Written Answers. - State Company Capital.

Thursday, 2 December 1971

Dáil Eireann Debate
Vol. 257 No. 6

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153.

Mr. L'Estrange: Information on Gerald L'Estrange  Zoom on Gerald L'Estrange  asked the Taoiseach if he will state, in respect of the boards, State companies, or any other bodies under the aegis of his Department, for 1968, 1969, 1970 and 1971 (a) the amount of capital employed on the 31st March, (b) how and from what source such capital was provided, (c) the yield on the total capital employed, (d) the return paid on the capital, (e) the amount of any capital repaid or converted, (f) the total amount paid in corporation profits and income tax, (g) the amount set aside for depreciation, (h) the total of (f) and (g) respectively for the four years and (i) the profit or loss; and whether there are now adequate tangible assets to repay, if [1262] need be, the totals of (a) and (g) and if not, what proportion could be repaid.

The Taoiseach: Information on John Lynch  Zoom on John Lynch  There is no board or company, of the type apparently envisaged in the question, for which I am responsible.

154.

Mr. L'Estrange: Information on Gerald L'Estrange  Zoom on Gerald L'Estrange  asked the Minister for Foreign Affairs if he will state, in respect of boards, State companies or any other bodies under the aegis of his Department, for 1968, 1969, 1970 and 1971 (a) the amount of capital employed on the 31st March, (b) how and from what source such capital was provided, (c) the yield on the total capital employed, (d) the return paid on the capital, (e) the amount of any capital repaid or converted, (f) the total amount paid in corporation profits and income tax, (g) the amount set aside for depreciation, (h) the total of (f) and (g) respectively for the four years and (i) the profit or loss; and whether there are now adequate tangible assets to repay, if need be, the totals of (a) and (g) and if not, what proportion could be repaid.

Minister for Foreign Affairs (Dr. Hillery): Information on Patrick John Hillery  Zoom on Patrick John Hillery  No bodies engaged in business or trading activities are responsible to me.

155.

Mr. L'Estrange: Information on Gerald L'Estrange  Zoom on Gerald L'Estrange  asked the Minister for Transport and Power if he will state, in respect of boards, State companies or any other bodies under the aegis of his Department, for 1968, 1969, 1970 and 1971 (a) the amount of capital employed on the 31st March, (b) how and from what source such capital was provided, (c) the yield on the total capital employed, (d) the return paid on the capital, (e) the amount of any capital repaid or converted, (f) the total amount paid in corporation profits and income tax, (g) the amount set aside for depreciation, (h) the total of (f) and (g) respectively for the four years and (i) the profit or loss; and whether there are now adequate tangible assets to repay, if need be, the totals of (a) and (g) and, if not, what proportion could be repaid.

Minister for Transport and Power (Mr. B. Lenihan): Information on Patrick J. Lenihan  Zoom on Patrick J. Lenihan  The information sought is at present being compiled [1263] and, if the Deputy will repeat his question next week, the information will be available.

156.

Mr. L'Estrange: Information on Gerald L'Estrange  Zoom on Gerald L'Estrange  asked the Minister for Social Welfare if he will state, in respect of boards, State companies, or any other bodies under the aegis of his Department for 1968, 1969, 1970 and 1971 (a) the amount of capital employed on the 31st March, (b) how and from what source such capital was provided, (c) the yield on the total capital employed, (d) the return paid on the capital, (e) the amount of any capital repaid or converted, (f) the total amount paid in corporation profits and income tax, (g) the amount set aside for depreciation, (h) the total of (f) and (g) respectively for the four years and (i) the profit or loss; and whether there are now adequate tangible assets to repay, if need be, the totals of (a) and (g) and, if not, what proportion could be repaid.

Minister for Social Welfare (Mr. J. Brennan): Information on Joseph Brennan  Zoom on Joseph Brennan  I would refer the Deputy to the reply given on 22nd October, 1969, to a Question, No. 383, on this subject.

157.

Mr. L'Estrange: Information on Gerald L'Estrange  Zoom on Gerald L'Estrange  asked the Minister for Labour if he will state, in respect of the boards, State companies or any other bodies under the aegis of his Department, for 1968, 1969, 1970 and 1971 (a) the amount of capital employed on the 31st March, (b) how and from what source such capital was provided, (c) the yield on the total capital employed, (d) the return paid on the capital, (e) the amount of any capital repaid or converted, (f) the total [1264] amount paid in corporation profits and income tax, (g) the amount set aside for depreciation, (h) the total of (f) and (g) respectively for the four years and (i) the profit or loss; and whether there are now adequate tangible assets to repay, if need be, the totals of (a) and (g) and, if not, what proportion could be repaid.

