Committee Reports > List of Committees > Dáil > 1980 > Committee of Public Accounts > Report - Appropriation Accounts 1978

APPENDIX 2

MINUTE OF THE MINISTER FOR FINANCE ON REPORT DATED 29 NOVEMBER, 1979 OF THE COMMITTEE OF PUBLIC ACCOUNTS ON THE APPROPRIATION ACCOUNTS, 1977

PART I—GENERAL OBSERVATIONS

Paragraphs 1, 2, 9, 12, 17, 20, 26, 33, 36, 38

These paragraphs do not appear to call for comment.

REPORT DATED 24 JUNE, 1976

Paragraph 3—Delays in Collection of Monetary Compensatory Amounts (MCA’s)

The Minister is informed by the Department of Agriculture that the total amount on MCA charges outstanding at end-1979 was some £0.67 million, of which about £0.61 million related to the cattle and beef sector. Some 200 court cases were pending involving a total of £0.146 million. Approximately £0.35 million was still outstanding in respect of 13 cases where court judgements had been obtained by the Department. Every effort is being made to recover these outstanding amounts. To date, the Department has collected a total of £1.856 million in respect of 57 cases of MCA debts where court preceedings were initiated.

The Minister is informed that investigations have not yet been completed in the case of the ‘carousel’ trade in pigs and cereals.

REPORT DATED 21 APRIL, 1977

Paragraph 4—Primary Education—Scheme of Adaptation and Extension for a National Teacher Training College.

The Minister has been informed by the Department of Education that the terms of the agreed settlement between the religious order and the building contractor were negotiated with the assistance of the Department’s Building Unit and included outstanding claims for work carried out by the contractor. In these circumstances, it was considered by the Department of Education that the sum payable by the Department towards the settlement was properly due and that the prior sanction of the Minister for Finance was not required. The Minister accepts that the resolution of disputed claims under a contract is a normal part of the work of the Building Unit of the Department of Education. He considers however that in the exceptional circumstances of this case prior sanction should have been sought. He notes that the settlement of £38,000 reached with the contractor covered all outstanding claims under the contract and that over £20,000 of the amount was in settlement of claims for work actually done. He understands that the contribution of the College authorities towards the settlement substantially covered the claim for delay arising from the temporary cessation of work. Given all the circumstances, he is satisfied with the arrangement made.

The Minister has also been informed by the Department of Education that the original contract price for the kitchen/restaurant at the National Teacher Training College related to building works only, as at August, 1973. It included no provision for variations, ancillary building work not included in the contract for the original extension, site development or culinary equipment. When these items were included and the total up-dated to June, 1975, the cost was increased to £347,447. With the addition of professional fees and expenses and of the cost of the final settlement with the builder (referred to in the Committee’s Report), the final total cost of the kitchen/restaurant was £397,167. This figure is included in the total cost of £1,097,631 for all the works carried out at the College at that time.

The Department of Education is still in communication with the Chief State Solicitor in connection with the agreement to be entered into with the College authorities guaranteeing the exclusive use of the College for the training of teachers or other approved educational purposes, and hopes to have the matter finalised shortly.

Paragraph 5—Secondary Education—Local contributions towards capital costs of Community Schools.

The Minister has been informed by the Department of Education that agreement on a Model Deed of Trust of community schools has been reached. The Deeds in respect of the individual schools are to be signed by the religious authorities and vocational education committees concerned in accordance with the agreed Model.

It has been agreed that the contribution payable by a vocational education committee will be 5% of the cost of building and equipping the community school, payable in five equal annual instalments, free of interest. In the case of the Dublin Archdiocese, agreement has been reached with the Diocesan authorities that the local contribution will be 5% negotiable downwards, in certain cases, to 4% of the cost of buildings and equipment. It has been agreed that in the case of new schools outside the Dublin Archdiocese, which do not replace an existing secondary school, the standard local contributions should be 5% and that the local contribution for community schools involving the amalgamation of a secondary school should be not more than 5%. The local contribution agreed with a religious authority may be paid in 5 equal annual instalments, free of interest. The Minister has approved these arrangements.

