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APPENDIX 2.MINUTE OF THE MINISTER FOR FINANCE ON INTERIM AND FINAL REPORTS OF THE COMMITTEE OF PUBLIC ACCOUNTS ON THE APPROPRIATION ACCOUNTS 1966-67INTERIM REPORT DATED 13 DECEMBER, 1967.In course of the discussion of this matter in the Dáil on 20 November, 1968, it was indicated that the Government agreed with the views of the Committee that such documents as the Comptroller and Auditor General determines to be necessary for the purpose of his audit should be made available to him, but that the Government was of opinion that legislation to achieve this end was not necessary. The Minister for Finance, with the approval of the Government, has caused a circular letter in the matter to be issued to all Accounting Officers. A copy of this circular letter is attached for the information of the Committee. FINAL REPORT DATED 27 JUNE, 1968.PART I—GENERAL OBSERVATIONS.Paragraph 1. Following are the further observations of the Minister for Finance on matters raised in previous reports of the Committee of Public Accounts:— REPORT DATED 10 MARCH, 1966.25. Claims against St. Patrick’s Copper Mines, Ltd. Avoca Mines Ltd. have not yet exercised their option—due to expire on 15 March, 1969—to purchase the assets of St. Patrick’s Copper Mines Ltd. REPORT DATED 17 NOVEMBER, 1966.3. Audited accounts of bodies which receive subventions from voted moneys. While the Committee’s suggestion related to State-sponsored bodies which receive subventions from voted moneys, it was considered desirable to examine the possibility of a general review to cover all the principal State-sponsored bodies. Satisfactory arrangements for such a review have not yet been devised. 12. Intermediate river drainage schemes. The costing examination is almost complete and the Committee will be notified of the results. 27. Possibility of duplication of functions and overlapping of efforts in provision of technical assistance. Following reconsideration of the over-all role of the Irish National Productivity Committee, its functions have been redefined so as to ensure co-ordination of its activities with those of other State-aided bodies operating in the field of productivity. REPORT DATED 14 JULY, 196720. Standard of administration in local taxation office. As a result of recommendations made in the interim Organisation and Methods reports (twelve in all), the supervisory staff has been strengthened and office work speeded up. The final report is under consideration by the local authority. In addition, recent changes in the law relating to the taxation periods of vehicles will substantially reduce the seasonality of the work, which was largely responsible for staffing difficulties and the standard of administration complained of. Paragraph 2. Cost of rebuilding the Abbey and Peacock Theatres. The Minister has been assured that the estimate of the final cost furnished in his minute of 30 January, 1968 will not be exceeded. The provision of professional services was referred to in the N.I.E.C. Report on Full Employment in the context of restrictive practices. The suggestion made in that Report that such practices should be capable of review by the Fair Trade Commission is under consideration in relation to the Third Programme for Economic Expansion. The question of professional fees generally will fall to be considered in this connection. Paragraph 3. Expenditure by health authorities on drugs and medicines. The Department of Health will inform the Committee of any review of the stock control of drugs and medicines in relation to changes proposed in the structure of the General Medical Services. Paragraph 4. Site for fisheries research station. As already indicated, an exhaustive search lasting from 1963 to 1966 was made for a suitable site, but none was found except that which was bought. In the absence of compulsory powers of acquisition, the site could not have been obtained at a lower price. Paragraph 5. Conversion of Templemore Military Barracks. The leakage in the swimming pool was remedied (by pressure grouting) by the contractor without cost to the State prior to the engagement of the consultant who reported that the design of the pool is adequate and that the likelihood of further similar leakage is negligible. The Minister for Justice has now obtained, without prejudice to his legal rights, an acceptable assurance from the contractor that, should pressure grouting in the zone of the leakage become necessary at any time within five years of the date of the consultant’s report, the contractor will execute the necessary work at no expense to the State. The contractor repaid the consultant’s fees and expenses to the Department. PART II—PARTICULAR ACCOUNTS.ROINN NA GAELTACHTA.Paragraph 6. Gaeltarra Éireann—Grants-in-Aid. The moneys voted for current and capital expenditure by Gaeltarra Éireann and other semi-State bodies are now provided for in separate grants-in-aid. PUBLIC WORKS AND BUILDINGS.Paragraph 7. Future of the dredger “Fág an Bealach”. In view of the prohibitive cost of having maintenance dredging carried out under contract, it was decided to retain the dredger “Fág an Bealach” until it became known whether the maintenance work required at the fishery harbours of Dunmore East, Castletownbere and Killybegs would be suitable for it. Experience now gained of the type of siltation occuring in those harbours shows that maintenance dredging can best be done by another O.P.W. dredger, the “Sisyphus”. Tenders for the purchase of the “Fág an Bealach” have therefore been invited. The Committee will be informed of the result. Paragraph 8. Productivity of labour force at Dun Laoghaire harbour. Performance control has now been extended to outdoor maintenance work at the harbour and at Government premises in Dun Laoghaire. The results are satisfactory. Paragraph 9. Extra manpower costs at Dun Laoghaire harbour. Extra expenditure resulting from the postponement of purchase of the plant was approximately £550. DEFENCE.Paragraph 10. Use of bridge between Haulbowline Island and the Mainland. The Minister understands that arrangements are being made to enable Department of Defence military and civil personnel engaged on the island to use the bridge going to and returning from their work. AGRICULTURE.Paragraph 11. Maintenance of drainage works on River Rye. The Office of Public Works has been advised that it would not be legal to have the works necessary on the river carried out under the Arterial Drainage Acts. This Department has, therefore, indicated that the maintenance work should be carried out by the Office of Public Works as agents for