Committee Reports > List of Committees > Dáil > 1975 > Committee of Public Accounts > Interim and Final Report - Appropriation Accounts 1972 - 1973

FINAL REPORT

PART I—GENERAL OBSERVATIONS

MINUTE OF THE MINISTER FOR FINANCE DATED 30 JUNE 1975

REPORT DATED 23 JULY 1969

Fees for professional services in connection with building projects.

1. From the Minute of the Minister for Finance the Committee notes that the consultant’s report on Professional Fees in the Building Industry was received by the National Prices Commission in December 1974 and was published in full on 6 March 1975 as an occasional paper. The Commission has also considered the comments of interested parties on the report and has published its conclusions in its June 1975 report. The Committee notes from these conclusions that the Commission is of the opinion that there is not a great deal wrong with the basic structure of existing fee scales and that it recommends the establishment of a working party from the three professions concerned in an endeavour to evolve a scale or scales acceptable to the professions and fair to clients.

REPORT DATED 12 NOVEMBER 1970

Question of duplicate control of certain activities of the Department of Defence.

2. The Committee notes that every effort is being made to expedite the examination of the recommendations of the Public Services Organisation Review Group relating to the Department of Defence and that it will be informed of developments.

REPORT DATED 13 JULY 1972

Grants-in-Aid.

3. The Committee notes the further comments of the Minister for Finance on the responsibilities of Accounting Officers in relation to grants-in-aid. It would stress that its main concern in this matter is to ensure that grant-in-aid moneys are expended strictly in accordance with the intentions of Dáil Éireann and it must remain the responsibility of the Accounting Officer to satisfy himself in this regard. The Committee recalls that the Minister for Finance in the ultimate paragraph of his minute dated 24 May 1973 indicated that he might impose additional conditions in any particular case where he considers that these are warranted for safeguarding public funds involving payments by way of grant-in-aid and it recommends that such additional conditions be imposed where necessary to enable the Accounting Officer to satisfy himself that a grant-in-aid has been expended strictly in accordance with the intentions of Dáil Éireann.

Recovery of moneys.

4. The Committee notes that the Minister will keep it informed of the position in regard to the recovery of moneys in this matter.

REPORT DATED 28 JUNE 1973

Audit of Accounts of State-sponsored Bodies.

5. The Committee notes that the Government has decided to put down a motion for a resolution in Dáil Éireann and Seanad Éireann establishing a Joint Committee of the Dáil and Seanad to review the activities of State-sponsored bodies engaged in trading or commercial operations. It also notes that the Minister for the Public Service is considering proposals for similar arrangements in relation to the non-commercial State-sponsored bodies. The Committee wishes to be kept informed of developments.

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

6. The Committee has been informed by the Minister for Finance that a detailed examination of the activities of the Central Development Committee and the county development teams and of the operation of the Fund has been carried out by the Department of the Public Service. It has also been informed that, in the light of this examination and, in particular, of the views expressed by the representative of the Departments primarily involved and of the county development teams, it has become apparent that the issue will have to be considered in the wider context of the distribution of the functions of Government at sub-national levels. The Committee notes that in the meantime, while Fóir Teoranta will deal with requests for industrial reconstruction finance, it has been decided that the Fund may continue to grant-aid projects of an industrial nature.

The Committee will await the outcome of the further consideration proposed.

REPORT DATED 28 FEBRUARY 1974

Changes in accommodation requirements in National Schools.

7. The Committee is pleased to note that its views on the need for proper planning and co-operation between the various agencies involved are endorsed by the Minister and have been communicated to the Commissioners of Public Works and the Department of Education.

Cost/Benefit study of arterial drainage schemes.

8. The Committee will await the report on this study which, it notes, is being finalised.

Use of native fuels for heating of buildings erected for State occupation.

9. The Committee notes that because of the recent changes in relative costs, there is now a tendency to choose solid fuel installations in preference to electricity or gas where this is feasible.

REPORT DATED 23 JANUARY 1975

Garda Síochána.

10. The Committee is glad that its recommendation has been accepted and that the attention of Accounting Officers is being directed to the need for strict compliance with the assurance given by the Minister for Finance in 1931 to the effect that if, in exceptional circumstances, it is proposed to award a pension not definitely covered by statute or existing authority, no payment will be made until an Estimate expressly indicating the extra-statutory nature of the pension has been presented to the Dáil and passed.

Roinn na Gaeltachta.

