Committee Reports > List of Committees > Dáil > 1957 > Committee of Public Accounts > Report - Appropriation Accounts 1954 - 1955

REPORT

PART I—GENERAL OBSERVATIONS. MINUTE OF THE MINISTER FOR FINANCE DATED 14th DECEMBER, 1956.

Social Assistance.

1. The Committee is pleased to note that its views on the question of providing meals for school children have been accepted and that it is proposed to introduce legislation to clarify the position.

It notes that the Attorney General has advised that the cost of preparing meals, over and above the cost of the provision of food, could not legally be met from local funds. As a result of this advice the extent to which the State grants may have been overissued is being examined.

It also notes that investigations regarding the standardisation of meals supplied are being carried out.

Army Pensions.

2. The Committee notes that the existing arrangements for the verification of claims for the award of medals are under review. It considers that this review should be completed at the earliest possible date having regard to the importance of the award of a medal as a determining factor for the grant of a special allowance. It notes that the loss to public funds revealed in the cases brought to notice in which special allowances were granted to persons awarded medals, to which they were not entitled, cannot be recovered owing to the poor circumstances of those concerned.

Primary Education.

3. The Committee notes that revision of the scale of annual fees prescribed in 1949 for students attending Preparatory Colleges is in hand and would like to be informed of the revised fees.

PART II—PARTICULAR ACCOUNTS.

Exchequer Extra Receipts.

4. The Committee noted in its review of the accounts that in many cases small receipts were brought to account as exchequer extra receipts although the votes concerned made provision for appropriations in aid. The Committee suggests, unless there are strong reasons to the contrary, that these trivial receipts might be brought to account in aid of the votes and thus reduce the volume of accounting.

Garda Síochána.

5. Maintenance of the Garda transport fleet is carried out in workshops at the Depot. The attention of the Committee was drawn to the inadequacy of control over stores held for this purpose—records had not been kept up to date and a record of stocktaking was not available. In view of the increasing strength of the fleet, this matter has now become important. It is informed that steps have been taken to improve storage accommodation and to introduce a better system of recording and stocktaking. It also notes that efficiency experts have been engaged to introduce a system of cost control over the transport maintenance services and it trusts that this will lead to economies and will be glad to be informed in due course.

Wireless Broadcasting.

6. A balance of stores valued at £18,600 purchased by the Post Office during the years 1951-52 to 1953-54 as an emergency reserve for the maintenance of wireless transmitting stations, was transferred to the broadcasting service during 1954-55. £3,000 worth of these stores are obsolete or surplus to requirements and a further quantity valued at £12,000 relate to a short wave transmitter which was not put into regular service. The Committee is informed that efforts are being made to dispose of the transmitter and of the stores no longer required and it will be glad to be informed of the outcome.

Defence.

7. In the report of the Comptroller and Auditor General reference was made to the inspection of state-owned air raid precautions equipment and medical stores purchased during the emergency and located at various centres and hospitals throughout the country. It was stated in evidence that the medical stores were located at 99 hospitals and that, as a result of the inspection of such stores held at 24 of the hospitals, items valued at £1,400 out of a total of £8,000 were condemned. The Committee appreciates that in the circumstances some deterioration of the stores was inevitable but wonders whether closer co-operation with the hospital authorities would not have reduced the extent of the loss.

It notes that in 24 of the hospitals stores valued at £6,600 have been found serviceable and it would like to be informed of the total value of serviceable stores held in reserve at the 99 hospitals.

These stores have been on hands for ten to twelve years and the Committee would like to be assured that the stores described as serviceable are of the type and quality to meet the requirements of modern conditions and have been examined from this aspect with a view to their retention or disposal.

8. The attention of the Committee was drawn to the sale of 125 motor-cycles which had not been put into service and were part of a consignment of 500 purchased in 1945. The Accounting Officer explained that as an emergency arrangement these machines were held as a reserve but that in 1953 it was decided to dispose of them as the model was no longer in production and spare parts could not readily be procured and also, due to the lapse of time since the machines were purchased, some of the accessories had shown signs of deterioration. In the circumstances the Committee offers no comment. In regard to the sale, it notes that a tender for £6,938 was accepted but the prospective purchaser failed to carry out the contract and that it was necessary to invite fresh tenders resulting in the acceptance of offers of £4,632 only. The Committee is informed that the matter of recovery of the loss is under consideration by the law advisers.

Local Government.

9. The Housing (Financial and Miscellaneous Provisions) Acts, 1932 to 1952, enable the Minister for Local Government to make contributions within specified limits towards the housing loan charges of local authorities. Additional charges incurred on certain housing loans advanced from the Local Loans Fund by reason of increases in interest rates have also been recouped to local authorities since 1949-50, but on a non-statutory basis, and the total amount paid under this head in the six years to 1954-55 was £603,096. The Comptroller and Auditor General expressed the view that it was undesirable in principle that continuing payments of significant amount should be made without specific legislative authority, especially having regard to the parallel provisions in the Acts. The Accounting Officer was of the opinion that further legislative authority was unnecessary as the payments were authorised annually by the Appropriation Acts and were made only in respect of a limited number of schemes which had already been undertaken.

The Committee considers it desirable that the continuing functions of a Government Department should be defined by specific statute where substantial annual expenditure is involved. The non-statutory payments result in the recoupment to local authorities of a greater proportion of housing loan charges than is envisaged in the Statutes and it is the opinion of the Committee that the position should be regularised whenever amending legislation is contemplated.