Paragraph 6—Charging of Expenses Arising out of Market Intervention

The Minister is informed by the Department of Agriculture that computerised stock records for 1976 for use in clearing payments-on-account of intervention expenses are now available and the relevant accounts are being finalised. Stock records for subsequent years will become available when FEOGA Accounts for these years are completed—the intervention beef accounts for 1977 and 1978 will be completed during the current year, while in other sectors the accounts for 1978 have already been completed. After 1976, payments of intervention expenses were in general made following a check of invoices rather than being on-account. Accordingly the problems, which resulted from the making of large payments-on-account, have to a great extent been overcome.

The preparation of FEOGA accounts, which is dealt with in paragraph 7, is of course a very important factor in finalising the charging of expenses arising out of market intervention.

Paragraph 7—F.E.O.G.A. Accounts

The Minister is informed by the Department of Agriculture that it is hoped to have the intervention beef accounts for 1976 ready for sending to the EEC Commission shortly. Their transmission has been delayed pending an indication from the Commission whether, following their audit of the intervention beef accounts for 1975, any amendments are necessary in the 1975 accounts, which would have a carry-over effect into the accounts for 1976.

As indicated in paragraph 6 above, it is expected that the intervention beef accounts for 1977 and 1978 will be completed during the current year. In the case of FEOGA accounts other than beef, those for 1978 have already been submitted to the EEC Commission while work on the 1979 accounts is proceeding.

REPORT DATED 15 JUNE, 1978

Paragraph 8

Clearance of Cashed Payable Orders by the Paymaster General

Primary Education—Overpayments of Teachers’ salaries

The full amount of £3,983 has now been recovered from the two banks concerned with the encashment of payable orders subsequently found to be fraudulent.

The Minister shares the Committee’s concern at the delay involved in the processing of payable orders by the existing computer system. He would point out, however, that there has been a substantial growth in the volume of payable orders since computerisation was first introduced—from some 1 million to over 3 million orders a year.

The Minister had directed that a revised computerised system for clearing payable orders drawn on the Paymaster General’s Office within the two day requirement should be brought into operation as a matter of priority. The introduction of the new computer system was accorded a high priority rating during the period but progress was retarded by difficulties in the area of computer personnel and by the need to acquire suitable new accommodation.

Following consultations with the twenty or so Departments/Offices concerned with the processing of payable orders presented to the Paymaster General’s Office, a suitable system has now been designed. Arrangements have been completed for supplying and installing the necessary computer equipment, including the training of staff. The introduction of the new system involved the acquisition of new office accommodation. This has presented serious difficulties but premises have been allocated and are expected to be available for occupation in the Autumn. If the installation is completed on schedule the new system should be in operation before the end of the year.

Paragraph 10—Secondary Education—Deductions from Salaries in respect of Social Welfare Benefits

The Minister has been informed by the Department of Education that all the teachers who were paid full salary while on maternity leave during the period from 1 January, 1975 to 31 July, 1976 have been written to. A total of 108 teachers are involved. Seven have produced certificates showing that no social welfare benefit was paid to them. The amount of benefit paid has been disclosed in two cases and recovery of these amounts is being arranged. The remaining cases are being vigorously pursued.

Paragraph 11—Fisheries

The Minister has been informed by the Department of Fisheries and Forestry that, despite further discussions, agreement has not yet been reached with Mayo County Council on its rate of contribution towards the cost of the improvement scheme at Killala Harbour.

Paragraph 13—Local Government—Audit of Accounts

The Department of the Public Service states that additional posts of Auditor and Trainee Auditor were created in 1979. However, the postal strike in that year resulted in a large backlog of competitions in the Civil Service Commission. Competitions to fill the additional posts are in hand and interviews will be held shortly. It is agreed that the clearance of audit arrears is a matter of urgency. Having regard to the prospect of additional appointees from current competitions, it is hoped that substantial inroads into the arrears can be made during the current year.

