The purpose of the Bill is to enable a sum not exceeding £500,000 to be withdrawn from the funds of suitors and applied towards the cost of carrying out external renovation work which is essential for the preservation of King's Inns building in Henrietta Street, Dublin.
The funds of suitors are the cash and securities belonging to suitors and other persons which have been transferred to or paid into or deposited with the High Court. The funds arise from many sources. They include statutory deposits made by insurance companies, banks, trade unions, auctioneers and house agents, moneys lodged by defendants in certain types of actions, funds of wards of court, trustee funds and moneys lodged in administration suits. In the ordinary way these funds may be used only for the benefit of those entitled to them. However, part of the funds is represented by unclaimed dividends and balances which have been accumulating over a long period. These are known as dormant funds and may be defined more precisely as balances in accounts in the funds of suitors which have not been active for 15 years or more. The funds of suitors are under the control of the High Court, and subject to that control are managed by and stand in the name of the accountant of the Courts of Justice.
The total liability of the accountant in respect of funds of suitors on 30 September 1980, the latest date for which there are published figures, exceeded £49,505,000. Assets held by the accountant, consisting of cash and securities, amounted to £48,227,000 on that date. The difference between the amount of liabilities and assets on hands on 30 September 1980 — £1,278,000 — represents the aggregate of the moneys which have been withdrawn from the funds of suitors over the past 200 years under the authority of various Acts of the Parliament of Ireland, the Parliament of the United Kingdom and the Oireachtas. All these Acts indemnified suitors for any loss which they might sustain by reason of the withdrawals, and these indemnities are backed by the Central Fund. Another way of saying this is that a portion of the funds of suitors, at present amounting to £1,278,180, is not represented by cash or securities held by the accountant, but simply by the liability of the Central Fund to indemnify suitors against any loss up to that amount.
Moneys withdrawn from the funds of suitors under Acts passed prior to the establishment of the Oireachtas were applied for such purposes as building and improving the Courts of Justice and enlarging the Law Library. Withdrawals from the funds were authorised by the Oireachtas in 1959, 1963 and in 1966 as follows:—
The Funds of Suitors Act, 1959, enabled a total of £323,000 to be withdrawn for three purposes, namely, to provide assistance towards the rebuilding of the Abbey Theatre, to finance repair and renovation of the buildings of the Society of King's Inns and to provide for the creation of a fund for the maintenance of the Society's Library.
The Funds of Suitors Act, 1963, authorised the release of a sum of £50,000 to help finance the rebuilding of the Cork Opera House.
The Funds of Suitors Act, 1966, authorised the release of £450,000 to help finance the cost of rebuilding the Abbey Theatre and the completion of the Cork Opera House.
The sums withdrawn to date from the funds of suitors amount, as I have said, to £1,278,000. However, assets consisting of £862,000 cash and securities nominally valued at £1,583,000 — market value £1,345,000 — were on hands in the dormant accounts on 31 August 1981. The yield from the securities is adding to the cash balances in the dormant accounts at a rate of £184,000 per annum at present.
The money to be withdrawn under the Bill will actually be taken from the cash balance which is maintained by the accountant in a current account in the Bank of Ireland to meet all his cash liabilities to suitors on foot of both dormant and live accounts. This cash balance amounts at present to £2,203,609 and is constantly growing. Apart altogether from the fact that suitors will enjoy a complete indemnity, I am fully satisfied that the sum of £500,000 may safely be withdrawn from this cash balance.
Perhaps I should now turn to the works for which the money would be used, but first a few words about the King's Inns buildings themselves may be appropriate. The King's Inns was the last work in Dublin of James Gandon, the architect who designed and supervised the erection of the Custom House, the Four Courts, the Military Infirmary and the West-moreland Street facade of the Bank of Ireland. Gandon retired while the building was in course of construction and the work was completed by his pupil and partner, Henry Aaron Baker. The cupola above the join of the two wings was designed by Francis Johnson, the architect of the General Post Office in Dublin. Before the completion of the south wing, intended for a library, it was taken over by the Government to house, first, the Prerogative Court and later, the Registry of Deeds. The Registry of Deeds has occupied this portion of the building — that is the south wing together with the join section under the cupola — ever since.
