Committee Reports > List of Committees > Dáil > 1958 > Committee of Public Accounts > Report - Appropriation Accounts 1956 - 1957

REPORT

PART I—GENERAL OBSERVATIONS.

MINUTE OF MINISTER FOR FINANCE DATED 2nd MAY, 1958.

1. The Committee will await further reports on the matters referred to in paragraphs 4, 7, 9, 12, 13, 15, 17, 20 and 22.

Garda Síochána.

2. The Committee notes that no definite conclusions have yet been reached on the merits of the system of cost control of the Transport Maintenance Service recently adopted, and that it will be informed of these in due course.

Public Works and Buildings.

3. The Committee notes the arrangements normally made for the supervision of major contracts carried out on a “time and material” basis, and for the control over expenditure thereon. It also notes the reasons for non-employment of a quantity surveyor in the exceptional circumstances of Shelton Abbey. But it is not informed of the alternative method adopted for ensuring the accuracy of claims, or of the nature of the checks which were applied to the contractors accounts before payment.

Office of the Revenue Commissioners.

4. The Committee notes the steps taken by the Revenue Commissioners to clear the arrears of cases which have accumulated in the Estate Duty Branch. It assumes that the agreement of the Comptroller and Auditor General will be obtained to the proposals for revision of the accounting procedures.

Agriculture.

5. The Committee is pleased to note that the authority of Dáil Éireann will be sought to write off the loss incurred on the scheme for the importation and distribution of superphosphate when the final figure is ascertained. It trusts that this will be done without undue delay.

Public Works and Buildings.

6. The Committee is glad to note that the more realistic method of determining manufacturing costs for the purpose of comparison with commercial prices has been adopted. It feels that this should tend to the greater use of the facilities available in the workshops.

National Gallery.

7. The Committee notes with satisfaction that the question of the adequacy of the arrangements for display and sale of the post card reproductions at the National Gallery is being inquired into.

PART II—PARTICULAR ACCOUNTS.

Commissions and Special Inquiries.

8. A statement of the cumulative expenditure on various commissions is appended to the Appropriation Account. In the course of its examination of this statement, the Committee noted that the cost of staff borne on other votes was not included. From information subsequently submitted by the Accounting Officer it appears that the total expenditure to 31 March, 1957 on Commissions and Committees operating in the year 1956-57 amounted to £109,325.

The total cost to 31 March, 1957 of the Irish Manuscripts Commission which was appointed in 1928-29, amounted to £59,607. The Place Names Commission was appointed in 1946-47 and its cost to the same date was £26,923. The Committee has not had adequate information as to the progress made by these Commissions. As their activities have extended over a number of years and the expenditure is appreciable, it suggests that a survey of the results achieved to date and of the programme for the future might with advantage be undertaken. It feels too that allied to this question is that of the co-ordination of the activities of the various Commissions and other bodies labouring in the field of the Irish language in view of the possible danger of overlapping.

In particular, the Committee desires to have some specific information as to what is now available for the outlay on the Place Names Commission.

Defence.

9. The Committee had under consideration the question of the compilation of a register of State properties administered by the Department of Defence to which reference was made in its Report dated 18th February, 1954. It was then informed that the making of arrangements for the compilation of a register awaited the enactment of a State Property Bill which would enable lands to be vested in the appropriate Minister of State. The State Property Act became law in 1954 but the register had not yet been complied. The Committee is informed that the properties which the Department desired to retain have now been listed for submission to the Department of Finance in connection with the transfer of titles, but owing to certain difficulties in regard to these titles it is not expected that action will be completed for a year or more. The Committee desires to emphasise the importance of this work and trusts there will be no avoidable delay in completing it.

Public Works and Buildings.

Qns. 137-140; 343-4.

10. A contract for the erection of a divisional Garda headquarters was placed in February, 1954 and the work was completed in September, 1955 at a cost of £32,753. The attention of the Committee was drawn to the fact that under this contract provision was made for living-in accommodation for 18 single men in accordance with a requisition received from the Department of Justice in 1947. It was reported in May, 1957 that this living-in accommodation was practically unoccupied. The Accounting Officer explained that the plans of the building were approved by the Department of Justice in 1950 and that he had no function other than to provide the building as requisitioned.