Paragraph 14—Local Government—Overissues of Housing Subsidy

All claims for local authority housing subsidy in respect of the four financial periods from 1 April, 1973 to 31 December, 1976 have now been certified by the Local Government Auditors with the exception of the following:—

All overissues on-account established by reference to the certified claims have been fully recovered. It is expected that the uncertified claims listed above will be cleared by the Local Government Auditors early in 1980 with the exceptions of Dublin County Council, Mayo County Council and Tullamore U.D.C.

Dublin County Council’s claims cannot be finalised until records destroyed in a fire at the Council’s offices earlier this year have been reconstituted. In the case of Tullamore UDC, the audit of the accounts of the years 1976 to 1979 is expected to be opened in April 1980 and the certified return will be submitted as soon as possible afterwards. The audit of Mayo County Council has had to be adjourned pending production of final accounts. The claim will be audited and certified when it is possible to re-open the audit.

The Minister for Finance agrees with the Committee regarding the procedure formerly adopted by the Department of the Environment for the payment of housing subsidy and that it should not be adopted in any similar situations which might arise in the future.

Paragraph 15—Health Contributions

The Minister is informed by the Department of Health that it is necessary for the Department to consult with the Health Boards to obtain the detailed explanations and information asked for by the Committee. The Minister understands that Health Boards have been asked by the Department of Health to supply it with the material asked for by the Committee and the Department will forward the information to the Committee as soon as possible. The Department of Health will also keep the Committee informed of progress being made by the Working Party established to examine the overall systems relating to the collection of health contributions by Health Boards.

REPORT DATED 26 APRIL, 1979

Paragraph 16—Superannuation and Retired Allowances

Further progress has been made by the Department of the Public Service in the drafting of statutory schemes to cover the payment of contributory and ex-gratia pensions to the widows and children of certain public servants (other than civil servants) and it is expected that the relevant schemes will be completed soon. As already indicated, the Committee will be informed when the schemes have been signed by the Minister concerned.

Paragraph 18—Wealth Tax—Delay in Submitting Returns

The Minister is informed by the Revenue Commissioners that at end-December, 1979 wealth tax had not been formally assessed in 2,100 cases comprising 2,030 cases in which returns were still outstanding and 70 cases which were under scrutiny. Examination and assessment of cases in which returns are submitted is proceeding. Cases in which returns are outstanding are being followed up and the requirements of the Revenue Commissioners are being insisted on in full. There is no reason to believe, however, that delivery of the returns will result in the recovery of significant additional amounts of tax. The payments made on account which amounted to £3,260,000 on 30 April, 1979 have been reduced to £2,878,000 at end-December, 1979, the decrease of £382,000 being due to the formal assessment of returns between the two dates.

Paragraph 19—Posts and Telegraphs—Cable Television Fees and Television Licence Defaulters

The Department of Posts and Telegraphs has assured the Minister that it will continue to take all necessary steps, including the institution of legal proceedings where appropriate, to ensure the prompt payment of fees by cable television operators and the submission of annual certified statements of gross revenue.

The Minister has also been informed by the Department of Posts and Telegraphs that, out of twenty-one licensed cable television operators who provide a service for about 215,000 subscribers, four operators, who cater for about 90% of all subscribers, supply subscriber information regularly. Twelve of the remaining seventeen operators have supplied information on a less regular basis. Two of the five who have not yet supplied information have commenced operations only in recent months. The Department of Posts and Telegraphs will continue to press all licensees for the required information.

Paragraph 21—Environment—Housing Subsidy Rent Arrears

In one local authority (Cork Corporation) rent arrears (attributable to a rent strike) which accrued in the period 1 April, 1973 to 31 December, 1976 were subsidised by the Department of the Environment. This was because the accounting system operated by that local authority did not distinguish between the arrears and the subsidisable items in the housing account. At the request of the Department of the Environment, an exhaustive review of the rent arrears position was carried out in Autumn 1979 by the local authority in question. Officers of the Department subsequently visited the local authority, examined the working papers of the review and had extensive discussions with senior staff. As a result, the Department of the Environment is satisfied that the full amount of rent arrears incorrectly subsidised was £228,884. Following the initial proposal from the Department to the Department of Finance and subsequent discussions between the Departments, that amount has been recovered in full by making a corresponding reduction in the subsidy payment which would have been due to the local authority in December, 1979.

