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

APPENDIX XXI.

INDUSTRIAL CONSULTANCY PROJECTS.

Cléireach,

An Coiste um Chuntas Phoiblí.

At the meeting of the Public Accounts Committee on 23rd February, 1967, I undertook to furnish information in regard to technical assistance grants for industrial consultancy projects included under Subhead L1.

(1) It has not been found possible to evaluate in any precise way the overall benefits derived by industry in general from consultancy schemes because

(a) in many cases the benefits are intangible.

(b) the scope and nature of these schemes vary considerably.

(c) in some cases the degree to which the benefits available from the scheme are realised in practice is influenced by other factors, e.g. changes in market demand.

Nevertheless efforts are made to obtain as much information as possible as to the value of these schemes and one year after a scheme has been completed the firm involved is requested to furnish its observations on the benefits derived. From the observations received in this way, where actual figures have been quoted, the following benefits are stated to have accrued to the firms.

Increased Productivity of between 33⅓% and 50%.

Increased Production of between 33⅓% and 40%.

It is only in the very rare case that firms express any dissatisfaction with the results from consultancy schemes.

(2) On the information available it is not possible to say how many consultancy schemes are in fact in operation at any particular date. It may, however, be of help to say that at a current date claims for payment of already approved grants are outstanding from firms in respect of 175 schemes.

(3) Over 60 consultancy companies are known to have carried out schemes for which technical assistance grants have been paid and no overall information is available as to the extent to which they may have increased their fees in the last few years. Furthermore, as some firms vary the rate of fees according to the nature of a particular project, it is not always possible to identify increases in fees. It is known, however, that the four better known companies have increased their fees on two occasions in the last two years and that the cumulative effect has been an increase of 15% to 20% above the fees operative in early 1965.

(4) Gaeltarra Éireann have been paid a total of £750 in respect of two consultancy schemes.

(5) In 1965/66 the number of firms who received grants in respect of industrial consultancy schemes was 114 and the amount of grants was £173,000 approximately.

Department of Industry and Commerce.

23 Márta, 1967.