Committee Reports::Interim and Final Report - Appropriation Accounts 1967 - 1968::12 November, 1970::Appendix


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APPENDIX 26.

TRANSPORT AND POWER: DOVE AIRCRAFT EI-ARV.

An Cléireach,

An Coiste um Chuntais Phoiblí.

At the meeting of the Committee of Public Accounts on the 12th March, 1970 I undertook to supply reports in connection with the Dove Aircraft EI-ARV purchased for Radar Training and Flight checking

(a) In relation to possible nugatory expenditure (Par. 873);

(b) setting out in chronological sequence the various decisions and their implementation. (Par. 887).

A memorandum dealing with (a) and a Table covering (b) are enclosed.

(Síníthe) D. Ó RIORDÁIN,

Accounting Officer.

Department of Transport and Power.

14 Meán Fómhair, 1970.

Payments in respect of work on Dove Aircraft EI-ARV.

1. Total expenditure on the Dove aircraft to 31st March, 1969, amounted to approximately £56,000 as follows:—

Aircraft £20,000; purchase of spare power plant £10,000; purchase of avionics equipment from Maru Avionics £22,000 and payment to Air Couriers Ltd., £4,000.

2. Payments to Air Couriers Ltd. amounted to £3,958 15s. 9d. in four sums of £1,200 16s. 7d., £682 9s. 2d., £1,475 10s. 0d. and £600.

3. The work covered by the first payment of £1,200 16s. 7d. is made up entirely of manpower costs on technical design work. The expenditure is not nugatory.

4. The second payment of £682 9s. 2d. covers labour £384 7s. 0d. and materials £298 2s. 2d. on overhaul. The work will have to be done again to meet safety regulations owing to the lapse of time before the aircraft will be ready for flight. The expenditure of £682 9s. 2d. is nugatory.

5. The payment of £1,475 10s. 0d. is made up entirely of manpower costs and includes £247 10s. 0d. for airframes and engines inspection. This inspection will have to be repeated before the aircraft flies owing to effluxion of time and the expenditure is nugatory. The conversion and overhaul of the aircraft is now being carried out in two stages. On completion of the first stage it will be available for use for training Air Traffic Control Personnel, limited checking of navigational aids and air photography. The payment of £1,475 10s. 0d. to Air Couriers Ltd. also includes £932 for flight deck development and design. A contract for the first stage of the work has been placed and provides that to the extent to which the contractor utilises the design work covered by the payment of £932 to Air Couriers Ltd. there will be an off-set under the present contract.

The balance (£296) of the payment of £1,475 10s. 0d. relates to development and design of the calibration installation. The provision of the station will fall into the second stage of the work. It is not possible to state the extent to which the two amounts of £932 and £296 may prove nugatory.

6. The final payment of £600 is the amount agreed with the Liquidator for Air Couriers Ltd. in respect of work done and materials purchased by the company not already included in the previous payments. The gross amount was £1,600, made up as follows:—

(i) items purchased by Air Couriers Ltd for the purposes of the
contract	..	..	..	..	..	..	..	£600
(ii) instrument panel and radio racking for flight deck							..	£200
(iii) camera installation		..	..	..	..	..	..	£350
(iv) radio racking and looms for calibration equipment							..	£400
(v) swivel chair	..	..	..	..	..	..	..	£10

7. Avionic equipment costing £22,000 was purchased from Maru Avionics and supplied by the Department to the Contractor. On an inventory, items valued at £1,000 could not be located and the Liquidator for Air Couriers allowed an off-set of £1,000 leaving the net payment at £600. The items taken over from Air Couriers Ltd. were purchased by the firm at a cost considerably higher than the valuation of £600 and the contract for the first stage of the work provides that to the extent to which these items are utilised by the contractor an off-set will be allowed. Items not so utilized will be available as replacements or for the second stage of the scheme. The instrument panel, radio racking for the flight deck and camera installation are suitable for the first stage of the scheme and the expenditure involved is not nugatory. The radio racking and looms for the calibration equipment and the swivel chair will be suitable for the second stage of the scheme and the expenditure involved will not be nugatory if the scheme is completed.

B—Work Report in chronological sequence in connection with the Dove aircraft EI-ARV purchased for Radar Training and Flight Checking.

