Committee Reports::Report - Appropriation Accounts 1970 - 1971::28 February, 1974::Appendix

APPENDIX 2.

MINUTE OF THE MINISTER FOR FINANCE ON FINAL REPORT (DATED 28 JUNE 1973) OF THE COMMITTEE OF PUBLIC ACCOUNTS ON THE APPROPRIATION ACCOUNTS 1969-70

PART I—GENERAL OBSERVATIONS.

Paragraph 1—Recommendations of the Committee of Public Accounts in Final Report dated 13 July 1972 (Order of Dáil of 1 December, 1970).

81 (b)—Recovery of moneys.


Officers of the Department of Finance, with the assistance of the Department of Foreign Affairs, made several visits to Germany for the purpose of interviewing a number of persons, who, there was reason to believe, could be of assistance in tracing and possibly recovering some of the missing moneys. Enquiries made by them have established certain facts which have been reported to the Attorney General.


As matters of German as well as Irish law arise in connection with these reports, advice is being obtained as to the steps which should now be taken.


When these matters have been brought to a conclusion, the Committee will be informed of the result.


81 (c)—General.


The expression “public services” can be taken to include the civil service, the local authority service, semi-State bodies, the Army, teachers and Gardaí. The Minister is satisfied that, as a general rule, there is not a “lack of clarity in the chain of responsibility” or a “confusion with respect to the question of authority” in the public services. The Committee will appreciate his difficulty, given the absence of specific details, in considering its recommendations regarding an entity as large and as varied as the public service. If the Committee will provide further information, the Minister will arrange to have the recommendation examined.


82-88—The work of the Committee.


The matters raised in these paragraphs would appear to be for the Dáil Committee on Procedure and Privileges.


REPORT DATED 22 FEBRUARY 1961.

Paragraph 2—Payments for water supplies.

This matter was brought to a conclusion acceptable to all the parties concerned in 1970. The agreement was as follows:


(i) The State would not pursue its claim to recovery of the duplication element before 1959/60;


(ii) The local authorities would not pursue their claims to water charges for the years between 1959/60 and 1964/65; and


(iii) From 1970/71 water supplies are charged for on an agreed basis which would also be generally used to estimate water charges due from 1964/65 to 1970/71.


REPORT DATED 10 MARCH 1966.

Paragraph 3—Claims against St. Patrick’s Copper Mines, Ltd.

The £211 due in this case was recovered in October, 1971.


REPORT DATED 27 JUNE 1968.

Paragraph 4—Check on accuracy of returns of taxable turnover.

The Minister is assured by the Revenue Commissioners that, where possible, cross-checking will be continued in order to ensure that any irregularities that occur in value-added tax returns are promptly discovered and dealt with.


REPORT DATED 23 JULY 1969.

Paragraph 5—Audited accounts of bodies which receive subventions from voted monies.

The Minister has noted the Committee’s further remarks about the question of the parliamentary review of State-sponsored bodies. He considers it desirable that a review system should be developed as quickly as possible. There are serious practical difficulties, however, in devising a suitable form of review and any arrangements must take into account the outcome of the investigations into the setting up of the Aireacht-Executive structure which are now going on in a number of Departments. The Minister is arranging to have the matter submitted to the Government.


Paragraph 6—Fees for professional services in connection with building projects.

The National Prices Commission, the Restrictive Practices Commission and the Examiner of Restrictive Practices have functions in this area and they have been in consultation to examine how best this question might be approached. They hope to reach conclusions fairly shortly. The Committee will be informed of developments.


Paragraph 7—Defaulting employers in P.A.Y.E. tax deduction card cases.

The Minister is assured by the Revenue Commissioners that all possible steps are taken to keep the number of defaulting employers in P.A.Y.E. cases at a minimum at all times.


Paragraph 8—Difficulties in recruitment of civil service staff.

Improved recruitment procedures and recent organisational changes in the Minister’s Department are having satisfactory results in reducing the number of vacancies. However, the continuing expansion in all sectors of the civil service and the growth in alternative employment opportunities available for school leavers and university graduates have aggravated the recruitment difficulties.


