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APPENDIX 2.MINUTE OF THE MINISTER FOR FINANCE ON A REPORT DATED 23 JULY, 1969, OF THE COMMITTEE OF PUBLIC ACCOUNTS ON THE APPROPRIATION ACCOUNTS 1967-68.PART I—GENERAL OBSERVATIONS.Paragraphs, 1, 4, 7, 8 and 10.These paragraphs do not appear to call for comment. Paragraph 2.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 now exercised their option to purchase the assets of St. Patrick’s Copper Mines, Ltd. The transfer of the lands at Shelton Forest to the Company has now been completed and the purchase money released to the Department. The claim for £211 for restoration of the water supply is being pursued by the Chief State Solicitor. REPORT DATED 17 NOVEMBER, 1966.12. Intermediate river drainage schemes.The examination of the two further contract schemes shows that, inclusive of overheads, the Abbey scheme cost £50,952 and the Brickey scheme £61,467. It is estimated that, if they had been carried out by direct labour, the cost of the former would have been about 7% less with incentive bonus, and almost equal without bonus, and the latter about 9% less and 3½% less, respectively. REPORT DATED 14 JULY, 1967.3. Consumption of electricity.As the Committee were informed in the Minister’s minute of 11 May, 1964, all soldiers’ married quarters were separately metered in 1963. The provision of direct supply to these quarters is a separate matter and is being pressed with the Electricity Supply Board by the Department of Defence. Terms for direct supply to some of the quarters have been submitted to the Department and are being discussed with the Board. REPORT DATED 27 JUNE, 1968.7. Future of the dredger “Fág an Bealach”.The Commissioners of Public Works have now sold the dredger “Fág an Bealach”. 17. Check on accuracy of return of taxable turnover.Summaries of turnover tax returns produced on the Revenue computer are now being issued to all districts for comparison with the audited accounts and other information furnished for income tax. It is hoped to have the checking programme fully up to date within the next 12 months. The enforcement provisions contained in the original P.A.Y.E. legislation have now been strengthened by those in sections 7 and 8 of the Finance Act, 1968, enabling the more effective pursuit of defaulters. 19. Provision of health services, free of charge, to persons other than those who have medical cards.Under the new arrangements proposed in the Health Bill, 1969, the patient’s registered number will require to be inserted on prescriptions, which will, in general, be fulfilled by retail chemists. This should eliminate the possibility of the issue of drugs to persons not entitled to them. 20. Payment by staff resident in Institutions for accommodation, meals, etc.The Minister is informed by the Department of Health that the principle of adjusting these charges in conjunction with pay increases related to increases in the cost of living is accepted. That Department has accordingly advised Managers of Health Authorities of appropriate revised deductions for emoluments in the case of both resident and non-resident staffs. REPORT DATED 23 JULY, 1969.Paragraph 3—Audited accounts of bodies which receive subventions from voted moneys.A reassessment of the question of a parliamentary review of the accounts of State-sponsored bodies is being made in the light of the recommendations in relation to these bodies in the report of the Public Services Organisation Review Group. Paragraph 5—Fees for professional services in connection with building projects.It was indicated in the Third Programme that the Government had decided that the Restrictive Trade Practices Acts should be amended to empower the Fair Trade Commission to investigate restrictive practices (other than those relating to labour) in a wider field of economic activity. The Minister for Industry and Commerce intends to introduce the necessary amending legislation at an early date. Paragraph 6—Site for fisheries research station.Plans are now being prepared for building the fisheries research station on the site. No portion of the site will be available for disposal to other bodies. Paragraph 9—Maintenance of drainage works on River Rye.It is estimated that the work of restoration will cost £13,000 but that it will not be more costly than if maintenance had been carried out each year. Paragraph 11—Defaulting employers in P.A.Y.E. tax deduction card cases.The additional enforcement measures made available in sections 7 and 8 of the Finance Act, 1968, have enabled much more effective action to be taken against such defaulters. Outstanding cases have now been reduced to a total of 200, approximately, and it is expected that these will be disposed of within the next few months. PART II—PARTICULAR ACCOUNTS.Paragraphs 12, 13, 19, 21 and 23.These paragraphs do not appear to call for comment. INDUSTRY AND COMMERCE.Paragraph 14—Conditions attaching to Foras Tionscal grants.The terms and conditions attaching to industrial grants, including conditions governing the disposal of grant-aided assets, are a matter for An Foras Tionscal. It is understood, however, that the Department of Industry and Commerce considers the present terms and conditions to be an adequate safeguard for the public moneys involved, and the Minister sees no