1967
January, 4th	Department of Finance sanctioned the provision for the training of Air Traffic Control personnel of a Dove aircraft at an estimated cost of £65,000.
5th	Letter of intent to purchase aircraft in an “as is” condition sent to Hawker Siddeley Aviation Ltd.
5th	Minute issued to the Department of Defence concerning the operation of the aircraft.
19th	Air Corps furnished details of equipment which they required for installation in aircraft.
February 2nd	A meeting of the Services concerned, i.e. Aeronautical Service, Radio Service and Air Corps was held to deal with preparation of the technical specification for the overhaul and equipping of the aircraft.
8th	Details of Radio Navigation equipment required finalised.
13th	Representatives of the Technical services visited the Hawker Siddeley works to discuss the specification for the overhaul of the aircraft and installation of equipment.
March 3rd	Preparation of final specification to fit the aircraft for training of Air Traffic control personnel held up pending a decision by the Telecommunications Service on the scale and type of equipment required for radio aid checking.
April 10th	Hawker Siddeley informed that purchase would be completed when the specification was finalised.
May 3rd	A meeting was held between representatives of the Departments of Transport and Power and the Department of Defence to consider arrangements for the operation of the aircraft and was informed that the Technical Services would shortly be in a position to report on the equipping of the aircraft, including the question of equipping it for checking on radio ground aids.
May 30th	Payment issued to Hawker Siddeley for aircraft.
June 6th	Provisional specification circulated by technical working Group.
23rd	Hawker Siddeley told that we would inform them at an early date of the arrangements for taking delivery of the aircraft.
July 11th	The Airports Construction Committee approved the scheme to use the aircraft also for flight checking of ground aids on the basis of a total expenditure of £72,000 including the cost of acquisition of the aircraft and purchase of equipment.
12th	The Government Contracts Committee approved the placing of contracts with (a) Air Couriers Ltd. for overhaul of aircraft and installation of equipment and (b) Maru Avionics Ltd. for supply of the radio equipment.
17th	Maru Avionics informed that their quotation was accepted.
August 9th	Air Couriers informed in writing that their quotation was accepted, subject to final agreement on certain details of the quotation.
9th	British registration of aircraft cancelled and aircraft placed on Irish register as EI-ARV.
25th	Aircraft flown from Chester to Gatwick Airport. (Air Couriers Ltd.)
September 12th	Airports Construction Committee approved expenditure of £10,000 for spare power plant for aircraft.
	The type of Dove aircraft which had been purchased was not then in production and spare power plants were increasingly difficult to obtain. The Air Corps were asked to supply details of likely suppliers of such equipment. The air Corps intimated that provision of the spare power plant would not be likely to arise before 1968/69.
October 13th	Progress payment of £1,200 16s. 7d. made to Air Couriers for work carried out up to and including 30/9/69.
November 15th	Sum of £682 9s. 2d. paid to Air Couriers for Labour and Materials.
December 19th	Air Couriers were given details of final requirements for radio installations on aircraft.
28th	Further letter to Air Couriers gave additional detaills and asked for final contract figure.
1968
January 12th	Air Couriers requested to supply and fit an independent ILS cross-pointer on the aircraft.
18th	Quotation sought from Collins Radio for supply of Airborne Equipment Manuals required for aircraft.
19th	£1,475 10s. 0d. progress payment made to Air Couriers.
February 14th	Manuals ordered from Collins Radio.
28th	Invitations to tender for spare power unit sent out.
April 25th	Hawker Siddeley informed that their tender for power unit was accepted. Company told to deliver the unit to Air Corps.
May 13th	Department informed by Air Couriers that they had been taken over by Transglobe Airways and were, as a result, experiencing difficulty in completing existing contracts.
May 20th	A representative of Department visited Air Couriers to discuss situation and was informed that company were taking steps to have the work on the aircraft completed.
June 4th	Air couriers asked to give firm indication of date of completion of work.
11th	Reply from Air Couriers saying that the work was progressing satisfactorily and that they expected to complete order before the end of the year.
24th	Technical Services asked to take all necessary steps to ensure that progress was maintained by Air Couriers.
August 2nd	Progress report received from Department’s technical representative on work progress.
October 17th	Department of Finance sanctioned expenditure to send a delegation from the Air Corps and from the Department of Transport and Power to Gatwick to review progress.
23rd	Air Couriers asked to give an early and precise figure for completion of work.
24th	Accommodation requirement for flight checking unit at Casement Aerodrome received from the Working Group.
