Committee Reports::Report - Appropriation Accounts 1953 - 1954::20 June, 1956::Appendix

APPENDIX II.

MINUTE OF THE MINISTER FOR FINANCE ON REPORT DATED 30 MARCH 1955, OF THE COMMITTEE OF PUBLIC ACCOUNTS

Paragraphs 3, 5, 17 and 18.

These paragraphs do not appear to call for comment.


PUBLIC WORKS AND BUILDINGS

Paragraph1.—Expenditure on new works, etc.

The statement which was circulated to Deputies in respect of 1955-56 showed the total estimated cost of each item under Subhead B, the amount provided therefor in the Estimates for that year and the estimated amount expended up to the end of the preceding year. A similar statement will be prepared by the Commissioners of Public Works and circulated to Deputies every year in future.


EXTERNAL AFFAIRS

Paragraph 2.—Advances to the Irish News Agency.

The Minister has given his consent, pursuant to section 11 (2) of the Irish News Agency Act, 1949, to the terms and conditions which the Minister for External Affairs has thought proper for repayment by the Agency of advances made, or to be made, to it. These terms and conditions are:—


(1) The total advances to the Agency outstanding on 31 March, 1960 shall be repaid by half-yearly payments on 1 October and 1 April in each year and such payments shall continue for a period of twenty-five years, the first such payment to be made on 1 October, 1960. For this purpose an annuity shall be set up to provide for the repayment with interest of such outstanding advances within the period specified, the sinking fund portion of such annuity to be accumulated by half-yearly rests at 5% per annum interest;


(2) Advances in each financial year subsequent to 31 March, 1960 shall be similarly repaid in a period of twenty-five years, the first half-yearly payment to be made on 1 October following the end of the financial year;


(3) The date of commencement of repayment specified at (1) and (2) may be postponed by the Minister for External Affairs, with the consent of the Minister for Finance, and such postponement may apply to a number of advances or to a particular advance.


POSTS AND TELEGRAPHS

Paragraph 4.—Conveyance of letter mails by rail.

The Minister notes the Committee’s further comments. As already intimated, however, the problem, it is understood, is complex and an early conclusion of the matter may not be feasible.


SOCIAL ASSISTANCE

Paragraph 6.—Grants under the Education (Provision of Meals) Acts, 1914 to 1930.

The Department of Social Welfare has informed the Minister that, since their inception, the school meals schemes have been operated by the local authorities under section 3 of the 1914 Act; arrangements for a general contributory service on the lines envisaged by sections 1 and 2 of the Act have never been made. In some isolated cases, however—apparently as an adjunct to a non-contributory scheme—meals have been supplied on repayment of the cost either by collection of contributions or in co-operation with a voluntary body which supplied the meals and was partially recouped by the local authority.


The accounts of the local authorities are audited annually by Local Government Auditors, who must satisfy themselves that all expenditure on school meals has been properly incurred under the provisions of the Acts. In addition, the Auditors furnish special certificates of approved expenditure to the Department of Social Welfare and these are the vouchers on which recoupment out of the Vote is made each year. Apart from minor adjustments, there has never been, since the Department of Social Welfare was established any disallowance of a charge for school meals on the ground that the money was improperly expended.


The Department of Social Welfare is advised that local authorities have power to operate the service on a non-contributory basis under section 3 of the 1914 Act, notwithstanding the provisions of section 2, and it is not aware that the local authorities have exceeded their powers under section 3. The Department has been further advised that Article 8 of the Education (School Meals) Regulations, 1927, is ultra vires the Acts.


AGRICULTURE

Paragraph 7.—Tenders for excavators for land reclamation scheme.

In its Report on the Appropriation Accounts for 1951-52, the Committee commented that it could not understand why it was considered necessary to order certain excavating machines for delivery in May, 1951, when the report on the preliminary engineering survey of the works for which the machines were required could not be made available until February, 1952.


The Commissioners of Public Works have informed the Minister that the detailed engineering and occupational survey had been completed and alternative schemes designed by the end of May, 1951. Work could have then begun had the excavating machines been available. In their absence the Commissioners availed themselves of the opportunity to investigate the possibility of designing a cheaper scheme.


A third scheme was designed and all three schemes were furnished to the Department of Agriculture in February, 1952. That Department, however, decided not to proceed with the project. In May, 1955, the cheaper of the original two schemes was approved and the work is in hands.


Paragraph 8.—Stocks of butter wrappers and vegetable parchment.

The Minister notes the Committee’s view that confirmation of the order for the nine tons of parchment concerned might have been withheld until such time as the position had become clarified.


MISAPPROPRIATIONS, ETC.

Paragraph 9.—Misappropriation of public moneys.

The Minister is satisfied after careful inquiry that these defalcations cannot be attributed to any limitation of checking imposed in pursuance of the policy of achieving economy or to any weakness in the checking system. In the one case in which it was established that the loss arose from faulty supervision recovery was effected from the officers concerned.


While the cases under reference are a cause of concern, the Minister has no reason for believing that there has been any general decline in the high standards of efficiency and integrity expected from officials charged with the control and custody of public funds.


OFFICE OF THE REVENUE COMMISSIONERS

Paragraph 10.—Embezzlement of income tax moneys.