The Minister recognises the need for satisfactory promotion outlets as a recruitment incentive but he is satisfied that normal organisational structures, coupled with the constant expansion and diversification of the service, already provide the advancement prospects necessary.


It is hoped that the ending of the marriage bar for women civil servants will reduce wastage, especially in the Clerical Assistant grade, and the progress now being made towards equal pay should also make a significant contribution towards a reduction of losses of trained staff.


The Minister is keenly aware of the relevance of pay levels in recruitment to the civil service. The pay of civil servants in the main recruitment grades is, in effect, kept under continuous review through the operation of the scheme of conciliation and arbitration. This ensures that civil service pay rates are maintained at a proper level—the main criterion being that pay should be fully comparable with pay for similar employment outside the civil service.


REPORT DATED 12 NOVEMBER, 1970.

Paragraph 9—Question of duplicate control of certain activities of the Department of Defence.

A further communication will be sent to the Committee when the examination has been completed.


Paragraph 10—Deficits of voluntary hospitals.

The Departments of Health and Finance agree in principle with the Committee’s suggestion about altering the arrangements for payments of Exchequer moneys to voluntary hospitals. The matter is at present being considered including the question whether legislative changes will be required. The Committee will be kept informed.


Paragraph 11—Capital developments by University College, Dublin at Celbridge, Co. Kildare.

The Minister is informed by the Department of Education that officers of supervision of the development works which have been carried out in this case. Regarding the plans for further development of the Faculty of Agriculture at University College Dublin, including the Lyons Estate, the Minister is informed that as yet no decision has been taken on the appraisal by the FAO of these plans. This project is at present also being examined by the World Bank which has been asked to provide funds for the development. The Committee will be informed of the outcome.


Paragraph 12—Payment for school transport services.

The Minister is informed by the Department of Education that officers of that Department have actually availed of the right of access to C.I.E. accounts and information relevant to the school transport service, both at central and local levels. They have satisfied themselves, by such investigation and enquiries as they considered necessary, that the charges made for the service were fair and reasonable.


Paragraph 13—Current expenditure on comprehensive schools.

The Committee’s request that receipts and payments accounts of comprehensive schools should be supplied to it has been conveyed to the Department of Education. That Department has replied as follows:—


“This matter has been carefully considered, particularly in relation to the growing number of these schools and in the light of what is required in relation to other institutions, the full cost of which is similarly borne by State funds. It is felt that in the general context the operation selectively in relation to comprehensive schools of such a requirement could appear unbalanced and it is suggested that its general operation, if not indeed its selective operation, would result in the volume of accounts to be furnished being so substiantially increased as to be rendered unwieldy.


While it is understandable that in the context of the newness of this service and the small number of such schools in existence in 1968-69 the supply of individual accounts for the schools might be sought, it is suggested that having regard to the increased and growing number of such institutions and to the fact that the submission of individual accounts in respect of other post-primary schools or in respect of other institutions, the cost of which is similarly borne by State funds, is not required, the question of the submission of accounts for comprehensive schools might be reconsidered.


All necessary information as to expenditure will, of course, continue, as in the case of other services, to be provided and to be available for the purposes of audit”.


INTERIM REPORT DATED 22 JULY 1971.

OFFICE OF THE MINISTER FOF FINANCE.

Paragraph 14—Temporary investment of foreign borrowings outside the State.

The Minister notes that the Committe accepts that it may be necessary that moneys borrowed abroad for Exchequer purposes be temporarily held outside the State. He agrees with the Committee’s view that such moneys should not remain outside the Exchquer account longer than is necessary. On the two occasions so far on which such moneys were left on deposit abroad, the Exchequer was credited within a short period, and this will continue to be the practice in future. It should be remembered, however, that so long as any amount is held in a foreign currency, its value in terms of Irish currency may vary from day to day so that the correct value to credit to the Exchequer does not become known until the currency has been converted to (i.e., sold for) Irish currency. It would, therefore, not be possible to credit any such amount to the Exchequer in advance of conversion. It should also be remembered that such money held abroad may not be used for any purpose until it has been converted and paid into the Exchequer.


