Committee Reports > List of Committees > Dáil > 1955 > Committee of Public Accounts > Report - Appropriation Accounts 1952 - 1953

APPENDIX XVIII.

CONSTRUCTIONAL WORKS CARRIED OUT BY AER RIANTA, TEORANTA.

Secretary,

Committee of Public Accounts.

Vote for Aviation and Meteorological Services.

At the proceedings of the Committee on the 4th November, 1954, I undertook to furnish further particulars on the following matters:—

(a) New works carried out on a time and material basis by the Aer Rianta maintenance staff.

There is a considerable number of buildings at Dublin Airport and many of them are of temporary construction. A maintenance staff, with suitable equipment, is employed by Aer Rianta to carry out the necessary maintenance. The organisation includes an Airport Engineer, a Superintendent of Maintenance, foremen, and workmen; the number of workmen varying with the volume of work in hands. The same organisation carries out any new works entrusted, to Aer Rianta by this Department, any extra men employed being laid off when the work for which they are engaged is completed.

(b) Profit element in new works carried out by Aer Rianta.

The contracts for these works provide for fixed percentage rates on the actual cost of wages and materials to cover all administrative and overhead charges, but no provision is included for a profit margin. There could, however, be an overall indirect gain to the Company because of the fact that some contracts might not involve additional charges on certain overheads and this would be reflected in any surplus on the Management Account which is surrendered as an extra receipt to the Exchequer.

It would be extremely difficult to determine the exact gain to the Company on these contracts without an elaborate costing system which would show the proportion of each item of administration and overhead costs properly chargeable against each contract.

Department of Industry and Commerce.

3rd January, 1955.