Committee Reports::Report - Appropriation Accounts 1961 - 1962::11 July, 1963::Appendix


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APPENDIX XXII.

DEPARTMENT OF LANDS: SAWMILL ACCOUNTS

An Cléireach,

An Coiste um Chúntais Phoiblí.

During my examination before the Committee of Public Accounts on 28th February, 1963, I undertook to furnish to the Committee copies of the Trading Accounts in respect of this Department’s sawmills at Dundrum and Cong for the past three years.

Copies of the Accounts in question are attached.

It will be noted that in each of the three years, the Department’s sawmilling activities showed a net profit but the Dundrum mill operated at a loss, the loss being more than offset by profit at the Cong mill.

The Dundrum mill in previous years consistently showed a profit. The altered trend since 1950-60 is due in the main to a change in the normal run of logsize which the mill is handling. The large size logs with which the mill was designed to cope are no longer available in significant quantity. Alterations in the equipment of the mill and the possibility of improvements in handling techniques, etc., designed to promote more efficient working are under consideration.

A contributory factor has been a rise in operating costs flowing from progressive wage increases which it was not possible to offset by price increases.

I feel I should stress to the Committee that these sawmills are not operated primarily with a view to profit. The Department’s policy objectives in relation to the sawmills are:—

(a) to maintain outlets available for timber which may fail to command an acceptable price on the ordinary market;

(b) to keep closely in touch with sawmilling practice and experience;

(c) to carry out experimental or pioneering work designed to promote improved timber conversion or handling techniques, and

(d) to meet Departmental requirements of sawn timber and articles manufactured therefrom.

I should like to take the opportunity of correcting a minor inaccuracy in my evidence given to the Committee on the 28th February. Transport charges on timber haulage from State Forests to the sawmills at Dundrum and Cong are borne on Head (6) of Subhead C.2 of the Forestry Vote and not on Subhead C.3 as stated by me. It is not the practice to apportion the cost of operating Departmental vehicles over the various aspects of work reflected by different Vote Subheads or sub-divisions thereof.

(Signed) T. O’BRIEN,

Accounting Officer,

Department of Lands.

2 Bealtaine, 1963.

DEPARTMENT OF LANDS (FORESTRY DIVISION)

SAWMILL ACCOUNTS—YEAR ENDED 30TH SEPTEMBER, 1960

Manufacturing Account

					Cong	Dundrum	Total						Cong	Dundrum	Total
					£	£	£						£	£	£
To Value of raw material			..	..	8,857	9,326	18,183	By Trading Account—Cost of
To Carriage inward		..	..	..	2,142	2,413	4,555	goods produced			..	..	18,517	21,324	39,841
Cost of raw material consumed					10,999	11,739	22,738
To Factory wages		..	..	..	6,163	8,689	14,852
To Electricity	..	..	..	..	1,082	666	1,748
To Repairs and maintenance			..	..	273	230	503
					18,517	21,324	39,841						18,517	21,324	39,841

Trading Account
To Stock of finished goods at start				..	4,157	2,494	6,651	By Sales (a)		..	..	..	22,726	22,095	44,821
Add Cost of goods produced				..	18,517	21,324	39,841
					22,674	23,818	46,492
Less Stock of finished goods at end				..	6,874	3,537	10,411
Cost of goods sold (a)		..	..	..	15,800	20,281	36,081
To Profit and Loss Account—Gross Profit					6,926	1,814	8,740
					22,726	22,095	44,821						22,726	22,095	44,821

Profit and Loss Account
To Foresters’ salaries and other office
expenses	..	..	..	..	1,128	1,201	2,329	By Trading Account—Gross					6,926	1,814	8,740
To Insurance (notional)		..	..	..	393	173	566	Profit	..	..	..	..
To Depreciation—Buildings			..	..	620	178	798
Machinery			..	..	1,260	810	2,070
To Net Profit	..	..	..	..	3,525	—548(b)	2,977
					6,926	1,814	8,740						6,926	1,814	8,740

DEPARTMENT OF LANDS (FORESTRY DIVISION)

SAWMILL ACCOUNTS—YEAR ENDED 30TH SEPTEMBER, 1961

Manufacturing Account

					Cong	Dundrum	Total						Cong	Dundrum	Total
					£	£	£						£	£	£
To Value of raw material			..	..	8,565	11,125	19,690	By Trading Account—Cost of
To Carriage inward		..	..	..	1,685	2,381	4,066	goods produced			..	..	17,932	23,956	41,888
To Cost of raw material consumed				..	10,250	13,506	23,756
To Factory wages		..	..	..	6,541	9,198	15,739
To Electricity	..	..	..	..	826	869	1,695
To Repairs and maintenance			..	..	315	383	698
					17,932	23,956	41,888						17,932	23,956	41,888

Trading Account
To Stock of finished goods at start				..	6,874	3,537	10,411	By Sales (a)		..	..	..	25,946	25,723	51,669
Add cost of goods produced			..	..	17,932	23,956	41,888
					24,806	27,493	52,299
Less Stock of finished goods at end					5,405	2,138	7,543
Cost of goods sold (a)		..	..	..	19,401	25,355	44,756
To Profit and Loss Account—Gross Profit					6,545	368	6,913
					25,946	25,723	51,669						25,946	25,723	51,669

Profit and Loss Account
To Foresters’ salaries and other office								By Trading Account—Gross
expenses	..	..	..	..	1,266	1,654	2,920	Profit	..	..	..	..	6,545	368	6,913
To Insurance (notional)		..	..	..	347	158	505
To Depreciation—Buildings			..	..	604	174	778
Machinery			..	..	1,309	770	2,079
To Net Profit	..	..	..	..	3,019	—2,388 (b)	631
					6,545	368	6,913						6,545	368	6,913

DEPARTMENT OF LANDS (FORESTRY DIVISION)

SAWMILL ACCOUNTS—YEAR ENDED 30TH SEPTEMBER, 1962

Manufacturing Account

					Cong	Dundrum	Total						Cong	Dundrum	Total
					£	£	£						£	£	£
To Value of raw material			..	..	9,838	11,368	21,206	By Trading Account—Cost of
To Carriage inward		..	..	..	1,661	1,481	3,142	goods produced			..	..	20,056	23,746	43,802
Cost of raw material consumed				..	11,499	12,849	24,348
To Factory wages		..	..	..	6,992	9,760	16,752
To Electricity	..	..	..	..	1,057	908	1,965
To Repairs and maintenance			..	..	508	229	737
					20,056	23,746	43,802						20,056	23,746	43,802

Trading Account
To Stock of finished goods at start				..	5,405	2,138	7,543	By Sales (a)		..	..	..	31,016	24,648	55,664
Add Cost of goods produced			..	..	20,056	23,746	43,802
					25,461	25,884	51,345
Less Stock of finished goods at end				..	3,714	1,077	4,791
Cost of goods sold (a)		..	..	..	21,747	24,807	46,554
To Profit and Loss Account—Gross Profit					9,269	—159(b)	9,110
					31,016	24,648	55,664						31,016	24,648	55,664

Profit and Loss Account
To Foresters’ salaries and other office								By Trading Account—Gross
expenses	..	..	..	..	1,303	1,313	2,616	Profit	..	..	..	..	9,269	—159(b)	9,110
To Insurance (notional)		..	..	..	321	148	469
To Depreciation—Buildings			..	..	589	169	758
Machinery			..	..	1,044	569	1,613
To Net Profit	..	..	..	..	6,012	—2,358(b)	3,654
					9,269	—159	9,110						9,269	—159	9,110