November 5th	Meeting at Gatwick Airport between representatives of the Departments of Transport and Power and Defence and representatives of Air Couriers. Meeting told that three months would be required to complete work, due to difficulty in obtaining supplies from Hawker Siddeley.
11th	Hawker Siddeley asked to supply generators and other items of equipment to Air Couriers.
11th	Radio Service asked to ensure that final electronic requirements were incorporated in the design for the aircraft not later than 27/11/68.
29th	Transglobe Airways, who had taken over Air Couriers, announced that they were ceasing operations because of financial difficulties.
November 29th	The Department of External Affairs were asked to find out urgently the name and address of receiver (or liquidator) appointed to handle the affairs of Transglobe Airways and to arrange for the Embassy in London to lodge formal notice that the Dove aircraft and equipment in the Air Couriers premises were the property of the Minister for Transport and Power.
December 4th	A representative of the Department met the Receiver appointed to handle the affairs of Transglobe Airways.
9th	British United (Island) Airways (BUIA) offer to hangarage for aircraft accepted. Company asked to give quotation for completion of work on aircraft.
9th	A representative of the Department paid £1,600 to the Receiver subject to refund of the sum of £1,000 in respect of items of equipment supplied by the Department which could not be located.
1969
January 3rd	A number of firms asked to submit quotations for completion of work on aircraft.
16th	Sum of £1,000 refunded by Receiver.
28th and 29th	Meeting between Representatives of the Department and British United Island Airways at Gatwick Airport.
February 21st	Technical examination of tenders put in hands.
March 4th	Comprehensive submission to the Departmentof Finance on the basis of a total expenditure on the scheme of the order of £140,000.
12th	£9,765 paid to Hawker Siddeley for spare power pla
April 14th	The Department of Finance stated that they were not disposed to agree to any further expenditure on the Dove project, on the information available. They asked that the whole question should be examined in detail and suggested that the preferable course might be to dispose of aircraft and equipment and continue to have flight checking done by the Federal Aviation Agency.
April 18th	Technical services asked to carry out urgent re-appraisal of project.
May 6th	The Technical Services submitted their report on the suggestion made by the Department of Finance and recommended completion of the Scheme.
July 3rd	Re-examination of the scheme furnished to the Department of Finance on the basis that it constituted the only practicable way of meeting the highly complex technical problems involved.
August 1st	A meeting between representatives of the Department and representatives of the Air Corps considered a proposal to carry out the scheme in two stages so as to make the aircraft available in the first instance for training of Air Traffic Control personnel.
12th	A further meeting between representatives of the Department and of Air Corps at Casement Aerodrome recommended that suggestion made at meeting of 1/8/69 should be implemented immediately.
14th	The Department of Finance were informed of the proposal to carry out the work in two stages and they sought information on:
	(a) the cost of a new aircraft fully equipped to meet requirements, and
	(b) the sale value of the Dove aircraft and equipment.
September 17th	Proposal to carry out the work in two stages submitted to the Department and sanction sought for an estimated expenditure of £30,000 on Stage 1.
October 16th	The Department of Finance sanction approved expenditure of £30,000 for completion of Stage 1 of the work subject to an equivalent saving on other Departmental provisions.
November 21st	The Technical Services furnished the specifications for Stage 1.
December 3rd	Aircraft and equipment moved to Mann Aviation hangar as British United Island Airways had terminated the hangarage arrangement.
5th	£500 paid to Mann Aviation, being cost of putting aircraft in transportable condition and transportation overland from Gatwick.
December 12th	The UK Air Registration Board agreed, for fee of £1,000 to supervise work on aircraft, inspection and final test flight for issue of a certificate which would qualify the aircraft for a British Certificate of Airworthiness.
18th	Tender documentation completed and tenders invited.
1970
January 16th	Latest date for the receipt of tenders extended to 2nd February, 1970.
February 2nd	Two representatives of the Department visited Mann Aviation to discuss the company’s tender.
20th	Revised tender received from Mann Aviation and approved by Aeronautical Section.
March 16th	Department of Finance asked to approve expenditure of £44,000 (based on Mann Aviation tender) for completion of Stage 1 of the work on the Dove.
April 2nd	Department of Finance sanction given for expenditure of £44,000
7th	ARB formally asked to supervise work on aircraft.
9th	Mann Aviation informed that their revised tender was accepted, the aircraft to be completed and handed over not later than 9th October, 1970.