Minister for Labour (Mr. J. Brennan): Information on Joseph Brennan  Zoom on Joseph Brennan  There are no boards or State companies responsible to me to which this question would apply.

158.

Mr. L'Estrange: Information on Gerald L'Estrange  Zoom on Gerald L'Estrange  asked the Minister for Finance if he will state, in respect of boards, State companies, or any other bodies under the aegis of his Department, for 1968, 1969, 1970 and 1971 (a) the amount of capital employed on the 31st March, (b) how and from what source such capital was provided, (c) the yield on the total capital employed, (d) the return paid on the capital, (e) the amount of any capital repaid or converted, (f) the total amount paid in corporation profits and income tax, (g) the amount set aside for depreciation, (h) the total of (f) and (g) respectively for the four years and (i) the profit or loss; and whether there are now adequate tangible assets to repay, if need be, the totals of (a) and (g) and if not, what proportion could be repaid.

Minister for Finance (Mr. Colley): Information on George Colley  Zoom on George Colley  The following is the information requested as far as it is available. The figures given in respect of each body are based on the published accounts of the body concerned and it is, therefore, not possible to give figures for 31st March in most cases.

Year ended 30th April
1968 1969 1970 1971
£ £ £ £
(a) Capital employed 20,417,000 22,280,000 25,061,000 29,123,000
(b) Sources of capital:
Ordinary shares (Minister for Finance) 5,598,000 6,000,000 6,748,000 6,748,000
Loans (Minister for Finance) 6,883,000 7,981,000 8,484,000 8,458,000
Borrowing from private sector 7,322,000 7,651,000 9,160,000 13,270,000
Reserves and provisions 614,000 648,000 669,000 647,000
[1265][1266] % % % %
(c) Yield on total capital employed 5.0 5.1 6.5 6.4
£ £ £ £
(d) Return paid on capital 939,000 1,024,000 1,289,000 1,467,000
(e) Amount of capital repaid or converted — — — —
(f) Amount paid in corporation profits tax and income tax 55,000 50,000 75,000 98,000
(g) Amount set aside for depreciation 3,000 4,000 4,000 6,000
(h) Total of tax paid and depreciation 58,000 54,000 79,000 104,000
(i) Profit (Loss) 214,000 268,000 291,000 209,000

The totals of (a) and (g) at 30th April, 1971 amounted to £29,129,000 including reserves and provisions amounting to £647,000; tangible assets in the Corporation's balance sheet at 31st April, 1971 totalled £29,513,000.

Year ended 31st March
1968 1969 1970 1971
£ £ £ £
(a) Capital employed 141,743,000 153,933,000 171,727,000 192,358,000
(b) Sources of capital:
Issued capital (Minister for Finance) 24,000 24,000 24,000 24,000
Reserves and legal tender note fund 141,719,000 153,909,000 171,703,000 192,334,000
% % % %
(c) Yield on total capital employed 4.9 4.9 4.7 6.1
£ £ £ £
(d) Return paid on capital (Profit paid to Exchequer) 3,535,000 5,745,000 6,261,000 6,507,000
(e) Amount of capital repaid or converted — — — —
(f) Amount paid in* corporation profits tax and income tax — — — —
(g) Amount set aside for depreciation 800,000 17,000 20,000 100,000
(h) Total of tax paid and depreciation 800,000 17,000 20,000 100,000
(i) Profit (Loss) 4,737,000 6,020,000 6,421,000 9,196,000

The Bank has sufficient tangible assets to repay capital employed and depreciation provisions.

* The Bank is not liable for income tax or corporation profits tax.

