Vol. 370 No. 13
asked the Minister for Industry and Commerce if he has adopted any of the recommendations of the published reports of the Dáil Committee on Public Expenditure in relation to his Department and, if so, if he will specify the extent of the adoption of each report.
40.
asked the Minister for Industry and Commerce if he will list the names of all reports of the Dáil Committee on Public Expenditure relating to his Department; and if he will outline specifically and comprehensively the action taken to date with regard to each individual recommendation of such reports.
41.
asked the Minister for Industry and Commerce the action which has been taken on the recommendations contained in the report of the Committee on Public Expenditure regarding the review of Shannon Free Airport Development Company Limited.
Limerick East): I propose to take Questions Nos. 39, 40 and 41 together. The reports of the Dáil Committee on Public Expenditure which relate specifically to my Department are as follows:—
(i) Review of Shannon Free Airport Development Company Limited and
(ii) 15th Report of the Committee on Public Expenditure — Institute for Industrial Research and Standards.
The following are the recommendations of the Report of the Oireachtas Committee on Public Expenditure on the Shannon Free Airport Development Company which have been implemented:
(a) "SFADCo should assign the full promotional costs of its commercial tourist activities to those activities and should seek to improve their commercial performance. Consideration should then be given to inviting equity participation in these projects or to realising the investment with a view to applying the funds in pursuit of SFADCo's regional development brief".
SFADCo is in the process of assigning its management function in relation to the Historic Castles to a separate subsidiary company, which will effectively implement the first part of this recommendation. The question of equity participation is being reviewed by the Company.
(b) "That SFADCo undertakes the survey work necessary to measure the effectiveness of its industrial promotions activities compared with the added value arising, having given due weight to redundancy, displacement and deadweight effects".
A study has been undertaken as recommended.
(c) "That SFADCo's annual report and accounts comply in full with the Standard Statements of Accounting Practice, indicating where they are not in compliance and the reasons therefor. That overheads be apportioned as fully as possible between the various operations being reported on.
(d) That each commercial activity be separately reported on including building activities, property management and tourism operations.
(e) That each subsidiary be fully and separately reported until such time as separate arrangements are made for their funding and reporting. This applies in particular to the Innovation Centre and the National Micro-Electronics Application Centre.
(f) That some suitable arrangement be devised so that IDA grants paid by SFADCo be shown in the SFADCo Annual Report."
The above recommendations are being implemented to the extent considered necessary following a detailed review with the Comptroller and Auditor General's Office of the recommendations themselves, the Standard Statements of Accounting Practice and the requirements of the Companies (Amendment) Act, 1986.
No action has yet been taken in relation to the implementation of the other recommendations in the report.
The following are the recommendations of the Report of the Oireachtas Committee on Public Expenditure on the Institute for Industrial Research and Standards which have been implemented:
(a) "In the implementation of quality standards the Institute should seek to build on the work of the Irish Quality Control Association by giving appropriate exemptions and availing of the latest quality audit report where this is consistent with complying with international standards."
The Chief Executive of the Irish Quality Control Association (IQCA) is a member of the Board of Directors of the Institute and of the National Standards Authority of Ireland. The Institute encourage companies contemplating certification to IS 300 — the Irish Standard for Quality System Management — to consider the IQCA certificate as a preliminary step and the Institute have undertaken to take cognisance of the IQCA Audit Report if submitted and to reduce their audit accordingly — thus saving cost to the applicant.
(b) "An appropriate process should be developed providing for consultation with industry before standards are adopted".
Industry and appropriate agencies are fully consulted during the drafting stage of standards.
(c) "The Government should, as a matter of urgency, authorise the drafting of legislation to allow the enforcement of standards on imports and on goods manufactured in Ireland."
To do so would be incompatible with EC rules. Standards can be made mandatory on health and safety grounds only and this is already done. However legislative proposals are being drafted at present in order to strengthen my powers in relation to product safety. These proposals are intended to apply equally to imported and home produced products.
(d) "The Government should direct all those inviting tenders which will be paid for out of public funds to indicate the standards required where approved standards exist."
The booklet "Outline of Government Contracts Procedures" published earlier this year specifies that:
"In general, contract specifications should be performance-based and drawn up as accurately and comprehensively as practicable. Irish Standards specifications should be used where they exist, but not to the exclusion of European Community Standards. The National Standards Authority of Ireland and the Institute of Industrial Research and Standards should be consulted as necessary."
(e) "The IIRS should establish an internal review group to revise the format of the Annual Report and Accounts:
—to ensure its effectiveness as a marketing medium for the Services of the institute.
—to increase awareness of the level of public funding provided and the value received in return.
—to comply with best accounting practice and particularly to observe fully the Standard Statements of Accounting Practice.
—to provide divisionalised accounts and to account separately for grants, public funding other than the grant-in-aid and external activities such as the sale of services through Development Co-operation and to distinguish between development work undertaken with the support of grant in aid and work undertaken at a loss."
The Consultancy Unit attached to my Department are reviewing the Institute's accounts and accounting procedures.
(f) "The Institute's borrowing powers be strictly limited to an agreed working capital provision."
The borrowing powers of the Institute are strictly controlled under Section 2 of the Industrial Research and Standards (Amendment) Act, 1979. In effect the Institute may only borrow provided they have the consent of the Minister for Industry and Commerce given with the concurrence of the Minister for Finance.
(g) "The IIRS should press ahead with its own environment programme and in so doing should liaise closely with the agencies responsible for Fisheries development and An Foras Forbartha."
The Institute is pressing ahead with its own environment programme and does liaise with the Department of the Environment, local authorities, Foras Forbartha, the Department of Fisheries and other appropriate bodies.
(h) "A decision by Government as to where ministerial responsibility for development of the food industry rests before the IIRS either develops its own programme or pursues further the proposed association with An Foras Taluntais in this regard."
A Minister of State with responsibility for food has been appointed by the Government. A permanent food committee has also been established comprising representatives of the appropriate Departments and State agencies.
No action has yet been taken in relation to the implementation of the other recommendations in the report.
