Committee Reports > List of Committees > Dáil > 1950 > Committee of Public Accounts > Report - Appropriation Accounts 1946 - 1947

APPENDIX XI.

DEPRECIATION OF AIRCRAFT.

Rúnaí,

Coiste um Chuntais Poiblí,

Tigh Laighean,

Baile Atha Cliath.

At the proceedings of the Public Accounts Committee on the 7th instant during my examination in connection with the Appropriation Account of the Vote for Transport and Meteorological Services (No. 56), I undertook to furnish additional information arising out of the following note to Subhead C., which appeared in the Appropriation Account:—“The amount required in respect of depreciation of aircraft was less than anticipated.”

I am now to acquaint you, for the information of the Committee, that the principal cause of the variation was a change in the depreciation rate allowed on D.C.3 aircraft. Originally, it appeared that these aircraft could not be maintained in service for long because of the difficulty in obtaining spare parts. The Company decided at that point to write off depreciation at the rate of 50 per cent. per annum. Later in the year the “spare” position eased considerably and it was decided that it would suffice to write off depreciation at the rate of 25 per cent. per annum. I should mention that the figure of £61,200 was the actual subsidy paid and was based on the best estimates available before the end of the year. The total losses incurred have since been determined at £79,224 3s. 6d., the reduction in depreciation being more than counterbalanced by heavier expenditure under other heads.

Department of Industry and Commerce.

16ú Iúil, 1948.