Public Works and Buildings.

10. To replace the forestry school at Avondale which was too small to meet the expanding need of the Department of Lands it was decided to adapt the Shelton Abbey buildings which had been acquired at an approximate cost of £3,800. It was known that the buildings were infested with dry rot and a contract for £2,899 was placed for preliminary work and for the eradication of the infestation. It was intended to invite tenders and place a contract for the main adaptation works but this was not found feasible owing to the extent of the dry rot infestation and the general nature of the adaptations. The work was carried out under the “time and material” clauses of the contract for preliminary work and the total cost was estimated at £95,000 of which £57,000 was attributable to the dry rot infestation. The Committee understands that it was not possible to discover the extent of the infestation by inspection. It notes that a firm contract for £2,899 was allowed to expand to works costing £95,000 and would like to stress the view that time and material contracts should only be used in very exceptional circumstances and should be subject to close supervision and check. The Committee is not satisfied that supervision and check were adequate in this case.

11. A contract for £391,000 was placed by the Department of Industry and Commerce for the construction of hard surface runways at Baldonnel aerodrome for the Department of Defence and the expenditure incurred was charged to the Vote for Public Works and Buildings. The Committee does not appreciate the circumstances in which three Departments should be involved in this one work. It is not satisfied that the procedure adopted was in the interests of economy and avoided duplication of overhead expenses.

12. It was brought to the notice of the Committee that pumps purchased during the period 1949-1953 at a cost of £15,000 had deteriorated while held in store. Some of the pumps had not been put into service and others had been used only to a limited extent. The Accounting Officer explained that these units were standby equipment which it was necessary to have available in connection with drainage works and that the deterioration resulted from the lack of covered storage which had now been made good. While agreeing that it is necessary to hold a certain amount of standby equipment, the Committee considers that such equipment should be so maintained as to be available for immediate use.

13. During the period 1948 to 1952 91 lighting sets, some of which cost up to £350 each, purchased as portion of the ancillary equipment of excavators, were removed from the excavators and taken back into store as they were not being used. The Accounting Officer explained that it was intended to carry out night work on drainage schemes when the sets would have been used but that due to a shortage of experienced personnel work was carried on only during the day. The Committee views with disfavour the purchase of equipment which was not needed and would like to be informed of the Department’s proposals regarding it.

Lands.

14. In 1949 a small breach occurred in embankments protecting lands from tidal waters of a tributary of the River Shannon in Co. Clare and efforts by the Land Commission to close the breach ceased in February, 1950, when the expenditure incurred amounted to £734. Further work was suspended pending settlement of the method of financing the operations, negotiations to this end being carried on between the Land Commission, the county council and the landholders affected. While negotiations continued the breach ever widened until it became necessary to undertake large scale reconstruction work. This was undertaken by the Office of Public Works in 1955 under Part IV of the Arterial Drainage Act, 1945, and is estimated to cost £100,000, including £34,700 for the repair of the breach.

In the view of the Committee the initial breach could have been repaired as an emergency measure and the question of liability for the cost could have been settled afterwards. The case points to the necessity for co-operation between the various State services to enable work of this nature to be carried out in the shortest possible time and so avoid expenditure on making good damage due to delay and neglect.

15. Fencing stakes, required by the Department of Lands in connection with the improvement of estates, were purchased from contractors through the Post Office Stores although one of the normal operations of the forestry division of the Department is the prodduction of fencing stakes. It was explained to the Committee that, in accordance with instructions issued by the Department of Finance in 1926 regarding the purchase of articles required by the Government service, fencing stakes must be purchased through the Post Office Stores Branch.

As the Committee sees it the Department produces stakes; it also requires stakes for fencing. It was in a position to meet its own requirements but in deference to an old regulation £860 was paid to outside contractors for these supplies. The Committee would be glad to learn whether the 1926 instructions regarding central purchasing are still generally adhered to and also whether they need revision in the light of present circumstances.

16. The Land Commission failed to clean a drain bordering lands they had acquired and the owner of the adjoining lands took an action in 1952 for damages for flooding of his land due to the neglect of the Commission. The plaintiff was successful in his action and also in a similar action taken in 1953 after the Land Commission lands had been allotted to tenants under purchase agreements. The Accounting Officer stated that the question whether the Commission continued to be responsible for the cleaning of the drain although no longer in possession of the lands, had been referred to the law officers. The Committee will be glad to be informed of their decision.

Social Assistance.

17. It was decided in May, 1954, following information furnished by the Estate Duty Office that an overpayment of £414 had been made to an old age pensioner in respect of the period December, 1938, to the date of his death in February, 1952. The estate had been distributed in July, 1953—before a claim could be made for recovery of the overpayment.

The Committee appreciates the difficulties in these cases but it feels that in the case under review an unduly long time elapsed in bringing the matter to a conclusion. It considers that the Departmental procedure in operation should be reviewed to see whether it could be speeded up with the object of avoiding loss to the State through delay in establishing claims against estates where overpayments of old age pension have occurred.

Stationery Office.

18. Agents arrange for the placing of advertising in Government publications, collect the receipts and after deducting their commission remit the net proceeds to the Stationery Office. It was brought to the notice of the Committee that the contractual arrangements with these agents were not in all cases clear. It understands that the position is being reviewed and will be glad to be informed of the revised arrangements.

(Signed) JAMES M. DILLON,

Chairman.

13th June, 1957.