Paragraph 22—Office of the Minister for Education—Higher Education Grants

The Minister has been informed by the Department of Education that, in order to prevent a similar situation arising in the future, the following addition (italicised) has been made to the appropriate paragraph of each local authority’s scheme of Higher Education Grants:

“. . . . . . The lower rate of grant shall be applied in the case of every candidate who could reasonably be expected to travel daily between his home and college and in the case of every candidate whose home is within 15 miles of the college or other educational institution at which he is pursuing his course of study”.

Investigation by the Department of Finance of the question of accountability referred to by the Committee is continuing.

Paragraph 23—Secondary Education

The question of the establishment of an internal audit system within the Department of Education is under consideration in the light of the Report of the Inter-departmental Committee which examined the general question of setting up such units in Departments. In the meantime, the arrangements for improved control of the financial administration of comprehensive and community schools are continuing in operation.

Paragraph 24—Residential Homes and Special Schools

The covering sanction of the Minister for the charging of the unvouched expenditure of £647 against the Vote for Residential Homes and Special Schools has been granted. The Minister has been informed by the Department of Education that the officers responsible for examining accounts and records of expenditure have been fully briefed in accordance with guidelines agreed with the Comptroller and Auditor-General’s office.

Paragraph 25—Higher Education—National College of Physical Education, Limerick

The Minister has been informed by the Department of Education that the question of the defective external wall finish at the National College of Physical Education, Limerick, is still being pursued. The question of pursuing a claim in relation to the squash courts will be decided as soon as the external wall issue is resolved.

The Minister has also been informed by the Department of Education that the total extra cost of the variations on the building contract for the College (following a detailed check of the final account) was £119,603.72. A list of the major items, showing the extra cost in each case, has been supplied by the Department and is given hereunder. The Department states that the balance of the extra cost is accounted for by a relatively large number of minor variations the costs of which ranged from £15 to £2,967.

National College of Physical Education

List of variations in excess of £3,000

The sanction of the Minister for excess expenditure over the authorised limit on the contract—including the variations referred to—was sought and given retrospectively. The Department of Education has given an assurance that the prior sanction of the Minister will, in future, be sought in such cases.

Paragraph 27—Public Works and Buildings—Office of Public Works, Furniture Division

The Minister is advised by the Accounting Officer concerned that an intensive search for centralised accommodation for the Furniture Division of the Office of Public Works, including offices, failed to find a suitable premises. Accordingly, negotiations are now in progress for the acquisition of a warehouse to replace one of the rented storage areas which is particularly unsatisfactory.

The Management Services Unit of the Department of the Public Service has completed a review of the Furniture Division, covering certain problem areas including Stock Control and staffing. Recommendations on alternative methods of Stock Control have been made to the Office of Public Works. Extra staff for the Furniture Division has been authorised by the Department of the Public Service and the process of filling the posts by open competition is continuing.

Paragraph 28—Public Works and Buildings—Killarney National Park

The Minister has been advised by the Accounting Officer concerned that the usual records such as livestock registers, inventories of equipment and machinery, stock records and records of farm produce produced, sold and consumed, will be maintained for Killarney National Park of which the Bourne Vincent Memorial Park now forms part.

Paragraph 29—Defence—Armoured Personnel Carriers

The Minister is advised by the Department of Defence that there have been no other instances of moneys from the defensive equipment subhead being used to fund a project of this nature. The Minister is, however, fully satisfied that the expenditure in question was within the ambit of the Vote for Defence. While it might have been preferable if the expenditure had been provided for in a separate subhead, the project was in fact brought to the specific attention of Dáil Éireann by the Minister for Defence on a number of occasions when speaking on the Defence Estimates.

