Committee Reports > List of Committees > Dáil > 1966 > Committee of Public Accounts > Report - Appropriation Accounts 1963 - 1964

APPENDIX II.

MINUTE OF THE MINISTER FOR FINANCE ON A REPORT DATED 12 NOVEMBER, 1964, OF THE COMMITTEE OF PUBLIC ACCOUNTS.

Paragraph 1—

Following are the further observations of the Minister for Finance on paragraphs 3, 4 and 12 of the report dated 22 February, 1961, paragraph 25 of the report dated 5 September, 1962 and paragraphs 20 and 36 of the report of 11 July, 1963, of the Committee of Public Accounts.

REPORT DATED 22 FEBRUARY, 1961:

RATES ON GOVERNMENT PROPERTY.

3. Payments for water supplies.

The review with certain local authorities of the financial arrangements in respect of the supply of water to State-owned premises is not yet concluded. The Committee will be informed in due course of the decision on the question of over-payments in past years.

POSTS AND TELEGRAPHS.

4. Erroneous payment by the Post Office Savings Bank.

Efforts are still being made to recover as much as possible of the balance of £203 15s. 3d. outstanding.

DEFENCE.

12. Consumption of electricity.

The purchase and installation of electricity meters in Men’s Married Quarters in the Army has been completed at a cost of £3,881; the occupants of these Quarters are being charged normal rates for electricity consumed since 1st May, 1964. This arrangement should result in a substantial yearly saving to public funds. Negotiations with the Electricity Supply Board are proceeding with a view to the sale of electricity directly by the Board to these consumers.

REPORT DATED 5 SEPTEMBER, 1962:

POSTS AND TELEGRAPHS.

25. Misappropriation of moneys at sub-post offices.

The report of the departmental committee set up to investigate the safeguarding of Savings Bank and other departmental funds was recently completed and is at present being examined by the Department of Posts and Telegraphs. The outcome of this examination will be notified to the Committee.

REPORT DATED 11 JULY, 1963:

SECONDARY EDUCATION.

20. Advances to publishers of certain text books.

An agreement has been made with the publishers for repayment of the arrears over a period ending 30 June, 1969. The first instalment has been paid.

DEFENCE.

36. Claims on Health Authorities.

The Minister has agreed that, with effect from 1 September, 1960, the claims in question might be settled by payment by the Health Authorities of the cost of two days’ hospitalisation per annum for each eligible member of the Permanent Defence Force normally resident within the Health Authority area concerned. This arrangement, which will be subject to periodic review, does not apply to the Families’ Section of the Curragh Military Hospital for which the health authority concerned has accepted liability in the normal way.

The Department of Defence are now settling the claims.

REPORT DATED 12 NOVEMBER, 1964:

EXTERNAL AFFAIRS.

Paragraph 3—Expenditure on official entertainment.

Virtually all expenditure on official entertainment relates to the entertainment of distinguished visitors, entertainment in connection with international conferences and congresses held in Ireland and the reception of diplomatic representatives accredited to Ireland. The cost of hospitality may vary greatly from one occasion to another and the publication of details would enable comparisons to be made which could cause embarrassment to a greater extent than the Committee suggest. With the exception of Great Britain, it is not the practice in any of the countries in which Ireland maintains a resident diplomatic mission to disclose details of expenditure on government hospitality.

HEALTH.

Paragraph 5—Control of Expenditure of Health Authorities.

The establishment of central pharmacies by two of the larger health authorities has resulted in economies because smaller aggregate stocks of drugs are now held by these authorities. Furthermore, the centralisation and control of stocks has reduced the possibility of wastage through obsolescence or of retention beyond the stated expiry dates. Certain drugs and medicines can now be purchased in greater bulk than was possible previously and more favourable terms of purchase are thus obtainable.

Paragraph 6—Arrangements for supply of drugs and medicines to out-patients.

All local authority hospitals have pharmacies but some district hospitals do not employ a pharmacist. Normally, medicines are provided at such pharmacies only for in-patients of the hospitals. Out-patients eligible to receive free medicines from a health authority usually have their prescriptions filled at their local dispensaries, but, in cases of urgency, a retail chemist may supply the item required.

The only service under which medicines are normally supplied through retail chemists is the domiciliary Maternity and Infant Welfare Service which is provided by doctors having agreements with the health authorities. Under this service a district medical officer provides prescribed medicines and drugs from dispensary stocks but eligible patients of a private practitioner have their prescriptions dispensed by retail chemists at the expense of the health authority.

PUBLIC WORKS AND BUILDINGS

Paragraph 8—Inventories of furniture in Embassies and Legations abroad.

