Committee Reports > List of Committees > Dáil > 1976 > Committee of Public Accounts > Report - Appropriation Accounts 1973 - 1974

APPENDIX 2.

MINUTE OF THE MINISTER FOR FINANCE ON REPORT, DATED 30 OCTOBER, 1975, OF THE COMMITTEE OF PUBLIC ACCOUNTS ON THE APPROPRIATION ACCOUNTS, 1972-73

PART I—GENERAL OBSERVATIONS.

Paragraphs 1, 7, 8, 9, 10, 12, 13, 18, 19, 20, 21.

These paragraphs do not appear to call for comment.

REPORT DATED 12 NOVEMBER 1970.

Paragraph 2—Question of duplicate control of certain activities of the Department of Defence.

A Task Force representative of the Departments of the Public Service and Defence is at present considering the organisation of the Department of Defence, in the context of the recommendations of the Public Services Organisation Review Group, including the question of duplicate control of certain activities of the Department. The Committee will be informed of developments.

REPORT DATED 13 JULY 1972.

Paragraph 3—Grants-in-Aid.

The Minister shares the concern of the Committee that grant-in-aid moneys (and indeed all voted moneys) are expended strictly in accordance with the wishes of Dáil Éireann. As regards the responsibilities of Accounting Officers in this respect, the position is as set out in paragraph 6 of his Minute dated 30 June, 1975 to the Committee. The Minister notes the view of the Committee regarding the imposition of conditions on issues from grants-in-aid additional to those outlined in his Department’s existing instructions to Accounting Officers. He wishes to assure the Committee that he will impose such additional conditions in any particular case when it appears to him that they are warranted to ensure that issues from the grant-in-aid are expended on the purposes for which they were voted.

Paragraph 4—Recovery of moneys.

In reply to a Parliamentary Question on 18 December 1975, the Minister said that, because of the legal complexities involved, it had not yet been possible to bring the matter to a final conclusion. He also told the House that, pending the outcome of certain steps which the Attorney-General directed to be taken to recover the moneys, he was not in a position to make a fuller statement.

The Minister will keep the Committee informed of developments.

REPORT DATED 28 JUNE 1973.

Paragraph 5—Audit of accounts of State-sponsored Bodies.

The Motion to establish a Joint Oireachtas Committee of the Dáil and Seanad to review the activities of State-sponsored Bodies engaged in trading or commercial operations was put down in Dáil Éireann on 8 December, 1975. It is expected that the Motion will be moved in the near future.

Paragraph 6—Payments to Special Regional Development Fund (Grant-in-Aid).

The Committee will be kept informed of developments in relation to the further consideration of this issue in the overall context of the distribution of the functions of Government at sub-national levels.

REPORT DATED 23 JANUARY 1975.

Paragraph 11—Roinn na Gaeltachta.

While the Minister considers that, in relation to bodies like Gaeltarra Éireann, grant-in-aid issues should be made only in respect of immediate requirements, he would see no objection to an issue being made towards the end of a financial year in respect of expenditure accrued due by the grantee, providing the issue were called for by the grantee’s cash flow position.

Paragraph 14—Breaches of Accounting Principles.

As regards training courses in the principles of Government accounting, thirtynine officers attended such courses in 1975 and a further 46 nominations have been received for courses which are scheduled for the current year. The course participants range up to Assistant Principal rank. In addition, work is well advanced in the Department of Finance on the preparation of a booklet outlining financial procedures which it is hoped to make available to all Departments in the near future. The booklet will be aimed at new entrants to the Civil Service and existing staff who may be unfamiliar with accounting requirements.

As requested, the Committee will be kept informed of developments.

Paragraph 15—Issues under the Taisci Stáit Teoranta Act, 1963.

The importance of complying with parliamentary requirements relating to control over public moneys is noted, with particular reference to the timely presentation of legislative proposals. Steps will be taken to avoid a recurrence of the circumstances which gave rise to the irregularity in this case.

Paragraph 16—Agriculture—Córas Beostoic agus Feola.

Accounts for all years up to 31 March 1974 have been certified by the Comptroller and Auditor General. The accounts for April to December 1974 are not yet ready for certification as they are the subject of audit queries. When they are certified, the backlog, which arose due to the delays over the 1971-72 accounts, will have been cleared, and future accounts should be submitted for certification by the Comptroller and Auditor General within a reasonable period after the end of each financial year.

Paragraph 17—Primary Education: Delegated Authority.