The Committee found it necessary to recall the Accounting Officer for the Vote for the Department of Justice, who, in the course of his evidence, explained that the requirements were calculated on the best information available to him including the advice of the Director of the Central Statistics Office. He stated that extensions of retirement age had affected the numbers leaving the force and that in 1952 when he last had an opportunity of considering the matter it was not easy to forecast what would happen. He further explained that the policy of requiring single members of the force to live in stations was under review and as it was possible that the full accommodation at this station would not be utilised, the question of converting some of it into married quarters was being considered.

While appreciating the difficulties in forecasting accommodation requirements over a long period the Committee feels that the period of four years which elapsed between the approval of the plans and the placing of the contract afforded ample time for a fresh review of the position, and that with closer co-operation between the two Departments concerned the unnecessary expenditure might have been avoided.

11. A contract for the erection of a preparatory college, placed in 1933 and due for completion in two and a half years, was not completed until 1940, the total cost being £73,803. The Committee was informed that during the course of erection abnormal dampness was observed in the building and measures taken at the time to eradicate it proved unsuccessful. Subsequent steps taken to control the dampness were also ineffective. A complete and detailed survey of the college buildings was then carried out and a further contract in the sum of £31,380 was placed in 1955 for alterations, repairs and decoration, with the object of making good defects in the building. In the course of his evidence the Accounting Officer explained that the long delay in completing the building was due to the contractor’s difficulties in recruiting suitable skilled labour. There were a number of stoppages and he was forced to employ local labour of a lower standard of skill than was thought suitable for this work. The Accounting Officer further explained that the design of the building included cast stone walls, parapets, cornices and copper gutters, and a very high standard of skill was necessary to ensure a water-tight building especially in the exposed position in which this college was erected. The alterations in the 1955 contract provide, inter alia, for a modified roof and the removal of the parapets and the copper gutters.

The Committee views with concern the expenditure of over £30,000 to remedy defects in a building which had been completed and apparently accepted as in accordance with specification as recently as 1940. It seems to the Committee from the evidence furnished that the design of the building was inappropriate for the purpose for which it was required and that this was in great measure responsible for the trouble which arose. It feels that a simpler structure suitable to the State needs could have been erected at much less cost. It is not satisfied that the damp penetration which became evident at an early stage of the work received adequate attention. In the circumstances it cannot refrain from expressing its dissatisfaction with the planning and execution of this work.

Health.

Qns. 196 and 201.

12. In connection with the issue of grants to Health Authorities the Committee was informed that the audit of the accounts of four local health authorities for 1954-55 had not yet been completed. It follows that the grants payable from the vote had not been finally determined for that or subsequent years. Though it is aware that the major portion of the grants are issued year by year and the percentage margin for adjustment is relatively small the Committee does not consider the position satisfactory.

Stationery Office.

13. The revenue from the Sales Office, which retails official and other publications was under discussion by the Committee. It feels compelled to advert to the inadequacy of the information available in the appropriation account regarding these trading operations. A trading account is prepared annually and formally presented to the Oireachtas, but the Committee suggests that a more suitable arrangement would be to append this account to the appropriation account thus affording the Committee the opportunity of reviewing it.

Social Insurance.

14. From information supplied to the Committee by the Accounting Officer (Appendix XVI) it appears that the return to the Insurance Fund from the investment in the building and equipment of Áras Mhic Dhiarmada was assessed at £67,422 for the year 1956-57. In arriving at the net charge to the vote for Social Insurance two amounts were deducted from this sum:

(a) £13,500, being the yearly interest on £300,000 which accrued to the Fund consequent on the disposal of Áras Brugha to the Office of Public Works; and

(b) the rent, fixed at £15,000, payable by Córas Iompair Éireann for the bus station.

The Committee would like to be furnished with further information regarding the deduction referred to at (a). It notes that agreement has not yet been reached with Córas Iompair Éireann on the question of its annual liability for rent, and it trusts that this matter will be settled without further delay.

