Committee Reports > List of Committees > Dáil > 1967 > Committee of Public Accounts > Report - Appropriation Accounts 1965 - 1966

APPENDIX II.

MINUTE OF THE MINISTER FOR FINANCE ON A REPORT DATED 17 NOVEMBER, 1966, OF THE COMMITTEE OF PUBLIC ACCOUNTS

PART I—GENERAL OBSERVATIONS.

Paragraph 1—

Following are the further observations of the Minister for Finance on paragraphs 3 and 12 of the report dated 22 February, 1961; paragraphs 12, 14 and 34 of the report dated 12 November, 1964; and on paragraphs 5, 17, 18, 19, 25 and 30 of the report dated 10 March, 1966, of the Committee of Public Accounts. The Committee will, where necessary, be kept informed of any further developments arising on the matters raised in these paragraphs.

A. REPORT DATED 22 FEBRUARY, 1961.

RATES ON GOVERNMENT PROPERTY.

3. Payments for water supplies.

Discussions with the local authorities concerned are still proceeding.

DEFENCE.

12. Consumption of electricity.

The negotiations with the Electricity Supply Board have not yet concluded.

B. REPORT DATED 12 NOVEMBER, 1964.

AGRICULTURE.

12. Irregularities in claims for guarantee payments by certain exporters

The trials in the two cases were tentatively listed to begin on 7 November, 1966, in the Central Criminal Court, but they did not commence on that date and are now expected to take place within the next few months.

DEFENCE.

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

The relevant court rule has been re-drafted, but the general revision and consolidation of the District Court Rules, of which this forms part, have not yet been completed.

LANDS.

34. Dwelling houses erected by Land Commission contractor.

Proceedings have issued against the sureties.

C. REPORT DATED 10 MARCH, 1966.

PUBLIC WORKS AND BUILDINGS.

5. Inventories of furniture in Embassies and Legations abroad.

Inventories for thirty-three of the forty-three separate premises now occupied by Irish Missions abroad have been examined and revised where necessary. A further six inventories will be ready shortly. In two other cases, changes of premises and extensive renewals and additions of furniture have taken place since the inventories were prepared and revised inventories are being requested. There are as yet no State-owned furnishings of value in the two remaining premises.

Heads of Mission are being instructed to note any changes or additions on the revised inventories and to notify them to the Office of Public Works.

TRANSPORT AND POWER.

17. Bord Fáilte Éireann—grants towards the development of holiday accommodation.

The question of providing information on grants paid by Bord Fáilte Éireann for the development of holiday accommodation is still under examination in conjunction with the general question of the reference of accounts of State-sponsored bodies to the Committee.

18. Accounts of Coras Iompair Éireann.

The matter is being studied in connection with the general question of the reference of accounts of State-sponsored bodies to the Committee.

COURTS.

19. Fees payable for licences to keep petroleum, etc.

This matter is still being reviewed in the context of the proposed Bill to consolidate and amend the law relating to petroleum and other dangerous substances.

FORESTRY.

25. Claims against St. Patrick’s Copper Mines, Ltd.

A private Company, Avoca Mines, Ltd., has acquired an option to purchase the assets of St. Patrick’s Copper Mines, Ltd. The option is for a period of six months initially and is renewable for further periods of six months up to a maximum of 30 months. Unless the option is exercised, the Receiver will not have any funds for the settlement of the claims by the Minister for Lands.

OFFICE OF THE REVENUE COMMISSIONERS.

30. Automatic data processing equipment.

Following the advice of specialist staff in the Department of Finance and with the agreement of the Interdepartmental Committee on automatic data processing, a new and more powerful computer configuration has been sanctioned for the Central Collection Branch of the Revenue Commissioners’ Office. The new computer is scheduled for installation in the latter half of 1967 and will take over P.A.Y.E. work as well as carrying out all the work performed by the present equipment.

The computer, when not being used for tax purposes, will be used as much as possible for other work of the Revenue Commissioners and by other Departments. Already two Government Department are arranging to take time on the computer and further investigations regarding the transfer to the computer of other work are proceeding.

D. REPORT DATED 17 NOVEMBER, 1966.

Paragraphs 2, 4, 5, 6, 7, 9, 11, 13, 15, 16 and 26.

These paragraphs do not appear to call for comment.

GENERAL.

Paragraph 3—Audited accounts of bodies which receive subventions from voted moneys.

The study of this matter is proceeding and regard is being had to the arrangements adopted in other countries.

DEFENCE.

Paragraph 8—Civil Defence equipment.

