asked the Minister for Finance if he will give full details of the Government's recent decision to hire a computer; if he will outline the areas for which its use is intended; and if the stated yearly rental charge is comparable with charges made to business corporations.
Ceisteanna—Questions. Oral Answers. - Computer Hire.
20.
The Revenue Commissioners have been authorised to obtain a Honeywell Model H6060 dual processor computer in order to meet their expanding requirements for computer facilities. The computer will be hired over a seven-year period. It will be utilised for work relating to income tax, sur-tax, corporation profits tax, VAT and health contributions, and will replace in due course the smaller Honeywell computer installation at present in use in Revenue. It is not customary to disclose publicly the exact rental terms negotiated in such cases. I am satisfied that the yearly rental charge in this instance is competitive and is comparable with charges made to business corporations.
Will the Minister give details of how the rental charge in the period in question compares with the purchase price of this computer?
I cannot give the Deputy that information offhand.
Would it not appear logical for the Minister to look into that aspect—whether it is more economic to purchase rather than hire this model? Has the Minister considered this?
It has been looked into but I cannot give the Deputy that information offhand.
Is the Minister satisfied that the charges for hiring are more favourable than the purchase of the computer, especially in view of the extensive work that will be done by the Government?
The Deputy can take it that, from the point of view of the Exchequer, on a comparison of both methods it has been decided that the hiring method is more appropriate to our requirements.
May I ask the Minister why there is this reluctance to disclose the rental fee?
I have told the Deputy it is not customary to disclose such information, the main reason being that it could be of vital interest to competitors of the firm concerned.
The careful choice of words by the Minister in his reply to the second last supplementary question suggests the possibility that it may be less economic to hire but that a shortage of capital is forcing the Government to adopt a less economic course, as is the case with Government offices.
No.