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Chapter 2 — Finance

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Value of work done by the Order

190

The purpose of the residential school system was that the State and religious Orders would act in partnership in providing care to poor and destitute children. The Religious would raise donations for the establishment and upkeep of the schools and the State would pay to maintain the children. By the time the Department of Education took over the running of these schools and by the start of the period examined by the Investigation Committee, this dual role had become blurred for a number of Congregations. Most religious Orders did not seek public subscription for the premises used as residential homes and used the capitation grant to enhance and improve them. It is difficult to establish what effect, if any, this had on the funds available for the children and it varied from school to school.

191

In assessing the adequacy of the capitation grant, some Congregations have taken into account the monetary value of the work done by the religious staff over the years. On a simple accounting basis such an approach may be justified, but in determining whether the institutions had enough money to provide the basic needs of the children, an analysis of what was, at the time, understood to be the charitable nature of this work is important.

192

The Christian Brothers were particularly defensive of the remuneration paid to the Brothers. Their response submission criticised the suggested assumption by Mazars that everything earned by the Christian Brothers in the community irrespective of source should have been available to the school ‘to fund its losses’. It argued that this was tantamount to suggesting that anybody who worked in state institutions should hand back any money left over at the end of the year. The argument proceeded to criticise this approach as ignoring ‘obvious and unarguable facts.’ One of these facts was that each and every Brother who provided his services to the industrial school was entitled to remuneration and that such remuneration paid by way of stipend ‘was unarguably the property of the community. If the State was running the institution itself it would have paid each and every person employed there a salary which would have been the legal property of that person.’

193

In putting forward their analysis of the value of the Brothers’ work to the institution, the Christian Brothers stated in their opening statement to the Artane module: the Brothers working in Artane were not paid a salary; instead a stipend for each Brother working in the schools or on the administrative staff was paid to the local Community. This was in keeping with other schools or institutions in the capitation system. The annual stipend in Artane ranged from £142 per Brother in the 1940s to £300 per Brother in the 1960s. Significantly the rate of stipend in Artane was lower than in other schools where the rate in the 1960s was £550. The fact that the Brothers were only paid a stipend represented a clear saving to the State....

194

The statement then set out the 25 Brothers working in Artane in the 1960s and, by reference to Northern Ireland salary scales, estimated what they would have been earning in salary. They concluded that had the State paid the Brothers’ salaries instead of stipends it would have cost the State £14,070 per year in the mid-1960s.The stipends came to a total of £7,500 thus representing a saving to the State of £6,570.

195

As in the case of assessing adequacy of income, the Northern Irish comparator is less helpful than an actual salary comparison in the Republic. According to the Christian Brothers’ Northern Ireland comparator, eight primary school teachers at £750 each at the lower end of the salary scale would have attracted a total of £5,800. In fact, in the State a primary school teacher at the lower end of the salary scale earned £450 in 1963, which increased to £605 in 1964. The correct figure for that one element of the Christian Brothers’ calculation is either £4,000 or £4,840. Similar adjustments to each category of Brother employed in Artane would quickly erode any ‘clear saving to the State’.

196

The following is a table of stipends paid to Brothers in Artane, against primary school salaries from 1944 to 1968:18
Year Trained single teacher – lowest point on salary scale Artane stipend per Brother
1944 €187 €152
1945 €187 €152
1946 €187 €152
1947 €279 €241
1948 €279 €241
1949 €279 €241
1950 €317 €241
1951 €317 €241
1952 €362 €241
1953 €396 €241
1954 €396 €317
1955 €396 €317
1956 €432 €317
1957 €432 €317
1958 €432 €508
1959 €458 €381
1960 €476 €381
1961 €476 €381
1962 €546 €381
1963 €571 €381
1964 €768 €381
1965 €787 €381
1966 €837 €381
1967 €837 €381
1968 €837 €381

197

Two important factors arise: All of the Brothers’ ordinary living expenses were paid by the school including food, accommodation and general maintenance of the monastery. The stipend, which was paid directly to the monastery, covered expenses such as clothing, holidays, travel and medical care. All Brothers received this stipend, even those in more menial positions in the school and those with no involvement in the care of the boys. If £300 represented a fair remuneration for a Brother who was a teacher in the school, it was arguably an overpayment for Brothers who worked in the kitchens or the farm. It was certainly an overpayment for those Brothers who were retired and elderly and who were not directly involved in the running of the school.

198

Although the value of the stipend fell in the latter half of the 1960s, it was a generous payment in the 1940s and 1950s and early 1960s. It allowed Artane and other schools to make significant contributions to the building fund, which facilitated the development of Christian Brothers’ schools outside of the Industrial School system.

199

It is not correct to assert that the payment of stipends represented a significant saving to the State on salaries that would otherwise have to be paid. The cost to the State of running institutions like Artane was considerable.

200

It is not clear that the cost to the State of paying all the Brothers in the institution a stipend was fully understood by the Department of Education or the Department of Finance at the time. As was shown in the historical section of this chapter, no proper breakdown of this figure was submitted to the Department in the 1940s or 1950s and no reference appears to have been made to it by the Department in its communications with the Resident Managers’ Association when discussing increases in grants.

201

A difficulty with the Christian Brothers’ submission is in the distinction between the charitable contributions of individual Brothers and the larger interests of the Congregation, including the funding of its operations.