11. The Committee notes that the Minister for Finance agrees with its observations, in particular, that the use, even on a temporary basis, of grant-in-aid moneys for purposes other than those for which they were voted is to be deprecated and that he is requesting the Department of the Gaeltacht to remind Gaeltarra Éireann that such moneys should not be so used. While the Committee accepts that any amount remaining unexpended out of the sums issued from a grant-in-aid subhead is not liable to surrender it wishes to stress that in the present case it is concerned with grant-in-aid moneys which should not have been issued in the year 1971-72 because they were not required for the service of that year. The Committee is, however, glad to learn that arrangements are now in operation to ensure that issues to Gaeltarra Éireann are sufficient only to meet immediate requirements and that large balances are not allowed to accumulate.

Stationery Office.

12. Having regard to the information furnished in the minute of the Minister for Finance in reply to inquiries on various aspects of the rental and control of usage of Rank Xerox and other types of photocopiers in Government Departments the Committee does not desire to offer further comments.

Valuation and Ordnance Survey.

13. The Committee notes that contributions being paid by local authorities in respect of the expenses of the annual revision of valuations could be increased only by legislation and that when appropriate legislation regarding valuation is being considered account will be taken of the desirability of increasing these contributions.

Breaches of Accounting Principles.

14. In regard to the breaches of long established principles of Government accounting to which the Comptroller and Auditor General drew attention in his Report on the Appropriation Accounts for 1971-72 the Committee notes that the Minister for Finance endorses its views on the importance of strict compliance on all occasions with these principles which are fundamental to Parliamentary control over voted moneys and that these views are being brought to the attention of all Accounting Officers.

The Committee also notes that the necessity for compliance with Government accounting requirements has been strongly impressed on all officers of the Department of Education, in which Department all the breaches, with one exception, occurred. The reassurance of the Department of Finance that it will not condone any breach of accounting principles is welcomed.

As regards the availability of suitable facilities to public servants, especially new entrants to the public service, to obtain a sound knowledge of the principles of Government accounting, the Committee is glad to learn that the whole question of civil service training in this area has been under active consideration for some time by an interdepartmental committee. It notes that a successful pilot two-day course for administrative officers was held recently, that it is proposed to arrange further training courses directed at grades up to and including middle management and that, in addition, the question of improving on-the-job training for accounts branch staffs is being examined.

The Committee attaches the utmost importance to this matter of training for public servants in Government accounting and wishes to be kept informed of developments.

Issues under Taiscí Stáit Teoranta Act, 1963.

15. The Committee notes that the Minister for Finance agrees generally with its views regarding the passage of the necessary legislation in this case. As failure to enact this legislation in good time resulted in a breach of the provisions of an Act of the Oireachtas and weakens Parliamentary control over public moneys the Committee wishes to be assured that steps are being taken to avoid delays such as occurred in this case and referring to its last report, again emphasises that such irregularities cannot be condoned.

Agriculture—Córas Beostoic agus Feola.

16. The Committee notes that the Minister endorses its concern at the delay by Córas Beostoic agus Feola in submitting its accounts for certification by the Comptroller and Auditor General, and that the need for prompt clearance of accounts and the arrangements requisite to secure this have been the subject of discussions between officers of the Departments of Finance and Agriculture and Fisheries.

The Committee trusts that these arrangements will prove effective.

Primary Education: Delegated Authority.

17. The Minister for Finance has confirmed that delegated authority always applied to expenditure on aggregated building programmes for Vocational Schools which are financed from the Local Loans Fund and that the extension of delegated authority relates to the building programmes for secondary schools which commenced in 1966 and for community schools which started in 1970. The Committee notes the Minister’s comment that if sanction were required for each individual school, whether for a new school or a scheme of improvements, individual sanctions would be required for upwards of 300 cases annually which would represent a considerable increase in the workload and would require additional staff. It accepts that there may be valid reasons on administrative or other grounds for delegation of authority but it would stress the importance of ensuring that in all cases expenditure of public moneys is incurred strictly in accordance with approved accounting procedures and principles.

The Committee also notes that delegated authority similar to that involved in the Department of Education’s aggregated building programme has not been extended to other departments but that the delegated authority enjoyed for many years by the Office of Public Works in regard to the building, equipping and furnishing of national schools has been transferred to the Department of Education following the transfer of the relevant financial provision from the Vote for Public Works and Buildings to the Vote for Primary Education.