the Department of Agriculture and Fisheries on a repayment basis. LANDS.Paragraph 12. Defects in Land Commission dwelling houses. This paragraph does not appear to call for comment. Paragraph 13. Redemption of small annuities. In a pilot experiment conducted in Co. Donegal, 317 invitations were issued to redeem annuities ranging up to 5/- but only 42 redemptions were effected representing 13% of the total. The Land Commission consider that, if the experiment were extended, the amount of work involved in extracting particulars and calculating redemption values would largely offset the benefit accuruing—particularly since the clerical work connected with the accounts is now carried out by computer. TRANSPORT AND POWER.Paragraph 14. Contract for building at Dublin Airport. The Minister agrees that, as a general principle, adequate planning should precede the placing of building contracts in order to minimise increases in costs He is asking all Departments concerned to bear this in mind. With regard to the variations on the contract for the building at Dublin Airport the Minister has been informed by the Department of Transport and Power that the term “omissions” as used by Quantity Surveyors in final accounts does not necessarily mean that the work referred to was not carried out. Where work requires re-measurement the amount originally included for it in the Bill of Quantities is transferred to the “omissions” column of the final account and the revised cost of the work determined by the Quantity Surveyor, is placed in the “additions” column. The net variation on the contract which gave rise to the comments of the Committee amounted to £8,879 or 5.6%, approximately, of the contract less mechanical and electrical services. OFFICE OF THE REVENUE COMMISSIONERS.Paragraph 15. Defaulting employers in P.A.Y.E. tax deduction card cases. The employer’s records have been transferred to the new computer and a comprehensive record is now available relating to all defaulters in tax deduction card cases. Paragraph 16. Defaulting employers in P.A.Y.E. stamp book cases. The Stamp Book procedure is designed for small employers likely to experience difficulty in the operation of P.A.Y.E. due to the inadequacy of book-keeping systems. The amount of tax involved is small. Sections 7 and 8 of the Finance Act, 1968 gave the Commissioners power to make formal estimates of outstanding P.A.Y.E tax. It will, therefore, be possible to take swift and effective recovery action. A computer programme has been prepared to enable the procedures involved to be carried out with the minimum impact on staffing. Paragraph 17. Check on accuracy of returns of taxable turnover. It is expected that, with the aid of the new computer, a satisfactory system of auditing and checking can be put into operation shortly. HEALTH.Paragraph 18. Statement of lay administration costs of health services. The Department of Health will supply the required statement annually. Paragraph 19. Provision of health services, free of charge, to persons other than those who have medical cards. The introduction of test checks would involve keeping detailed records of medicines issued to and by each dispensary doctor. Six health authorities were consulted and all regarded such a system as unworkable. It is doubtful whether such measures are warranted particularly since the White Paper on the Health Services envisages modifications in the machinery for distribution of drugs and other changes which should almost entirely eliminate the issue of drugs at public expense in unauthorised cases. Paragraph 20. Payment of staff resident in Institutions for accommodation, meals, etc. The Minister is informed by the Department of Health that there was a general increase of £9 a year in the charge for meals on the occasion of the Ninth Round adjustment of salaries of staff resident in Institutions and that County Managers are being urged to have regard to the views of the Committee in the case of the Eleventh Round and any future pay increases. Paragraph 21. Payments by middle-income group patients towards cost of institutional services. The Minister is informed by the Department of Health that, in 1966/67, middle-income patients paid £460,000, approximately, towards the cost of institutional services other than in Mental Hospitals, for which separate figures are not available. The charge, limited under statute to 10/- a day, is based in each case on the individual Health Authority’s assessment of the patient’s ability to pay. It was estimated for a recent year that no charge was made on 60% of middle-income patients and that only half the others were charged more than 5/-a day.
Access to documents by the Comptroller and Auditor General. A Chara, I am directed by the Minister for Finance to say that, as heretofore, the Comptroller and Auditor General should be given access to any document or file of documents which he states that he requires for the purpose of his audit, unless it is considered to be of exceptional secrecy when it should be shown to him, personally, in confidence. In the rare event that a requisitioned document or file is of such a secret nature that, in the opinion of a Minister, it would not be in the public to show it even to the Comptroller and Auditor General personally, this should be explained to him and every possible effort should be made to satisfy him in some other manner. If not satisfied he may report the matter to the Dáil. This Department should be consulted in good time in any case of doubt or difficulty. In clarification of the scope of the audit conducted by the Comptroller and Auditor General I am to say that:— (a) The functions of the Comptroller and Auditor General as auditor involve not only the audit of Government accounts for accuracy and regularity but also identifying and reporting on instances where it appears to him that there has been loss or waste or uneconomic expenditure; (b) The Comptroller and Auditor General has no function in regard to policy or policy decisions but may examine the implementation of policy in course of investigating apparent instances of loss, waste or uneconomic expenditure; (c) The promotion of administrative efficiency is a function of each Department within its own confines under the general supervision of the Department of Finance. The Comptroller and Auditor General has no direct responsibility in this matter beyond that indicated at (a) and (b) of identifying and reporting instances of apparent loss or waste or uneconomic expenditure. Mise, le meas, T. K. WHITAKER. To/ All Accounting Officers. |
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