reason to disagree with this view. TRANSPORT AND POWER.Paragraph 15—Economy in the use of Exchequer balances.A new system of issuing grant-in-aid instalments on a twice weekly basis to Bord Fáilte was introduced by the Department of Transport and Power in June last. The new system—which is being kept under review—should, together with an arrangement for the payment at short notice of funds up to a maximum of £20,000, eliminate the need for the Board’s keeping substantial bank balances. OFFICE OF THE REVENUE COMMISSIONERS.Paragraph 16—Regular review of estate duty cases awaiting assessment or collection.Additional staff has been provided and the departmental regulations, together with the new financial control procedures, are now fully in operation with satisfactory results. Paragraph 17—Arithmetical errors in calculation of wholesale tax.All arithmetical errors in the calculation of wholesale tax, both those thrown up by the computer programme in operation since April, 1968, and earlier errors, are now followed up systematically in the Offices of Inspectors of taxes. Paragraph 18—Cross check on accuracy of wholesale tax returns.In the case of about 10% of registered persons, summaries of wholesale tax returns made during a taxpayer’s financial year are now being compared with the audited accounts and other information furnished for income tax purposes and any necessary action is being taken. It is hoped to have the programme fully up to date within the next 12 months and the outcome will be communicated to the Committee in due course. HEALTH.Paragraph 20—Increase in expenditure on drugs and medicines.The Minister is informed by the Department of Health that about one-third of the increase in expenditure on drugs and medicines provided under the general medical service in the period 1963/64 to 1967/68 is accounted for by increased prices and by an increase in both the numbers entitled to the service and assisted on hardship grounds. The great part of the balance of the increase is attributable to increased attendances at out-patient psychiatric clinics as a result, mainly, of shortened stays in psychiatric and other hospitals. The increase in expenditure on drugs and medicines in hospitals has arisen from price increases and the increased usage particularly of newer and more effective—but usually more costly—drugs which has however helped to achieve a shortened average hospital stay and an increase in patients treated without a significant increase in hospital accommodation. AGRICULTURE.Paragraph 22—Duplication of effort or overlapping of functions in the field of veterinary research.The views of the Committee have been drawn to the attention of the Department of Agriculture and Fisheries, who will ensure the necessary cooperation between the bodies concerned to avoid duplication or overlapping in this field. GENERAL.Paragraphs 24-29—Difficulties in recruitment of civil service staff.There has been a big increase in demand for staff, not alone by the civil service itself, but also by other parts of the public sector—local authorities and the State-sponsored bodies—and by the private sector, particularly in commerce and industry. While the output of the secondary schools has increased in recent years, better opportunities are available for university education and many young people who might otherwise have come into the civil service now continue their studies. Women civil servants are required by statute to retire on marriage. There is now an increased wastage for this reason because of the higher marriage rate and earlier marriages. These various factors have combined to make recruitment to the civil service more difficult than formerly. Moreover, while it is open to individual firms in the private sector to offer salaries on an individual basis, pay rates in the civil service have to be applied uniformly. The rates for recruitment grades have, in the main, been settled by agreement under the Conciliation and Arbitration machinery. To meet the altered situation, recruitment procedures for the civil service have been improved and simplified in a number of ways, including the abolition of entrance and medical fees, and there is now greater resort, whenever possible, to the more direct interview method of recruitment in preference to the traditional written form of examination, for example, in the case of the competitions for the grades of Administrative Officer and Clerical Assistant. Recruitment to the latter grade had in recent years presented an acute problem. Some 2,500 candidates were interviewed at the first new style competition for this grade in 1969, and 890 appointments were made. The normal school-leavers’ competition for Executive Officers has been supplemented by one for a higher age group (19-26). In addition, publicity for civil service competitions has been extended and considerable progress has been made with the provision of up-to-date accommodation in modern offices. The Minister welcomes the Committee’s comments which will be borne in mind in the continuous examination which is made of recruitment problems. Some of these problems were referred to by the Public Services Organisation Review Group in their report and their views are at present being considered by the Minister.
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