The existing targets and the actual strength, as indicated in the most recent returns furnished by local authorities, are as follows:—

The target figures are provisional and are at present being re-examined. Recruiting and training are proceeding continuously and, while some trained volunteers do not remain active members, they could be expected to be available for service if needed.

The bulk of the equipment issued to local authorities is being used for training purposes. Substantial quantities of radiac instruments, which constitute operational as well as training equipment, are being held in the local authorities’ stores as reserves. It is envisaged that in an emergency a “crash” programme would be undertaken for the purpose of training new volunteers and other personnel in the use of these instruments.

HEALTH.

Paragraph 10—Payments by staff for emoluments received in kind.

The cost of providing meals, accommodation, etc., for institutional staffs varies as between different institutions, while payments by the staffs are based on uniform rates for the institutions generally. It would be difficult, therefore, to ascertain, for individual institutions, whether increases in the costs in the period in question have been fully recovered in the payments by the staffs. It is reasonable to assume, however, that the overall costs vary in accordance with the Consumer Price Index, which, in the period referred to, rose by approximately 11 per cent.

PUBLIC WORKS AND BUILDINGS.

Paragraph 12—Intermediate river drainage schemes.

A costing examination of the Abbey and Brickey schemes will be undertaken in order that the estimated cost by direct labour methods may be compared with the cost by contract. The Committee will be informed of the result.

ROINN NA GAELTACHTA.

Paragraph 14—Storm damage to glasshouses.

It is hoped to reach finality in this matter before 31 March, 1967, and the Committee will be informed of the ultimate financial loss involved.

PART II—PARTICULAR ACCOUNTS.

NATIONAL GALLERY.

Paragraph 17—Lending of pictures to authorities outside Dublin.

The question of lending pictures from the Gallery to authorities outside Dublin and the insurance problems involved are under consideration and the Committee will be informed of developments.

PUBLIC WORKS AND BUILDINGS.

Paragraph 18—Provision of houses for married members of the Gárda Síochána.

The Minister is informed that satisfactory legal title was acquired by the National Building Agency, Ltd. to the lands and houses it acquired. These properties are not transferred to the Commissioners of Public Works until all contract works are completed and maintenance periods terminated. Arrangements are being made to expedite transfer of title in all cases in which the building contracts have been finalised.

Some duplication in the legal field was inevitable in the circumstances in which the Agency’s programme was organised, but steps have been taken to avoid this in future cases by simplification of the legal procedures involved.

Paragraph 19—Restoration and adaptation of Royal Hospital, Kilmainham.

The estimate of £20,000 to £40,000 for the first stage of the work was a shot in the dark, as it was not possible to say with certainty what work would be necessary until the various sections of the structure came to be opened up as the work proceeded. An exact figure of final cost for the first stage is not yet available but it will be close to £200,000.

The value of the restoration works is already considerable. It would cost more than £400,000 to provide equivalent accommodation of the same standard in modern construction and in the modern idiom architecturally, as has been made available in the North Wing at a cost of the order of £200,000.

Paragraph 20—Sub-letting of premises.

When the sub-lessees applied in 1946 for permission to assign their interest the Commissioners, by relying on the State’s prerogative, could possibly have withheld their consent but they were advised that this would be contrary to the spirit of the Landlord and Tenant Act, 1931, under which a private landlord may not unreasonably withhold his consent to alienation.

The outgoings on the premises first exceeded the rent in 1964/65 by £1 5s. 0d. The Commissioners had already made unsuccessful approaches to the sub-lessees with a view to redressing the position. Following an application for a renewal in 1966 the sub-lessees agreed to a rent of £1,000 per annum plus rates and internal maintenance for a term of 5 years from 6 October, 1966, with provision for a further renewal at a rent to be agreed. These terms are considered satisfactory.

There are no similar cases on the rental of the Office of Public Works and it is considered unlikely that there are any affecting other Departments. Departments with property commitments are, however, being asked to keep leases under review in order to avoid any future case of this kind.

LOCAL GOVERNMENT.

Paragraph 21—Overlapping of functions between An Foras Forbartha Teoranta and the National Building Advisory Council.

The matter is under investigation and the Committee will be informed of the outcome.

TRANSPORT AND POWER.

Paragraph 22—Cost of collection of passenger service charge at airports.