The Minister understands from the Department of Defence that the question of financial return to the Exchequer was fully considered in this case. When the project was being examined initially, the Department consulted the Industrial Development Authority who agreed to undertake a feasibility study of the proposal. In its report, the Authority considered that the following benefits of the project would accrue to the economy and the Exchequer:—(a) balance of payments savings, i.e. import price per vehicle less import content of Irish produced vehicle; (b) Exchequer savings through purchase of vehicles cheaper than those which could be imported; (c) personal and company taxation contributions to the Exchequer as a result of wages payments in Ireland and profits earned in providing the vehicles here; and (d) the building of armoured vehicles in Ireland would develop new skills and also help to equip Irish industry to prepare itself for the production of heavy vehicles.

Furthermore, in negotiations with the Company the Department of Defence sought to ensure that the consent of the Minister for Defence would be required if the Company decided to manufacture or sell to any third party any personnel carrier of the kind or resembling the personnel carriers contracted for or to disclose to any third party the design of or any other information relating to the carriers. The drawings, jigs, materials and constructions forming part of or relating to the research and development work on the three prototypes for the Department of Defence were returned to Cavalry Workshops, Curragh Training Camp and remain the property of the Department.

Paragraph 30—Lands—Farmers’ Retirement Scheme

The Minister is advised that, in general, the question of direct choice between sale under the retirement scheme and compulsory acquisition does not arise. In relation to a holding offered for sale under the Retirement Scheme, the Land Commission decide the value of the lands offered and negotiate up to that limit. In compulsory acquisition cases, the Commission have to take the initiative towards acquiring the land and, following the appeals provisions available, the final price payable often exceeds the Commission’s valuation. The average price per acre paid by the Land Commission for Retirement Scheme lands—even allowing for the 10% premium in the years 1976 to 1979—was substantially lower than the average price paid for lands compulsorily acquired.

The Minister notes the Committee’s comments about the re-allocation of holdings acquired under the Retirement Scheme. He is informed by the Accounting Officer that his Department is reviewing the matter in an effort to match acquisitions and resales. The number of new applicants under the Scheme is declining steadily—only 45 in 1979 as compared with 71 in 1978, 106 in 1977 and 1,624 in the three years 1974-1976. The EEC Council of Ministers are at present considering amendments to the Scheme including a proposal to extend subventions from the EEC to cover certain disadvantaged areas where lands released under the Retirement Scheme are disposed of otherwise than to a development farmer. The bulk of the applications under the present Retirement Scheme come from the disadvantaged areas. It will be possible to adopt a more critical approach to the Scheme including, if necessary, the refusal of offers of land when the Council of Ministers have finalised their review. The Committee’s views will be borne in mind in the revision of the Scheme.

The responsibility of the Accounting Officer for issue of moneys for land purchase must be construed in the light of the powers which are reserved to the Land Commissioners under section 12 of the Land Act 1950. The Accounting Officer does not exercise detailed control over such matters as the price payable for land or the purchase and re-allocation of individual holdings.

Paragraph 31—Health—Rebates and discounts applicable to General Medical Service Prescriptions

Information on the results of the investigations being carried out by the consultants will be furnished by the Department of Health to the Committee following the completion of the consultants’ assignment.

Paragraph 32—Health—Employment of Full-time Pharmacists by Health Boards

The Minister understands that 4 Health Boards have pharmacists on their staff whose duties include the supervision of the arrangements under which doctors in certain circumstances are entitled to dispense drugs and medicines under the General Medical Services Scheme. The Minister is further advised that the Local Appointments Commissioners have recently advertised for posts of community pharmacists in four other Health Boards and it is hoped that, as a result of the competition, vacancies in the remaining Health Boards will be filled within the next few months.

Paragraph 34—Social Welfare—Control Procedures

The Minister has been informed by the Department of Social Welfare that the survey requested by the Committee has been carried out and that it has been confirmed that there are no areas in the Department where prescribed control procedures are not being followed.

