Committee Reports::Report - Appropriation Accounts 1955 - 1956::19 February, 1958::Appendix


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APPENDIX XVII.

IMPORTATION AND DISTRIBUTION OF SUPERPHOSPHATE.

Clerk to the Committee of Public Accounts.

As promised at the meeting of the Public Accounts Committee on the 9th October, I enclose a statement giving particulars of the expenditure and receipts in connection with the importation and distribution of superphosphate by Comhlucht Siúicre Éireann, Teo., on behalf of the Department of Agriculture during the period from October, 1950 to September, 1955, and notes explaining how the net loss of £471,024 5s. 1d. shown in the statement arose.

The figures in the Statement are a summary of the accounts of Comhlucht Siúicre Éireann, Teo., which have been certified as correct by Messrs. Kean & Co., Chartered Accountants.

As I informed the Committee, an insurance claim on behalf of the Department remains to be settled, and the net loss will be abated by whatever sum is received on foot of this claim which has been the subject of correspondence with the Insurance Brokers, for some time past.

(Signed) J. DEMPSEY,

Accounting Officer.

16th October, 1957.

IMPORTATION AND DISTRIBUTION OF SUPERPHOSPHATE BY COMHLUCHT SIÚICRE ÉIREANN, TEO., ON BEHALF OF THE DEPARTMENT OF AGRICULTURE.

Period from October, 1950 to September, 1955.

			£	s.	d.			£	s.	d.
Purchase of						Sales of
Super-phosphate		..	1,125,783	15	11	Superphosphate	..	969,937	9	6
Discharging Costs,						Shortages & Losses
etc.	..	..	34,681	19	6	subsequently
Inland Freight		..	41,423	13	3	recovered	..	3,399	15	4
Storage and
Handling Costs		..	168,406	0	6
Carriage Outwards			35,403	10	0
Bank Interest		..	38,452	10	9
Auditor’s Fees		..	210	0	0	Net Loss	..	471,024	5	1
			£1,444,361	9	11			£1,444,361	9	11

For the fertiliser season 1950/51 total imports of Superphosphate were 83,700 tons of which some 33,700 tons were taken direct by Comhlucht Siúicre Éireann, Teo., and some regular importers of superphosphate leaving approximately 50,000 tons for the Department’s account. About 32,000 tons were disposed of during the year without loss leaving a carry over of 18,000 tons.

Because of the spread of the Korean War, prices of superphosphate rose steeply at the commencement of the 1951/52 season. In view of possible difficulties in securing our normal imports it was deemed prudent to purchase supplies early in the season and accordingly some 41,000 tons were purchased and imported resulting in stocks of 59,000 tons. Sales during the season were negligible as farmers were reluctant to buy at the high prices prevailing.

World prices of superphosphates fell considerably during 1952/53, and fell still further in 1953/54. There was no option but to reduce the prices of the superphosphate held by the Department accordingly, resulting in considerable loss. Most of the stocks were cleared in these years. A small balance of some 2,000 tons was cleared in 1954/55 and 1955/56 at very poor prices because of the bad condition of the material.

The rather considerable loss incurred through the necessity to reduce prices in 1952/53 and 1953/54 was still further increased by the heavy storage and handling charges which were the inevitable result of the long sales period.