Committee Reports::Report - Appropriation Accounts 1965 - 1966::14 July, 1967::Appendix


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APPENDIX XXXIV.

REVENUE COMMISSIONERS: COMPUTERS

An Cléireach,

An Coiste um Chuntais Phoiblí.

At the meeting of the Committee of Public Accounts on the 9th March, 1967, in connection with the Appropriation Accounts, 1965-66, Office of the Revenue Commissioners, I undertook to supply for the information of the Chairman and the members of the Committee, copies of statements showing the estimated annual savings to the Exchequer

(1) which arose from the installation of the I.C.T. 1301 computer, and,

(2) which are expected to arise from the installation of the Honeywell 1200 computer.

Copies of the statements are enclosed. It will be seen that the net annual gain to the Exchequer under (1) is estimated at approximately £37,000 and under (2) at £205,000. The latter figure takes no account of additional posts, estimated to cost £85,000 a year by 1970, which would have had to be provided in the Office of the Revenue Commissioners in the absence of this further mechanisation. Neither does it take account of any savings in other Departments which may arise from their use of the surplus capacity which will be available from the installation if employed for more than one shift a day. The contract with the suppliers provides for reduced charges for second-shift working.

(Signed) S. RÉAMONN,

Chairman,

Revenue Commissioners.

5 Aibreán, 1967.

Table A.

OFFICE OF THE REVENUE COMMISSIONERS—COST OF COMPUTER INSTALLATION—I.C.T. 1301 COMPUTER INSTALLED JULY, 1963

							£	£	By				£	£
To									Estimated Staff savings:—
Capital Costs:—Equipment									Collector-General’s Office—per annum		..	..	32,908
Collector General’s Office			..	..	..	..	13.979		Chief Inspector’s Office—per annum		..	..	28,088	60,996
Chief Inspector’s Office			..	..	..	..	10,585		Annual cost of accommodation which would be
Staff and overtime for conversion work					..	..	92,030		required for above additional staff		..	..		4,050
Punching work	..	..	..	..	..	..	1,500		Annual cost of Collectors of Taxes	..	..	..		114,400
Structural work		..	..	..	..	..	23,788		Annual rental of equipment surrendered		..	..		7,561
Compensation to Collectors of Taxes					..	..	122,718
							264,600
Capital cost written off over a period of 10 years—
annual charge		..	..	..	..	..		26,460
Hire of equipment—per annum				..	..	..		31,759
Maintenance—per annum			..	..	..	..		978
Staffing—per annum			..	..	..	..		76,970
								136,167
Overheads
Add 10% for overhead charges for accommodation,
light, travelling etc.			..	..	..	..		13,617
								149,784
Net annual Saving		..	..	..	..	..		37,223
								£187,007						£187,007

Table B.

OFFICE OF THE REVENUE COMMISSIONERS—COST OF COMPUTER INSTALLATION—HONEYWELL 1200 COMPUTER (to be installed in July, 1967)

To									By
							£	£								£	£
Present annual costs as set out in Table A					..	..		150,000	Present gross annual savings as set out in Table A								187,000
Estimated additional costs for Honeywell 1200 Computer:—									Estimated additional gross annual savings for Honeywell 1200 Computer:—
									Annual rental of 1301 Computer equipment to be
Capital Costs:—									surrendered		..	..	..	..	..		38,800
									Annual saving on overtime			..	..	..	..		10,000
Structural work		..	..	..	..	..	32,000		Increased annual yield from P.A.Y.E. over first 10
Setting up equipment			..	..	..	..	13,339		years	..	..	..	..	..	..		221,900
Filing, dispatch, etc., equipment				..	..	..	9,850
Training courses		..	..	..	..	..	1,000
Delivery charges		..	..	..	..	..	1,500
Paper tape punches & verifiers				..	..	..	75,000
Conversion costs		..	..	..	..	..	28,455
Additional planning costs			..	..	..	..	8,516
							169,660
Capital costs written off over a period of 10 years—
annual charge		..	..	..	..	..		16,966
Additional staffing costs—per annum					..	..		18,642
Average annual rental of Honeywell 1200 Computer
over 10 years		..	..	..	..	..		57,522
Maintenance costs for punches & verifiers—per annum								7,000
Materials (tape reels, printer ribbons, etc.)—per
annum	..	..	..	..	..	..		2,477
								252,607
Net annual gain to the Exchequer				..	..	..		205,093
								£457,700									£457,700