Paragraph 35—Social Welfare—Children’s Allowance Orders

The Minister has been informed by the Department of Social Welfare that a full examination of the Committee’s request to have Children’s Allowance orders processed as if cash were involved has recently been completed and that proposals are being urgently formulated. The Committee will be informed of the outcome when these proposals have been finalised.

Paragraph 37—General

With regard to the recovery of overpayments in the Department of Social Welfare, the Minister is advised by the Department of the Public Service that the necessary improvements to the computer system have been made.

As regards the accommodation problems in the Chief State Solicitor’s Office, the Office of Public Works state that an additional 2,400 square feet of office accommodation have been made available to the Chief State Solicitor who has advised that that space would solve the accommodation difficulties in the immediate future.

PART II—PARTICULAR ACCOUNTS

Paragraph 39 and 57 do not appear to call for comment.

Paragraph 40—Defence—Hireage Charge for Army Helicopters

In future, recovery of the cost of helicopter ambulance missions will not be sought from the local authorities concerned. The relevant transactions will instead be covered by notes in the Departmental Estimates and Appropriation Accounts. Steps have been taken to review the hireage charges for Army helicopters on an annual basis.

Paragraph 41—Labour—Employment Incentive Scheme

The question whether suitable arrangements are being made by the Department of Labour to assist smaller firms to deal competently with the technicalities of the Employment Incentive Scheme has been examined by the Accounting Officer who has reported that he is satisfied that adequate advice is available for small firms from official sources and that such firms are availing of the scheme to a satisfactory extent.

Paragraph 42—Labour—Grant-in-aid to AnCO—Parliamentary Review of Accounts of non-trading State Bodies

The possibility of the establishment of a Joint Oireachtas Committee on non-trading State-sponsored bodies was considered at the time of the establishment of the Committee on commercial State-sponsored bodies and has been reviewed on several occasions since then. In the view of the Minister for the Public Service it would be desirable to have experience of the working of the Committee on commercial State-sponsored bodies before a decision is taken in this matter. The latter Committee has not yet completed investigation of all the bodies falling within its terms of reference.

Paragraph 43—Office of the Revenue Commissioners—Change in Certain Control Procedures

It is appreciated, where control procedures are being altered, that it is important for officers responsible for their implementation to fully understand the new systems. All Accounting Officers are, as suggested by the Committee, being reminded of their obligations in this respect.

Paragraph 44—Office of the Revenue Commissioners—PAYE Income Tax

The Minister has been assured by the Revenue Commissioners that all the resources available, including legal proceedings and other collection measures, are utilised to the full to ensure that the amounts owing are paid.

The information requested in regard to PAYE underpayments is now available in the 1978 Appropriation Accounts.

Paragraph 45—Revenue Commissioners—Collection of Interest on Arrears of PAYE Income Tax

Paragraph 46—Revenue Commissioners—Collection of Interest on Arrears of VAT

The Minister notes the Committee’s comments on the collection of interest on PAYE Income Tax and Value-Added Tax where the payments of these taxes have not been made within the periods prescribed by statute. He notes, in particular, that the Committee has expressed reservations as to whether the “care and management” provision of the tax statutes allow the Revenue Commissioners discretion not to pursue the collection of interest in the cases specified.

The Minister is advised by the Revenue Commissioners that, in exercising these powers in regard to the collection of taxes and sums expressed to arise by way of interest on such taxes, they have felt obliged to have regard to the Minister for Finance’s statements in Dáil and Seanad Éireann when the relevant legislation was being introduced. These statements clearly indicate that it was not the intention of the legislation that large amounts of interest at very high rates should be collected from the persons concerned; the interest was to be considered more as a penalty than as a method of compensating the Revenue Commissioners for outstanding accounts. The Committee will wish to note that the non-collection of certain interest does not imply remission but rather deferment and that a condition of deferment is that future payments are made in time.

The Minister will ask the relevant Departments to remind those State-sponsored bodies under their aegis of their obligations to pay over PAYE income tax deductions promptly.