Nineteen inventories have been examined and revised; the others are being dealt with as quickly as possible.

GARDA SÍOCHÁNA.

Paragraph 9—Payment of subsistence allowances.

The necessary amendment to the Regulations will be made shortly.

LANDS.

Paragraph 10—Incentive bonus scheme.

A tentative incentive scheme for 5 houses realised a productivity increase of 15%. The Land Commission is now carrying out further schemes for 13 houses on the consultant’s advice that further exploratory development would be necessary before the introduction of a general scheme.

AGRICULTURE.

Paragraph 11—Number and grades of outdoor staff engaged on the Land Project.

The number of payments per officer is not the sole criterion by which to judge the extent of his work on grants as this includes the investigation of applications which fail to secure approval or do not reach payment stage.

The investigation of applications and the planning and preparation of schemes require great care and attention and much time must be devoted to this work. The Minister is satisfied that the output of work by the staff is reasonable and that field supervision procedures are subject to examination and periodical review to ensure all possible economies.

Paragraph 12—Irregularities in claims for guarantee payments by certain exporters.

The question of proceeding against the remaining two exporters is under examination.

POSTS AND TELEGRAPHS.

Paragraph 13—Explanatory Notes to Appropriation Accounts.

The Minister agrees that the explanation of the saving on Subhead F of the Vote for Posts and Telegraphs, 1961/62, should have included a reference to the extra expenditure on stores and equipment.

The Minister would share the Committee’s concern if the revised form of the estimate adversely affected financial control. This did not happen, however, and in the case under review the decision of the Department of Posts and Telegraphs to spend part of the saving on contract works was taken with the knowledge and approval of the Department of Finance.

The Minister is in communication with the Department of Posts and Telegraphs regarding the use of modern techniques of budgetary control. He wishes to observe, however, that the budgetary control in operation was adequate to bring to notice the inability to carry out one part of the telephone development programme for the year in sufficient time to enable available funds to be diverted usefully to another part of the programme.

DEFENCE.

Paragraph 14—Court Rules regarding recovery of value of property stolen.

This matter is being brought to the notice of the District Courts Rules Committee which is at present engaged on a general revision of the District Court Rules.

The Committee will be informed in due course of the outcome.

OFFICE OF THE MINISTER FOR FINANCE.

Paragraph 15—Scheme for university training of executive officers.

The total cost of the scheme is estimated at £12,400. This sum will be offset to the extent of £1,300 by refunds payable by two officers who resigned on the termination of their scholarships and one officer who resigned on completion of his university course. Eleven scholarships were awarded. Five candidates have returned to the civil service; three resigned as already mentioned and three are still attending university courses.

GARDA SÍOCHÁNA.

Paragraph 16—Moneys received for services rendered by the Gárda Síochána at sporting fixtures and other events.

The charges for the services of the Gardaí are not fixed by regulation; they are determined administratively from time to time in the light of changes in rates of Garda pay and allowances.

Gardaí are provided for non-public duty with the authority of the Commissioner. If there is any doubt about the credit-worthiness of the body which requires the services of the Gardaí or of their willingness to discharge their liability, payment or an undertaking of personal liability signed by at least two members of the committee is obtained beforehand.

Paragraph 17—Garda Síochána Reward Fund.

In future, the statement appended to the annual Appropriation Account will give details of receipts and of the amount held in suspense accounts at the end of the year. These particulars in respect of the year under review, together with explanatory information, are given in Appendix I to this minute.

PRISONS.

Paragraph 18—Services provided for the treatment of mental illness among prisoners.

The services provided in the Central Mental Hospital, Dundrum and District Mental Hospitals are complementary. Subject to security and protection requirements, the choice of hospital is made on medical grounds on the advice of the Inspector of Mental Hospitals and the other medical authorities concerned. There are some criminal lunatics who, because of the character of their offences or their mental condition, must be sent to Dundrum. Those for whom Dundrum or the local mental hospital are equally suitable are ordinarily treated in Dundrum. Where the restrictive conditions of Dundrum are held to be detrimental to his prospects of recovery a patient is normally committed to the appropriate local mental hospital. Transfers of patients from Dundrum to other mental institutions, as an aid to recovery, have been made from time to time on the recommendation of the Resident Physician.

The question whether greater efficiency and economy could be achieved is being examined and the Committee will be informed of the result in due course.

HEALTH.

Paragraph 19—Classification of expenditure by Health Authorities.

The attention of health authorities is constantly directed to the necessity to classify expenditure accurately under the headings used for Estimate and accounting purposes. Except in situations such as arise on a change of user of an institution errors of classification have been found latterly to be of a relatively minor nature.