The Committee is pleased to learn that the Minister for Finance agrees with its view that the Department of Education exceeded their delegated authority in the case of the expenditure on the Church of Ireland Training College and that he has advised that Department accordingly and stressed the necessity of securing the prior sanction of the Department of Finance in any other such case.

Secondary Education—Use of Suspense Account in respect of prefabricated building units.

18. The Committee notes that the scheme for bulk purchasing of mobile prefabricated classrooms was terminated in 1974 and that the Department of Education, which expressed regret at the excessive duration of the suspense account, have indicated that the account will be cleared in the current year.

Reformatory and Industrial Schools—Accounting for a course in child care.

19. The Committee notes that the Minister for Finance agrees with its view that in the matter of the grant which was made out of an ordinary subhead to the conductors of the course in child care any balance remaining unspent at 31 March 1972 should have been surrendered to the Exchequer. It is pleased to learn that an audited statement of accounts and balance sheet in respect of the course has been forwarded by the Department of Education to the Comptroller and Auditor General and that arrangements have been made by that Department to obtain an audited statement of account in regard to future courses in child care and to have the grantee’s books of account examined by Departmental officers to ensure that payments are in order and the other requirements of Government accounting are met.

Universities and Colleges and Dublin Institute for Advanced Studies.

20. The Committee notes that the Minister for Finance has been advised that the Department of Education, in deference to the wishes of the Committee, will make provision for total site work development and landscaping at the Plassy site in Limerick under one subhead and will include it in full in the capital costs of the National Institute for Higher Education.

Transport and Power—Interest payment by C.I.E.

21. The Committee notes that the Minister for Finance agrees with its view that the decisions of Parliament should be paramount in financial as in other matters and is bringing it to the attention of the Department of Transport and Power and C.I.E. It also notes that payment of the balance of the interest, £422,951, due in respect of the half year ended 31 March 1972, was paid by C.I.E. to the Exchequer on 29 March 1973.

Supplementary Grants to Córas lompair Éireann.

22. The Committee notes that the Minister for Finance is of the opinion that, while the Appropriation Act in itself represents necessary and sufficient statutory authority for the issue of supply, it is desirable that special legislation should be enacted, where possible, to vary or modify an existing statutory provision regarding voted moneys. It further notes that the Minister considers that, where, exceptionally, the enactment of special legislation may not be feasible, a note on the face of the enabling estimate should make it clear to the Dáil that a grant, supplementary to the statutory grant, is proposed.

The Committee does not agree with the proposition that the provisions of an Act of the Oireachtas may be amended other than by further legislation. It accepts that it may be necessary to introduce as a matter of extreme urgency an estimate which is at variance with existing statutory provisions but it considers that such an estimate should not only make it clear that a grant supplementary to a statutory grant is proposed, but it should be voted contingent on the enactment of the necessary amending legislation.

In regard to the additional grant of £4,464,000 voted in 1971-72 without specific statutory approval, the Committee has received no satisfactory evidence to indicate that the enactment of the necessary amending legislation was not feasible and before commenting further on this matter it would welcome any such evidence as is available.

PART II——PARTICULAR ACCOUNTS

OFFICE OF THE MINISTER FOR JUSTICE

23. The attention of the Committee was drawn to the Department of Finance instruction which requires that all pay lists of State employees insurable under the Social Welfare Acts should bear a certificate of a responsible officer that the relevant insurance cards have been duly stamped. This instruction was not complied with in respect of a number of insurable employees in offices under the control of the Department of Justice. The Comptroller and Auditor General pointed out that as insurance stamps are the equivalent of cash it is essential that there should be the same control over their use as would be imposed in regard to cash transactions especially having regard to the increased value of insurance stamps. The Accounting Officer informed the Committee of difficulties in staffing at various levels in the Accounts Branch of his Department and stated that the failure to complete the necessary certificates on pay lists was due to misunderstandings. He stated that a new staff structure had been set up in the Department which he was confident would ensure that these accounting difficulties would not arise again.

The Committee notes the steps taken in the Department of Justice to solve its accounting difficulties and hopes that they will prove adequate. It would urge all Departments to ensure that the instructions of the Department of Finance are strictly complied with.

DEPARTMENT OF FINANCE

Qn. 126.

Appendix 8.