202

In respect of the Reformatory at Daingean, run by the Oblate order, Mazars stated that the payments to the Province amounted to almost €50,000 over the period under review: A report prepared on behalf of the Oblate Order in May 2002 indicates that these payments to the Province and to the Order members were funded by farm sales, stipends and donations. An analysis of payments to the Province and to the Order members in the context of the surplus/deficit generated from the farm and income from donations and stipends indicates, however, that in most years such income sources, when related costs are taken into account, would not have supported the level of payments made to the Province and to the Order members and, at an overall level for the period from 1940 to 1969, payments to the Province and to the Order members would have exceeded these sources of income by an amount of approximately €25,111, i.e. farm income, donations, stipends and sundry sales together exceeded farm expenditure by just €35,395 and were not sufficient to cover payments to the Province... This would, therefore, imply that capitation grants were, in part, funding payments to the Province’19.

203

In response, the Oblate Order made a strong submission on the question of the value of the Order’s work in Daingean to the State. This was not part of their opening statement but it was addressed by them in their response to the Mazars’ report. They stated: For example, the full value of the work done by the priests and brothers of the Oblate order should be counted as a cost to the school, matched by a liability from the school to the Oblate order.

204

The economic consultants, Goodbody’s, engaged by the Oblates attempted to work out the cost of the work done by the religious against the value to them of their accommodation and living expenses. They stated: When a minimum value of the work done by the members of the order is recognised, and this value is reduced by maximum values for the value of the goods, services and cash provided by St Conleth’s to the Oblate order the accumulated loss increases to €113,947 [£96,268].


Footnotes
  1. Quoted in D of E submission, pp 103-4.
  2. Report of Commission of Inquiry into the Reformatory and Industrial School System, 1934-36, paras 165-7.
  3. These reforms are explained in a cogent six page Minute of 14th March 1944 written by the Department (Ó Dubhthaigh, Leas Runai) to the Runai, Department of Finance. The Minute also questioned the certification system’s legality:
  4. There is no justification for the ‘Certificate’ system. The Children Acts, 1908 to 1941, lay down the circumstances in which children may be committed to industrial schools. The Courts commit children to them in accordance with these Acts. At this stage the Certificate system operates inconsistently to allow payment of the State Grant on some of the children so committed and to forbid it on others. There seems to be no reason for the State’s failure to contribute to the support of some arbitrary number of those children. No such distinction is made, for instance, in the case of youthful offenders committed to Reformatories under the same Acts or of people sent to jail. If the purpose is to limit the number of children to which the Children Acts may apply, its legality is questionable.
  5. Memo of 4th April 1951 from M O’Siochfradha states:
  6. In all cases the actual accommodation limit was greater than the certified number and in many cases it was considerably greater viz., Glin – accommodation 220, certified number 190; Letterfrack, accommodation 190, certified number 165; Artane, accommodation 830, certified number 800.
  7. See also Education Statement, para 3.2.
  8. At certain periods (e.g. 1940s) anxious consideration was given to the question of how many places to certify – whether to raise or lower the previous year’s figure or to leave it the same. Among the factors weighing with the person taking the decision (usually there was a significant contribution from Dr McCabe) was: the numbers of committals anticipated; the suitability of the schools (e.g. accessibility from Dublin); the need to assist small schools with disproportionately high overheads; a desire to avoid creating jealousy among the schools.
  9. Data provided by Mazars indicates that a single man at the lowest point of the salary scale was paid £145 in 1944.
  10. Appendices to the Mazars’ Report are included on the Commissions website (www.childabusecommission.ie)
  11. Mazars, Part 4.1.
  12. Mazars, Part 4.2.3.
  13. Section 44 of the Children Act 1908.
  14. Mazars, Part 4.2.3.
  15. Mazars, Part 4.3.1.
  16. Mazars, Part 4.3.1.
  17. Mazars, Part 4.3.1.
  18. Mazars, Part 4.4.2.
  19. Mazars, Part 4.4.3.
  20. Mazars, Part 4.4.4.
  21. Mazars, Part 4.4.4.
  22. Mazars ‘Analysis of Stipends in Lieu of Salaries & Teachers’ Pay, March 2008’.
  23. Mazars, Part 8.2.
  24. That is approx £69,000 out of a total of £726,881.
  25. That is £251,000 out of £726,881.
  26. Mazars, Part 8.2.
  27. Mazars, Part 7.2.
  28. Mazars, Part 5.1.
  29. Mazars, Part 5.1.
  30. Mazars, Part 5.2.
  31. Mazars, Part 5.2.
  32. Mazars, Part 5.2.
  33. Mazars, Part 5.2.
  34. Mazars, Part 5.4.
  35. Submission of the Christian Brothers on the Review of Financial Matters Relating to the System of the Reformatory and Industrial Schools, and a Number of Individual Institutions 1939 to 1969 - Appendices to the Mazars’ Report are included on the Commissions website (www.childabusecommission.ie).
  36. Ciaran Fahy Report: see Vol I, ch 7, Appendix.
  37. Mazars, Part 7.2.
  38. Mazars, Part 7.2.
  39. Mazars, Part 7.2.
  40. Mazars, Part 7.2.
  41. Mazars, Part 7.2.
  42. Mazars, Part 7.4.
  43. Mazars, Part 8.2.
  44. Mazars, Part 8.2.
  45. Mazars, Part 8.2.
  46. Mazars, Part 8.2.
  47. Mazars, Part 8.4.
  48. Mazars, Part 6.4.
  49. Mazars, Part 6.4.
  50. Mazars, Part 6.4.
  51. Rosminian Final Submissions, p 13.
  52. Rosminian Final Submissions, pp 13-14.
  53. Rosminian Final Submissions, p 17.
  54. Rosminian Final Submissions, pp 17-18. Cf p 19.
  55. Rosminian Final Submissions, p 19.
  56. Rosminian Final Submissions, p 17.
  57. Rosminian Final Submissions, p 20.
  58. Rosminian Final Submissions, p 22.
  59. Rosminian Final Submissions, p 23.
  60. Mazars, Part 9.2.
  61. Rosminian Final Submissions, p 15.