The figures available for 1962 show that, in respect of general hospitals conducted by health authorities, the average daily occupancy for the two acute Regional Hospitals was 86.4% and 87.4% of the normal bed complement. The corresponding figure for County Hospitals was 81.3% and for District Hospitals 71.0%. These rates compare favourable with those experienced in voluntary hospitals in Ireland, and with those shown in the published statistics for hospital services in comparable countries.

In recent years while there has been a substantial increase in the numbers receiving in-patient treatment, there has been a general shortening of the length of stay in hospital. This makes it possible to accommodate a greater number of patients without correspondingly increasing the number of beds.

POSTS AND TELEGRAPHS.

Paragraph 20—Engineering stores taken into stock but not paid for by the end of the year.

The Appropriation Account for 1963/64 shows the expected improvement in the extent to which stores would be paid for during the year of being taken into stock. At 31 March, 1964, stores costing £141,260 (or 7%) had not been paid for out of total purchases amounting to £1,961,843. This compares very favourably with the position on 31 March, 1963, when stores costing £558,469 (or 27%) were unpaid for out of £2,083,534 bought.

ROINN NA GAELTACHTA.

Paragraph 21—Glasshouses.

The Minister has noted the opinion of the Committee on this matter. The Committee will be advised of the net loss to public funds when this information is available.

TRANSPORT AND POWER.

Paragraph 22—Overtime.

The Minister wishes to assure the Committee that every effort will continue to be made to see that overtime work by individual officers is strictly limited.

INDUSTRY AND COMMERCE.

Paragraph 23—Trade loan guarantee for a bank loan to the Slaney Cabinet Works.

Copies of the receiver’s cash accounts as at 29 February, 1960, and 2 August, 1961, are appended to this minute (Appendix II).

Details of the receiver’s fees, which are at rates recommended in October, 1956, by the Council of the Institute of Chartered Accountants in Ireland, are as follows:—

Details of the receiver’s outlay amounting to £672 12s. 8d. are not now available but it is understood that it was in respect of the travelling and hotel expenses of an assistant who was permanently on the premises, the receiver’s own expenses and the expenses of other assistants who had to travel to Wexford from time to time to deal with problems arising from the carrying on of the business and its disposal and the transfer of the assets to the new owners.

The receiver was appointed on 2 February, 1959. The business was advertised for sale on 4 April but, as there were no offers, authority was sought by the receiver for sale of the business on a break-up basis. As it was considered desirable that every effort should be made to dispose of the business as a going concern and thus preserve the industry and the employment it afforded, a decision was deferred pending negotiations with the Industrial Credit Company and the Industrial Development Authority. On 16 July, 1959, the first acceptable offer, of £8,000, was reported and on 7 August the receiver recommended acceptance. He was informed on 21 August of the agreement of the Minister for Industry and Commerce to this course. The offer was withdrawn, however, and further negotiations took place resulting in the acceptance of a lower offer of £7,700 from the same parties. The Minister for Industry and Commerce authorised acceptance of this offer on 29 September, 1959, but, due to delays on the part of the purchasers, the receiver was unable to close the sale until 7 January, 1960.

PUBLIC WORKS AND BUILDINGS.

Paragraphs 24-26—Conversion of Templemore Military Barracks into a Garda Training Centre.

Most of the additional works were, in fact, contemplated from the initiation of the project. Before the contract was made, the architects advised that, in view of the form of the contract, the additional works would not cost more if undertaken as additions to the contract.

The form of contract used is particularly suited to this type of project and facilitated early commencement of the scheme of conversion. In accordance with standard practice a Price Variation Clause was embodied in the contract; otherwise building contractors would not have tendered for the work. The Committee’s views in regard to fees in the case of large contracts are being examined insofar as future contracts are concerned and the Committee will be informed of the result in due course.

The arrangements for financial control were adapted to the requirements of the situation, in particular the urgency of the project, the inability of the professional staff of the Office of Public Works to give it priority and the desirability of putting the expert knowledge and experience of that Office in contract matters at the disposal of the Department of Justice. The Minister is satisfied that no difficulties as regards financial control were created by virtue of the exceptional arrangements unavoidably made in this instance.

Paragraph 27—Arterial drainage schemes carried out under contract.

The three schemes referred to are the Matt and Duff, due to be completed in 1965, and the Abbey which will be completed in 1966. On completion of these works, the merits of the contract system will be reviewed and the Committee will be advised of the result.

SOCIAL ASSISTANCE.

Paragraph 28—Recovery of Overpayments.