24. In the course of his evidence the Accounting Officer undertook to examine the possibility of including in the annual volume of Appropriation Accounts, for the information of the Committee, a table setting out receipts and payments between the Exchequer and the European Communities. In a minute subsequently submitted to the Committee he indicated that the tables contained in the report, “Developments in the European Communities”, reflect the transactions between the Exchequer and the E.E.C. and he suggested that these might meet the requirements of the Committee. The Committee, having considered the contents of these tables, is satisfied that there is no need to include these details in the annual volume of Appropriation Accounts.

CONTROL OF THE ISSUE OF PUBLIC MONEYS TO STATE-SPONSORED BODIES

Qns. 569-570.

Qns. 758-763.

25. The Committee considered paragraphs 11, 57 and 76 of the Report of the Comptroller and Auditor General which drew attention to the issue of public moneys in excess of immediate cash requirements to three State-sponsored bodies, the National Building Agency Limited, Gaeltarra Éireann and Shannon Free Airport Development Company Limited. The Comptroller and Auditor General informed the Committee that his concern in such cases was to ensure that public money is not issued from the Exchequer before it is required or in larger sums than the service for which it is issued requires.

In regard to the moneys issued to the National Building Agency Limited the Accounting Officer for the Vote for Local Government informed the Comptroller and Auditor General that the Minister for Local Government, on whose recommendation issues are made to the Agency from the Central Fund, does not operate any detailed controls over the day-to-day management of the Agency’s accounts. When the Minister is satisfied, in the light of the Agency’s expenditure on its on-going programme, its contractual liabilities at the time, the period of the year and the overall allocation of the Agency under the Capital Budget, that an issue of moneys is justified, he forwards the requisite recommendations to the Minister for Finance. The Accounting Officer added that the final instalment of the Agency’s capital allocation for 1972-73 was issued as it was required to meet estimated expenditure on works carried out within the year and existing contractual liabilities. The Accounting Officer for the Vote for Industry and Commerce informed the Comptroller and Auditor General that, in the case of Shannon Free Airport Development Company Limited, at the close of business on 31 March 1973 invoices and architects’ certificates to the amount of £388,847, relating to 1972-73 expenditure, had not been presented to the company and this resulted in the cash balance being higher than would have ordinarily arisen had the accounts been received in time for payment. He added that the method of advancing funds to the company had been altered and that requisitions for funds would continue to be subject to close scrutiny by the Department. During his examination by the Committee the Accounting Officer added that the problem of controlling the issue of moneys was being solved by synchronising the timing of issues to the company with the time they would be expected to be paying their bills.

In regard to Gaeltarra Éireann the Accounting Officer for the Vote for Roinn na Gaeltachta informed the Comptroller and Auditor General that as the State funds provided annually for Gaeltarra were increasing substantially the desirability of stricter control of issues was recognised and measures to achieve this had been taken.

The Comptroller and Auditor General also brought this matter of the lack of control of issues of Exchequer moneys to the attention of the Accounting Officer of the Department of Finance, as that Department has a general responsibility for the control of public moneys. In his reply the Accounting Officer indicated that the Departments concerned had introduced or had been instructed to introduce arrangements which would ensure that amounts issued to semi-State bodies are sufficient only to meet immediate requirements and that in no circumstances should large balances be allowed to accumulate in their hands. In his evidence to the Committee the Accounting Officer stated that the prime responsibility in this matter rested with the Departments concerned; while his Department could lay down general ground rules the extent to which State bodies or other agencies under their control conformed with these rules was a matter primarily for the Department concerned. He added that he fully shared the concern of the Comptroller and Auditor General and the Committee’s concern about moneys paid out of the Exchequer over and above the amounts required to meet the current and immediate requirements of the business in question.

The Committee takes a very serious view of the failure of the Departments concerned to exercise proper control over the issue of Exchequer moneys. It wishes to stress once more that such control is fundamental to good accounting. It notes that steps have been taken to remedy the unsatisfactory position revealed in the Report of the Comptroller and Auditor General and it hopes that these steps will prove effective.

CENTRAL STATISTICS OFFICE

26. The Committee noted that expenditure in respect of the replacement of duplicating machines and ancillary equipment in the printing section of the Office was met from Subhead B—Travelling and Incidental Expenses. The estimate for the year under review made provision under this subhead for office equipment (£18,000) and computer rental (£22,500).

The Accounting Officer was questioned as to whether it would not be more appropriate and more informative, especially in view of the cost involved, to make provision for these items under a separate subhead. He agreed that the opening of a special subhead for such items would not create any difficulties for his Office. The Committee recommends that consideration be given to this matter in the preparation of future estimates for the Central Statistics Office and of any other estimate which includes a sizeable provision for equipment under the subhead—Travelling and Incidental Expenses.

