of the widows, who were awarded compensation. It appears that the court decision was subsequent to the award of the allowances under the Army Pensions Acts and that consequently the provisions of Section 13 (2) of the Army Pensions Act, 1923, under which compensation awarded from other sources may be taken into account in fixing the amount of a pension or allowance, could not, in the opinion of the law officers, be applied. In these circumstances the Committee does not desire to offer any further comment. (Signed) LÍAM COSGRAVE, Chairman. 14th May, 1947. |
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