Civil proceedings for the recovery of overpayments of Old Age Pensions were taken in five cases in 1962/63. The amount involved was £1,557 and the amount recovered was £1,094.

AGRICULTURE.

Paragraph 29—Land Project.

The average amount of grant payment per acre for the year 1963/64 was £17 14s. 0d. The figure of £18—£20 related only to portion of the year and did not purport to be the average for the whole year.

The increase in the average grant payment per acre between 1960/61 and 1963/64 was, in fact, 30%.

Apart from increases in wage rates, factors which have contributed to the higher grant outlay per acre are higher costs of materials such as drainage tiles, cement, gravel and higher charges for the hiring of reclamation machinery. The fact that more intensive and, therefore, more costly schemes of reclamation are being undertaken by a higher proportion of applicants in recent years has also a significant bearing on the rise in grant costs per acre.

Paragraph 30—Bovine Tuberculosis Eradication Scheme.

Without access to the accounts of the firms concerned it would not be possible to ascertain the extent of their profits on these transactions. The Minister for Agriculture has been advised that he has not the right of access to these accounts and that examination of such annual accounts as may have been submitted under the Companies Acts to the Registrar of Joint Stock Companies would not reveal whether profits made by the canning firms on reactor cows purchased in the quarter ended 31 March, 1963, were justifiable or not.

Paragraph 31—Payments to Pigs and Bacon Commission.

In the year of account 1962/63 the guaranteed export prices for bacon were based on—

(a) the guaranteed minimum deadweight prices paid by bacon curers for the pigs from which the export bacon is derived;

(b) the conversion rate from pork carcase to bacon;

(c) processing, transport and marketing costs;

(d) realisations from offals;

(e) a margin of profit.

The profit margin on export bacon has been very low and the guaranteed export price has always been substantially lower than the price at which bacon is sold on the home market.

Since April, 1964, when the Pigs and Bacon Commission became the central purchasing agent for export bacon, the guaranteed export prices have been adjusted to take account of the fact that the Commission now bear transport and marketing costs, items previously borne by the curers.

Paragraph 32—Marketing of Dairy Produce.

The Minister agrees that prompt presentation of accounts to the Oireachtas is of great importance and the attention of the Department of Agriculture has been drawn to the Committee’s views. The accounts of An Bórd Bainne for the year under review have now been presented to each House of the Oireachtas.

Paragraph 33—Special Agricultural Schemes.

There was no delay on the part of the Department of Agriculture in formulating the claim. Delay was not a factor in making the contract unenforceable. The merchant submitted his tender on his printed stationery which contained a standard condition disclaiming responsibility for non-delivery in certain circumstances. The Attorney General advised that, because of this condition, the Department of Agriculture could not proceed against the merchant in respect of 149 tons out of the 200 tons for which his tender was accepted; the £51 recovered was in respect of the balance of 51 tons. The Department of Agriculture now uses a standard form of tender for this scheme.

LANDS.

Paragraph 34—Dwellinghouses erected by Land Commission contractor.

The sum of £400 (plus a further sum of £26 5s.) refers to the legal costs incurred by the migrant in instituting legal proceedings against the Land Commission. The second case has since been settled by the migrant accepting an alternative holding with new buildings and payment of £186 in respect of legal costs. Negotiations are proceeding to settle the third case on similar lines.

The defective houses are being reallotted, due notice being given to the new allottees of the defects. The question of legal proceedings against the contractor and against the sureties is still under consideration.

GENERAL.

Paragraph 35—Audited accounts of bodies who receive subventions from voted moneys.

The Minister is in consultation with the Departments concerned about the Committee’s suggestion. As soon as their comments are received and considered, the Minister will communicate his views to the Committee.

Appendix I

Garda Síochána Reward Fund.

The receipts into the Fund for the year under review amounted to £11,758, as shown hereunder:—

The amount of £2,321 held in suspense accounts at the end of the year is made up as follows:—

The verification fees received by ex-officio Inspectors of Weights and Measures are credited to the Verification Fees Suspense Account. From this account is paid the subsistence allowance on weights and measures duty payable to the ex-officio Inspectors, and also the expenses of the Department of Industry and Commerce in the administration of the Weights and Measures Acts. The balance is transferred to the credit of the Reward Fund.

Receipts by way of Fishery and Revenue fines, and disciplinary fines are credited to the Reward Fund Suspense Account.

When the net balances in the two suspense accounts are determined, they are transferred to the Reward Fund from time to time during the year.

Appendix II

SLANEY CABINET WORKS LIMITED.

CASH ACCOUNT.

SLANEY CABINET WORKS LIMITED.

CASH ACCOUNT.