Year ended 31st December
1968 1969 1970 1971*
£ £ £ £
(a) Capital employed 397,000 462,000 503,000
(b) Sources of capital:
Ordinary shares (Minister for Finance) 396,000 495,000 611,000
Bloodstock replacement fund 30,000 23,000 —
Less Deficit on Profit and Loss Account 29,000 56,000 108,000
% % % %
(c) Yield on total capital employed 2 — —
£ £ £ £
(d) Return paid on capital — — —
(e) Amount of capital repaid or converted — — —
(f) Amount paid in corporation profits tax and income tax — — —
(g) Amount set aside for depreciation 3,000 3,000 4,000
(h) Total of tax paid and depreciation 3,000 3,000 4,000
(i) Profit (Loss) 7,419 (20,763) (51,326)

The net assets of the Company are probably sufficient to repay the share capital, but on the book values shown in the balance sheet the amount that could be repaid is approximately 82 per cent.

* Accounts for 1971 not yet available.

Year ended 30th April 1971
1968 1969 1970 1971
£ £ £ £
(a) Capital employed 8,263,000 8,691,000 9,092,000 11,094,000
(b) Sources of capital:
Ordinary shares (Minister for Finance) 4,500,000 4,500,000 4,500,000 4,500,000
Preference shares 500,000 500,000 500,000 500,000
Loan capital (Minister for Finance) 1,000,000 1,000,000 1,000,000 1,000,000
Debenture stock 901,000 901,000 901,000 901,000
Bank Term Loan 1,980,000
Reserves and provisions 1,362,000 1,790,000 2,191,000 2,213,000
% % % %
(c) Yield on total capital employed 4.5 3.5 4.7 1.1
£ £ £ £
(d) Return paid on capital 131,000 131,000 132,000 131,000
(e) Amount of capital repaid or converted — — — —
(f) Amount paid in corporation profits tax and income tax 372,000 424,000 481,000 17,000
(g) Amount set aside for depreciation 628,000 671,000 755,000 901,000
(h) Total of tax paid and depreciation 1,000,000 1,095,000 1,236,000 918,000
(i) Profit (Loss) 456,000 302,000 426,000 117,000

Tangible assets at 30th April 1971 were sufficient to repay 53% of capital employed plus depreciation.

Year ended 31st October
1968 1969 1970 1971*
£ £ £ £
(a) Capital employed 16,517,000 18,834,000 21,276,000
(b) Sources of capital:
Ordinary shares		 8,830,000 8,830,000 8,830,000
Loans from Minister for Finance 4,485,000 6,976,000 8,019,000
Loans from private sector 2,363,000 2,363,000 3,332,000
Reserves 839,000 839,000 1,095,000
% % % %
(c) Yield on total capital employed 5.1 6.4 6.5
£ £ £
(d) Return paid on capital 492,000 693,000 917,000
(e) Amount of capital repaid or converted 4,720 — —
(f) Amount paid in corporation profits tax and income tax 123,000 83,000 103,000
(g) Amount set aside for depreciation 2,000 5,000 5,000
(h) Total of tax paid and depreciation 125,000 88,000 108,000
(i) Profit (Loss) 352,000 650,000 602,000

The Company has sufficient assets to repay capital employed and depreciation provisions.

* Accounts for year ended 31st October, 1971, not yet published.

Year ended 31st December
1968 1969 1970 1971*
£ £ £ £
(a) Capital employed 68,737,000 76,823,000 89,245,000
(b) Sources of capital:
Ordinary shares 200,000 200,000 200,000
Assurance funds 66,611,000 74,642,000 87,100,000
Loans 1,490,000 1,490,000 1,490,000
Reserves 436,000 491,000 455,000
% % % %
(c) Yield on total capital employed 6.72 6.83 6.70
£ £ £ £
(d) Return paid on capital (dividend and interest) 124,000 165,000 168,000
(e) Amount of capital repaid or converted — — —
(f) Amount paid in corporation profits and income tax 365,000 363,000 255,000
(g) Amount set aside for depreciation 17,000 21,000 25,000
(h) Total of tax paid and depreciation 382,000 384,000 280,000
(i) Profit (Loss) (Valuation surplus) 580,000 650,000 675,000

The Company has sufficient assets to repay capital employed and depreciation provisions

* Accounts for 1971 not yet available.

[1271][1272] The Racing Board.

Year ended 31st December
1968 1969 1970 1971*
£ £ £ £
(a) Capital employed** 220,000 365,000 503,000
(b) Sources of capital**
(c) Yield on total capital employed***
(d) Return paid on capital — — —
(e) Amount of capital repaid or converted — — —
(f) Amount paid in corporation profits tax and income tax 26,000 — 5,000
(g) Amount set aside for depreciation 262,000 70,000 —
(h) Total of tax paid and depreciation 288,000 70,000 5,000
(i) Profit (Loss)***

At any period the net value of the tangible assets is equal to the amount of capital employed

* Accounts for 1971 not yet available.