LOCAL GOVERNMENT

27. In the course of his examination by the Committee the Accounting Officer revealed that the number of persons proceeded against by the Garda Síochána for having untaxed cars was 28,000 in 1972 and the number in 1973 was 34,899. The Committee finds this evidence of tax avoidance alarming, all the more so because the figures given by the Accounting Officer do not include the number of persons who were detected as having untaxed cars but who for one reason or another were not proceeded against. Neither, of course, do the figures include persons having untaxed cars who have not been detected. While recognising the excellent detection work of the Gardai in this area the Committee wonders whether administrative procedures covering the taxation of motor vehicles could be improved so as to reduce the possibility of tax avoidance and it would welcome the further comments of the Accounting Officer on this matter.

PUBLIC WORKS AND BUILDINGS

28. The Comptroller and Auditor General drew attention to the purchase by the Office of Public Works of a premises at a cost of £26,000, with the approval of the Department of Finance, for the use by Gael Linn for Irish language courses. The premises are situated in a residential area and an application made by Gael Linn, subsequent to the purchase, for a change of user was refused by the planning authority and, on appeal, by the Minister for Local Government. The Accounting Officer in evidence informed the Committee that this purchase was completed on the strength of a verbal assurance by an officer of the planning authority that a change of user would be approved and he indicated that the Office of Public Works relied regularly on verbal information. He added that Gael Linn had re-applied to the Dublin Corporation but had been turned down and that the matter was awaiting a further appeal to the Minister for Local Government. In the meantime Gael Linn went into possession of the premises and had been conducting Irish classes in them on a limited scale. Because of the limitation of user it was considered that the organisation should be charged a rent lower than the full commercial rent which the Office of Public Works was advised would be about £2,450 per annum. A sum of £2,000 was decided upon but Gael Linn considered this figure too high and asked that the matter be left over until the outcome of their planning appeal was known. This request was refused by the Office of Public Works but no rent was received from Gael Linn. The Committee considered three separate aspects of this transaction, the purchase of premises before approval of change of user had been obtained, the granting of preferential treatment to Gael Linn by charging them a reduced rent for the premises and the failure to collect this rent from the organisation. It notes that the purchase was completed on the basis of a verbal assurance given by an officer of the Dublin Corporation that a change of user would be approved. It accepts the statement of the Accounting Officer that the Office of Public Works regularly relies on verbal information but it suggests that confirmation in writing should be obtained in future in such cases, especially where a not inconsiderable charge to public funds is involved. The Committee also notes that the decision to charge Gael Linn a reduced rent was taken with the written approval of the Minister for Finance and, in the circumstances, it does not wish to comment further on this matter. Regarding the failure by Gael Linn to pay the rent decided upon for the premises the Committee would urge the Office of Public Works to take all steps open to it to recover this debt if it is still outstanding. The Committee wishes to be kept informed of developments in this case.

Appendix 10.

29. The Comptroller and Auditor General drew attention in his Report to payments totalling £168,000 made by 31 March 1973 in respect of the provision of a building for which a contract in the sum of £112,525 had been placed in August 1969 and which had been virtually completed in September 1971. He suggested that an excess of almost fifty per cent on a contract of £113,000 substantially completed in a little over two years would appear to be unduly high but he stated that he would not be in a position to satisfy himself about the matter until the final account for the contract was settled.

The Comptroller and Auditor General informed the Committee that following his examination of the final account which had been settled in the meantime he was quite satisfied with the position; the outturn on the contract was reported to the Department of Finance who sanctioned the overall cost of the scheme.

The Accounting Officer in evidence before the Committee indicated that the final contract sum in this case was of the order of £170,000. He dealt at length with the various extras which accounted for the excess over the original figure of £112,525 and in a note which he submitted to the Committee (Appendix 10) he furnished details of the increases under their main headings. The Accounting Officer added that the final cost of the building worked out at £10-86 per square foot which, he was advised, was very good value for a finished building of the standard which was necessary and provided.

The Committee is satisfied in the light of the evidence of the Accounting Officer while under examination and of the information subsequently submitted by him that the excess over the original contract price was not unduly high and that value for money was obtained by the Office of Public Works in this case.

