Committee Reports::Report No. 03 - Statutory Instruments::29 March, 1973::Appendix

I am directed by the Select Committee on Statutory Instruments to say that, arising out of its examination of statutes made by University College, Dublin, it notes that statute LXXI provides for making pensionable the former non-pensionable allowance payable to the President of the college in respect of the expenses of his office. It would seem to the Committee that this provision constitutes an unusual use of the Statutory powers and in accordance with paragraph (ii) of its terms of reference (vide my letter of 5th April, 1972) the Committee would, in the normal course, report the matter to Seanad Éireann. Before proceeding to do so, however, the Committee would be glad to have the benefit of any observations you may wish to make on the matter.

Mise, le meas,

C. P. Ó BRIAIN,

I cannot agree with you that the provision of Statute LXXI, providing for the pensionability of the former non-pensionable allowance of the fourth President of the College, is an unusual use by the College of its statutory powers, as this had already been done in the case of each of the first three Presidents by previous statutes. Copies of these statutes can, if you wish, be supplied to you.

We received however representations from the Department of Education regarding this provision. One matter of which you could not be aware, nor were the Department of Education aware, is that this non-pensionable allowance was not admitted by the Revenue Commissioners in full as being exempt from taxation—only £600 of it was allowable for taxation purposes by decision of the Inspector of Taxes. Accordingly £583 represented taxable remuneration. When this was made known to the Department of Education, they agreed that the statute should be allowable if the College gave an undertaking to alter the amount of £1,183 to £583 in a subsequent statute. This undertaking has been given to the Department by the Governing Body of the College.

Draft Statute LXXIII contains a provision reducing the amount of £1,183 to £583.

Yours faithfully,

J. P. MacHALE,

Enclosures to letter dated 19th July, 1973.

I am directed to refer to your letters of 17th February, 1972, with which you enclosed copies of Statute LXXI of University College, Dublin, together with the customary notice regarding the making of the Statute for insertion in Iris Oifigiúil.

It is noted that the Statute provides that the allowance of the President of £1,183.00 a year in respect of the expenses of his office provided by paragraph 1, Chapter I, of Statute LXX of the College (and therein designated a non-pensionable allowance) shall, in the case of the fourth President of the College, be a pensionable allowance, and that the amount of the annual pension and the gratuity or lump sum to which the fourth President of the College is entitled under Chapter V of Statute LXIX of the College shall be calculated accordingly.

I am to state that, notwithstanding the fact that the contrary obtains in respect of the additional expenses of office associated with the position of President of University College, Dublin, it is not in accordance with established general practice that expenses of office should be pensionable, and that it is also at variance with established general practice that any expenses or allowances properly designated as non-pensionable should be converted into pensionable expenses or allowances in particular circumstances.

I am accordingly to inform you that unless the Governing Body of the College should, in the light of the foregoing considerations, decide to make a new Statute abrogating the provisions of Statute LXXI, so that the two Statutes can be laid before both Houses of the Oireachtas simultaneously, the Minister will, as soon as may be after the laying of Statute LXXI before both Houses, be regrettably constrained to introduce a motion in either House to disallow the Statute in its entirety.

In the circumstances, the laying of Statute LXXI before Dáil Éireann and Seanad Éireann in accordance with the provisions of Section 5 (1) of the Irish Universities Act, 1908, as adapted, is being deferred pending an indication of the Governing Body’s proposals in the matter.

Mise, le meas,

I am writing with reference to Mr. Padraic Breathnach’s letter of 22nd March, 1972 and to my phone conversation with you regarding it.

I confirm that the amount allowed by the Revenue Commissioners for taxation purposes of Dr. J. J. Hogan’s expense allowance is £600 and not the full amount of the allowance £1,183. This means that he is assessed on £583 of the expenses allowance as being remuneration. In my view whatever the merits or otherwise of not agreeing to the £600 as being pensionable, there is every reason to regard the £583 as being remuneration and not expense allowance. I note that you will make enquiries about this and will let me know in due course the results of these enquiries.

Sincerely yours,

J. P. MacHALE,

Secretary and Bursar.

With reference to our discussions in connection with the Department’s letter of 22nd March, 1972, concerning Statute LXXI of University College, Dublin, and to your letter of 29th March, 1972, in the matter, you may take it that if the Governing Body makes an amending Statute providing that such portion only of the former President’s allowance in respect of the expenses of office as is subject to taxation is to be regarded as pensionable, the necessary arrangements will be made to lay such a Statute before both Houses of the Oireachtas together with Statute LXXI in accordance with the normal procedure.

Yours sincerely,

S. MacGEARAILT.

Thank you for your letter of April 29th. I am glad to know the position and shall bring it before the Governing Body at its next meeting. It would not be possible to introduce an amending statute before October so it would be some time before the matter was finally determined.

Sincerely yours,

J. P. MacHALE,

APPENDIX III

University College, Dublin. Statute LXXI.

Enclosures to letter dated 19th July, 1973.