** The Racing Board has no loan, preference or ordinary share capital. The figures shown for capital employed above are the net assets at the end of each accounting year and represent the accumulated surpluses of the Racing Board and its predecessor, the Board of Control for Mechanical Betting, since the formation of the latter in 1930.

*** In the case of the Racing Board there is no yield in the commercial sense on capital employed. Similarly the Board's accounts record no profit or loss in the commercial sense. The Board's income is applied to administration expenses and grants for the benefit of horse racing. The accounts record a loss of £23,000 in 1968 and surpluses (accumulated) of £42,000 and £71,000 in 1969 and 1970 respectively.

Year ended 31st March
1968 1969 1970 1971
£ £ £ £
(a) Capital employed 1,325,100 3,839,100 5,347,100 5,884,100
(b) Sources of capital:
Ordinary shares (Minister for Finance) 100 100 100 100
Loans (Minister for Finance) 1,325,000 3,839,000 5,347,000 5,884,000
% % % %
(c) Yield on total capital employed — — 0.1 0.2
(d) Return on capital*
(e) Amount of capital repaid or converted — — — —
(f) Amount paid in corporation profits tax and income tax — — — —
(g) Amount set aside for depreciation — — — —
(h) Total of tax paid and depreciation — — — —
(i) Profit (Loss) (4,960) (5,541) 4,919 9,885

Total value of (a) and (g) above at 31/3/71 was £5,884,000. The book value of loans and investments by the Company and cash at bank at that date was £5,870,000; it is not possible to say what proportion of this sum could be realised.

* The terms as to interest and repayment for the advances to the Company by the Minister for Finance have not yet been determined by the Minister.

[1273]159.

Mr. L'Estrange: Information on Gerald L'Estrange  Zoom on Gerald L'Estrange  asked the Minister for the Gaeltacht if he will state, in respect of the boards and State companies, or any other bodies under the aegis of his Department, for 1968, 1969, 1970 and 1971 (a) the amount of capital employed on the 31st March, (b) how and from what source such capital was provided, (c) the yield on the total capital employed, (d) the return paid on the capital, (e) the amount of any capital repaid or converted, (f) [1274] the total amount paid in corporation profits and income tax, (g) the amount set aside for depreciation, (h) the total of (f) and (g) respectively for the four years and (i) the profit or loss; and whether there are now adequate tangible assets to repay, if need be, the totals of (a) and (g) and if not, what proportion could be repaid.

Minister for the Gaeltacht (Mr. Colley): Information on George Colley  Zoom on George Colley  Is mar seo a leanas an t-eolas faoin dá chomhlacht atá i gceist.

Bliain dar chríoch 30 Meán Fómhair (x) Caipiteal ar 30 Meán Fómhair Foinsí agus Saghsanna an Chaipitil Brabach Glan Cáin bhrabús chorpar- fsáide 7 ioncaim a íocadh Soláthar na bliana don dí-luachadh
Gnáthscaireanna Iasachtaí (y)
Aire na Gaeltachta Alginate Industries Limited
£ £ £ £ £ £ £
1968 58,303 39,000 11,000 8,303 5,400 802 2,040
1969 92,401 39,000 11,000 42,401 10,649 7 5,844
1970 87,982 39,000 11,000 37,982 9,497 440 5,953
An tIomlán don tréimhse 1,249 13,837

(x) Níl na cuntais iniúchta don bhliain dar chríoch 30 Meán Fómhair, 1971, ar fáil fós.

(y) Airleacan inaisíoctha saor ó ús ó Alginate Industries Limited, iasacht faoi mhorgáiste agus, ó 1968/69, iasacht ón gCuideachta Um Chairde Tionscail Teoranta. Níl rótharraingt bhainc ó am go chéile san áireamh.

Maidir leis an scairchaipiteal níor tiontaíodh ná níor aisíocadh aon chuid de ná níor íocadh aon díbhinní air.

Ar 30 Meán Fómhair, 1970, bhí luach na sócmhainní cuid mhaith níos mó ná iomlán an chaipitil agus an chúltaca do dhíluachadh.

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