REPORT DATED 28 JUNE 1973.

PART II—PARTICULAR ACCOUNTS.

CAPITAL FUND ACCOUNT.

Paragraph 15—Financial rationalisation in relation to State funds.

As suggested by the Committee, the Minister will have the Funds under the control of Departments, other than the Department of Finance, examined with a view to determining whether there is any scope for financial rationalisation in relation to them. He will inform the Committee of the result in due course.


Paragraph 16—Audit of accounts of State-sponsored bodies.

As indicated in the reply to paragraph 5 of the Report, the Minister accepts the desirability of introducing some form of parliamentary review of State-sponsored bodies as quickly as possible. In formulating arrangements for a review, it is envisaged that consultation will take place with the State-sponsored bodies and the Comptroller and Auditor General on the question of the desirability and feasibility of having the accounts of all the bodies to be reviewed audited by the Comptroller and Auditor General.


OFFICE OF THE MINISTER FOR FINANCE.

Paragraph 17—Payments to Special Regional Development Fund (Grant-in-Aid).

It has been decided that the functions of the Special Regional Development Fund in assisting projects of an industrial nature will be transferred to the IDA in the case of grant applications and to Fóir Teoranta in the case of requests for reconstruction finance.


As the Committee of Public Accounts acknowledges, the various State agencies which it names were established for specific purposes and have disparate functions. The Minister for Finance considers that rationalisation is best achieved by ensuring that the activities of these agencies are co-ordinated and that overlapping of functions is eliminated or kept to a minimum. For this purpose a co-ordinating committee for industrial services (CCIS) was set up some years ago under the aegis of the Department of Industry and Commerce with representation from the major State agencies concerned with industry. The Committee concerns itself with improving co-ordination between State agencies, eliminating unnecessary overlaps and ensuring that interested parties are as well briefed as possible on the various State services and incentives. The question of liaison between the various State agencies is also receiving attention in connection with the investigations which are being carried out into the establishment of the Aireacht-Executive framework in certain Departments.


TRANSPORT AND POWER.

Paragraph 18—Payments in respect of overtime.

The Department of Transport and Power states that the filling of vacancies in the Meteorological grades is now satisfactory but that recruitment to the Technical Officer grades in the Radio Service is still a problem; as a consequence overtime working in these grades on a wide scale is still necessary. The matter is being kept under consideration as recommended by the Committee.


ROINN NA GAELTACHTA.

Paragraph 19—Accommodation grants to hotels and guest houses.

As recommended by the Committee, Roinn na Gaeltachta will in future include in the notes to its Appropriation Accounts a list of supplementary grants paid by it to hotels and guest houses during the year of account.


PUBLIC WORKS AND BUILDINGS.

Paragraph 20—Cost of extension to National Gallery.

The Minister is informed by the Office of Public Works that a large part of the additional expenditure, including that on mechanical and electrical services, was incurred on the provision of a restaurant with kitchen and alterations to the entrance hall, the inclusion of which was requested after the contract had been placed. It would be difficult to justify rejection of such requests, if they are reasonable, and, as in this case, where the cost of the extra works would not be greater than if they were included in the scheme at the start.


AGRICULTURE.

Paragraph 21—Maintenance of land reclaimed under the Land Project

The Minister is informed by the Department of Agriculture and Fisheries that only portion of the land drained in the 2.7% cases referred to had deteriorated and that the bulk of the cases were small drainage schemes— averaging about 4 acres—in western counties where neglect was due to such factors as the age of the farmer or shortage of labour caused by seasonal migration. With improved farmer education and better returns from land, farmers generally are likely to pay more attention to maintenance.


The Department of Agriculture and Fisheries refuses to give grant aid for any further land reclamation works in cases where they are not satisfied that previous grant-aided works are properly maintained. The Department does not consider that in other cases measures involving expenditure on additional inspections of previous work or the introduction of other punitive measures would achieve sufficient results to warrant the cost.


GIVEN under the Official Seal of the Minister for Finance this 11th day of October, 1973.

 

C. H. MURRAY,

 

Secretary,

 

Department of Finance.