Committee Reports > List of Committees > Dáil > 1953 > Committee of Public Accounts > Report - Appropriation Accounts 1950 - 1951

APPENDIX II.

MINUTE OF MINISTER FOR FINANCE ON REPORT DATED 20th MARCH, 1952, OF THE COMMITTEE OF PUBLIC ACCOUNTS.

Paragraphs 1, 3, 4 and 10.

These paragraphs do not appear to require comment on the part of the Minister.

PUBLIC WORKS AND BUILDINGS

Paragraph 2.— Acquisition of Consulate-General, New York.

It is not now possible to say whether, at the time the existing premises were purchased, premises equally suitable for the purposes of the Consulate-General could have been obtained at less expense.

The Minister agrees with the view of the Committee that the procedure followed in this case is open to objection but, at the same time, he wishes to point out that the circumstances in which the premises were acquired were exceptional and very urgent and that there is no other case on record where the Department of External Affairs acquired premises without the concurrence of the Commissioners of Public Works.

The Minister agrees fully with the recommendation of the Committee that, whenever circumstances render it impossible for the Commissioners of Public Works to inspect buildings abroad prior to purchase, a technical report on the property should be made available for their consideration. The Department of External Affairs and the Commissioners of Public Works have been apprised of the Committee’s recommendation.

Paragraph 5.—Dredging Plant.

The Minister is informed that, prior to its purchase, an engineering survey of the Dundalk plant, including a special survey of the boilers, was made with a view to obtaining the best possible information as to the probable cost of reconditioning the vessels. He is, furthermore, advised that it is not possible to make an accurate estimate of the cost of reconditioning floating plant until the vessels are examined in dry-dock, and even then the estimate may be considerably exceeded as a result of hidden defects discovered when the vessel is opened up.

At the time the purchase was made, it was believed that suitable tugs, surplus after the termination of the War, would be available at reasonable prices as auxiliary craft but although a number of second-hand tugs was in fact available, exhaustive inquiries failed to locate any which would be sufficiently seaworthy for the Irish coast.

The Commissioners of Public Works have reviewed, in consultation with the Department of Industry and Commerce, the questions of the Department’s future dredging policy and the composition of the Commissioners’ dredging fleet (by reference to the fact that contractors are now available to dredge commercial harbours) and they have decided to recommend the disposal of the Dundalk plant at the best price obtainable.

DEFENCE

Paragraph 6.—Damage to mechanical transport allotted to An Fórsa Cosanta Aitiúil.

The Committee will be informed as soon as the contemplated amendment of the existing Defence Force Regulations, referred to by the Committee, has been effected.

Paragraph 7.—Acquisition of premises for accommodation of An Fórsa Cosanta Aitiúil.

The Minister has received an assurance from the Department of Defence that in compliance with the wishes of the Committee, in any future case in which that Department proposes to acquire premises, a full and careful examination of the building will be made by a competent technical officer with a view to ascertaining the precise condition of the premises and that the full facts will be reported when the Minister’s sanction for the proposal to purchase is being sought.

SUPREME AND HIGH COURT OF JUSTICE

Paragraph 8.—Recoupment of Exchequer Advance to make good certain deficiencies in estates of Minors.

In deference to the views of the Committee, the authority of the Dáil will be sought by way of Supplementary Estimate for treating the unrecouped balance of this advance as a final charge against voted moneys.

LOCAL GOVERNMENT

Paragraph 9.—Entitlement to Housing Reconstruction Grants.

The anomaly complained of by the Committee in the last sentence of this paragraph has been removed by Section 19 of the Housing (Amendment) Act, 1952, which ensures that grants will not be payable to agricultural labourers unless they reside in rural areas.

AVIATION AND METEOROLOGICAL SERVICES

Paragraph 11.—Excess on Subhead O—Subsidy in respect of Air Services.

The Minister notes the view of the Committee that a Supplementary Estimate should have been introduced to cover the excess on Subhead O—Subsidy in respect of Air Services. The excess was £173,162 on a grant of £300,000. This grant was, however, not available for issue from the Vote until (a) the Air Navigation and Transport Bill, 1950, had been enacted and (b) an Order had been made thereunder authorising the payment of subsidy. The Bill became law on 15th March, 1950, but it was only within a few days of the end of the financial year that it was possible to determine the amount of subsidy payable and make an Order accordingly. In these circumstances and as adequate savings were available on the Vote for Aviation and Meteorological Services generally, the exercise of virement was considered to be consistent with the understandings reached over the years with the Committee of Public Accounts. The service was of long standing and, although the absolute amount of the excess was substantial, it was not seriously out of proportion to the original provision. Moreover, the payment was clearly not contrary, in principle, to the wishes or intentions of Dáil Éireann, which had only a short time before renewed its approval of the policy of subsidising air services by passing the Air Navigation and Transport Bill.

TRANSPORT AND MARINE SERVICES

Paragraph 12.—Grants to Córas Iompair Eireann to meet Interest on Debenture Stock.

The Committee’s criticism is based on the view (1) that the £209,000 to meet current debenture interest should have been advanced from the Central Fund in accordance with Section 18 of the Transport Act, 1944, instead of being included in the Supplementary Estimate, and (2) that, in preference to the course adopted of providing the Company with a grant to repay to the Central Fund the previous advances to meet debenture interest, these advances should have been repaid direct to the Central Fund from voted moneys, leaving the Company still liable for repayment as provided for in Section 18.

While the Minister agrees that the procedure of varying or modifying the provisions of a statute by way of Vote and confirming Act should be resorted to only in exceptional circumstances, he considers that the circumstances in the present case were of this character. Dáil Éireann was being approached for the first time to vote moneys to meet the losses of Córas Iompair Éireann and it would have been unrealistic, and possibly misleading, to exclude liabilities in respect of debenture interest which the Company was unable to discharge. The grants sought to enable the Company to repay the previous advances from the Central Fund and to meet current debenture interest were described in the estimate as “non-repayable” and were voted by the Dáil on that basis. Should, however, any future case arise in which the introduction of an estimate at variance with existing statutory provisions becomes necessary, the Minister will have regard to the view of the Committee that the variation should be expressly mentioned and explained on the face of the estimate.