There is unanimity, among those best qualified to judge, that the building which houses the King's Inns and the Registry of Deeds is a minor classic and one of the finest buildings of its kind in Dublin. That part of it which is not owned by the State is listed as a building to be preserved, under the Dublin City Development Plan, 1980. It is a building of national significance and importance and must feature prominently in the architectural heritage of the nation. It is used by the Society of King's Inns for the purpose of educating and training barristers. I wish to add my own few words of praise to the general admiration that this lovely building enjoys. I am always impressed by the quiet beauty of its facade particularly so coming on it in a part of Dublin which — goodness knows — does not have any great surplus of fine buildings.
Architectural examination of the King's Inns buildings and the adjoining State-owned Registry of Deeds building has revealed that the external stonework of both buildings is in a state of serious decay. The state of the stonework gives rise to a danger of falling masonry and steps have been taken to protect the public by erecting hoardings in places. Full repairs to the external stonework of the buildings have been estimated to cost £1,310,000, consisting of £630,000 for the King's Inns portion and £680,000 for the Registry of Deeds part. The Office of Public Works have already started to carry out the necessary renovation work on the Registry of Deeds building. The cost of executing similar work on the King's Inns building is quite beyond the capacity of the Benchers of the Society of King's Inns to fund, and accordingly the Government decided that the cost of the external renovation work needed for the preservation of the building should be met by the State. Portion of the funds needed for this — £500,000 — is to come from the funds of suitors with the balance coming from the Exchequer, which will also bear the complete cost of the Registry of Deeds renovation work. I need hardly emphasise that this Bill is not concerned at all with the expenditure by the Board of Works of voted moneys on the job — merely with the transfer of funds from the courts to the Exchequer.
The work involved consists mainly of replacing or refacing and repointing the granite stonework of the buildings and repairing the boundary walls, gates and railings surrounding them. As I indicated earlier, the King's Inns benefited from the funds of suitors before, in 1959. Under the Funds of Suitors Act, 1959, a total of £70,000 was paid to the trustees of the Society. £25,000 of this was for the creation of an investment fund and the application of the income thereof for the maintenance of the King's Inns Library, which is not involved in the current renovation project. The balance of £45,000 went to defray the cost of expenditure incurred in undertaking work of renovation and repair to the King's Inns building which are the subject of the present Bill. It has, of course, proved inadequate to enable renovation work to be carried out since 1959 but was, in any event, never intended to cater for works of the kind now found to be necessary.
Section 2 of the Bill is the provision which enables the money in the funds of suitors to be devoted to the work in question.
As in the case of previous withdrawals from the funds of suitors, section 4 of the Bill affords complete indemnity to suitors against any loss they might otherwise sustain as a result of the enactment of the proposed legislation.
Section 3 may be regarded as unusual in that anything corresponding to it will not be found in previous legislation of this kind. It is a provision to extend, temporarily, the powers of the Commissioners of Public Works. The Office of Public Works have been given responsibility for the renovation work to the King's Inns and Registry of Deeds buildings. However under existing legislation, the commissioners are only empowered to undertake work in relation to public buildings and as the King's Inns premises are not a public building it is necessary to empower the commissioners to work on it. The extended powers which the Bill confers on the commissioners relates exclusively to work on the King's Inns building and will expire after five years, at the latest.
May I conclude by commending this Bill to the House. At a time of acute financial stringency it behoves us all to exercise the most extreme caution in relation to public expenditure. While the release of funds from the courts accounts may not be technically the same as authorising the spending of the taxpayers' money, it seems to me to call for the same level of responsibility. I am satisfied, however, that the purpose to which this money will be devoted is most deserving and that not only is it appropriate but indeed necessary that the dormant funds of suitors should be used as proposed in this Bill.