The Committee notes that while provision is made for depreciation of furniture and equipment installed in Áras Mhic Dhiarmada no provision is made for depreciation of the building itself, this not being considered necessary in view of the annual charge to voted moneys for its full maintenance in an efficient state by the Office of Public Works. The Committee invites further information on this point; and it desires, also, to be informed of the amount of the charge to voted moneys for the maintenance of the building if the figure is readily available.

Science and Art.

15. The Committee had under review the expenditure of £13,455 charged to subhead B. 8. of the vote in respect of grants towards defraying the cost of periodicals published in Irish and to local newspapers publishing current news in Irish. The total of these grants has increased considerably since they were initiated in 1929-30 when the expenditure was £82. Little information regarding them was available in the appropriation account, but a statement was furnished by the Accounting Officer showing details (Appendix XVIII) of the amounts paid and of the circulation of each periodical in 1956-57:—

The Committee notes that the subsidies vary from 2s. per copy for a 9d. monthly to 1.8 pence per copy for a monthly retailed at 4d. It would be glad to receive an assurance from the Accounting Officer that these periodicals are produced efficiently, and to be informed of the extent to which their circulation has been increased in recent years.

Gaeltacht Services.

16. In paragraph 23 of its Report dated 19 February, 1958, the Committee commented on the inadequacy of control exercised over stores held at the Dublin Depot, with special reference to stocks of tweed and knitwear.

Arising out of the Report of the Comptroller and Auditor General on the accounts for 1956-57, the system of control of stores was again under discussion by the Committee. It was informed that an examination of records of knitwear yarn held in Dublin disclosed that stock was taken at intervals and the records adjusted by the storekeeper to agree with the physical stock. No evidence was made available to the auditors that the discrepancies were investigated or that they were included in the list of discrepancies compiled at the independent annual stocktaking. Attention was also drawn to defective control over these stocks which were held at three separate stores. The Accounting Officer agreed that the facts were as reported by the Comptroller and Auditor General, and he stated that since his attention was drawn to the position he had investigated the discrepancies and had satisfied himself that they were mainly due to clerical errors and that the physical stocks were correct.

The evidence given in the course of the examination of the Accounting Officer left the Committee in no doubt that there was good ground for complaint regarding the control exercised over these stores. However, it has decided that a full report, following a complete survey of the accounting records of all stores in the custody of the Gaeltacht Department, was necessary before it could reach a final opinion on the matters at issue. The Accounting Officer undertook to furnish this report, and the Comptroller and Auditor General promised to afford him his full co-operation. The Committee will await information on the result of the survey, which is now proceeding.

Lands.

17. The attention of the Committee was directed to expenditure of £2,513 incurred on the repair of a breach in an embankment protecting certain lands from the River Fergus in Co. Clare. The cost was estimated, in 1943, at £185, but the work was not then undertaken. In 1953 expenditure of £1,198 was approved, and this figure was increased to £1,708 in May, 1954 and £2,529 in November, 1954. The work was started in November, 1954 and completed in August, 1957. The Accounting Officer in the course of his evidence set out all the difficulties which beset the undertaking of this work. The liability as between the tenant and the landlord for the maintenance of the embankments was not adequately defined, and related back to fair rents fixed in 1887 and 1906. After the lands had been admitted under the Land Act, 1923 the liability remained unsettled. The Land Commission had no responsibility for the repairs but undertook the work on an ex-gratia basis when the tenant agreed to contribute £100 towards the cost. The former landlord also agreed to the setting up of a fund of £500 in 4½% land bonds for the maintenance of this and other embankments.

The Committee had occasion to comment on a somewhat similar case in its Report dated 13 June, 1957. While fully appreciating the difficulty of the Department in dealing with this matter it still adheres to its opinion, as expressed in that Report, that repair of damage of the kind under review should be carried out as an emergency measure and the question of liability settled afterwards. In both cases the long delays in undertaking the work resulted in very considerable additional expenditure from State funds not realised at the outset, and, obviously, increased deterioration of the lands subject to the flooding.

(Signed) JAMES M. DILLON,

Chairman.

17th July, 1958.