The Minister understands that the only modification introduced was one of administrative procedure rather than of security arrangements, and he is assured by the Revenue Commissioners that it was not the system itself—which had worked satisfactorily for many years—but a partial breakdown in the operation of the system, caused by pressure of work, that permitted the suppression of documents to take place. The procedure of notifying Inspectors of the receipt of each payment in respect of arrears has now been re-introduced. In addition, a new collecting and accounting procedure has been brought into operation which should prevent a recurrence of the conditions which facilitated fraud in the case under review.


NATIONAL GALLERY

Paragraph 11.—Payment of accounts for supplies of postcard reproductions.

The Minister agrees with the Committee’s recommendation that the charge of £1,000 in respect of postcard reproductions which were delivered subsequent to the end of the financial year be disallowed; the position has now been regularised by the passing of a Supplementary Estimate. The Minister also agrees with the Committee’s comments on the procedure adopted in connection with the placing of the orders for the postcards.


EXTERNAL AFFAIRS

Paragraph 12.—Overpayments of exchange compensation during absences of officers from their countries of accredition.

On further representations by the Minister for External Affairs to the effect that the overpayments were made under a procedure which had been followed for many years without challenge and were accepted by the officers in good faith, the Minister has sanctioned waiver of recovery.


A direction has been issued which will ensure that full effect is given to the intention contemplated by the procedure as initially prescribed.


DEFENCE

Paragraph 13.—Arrears of rents in respect of certain properties taken over from the British Government in 1938.

Arising out of the enactment of the State Property Act, 1954, the Minister for Defence is considering the question of making new agreements with the tenants of the properties concerned. The question of arrears is bound up with that of new agreements.


Paragraph 14.—Disposal of spare parts for motor vehicles.

The Minister has approved of a proposal of the Minister for Defence to invite competitive tenders from all likely purchasers of the spare parts referred to by the Committee. In addition to advertising in the national press, advertisements will also be inserted in some suitable journals in Britain.


ARMY PENSIONS

Paragraph 15.—Special allowances.

The question of recovery of overpayments is under consideration in conjunction with the question of the adequacy of the existing arrangements for the verification of claims for the award of medals. The Committee will be informed in due course of developments.


STATIONERY AND PRINTING

Paragraph 16.—Payment of type-rent on Parliamentary Bills.

The Stationery Office has instituted a system of supervision whereby the retention of type set up for Parliamentary Bills will be subject to periodic review with the object of ensuring that type-rent charges are not incurred unnecessarily.


SCIENCE AND ART

Paragraph 19.—Payment of grants towards the cost of publication of books in Irish by independent publishers.

The Minister agrees with the Committee’s recommendation regarding the disallowance of the sum of £230 16s. 11d. which was properly chargeable against the Vote for 1953-54. The position has been regularised by the passing of a Supplementary Estimate.


FISHERIES

Paragraph 20.—Arrears of annuities in respect of repayable advances to the Irish Sea Fisheries Association for boats and gear.

This matter is still under examination. The Committee will be informed of the outcome.


INDUSTRY AND COMMERCE

Paragraph 21.—Balances in Marine Insurance Fund and Indian Sales Tax Reserve Fund of Tea Importers, Ltd.

Of the sum of £31,763 standing to the credit of the Marine Insurance Fund at 4 July, 1952, £3,951 was accumulated outside the subsidy period (November, 1947, to July, 1952) and was deemed to have been contributed by the trade. It was decided to use the sum to stabilise prices for the benefit of consumers. The balance of £27,812 was accumulated in the period November, 1947, to July, 1952, during which tea subsidy was payable, and was therefore deemed to have been contributed by the Exchequer.


From the £27,812 due to the Exchequer a total of £11,293 3s. 1d. has been allowed, with the concurrence of the Minister for Finance, to seven wholesale tea merchants in settlement of their claim, the subject of legal proceedings, that they had been deprived of their due quotas of susidised tea during the subsidy period. The balance amounting to £16,518 16s. 11d. has been surrendered to the Exchequer.


As regards the sum of £3,900 to the credit of the Indian Sales Tax Reserve Fund on 4 July, 1952, the Minister understands that, pending the hearing of an appeal in legal proceedings in India, it will not be possible for Tea Importers, Ltd., to determine the Company’s final liability for Indian Sales Tax and the balance, if any, which will be available for refund to the Exchequer.


Paragraph 22.—Advance made to Mianrai Teoranta in excess of the statutory limit.

The Minister has noted the views of the Committee. The Department of Industry and Commerce is aware of the desirability of regularising at an early date the position as regards this advance and is endeavouring to dispose of the outstanding difficulties as quickly as possible.


AVIATION AND METEOROLOGICAL SERVICES

Paragraph 23.—Penalty clauses in contracts.

The Minister is informed that the penalty clause has in a small number of cases been successfully enforced against contractors. The enforcement of the penalty clause is determined by the circumstances of each particular case due allowance being made for extenuating factors outside the control of contractors, e.g., non-availability of labour or materials. In recommending to the Government Contracts Committee the passing over of a lower tender by reason of the time factor Departments are guided by their particular requirements. Where a Department satisfies the Committee that a particular contractor who submitted the lowest tender is unlikely to meet the Department’s requirements as to date of completion the Committee may, irrespective of whether there is a penalty clause, decide to pass over such tender. In this connection, the Minister wishes to point out that where a lower tender is passed over by reason of the time factor and the successful tenderer fails to complete the contract within the time specified in his tender there is no way of determining whether the tenderer who is passed over would have completed the contract within the time specified in his tender.


GIVEN under the Official Seal of the Minister for Finance this 24th day of February, 1956.

O. J. REDMOND,


Secretary,


Department of Finance.