The Minister for Finance agrees with the Committee on the importance of ensuring that in all cases expenditure of public moneys is incurred strictly in accordance with approved accounting procedures and principles. The Accounting Officer has confirmed that steps will be taken to ensure this. He has also given an assurance that in all cases of “one-off” building projects, such as teacher training colleges, his Department will obtain specific sanction from the Minister for Finance beforehand.

Paragraph 22—Supplementary Grants to Córas Iompair Eireann.

The Minister notes the Committee’s view that the provisions of an Act of the Oireachtas may not be amended other than by further legislation. While the Minister is legally advised that the Appropriation Act constitutes such further legislation, he accepts that, as already indicated, it is desirable that a grant additional to a fixed annual statutory grant should, where possible, be enacted in the same corpus of legislation as the fixed grant so that that legislation would reflect the full extent of Exchequer assistance involved. He notes that the Committee accepts that in cases of extreme urgency, an estimate may be introduced which is at variance with existing statutory provisions but he does not agree that, in such circumstances, the additional grant should be voted contingent on the enactment of special legislation. To do so could mean that, since money could not be issued from the grant until the special legislation had been passed by the Oireachtas, the urgent need which the additional grant was designed to meet might not in fact be met in time.

As regards the additional grant to CIE in 1971-72, the position is that special legislation was not introduced in the light of the continuing pressures on parliamentary time and because, in the opinion of the Minister for Finance, the grant had sufficient statutory cover.

PART II—PARTICULAR ACCOUNTS.

Paragraphs 24, 25 and 29.

These paragraphs do not appear to call for comment.

Paragraph 23—Office of the Minister for Justice—Checking of Insurance Cards.

Accounting Officers are being reminded of the necessity to ensure strict compliance with the instructions of the Department of Finance regarding the custody of insurance stamps and the checking of insurance cards.

Paragraph 26—Central Statistics Office.

With regard to the Central Statistics Office, the cost of office machines and other office supplies is being met from a separate subhead in the Vote as from 1 January, 1976. The general question of providing for office equipment under separate subheads is being examined and the Committee will be informed of the outcome.

Paragraph 27—Local Government.

The Minister shares the Committee’s serious concern at the extent of motor tax avoidance and its view that the existing administrative procedures covering motor tax should be improved. This matter is currently under active consideration by the Minister for Local Government and it is hoped that improved arrangements can be devised. It is understood that, as requested by the Committee, the Accounting Officer for the Vote has commented further on the matter.

Paragraph 28—Gael-Linn.

The rent has been paid by Gael-Linn to 31 January, 1976. Gael-Linn are seeking alternative premises and when these are acquired they intend vacating 7 Appian Way. The Accounting Officers concerned are being advised of the Committee’s suggestion that confirmation in writing should be obtained when oral assurances on planning applications are given by local authorities.

Paragraph 30—Agriculture.

Loans under the scheme were paid out to factories at a time when the carcase beef export subsidy payable to factories was at very low levels or zero, and factories were faced with very keen competition for cattle supplies from exporters of live fat cattle. The purpose of the loan scheme was to enable factories to acquire sufficient cattle to maintain throughput and safeguard employment. The terms of repayment were specifically related to this objective and provided that the loans would be repaid by way of deductions from export subsidy payable under the export guarantee scheme when this was high enough (i.e. above 1.25p per lb.) to enable factories to compete successfully with live cattle exporters and when output and employment would not be jeopardised. The repayment conditions did not materialise up to the time the Export Guarantee Scheme was terminated on entry to the European Communities. No other repayment conditions were attached to the loans at the time of issue, and no suitable opportunity has since arisen in which the agreement of the meat industry to alternative repayment arrangements could be secured.

Paragraph 31—Office of the Minister for Education—National College of Art and Design.

The Minister shares the Committee’s concern at the failure of the Board of the College to submit its accounts annually for audit. He has been informed by the Department of Education that the Accounting Officer has again written to the Chairman of the Board emphasising the Board’s statutory responsibilities in this respect and urging that the preparation of Accounts from 1 May 1972 to date should take priority over all other administrative work in the College. He also assured the Board that every possible assistance would be given by his Department so that this matter could be regularised as soon as possible.

Paragraph 32—Secondary Education—Site at Falcarragh, Co. Donegal.

The Minister agrees with the Committee’s views on the procedures followed by the Department of Education in connection with the purchase of a site for a community school in Co. Donegal. He has been informed by the Department of Education that these views have been noted and that action will be taken accordingly in all future cases.