AGRICULTURE

30. The Comptroller and Auditor General referred to a temporary scheme, introduced with Government approval in March 1972, to provide interest-free loans to factories in the carcase meat industry which was experiencing financial difficulties and he indicated that loans amounting to £906,792 were issued in the year 1972-73. The scheme provided for the recovery of the loans by deduction from the carcase beef export subsidy payments made from the Vote (Subhead E.4) when the subsidy rate exceeded l.25p per Ib. As this rate was not exceeded at any time between the commencement of the interest free loan scheme and December 1972, when the subsidy scheme was discontinued the procedure by which it was intended to recover the loans could not be implemented. The Accounting Officer informed the Comptroller and Auditor General that no alternative arrangements had been made for the recovery of the loans and in his evidence to the Committee he stated that he was still having discussions with the Department of Finance as to how the matter is to be finalised.

The Committee notes that these loans are outstanding for more than two years and urges that an alternative recovery arrangement should be worked out without further delay, if this has not already been done. It wishes to be informed of developments.

OFFICE OF THE MINISTER FOR EDUCATION

31. Section 15 of the National College of Art and Design Act, 1971 requires the Board of the College to submit its accounts annually to the Comptroller and Auditor General for audit. The Comptroller and Auditor General reported that although the Board had been established by the Minister for Education on 1 May 1972 formal accounts had not yet been received for audit. Payments on behalf of the Board continued to be made by the Department of Education subsequent to the establishment date and this expenditure had been audited as part of the expenditure included in the Appropriation Account for this Vote.

The Accounting Officer informed the Committee that the Board had asked the Department of Education to carry on making payments for them and to look after their accounts and the Department had agreed to do so up to 31 December 1974 but the Board were informed that they would have to handle the matter on their own after that date. He added that the form of accounts had been agreed with the Department of Finance and transmitted to the College and that the onus was on the College to submit the accounts in that form to the Comptroller and Auditor General.

The Committee takes a very serious view of the failure of the Board to comply with the provisions of Section 15 of the National College of Art and Design Act, 1971. It notes the efforts being made by the Accounting Officer to have this matter regularised and it wishes to be informed of the outcome.

SECONDARY EDUCATION

Qns. 819-840.

32. The Comptroller and Auditor General drew attention in his Report to a payment of £40,000 in March 1973 to diocesan trustees in respect of a site of 16 acres for a community school in the Falcarragh area, in County Donegal. He stated that he had been informed by the Accounting Officer that the purchase price had been agreed between representatives of the diocesan trustees and the Department of Education, that when agreeing to pay this price the Department was aware that the going rate for sites in the area was £2,500 per acre and that the Valuation Office had stated that in their view the full market value of the land was £50,000.

The Accounting Officer in evidence to the Committee dealt with the historical background to the purchase of this site. He indicated that when the educational facilities in the area came to be surveyed by the Development Branch of the Department there was a vocational school and two secondary schools in operation there. The idea came to the fore that the area could best be served by a community school. The choice of the site for such a school was an important factor and the matter was discussed between the Bishop, the Minister and the Accounting Officer at the time, who arrived at the decision to pay £40,000 for the site they wanted. The Accounting Officer stated that it had been the practice of the Department to get a valuation from the Valuation Office but this was not done until after the event in the present case, Development Branch being aware of the fact that they were paying £2,500 per acre for sites in other places. In regard to the payment and charge of the purchase price before the legal title to the site had been obtained by the Minister the Accounting Officer added that his feeling was that this payment was a proper charge in the accounts for 1972-73 since it enabled the contractor to enter the site and to proceed with the building of the school.

The Committee has considered this transaction at length. It wishes to stress that it is not concerned with the policy consideration which led to the purchase of this school site but only with ascertaining whether the transaction was carried out in a regular accounting and procedural manner. In this connection it notes from the Report of the Comptroller and Auditor General that the opinion of Valuation Office as to the value of the site was not sought until five months after the purchase price had been paid. It further notes from the evidence submitted to it by the Comptroller and Auditor General that the specific sanction of the Department of Finance was not sought for the price paid.

In all the circumstances the Committee must insist that a valuation of the site should have been obtained before the purchase price was paid and that the specific sanction of the Department of Finance should have been sought for the purchase. It cannot agree that the payment in this case represented a matured liability and a proper charge in the year 1972-73. Finally, the Committee considers that a transaction such as this, which presents a number of unusual features, should have been brought to the notice of Dáil Éireann by way of suitable note in the Appropriation Account.

VIVION de VALERA,

Chairman.

30 October 1975.