Paragraphh 47—Pay-Related Social Insurance Contributions

The Minister has been informed by the Department of Social Welfare that the legal position in relation to the failure of employers to pay over social insurance contributions which they have deducted from employees is as follows. When social insurance contributions are not paid over by employers, there is provision under regulations [Article 14 of the Social Welfare (Contributions) Regulations, 1953 (S.I. No. 5 of 1953)—as inserted by the Social Welfare (Contributions) (Amendment) Regulations, 1979 (S.I. No. 135 of 1979)] to treat such contributions as paid for the purpose of any right of the employees concerned to benefit under the Social Welfare Acts. Under these regulations, the employees’ entitlement to benefit is not affected by reason of the failure of the employers to pay over the contributions, unless such failure is with the consent or connivance of the employees concerned or due to any negligence on their part. The failure of employers to pay over contributions which they have deducted from employees’ wages is a specific offence under the Social Welfare Acts.

The Committee can be assured that all the resources available, including legal enforcement and other collection procedures, will be utilised to the full to ensure that the amounts outstanding are collected.

Paragraph 48—Environment—£1,000 Housing Grants

The drafting of Regulations under the Housing (Miscellaneous Provisions) Act, 1979 is at an advanced stage and it is expected that the Minister for the Environment will be in a position to make them shortly.

Urgent consideration is being given to a number of measures to ensure that only persons fully eligible for the grants receive them including arrangements with other Departments which may be able to assist in developing further the system of checks. The Committee will be informed of developments.

Paragraph 49—Social Welfare—Computerised Payments System

The following comments have been received from the Department of the Public Service (i) Computer systems which have been properly designed and tested should provide more positive and comprehensive controls than the manual systems which they replace; (ii) when a computer system is being designed, it is essentially for the operating Department or Agency to satisfy itself that adequate checks and controls have been incorporated into the system so as to meet the particular needs of that Department or Agency and (iii) it is primarily for the operating Department or Agency also to ensure that the checks and controls incorporated are in fact applied effectively. The Department’s comments are being brought to the attention of Accounting Officers.

Paragraph 50—Garda Síochána

As the Committee noted, the Accounting Officer reported that the situation with regard to the issue of notices under Section 103 of the Road Traffic Act, 1961 has been brought under control. In 1977 and 1978 notices not followed up represented approximately 3% of the total number of notices issued.

Paragraph 51—Courts—District Court Offices

On 31 October 1979, there were approximately 23,000 warrants due for issue from District Court Offices. Some of these warrants related to fines imposed in September and October 1979 which cannot really be viewed as in arrears because there would have to be a delay of at least one month from the date on which a fine is imposed to allow time for payment before a warrant is issued. As it is roughly estimated that the average number of warrants to be issued each month would be of the order of 8-10,000 and as a period of one or two months will normally elapse between the imposition of a penalty and the issue of a warrant, it must be expected that about 15-20,000 cases will be awaiting issue of warrants at any given time. The Committee will be kept informed of developments.

Paragraph 52—Public Works and Buildings—Deduction of Income Tax from Rent Payments

The Minister has been advised by the Accounting Officer concerned that the remaining balance of the arrears of income tax on rent was paid over to the Revenue Commissioners in January, 1980.

Paragraph 53—Office of Public Works—Problems of Staffing and Accommodation

The Minister notes the Committee’s comments regarding the staffing difficulties of a number of departments and offices which appeared to be giving rise to difficulties and to shortcomings in financial administration. He is advised by the Department of the Public Service that recruitment to certain professional grades continues to present difficulties despite the best endeavours of the Civil Service Commission to fill such posts. As regards the Committee’s specific reference to the shortage of technical staff in the Office of Public Works, the Department of the Public Service advises that the underlying cause is a shortage of engineers of all categories which is being experienced in both the private and public sectors of the economy. This matter is, at present, the subject of a special inter-departmental examination. Meantime, the Civil Service Commission is continuing its efforts to fill all vacancies in professional and technical grades and has been giving particular attention to the requirements of the Office of Public Works.

