Committee Reports::Final Report - Appropriation Accounts 1988::16 October, 1990::Appendix


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APPENDIX 11

16 October 1990

Clerk,

Committee of Public Accounts,

Dáil Éireann,

Dublin 2.

At its meeting on 17th May 1990 the Committee expressed concern with the difficulties encountered by the Department in the collection of Wired Broadcast Relay Licence (Cable Television) fees.

One of the concerns expressed by the Committee was that the Department had carried out on inspections of the records of Cable Companies due to a lack of suitably qualified staff. Since the May meeting of the Committee, the Department of Finance has assigned an Executive Officer with accounting experience to the Department. The Officer took up duties with the Department in August and, after familiarization with the cable television situation, began to pursue those Companies which had not responded to the Department’s requests for fees and information.

Responses were received in every case except one very small company and undertakings were given by the Companies that properly audited statements of revenue (on which the licence fee is based) would be forthcoming. Where the information is not made available reasonably quickly, inspections will proceed regardless of these undertakings.

Any Company which does not make a satisfactory response to the Department’s demands will be referred to the Chief State Solicitor for Court Action between now and the end of the year.

The Committee will recall that the Department had initiated action against one particularly recalcitrant payer with the intention of using experience gained in this case against other such Companies. It was expected that the case would be heard in the very near future.

Recently the Company produced up to date audited statements of revenue (no information had been produced for a number of years) and indicated that it will pay all outstanding arrears by the end of October. He will then seek to have his licence transferred. Should the operator fail to make the payments the Company will, of course, be pursued to finality through the courts (on the basis of exact amounts rather than on estimates which had to be used before he produced audited statements).

In the query raised by the Comptroller and Auditor General, sixteen Companies were listed showing the estimated position with arrears and supply of information at December 1988. The attached schedule shows the comparative position then and now of these Companies.

B. McDONAGH

Secretary

Department of Communications

Schedule

	Date of last Audited Statement Received
Licensee
	Position reported by C. & A.G.	Position now
Stimpson & Co.	October 1985	August 1990 (1)
Cork Communications Ltd.	December 1987	December 1987 (2)
Independent Relays Ltd.	September 1984	(see note 3)
R.T.S. Ltd. Cavan	June 1979	December 1989
Westward Cables	December 1985	December 1989
T.V. Systems Ltd.	June 1985	December 1989
Midland Relays Ltd.	June 1988	June 1988
Marmac Ltd.	March 1983	December 1989 (4)
Carlow Cablevision	December 1989	December 1989
Casey Cablevision	December 1986	September 1986 (5)
Athlone Relays Ltd.	March 1985	December 1989
Emmet Electrical Ltd.	December 1979	December 1979 (5)
Portlaoise Cable	December 1984	January 1990 (6)
Alpine Relays	March 1986	March 1990
Equilateral Ltd.	October 1986	January 1990
Celtic Relays Ltd.	January 1985	January 1988

	Estimated amount due
Licensee
	Reported by C. & A.G.	Position now
	£	£
Stimpson & Co.	32,140	54,882 (1)
Cork Communications Ltd.	512,100	359,305 (2)
Independent Relays Ltd.	12,000	nil (3)
R.T.S. Ltd. Cavan	25,823	15,600
Westward Cables Ltd.	88,271	2,000
T.V. Systems Ltd.	17,098	nil
Midland Relays Ltd.	11,004	nil
Marmac Ltd.	81,815	40,421 (4)
Casey Cablevision	24,242	26,000 (5)
Carlow Cablevision	27,029	nil
Athlone Relays Ltd.	18,885	nil
Emmet Electrical Ltd.	7,719	8,400 (5)
Portlaoise Cable	6,275	21,300 (6)
Alpine Relays	4,009	nil
Equilateral Ltd.	888	nil
Celtic Relays Ltd.	3,463	nil

Note 1

Legal action has been initiated against Stimpson & Co. The Company recently produced up to date audited statements which necessitated an upwards revision of the estimated amount outstanding. The Operator has indicated that he wishes to transfer his system and will pay all outstanding amounts before the end of October.

Note 2

In October 1989 this Company entered into an agreement to pay the outstanding arrears over three years. To date £145,000 has been paid. The Company is being vigorously pursued to produce the outstanding statements of revenue. The Company say that these are in course of preparation.

Note 3

This system had virtually collapsed some years ago when the operator fell into bad health (and subsequently died). The system was taken over without the Department’s approval and subsequently transferred to Cable Management of Ireland. The returns for this Company were included in the returns of the operator who had taken the Company over and are up to date, apart from a gap of about three years. The estimate of £12,000 was based on a fully working system. However, even the Department is aware that the system had virtually collapsed and very few customers were actually paying.

Note 4

This system has been transferred. Payments covering the remaining amount (to be made over three years) have been guaranteed by the new operator.

Note 5

These Companies have undertaken to produce audited statements of revenue in the near future, contact has been established with their accountants.

Note 6

A satisfactory payment schedule is being negotiated with this Company. As can be seen, up to date records have been produced.