A very small part of the total collection, some 0·3%, is collected directly by the airport managers of Cork and Shannon Airports. No deduction is made for the cost of this collection. Aer Lingus Teoranta collect the remainder of the passenger service charges and deduct the cost of collection which is calculated on the following basis:—

(1) Payroll costs (in respect of staff employed in connection with the collection of the charge or with accounting work arising from the collection),

(2) Staff uniforms (for staff employed in the collection),

(3) Accommodation,

(4) Stationery,

(5) Maintenance of validating machines,

(6) Dollar exchange loss,

(7) Commission allowed to travel agents who collect the charge when selling the airline ticket,

(8) General overheads at 50% of payroll costs.

Capital expenditure on check-in desks and validating machines was charged in 1962/63 and 1963/64, the amounts being £1,588 and £198 respectively.

Paragraph 23—Overtime and extra duty payments.

As suggested by the Committee, a survey of the incidence of overtime and extra-duty payments in all Departments has been carried out. The survey shows that, in 1965-66, expenditure amounted to £1,307,000, as follows:

Posts and Telegraphs.

Of the expenditure of £924,000, Sunday and Bank Holiday duty accounted for £130,000; seasonal pressure of work for £120,000; overtime and extra duty in the Engineering Branch for £297,000 and the balance was due to peak periods of work and to overtime in provincial offices.

Expenditure arising from Sunday and Bank Holiday duty and from seasonal pressure of work is unavoidable. Overtime and extra duty in the Engineering Branch arise from a variety of causes such as storm damage and priority faults which require attention outside normal working hours. The demand for skilled staff is increasing and, although the intake of trainees has expanded in recent years, there is still a shortage of fully trained staff which must be made good by overtime. Because of the need to dispose promptly of mail and other traffic, and of day-to-day fluctuations in its volume, some peak working periods must be met by regular recourse to overtime, the alternative being to carry surplus staff. Regular overtime is worked in some small provincial offices where the volume of work would not justify an additional post.

Increases in pay and overtime rates for certain Post Office departmental classes indicate that the cost of overtime will rise even if there is no increase in the volume of overtime worked.

Office of the Revenue Commissioners.

The largest single segment of overtime costs was due to the employment of Preventive Staff on revenue protection duties and on the clearance of sea, road, rail and air traffic. A substantial amount of Sunday attendance is necessary, and is paid for at special rates. Weekday hours of attendance are staggered with a view to eliminating overtime. In other cases, such as certain merchants’ requests, overtime is the least costly way of doing the work and some of the cost is recovered.

It is cheaper and more satisfactory to resort to overtime at the seasonal peak periods of income tax work than to recruit extra staff.

Transport and Power.

In 1965-66, £37,000 was spent on overtime and £31,000 on night duty payments. Most of the overtime arose in the Radio and Meteorological Services, where there is a shortage of technical staff. Most of the staff in the Radio, Meteorological and Air Traffic Control Services are conditioned to round-the-clock rostered duties in respect of which night duty payments are made.

Other Votes.

The incidence of overtime in other Departments and Offices is comparatively light being less than 1% of pay costs.

The Minister for Finance will continue to keep the incidence of overtime under review, so as to secure that additional staff, if available, will be employed where this is advantageous.

DEFENCE.

Paragraph 24—Register of State properties.

The Minister notes the views of the Committee.

The present position regarding the properties to be registered and the number registered is as follows:—

Every effort is being made to increase the number of properties entered in the register. Entries of properties mentioned at B cannot be made until the State’s interest has been formally transferred to the Minister for Defence. Registration of the State’s interest in the properties mentioned at C, which interest is considerably less in value than that of the properties mentioned at A, has now commenced and all the registration work outstanding under headings A, B and C will be pressed forward as rapidly as possible.

Perambulations of the boundaries of two military barracks and attached lands have been carried out. The boundaries are intact and no unauthorised encroachments exist thereon. Perambulations of other properties entered on the register are being arranged.

The Minister is hopeful that, although the registration work is necessarily slow, there will be steady annual progress for the future.

STATIONERY OFFICE.

Paragraph 25—Delay in clearance of claims for printing.

The claims have since been settled.

INDUSTRY AND COMMERCE.

Paragraph 27—Possibility of duplication of functions and overlapping of efforts in provision of Technical Assistance.

The comments of the Comptroller and Auditor General have been brought to the attention of the Irish National Productivity Committee. An examination of the question of overlapping of functions between the semi-State bodies operating in the productivity field has commenced in the Department of Industry and Commerce.

AGRICULTURE.

Paragraph 28—Importation of Charolais cattle.

It was not necessary to seek insurance cover against the risk of failure to pass the Pirbright test as in 1965 the vendors, under pressure from potential customers in a number of countries, agreed to have this test carried out on their farms as a prior condition of purchase.