Paragraph 54—Posts and Telegraphs—Bank Account

The inter-departmental study referred to by the Accounting Officer was concerned with banking services generally, including services of that nature provided by the Post Office. The Minister understands that the inter-departmental group has not considered the question of any change in the location of the account of the Minister for Posts and Telegraphs.

The Minister wishes to re-assure the Committee that it remains his policy that the accounts of Government Departments should be kept, as far as possible, at the Central Bank of Ireland. The position of the account of the Minister for Posts and Telegraphs is kept under review but the need to supply substantial amounts of cash, including small denomination notes and coin, to post offices throughout the country on a regular basis, makes any change unlikely in the foreseeable future.

On the question whether interest should be sought from the commercial bank concerned, the Minister wishes to point out that the account is a current account. It is not normal banking practice to pay interest on credit balances on a current account. Provided a balance of at least £100 is kept, the banks impute interest, currently at the rate of 3 per cent per annum, which is offset against charges. In this case no charges are levied by the bank concerned, although the provision of a nation-wide service on the scale necessary makes heavy demands on its resources. The Minister is aware that the cost of cash transmission services and the associated security risks are a source of considerable and growing concern to the banks. He concurs in the observation of the Accounting Officer that, if interest were sought, there could be a counter-claim, probably substantial, from the bank concerned in respect of the cost of the service.

The Minister is satisfied that, in present circumstances, there would be no advantage in seeking to change the long-standing arrangements with the bank concerned. He considers that these arrangements strike a reasonable balance between the requirements of the Department of Posts and Telegraphs and the interests of the Exchequer, as well as contributing in no small way to the smooth payment of social welfare benefits throughout the country. Every effort will continue to be made to keep the balances on the account to a minimum.

Paragraph 55—Secondary Education—Registration of Title to the Sites of Comprehensive and Community Schools

The Minister has been informed by the Department of Education that the position regarding title in the fifteen cases referred to in the Committee’s Report (thirteen in which title was not registered and two in which sales had not been closed) is that title has now been registered in three cases. There are eleven cases in which sales have been closed but registration of title has not yet been effected; in the remaining one, where precise boundaries were not agreed until very recently, the sale is expected to be closed in the near future.

Paragraph 56—Miscellaneous Expenses—Payments to the Irish Trust Bank Ltd

Payments made by the Central Bank of Ireland to the Liquidator of the Irish Trust Bank Limited consisted partly of funds provided by the Bank itself in advance of the realisation of the remaining assets on completion of the liquidation. Validating legislation arises only in connection with that portion of the payments, which amounted to £996,464.

The balance required to secure repayment of depositors in full, estimated at £1.8 million, was made available to the liquidator by the Bank on behalf of the Minister, subject to recoupment from the Vote for Miscellaneous Expenses. A Supplementary Estimate for this purpose was approved by Dáil Éireann on 13 December, 1977. The Estimate was given statutory effect in the Appropriation Act, 1977. The Minister is fully satisfied as to the validity of the recoupment in this case.

Paragraph 58—Industry, Commerce and Energy—National Film Studios of Ireland, Ltd.

The Irish Film Bill, 1979 was presented to Dáil Éireann by the Minister for Industry, Commerce and Energy on 26 November 1979. The Bill provides for the setting up, operation and financing over the next four years of the Irish Film Board which will be responsible for the promotion and development of film making in Ireland.

Paragraph 59—Industry, Commerce and Energy—Petroleum and Other Minerals Development Act, 1960

It is intended that any transaction of the kind in question (i.e. not involving the payment of cash to the Department) will be made the subject of a specific note in the relevant Appropriation Account and will also be covered in the half-yearly report which Section 57 of the Petroleum and Other Minerals Development Act, 1960 requires the appropriate Minister (Energy) to lay before the Houses of the Oireachtas.

It is not considered necessary in the circumstances that the existing legislation needs to be amended specifically in regard to these transactions but the matter will be noted for consideration if and when any legislative changes become desirable for other reasons.