Committee Reports > List of Committees > Dáil > 1990 > Committee of Public Accounts > Final Report - Appropriation Accounts 1988

APPENDIX 38

3 August 1990

Ms Aileen McHugh

Clerk to the Committee

Committee of Public Accounts

Leinster House

Dublin 2.

Dear Aileen,

I have now investigated the matter raised in the examination of my predecessor by the Committee on 1 February last and I am satisfied that no employee of the Ordnance Survey is engaged in private business in competition with the Survey. What occurred is that a member of the staff who expressed an interest in selling maps and other Survey publications on his own account was allowed to do so on the strict condition that this work would not interfere with his official duties.

This arrangement has its origins in the longheld and numerous complaints of the difficulty in obtaining Ordnance Survey maps and other publications. In an attempt to meet these complaints, the Ordnance Survey formerly operated a sales scheme under which staff were employed full-time on the marketing and distribution of its publications. These staff were paid the normal Civil Service allowances for mileage and subsistence expenses and, in addition, were paid a bonus in respect of sales achieved. While this operation had some success in improving the commercial image of the Ordnance Survey and the availability of its products, the increase in sales did not justify the costs incurred and the scheme was discontinued.

The officer who is currently engaged in map sales purchases his supplies from the Survey at wholesale prices under the same terms as other wholesalers, He receives no bonus payment and any new sales generated must be from sources not served by existing wholesalers. As the operation developed and showed promise, Ordnance Survey management insisted that he organise his affairs on a proper business footing and that accounting procedures should conform with normal business practices. He accordingly formed a company for the purpose, details of which are attached.

Since this form of activity would not be commercially viable as a full-time operation, the officer’s interest was seen as a logical and efficient opportunity for improving the marketing and distribution of Ordnance Survey products at no cost to the Survey. The arrangements would virtually eliminate the possibility of the Survey incurring bad debts arising on the establishment of new accounts and reduce administrative costs on small accounts. Of equal importance, a better and wider service would be provided to the trade, the public and tourist interests.

The present arrangement provides a framework whereby further market penetration can be achieved without additional cost while offering an incentive to the officer concerned to maximise sales. The venture has contributed significantly to the appropriations-in-aid subhead. In the first year of operations additional revenue of £40,000 approximately was generated and it is expected that this will rise to £100,000 per annum within three years.

Unfortunately, the need to obtain the Minister’s sanction for the arrangement was inadvertently overlooked. Following discussions with the Department of Finance, a submission seeking approval for revised arrangements was submitted to the Department in April 1990 and is still being considered there. Until a decision is taken the officer has been allowed to carry on under the existing arrangements so as to maintain continuity of service to customers.

Yours sincerely

J. V. ROGERS

Director of Ordnance Survey.