The Gazette 1977

OCTOBER 1977

GAZETTE

7.1 In the year to April, 1977, the expenditure of the Society as anticipated increased under all headings from a figure of £235,000 in 1975/76 to £317,000 in the year under review. Fortunately, the Society's income also increased substantially, the mqjor contributing factors being substantial increases in Members Subscriptions, Registrar's Certificates, the profitability of the Company Formation Service, and profit on sundry publications of the Society.

FINANCE COMMITTEE

Gerald Hickey

Chairman

7.2 The income for the year amounted to £317,000 and the Society therefore achieved a breakeven position on current account by the skin of it's teeth.

Donal G. Binchy Patrick C. Moore Peter Murphy William A. Osborne Peter D. M. Prentice Thomas D. Shaw

7.3 This breakeven position could, of course, only be achieved by capitalising interest payments on the Blackhall Place expenditure, which the Finance Committee feels justified in doing until the completion of this expenditure, when it is hoped that at least certain portions of the premises will become income producing.

7.4 The budget for the current year estimates a deficiency on current account of approximately £36,000 apart from expenditure on the Law School and interest on the Blackhall Place loans.

7.5 Owing to the uncertain situation with regard to completion of Blackhall Place it is impossible to make a final estimate of the Society's deficit for the current year, but the deficit is likely to be substantial because the year will be a transition year in which a great deal of the current account expenditure on Blackhall Place will be incurred and no offsetting income from the Education Area or the promotional activities of the Society will yet have commenced to accrue.

7.6 However, the most disturbing aspect of the financial affairs of the Society has been on Capital account because of the very great increase over the budgeted figure for Stages one and two of the Blackhall Place renovation programme.

7.7 Mr. Osborne in his report of last year, pointed out that our Professional Advisers had estimated the cost of completing stages one and two at £463.000.

7.8 This figure has now risen to approximately £750,000 and your Premises and Finance Committees are at present waiting final reports from their Professional Advisers, firstly, as to the reasons for this very great increase in the estimated cost of the work and, secondly, for indications as to the total final cost of the project.

7.9 The Society is fortunate in that the fund raising programme under the management of our professional fund raiser, Mr. John Connolly, is at present progressing satisfactorily and in addition agreement has been reached with the General Council of the Bar for the sale to them for a substantial sum of the first and second floors of Solicitors' Buildings in the Four Courts.

7.10 There are still however, a great number of members of the profession who have not contributed to the Blackhall Place fund raising scheme and the Finance Committee is most anxious that all Members of the Society should carefully consider their position in relation to this most important step in the Society's history and do their best to make an appropriate contribution.

7.11 The position with regard to the Compensation Fund continues to remain satisfactory and the fund stands at a higher figure than at the beginning of the year. We are glad to say that no serious losses were sustained by the fund during the year in question.

7.12

Lastly, I would like to report on the very successful performance of the Society's Retirement

Pension Scheme.

7.13 In the two and a half years since the inception of this scheme the amount of the fund has now risen to over £400,000 and the value of each unit, which after expenses cost Members £97.50 at inception, had risen on 1st September last to £146.15. This indicates a gain over the period of £48.65, which averages just over 19% per annum free of tax. This result undoubtedly makes the fund one of the most successful provately managed Pension Funds in the Country and well deserving of further support from all Members.

7.14 The projections for the fund are that the target of half a million pounds originally set for March, 1978, should now be exceeded and that the ultimate target for the 1st March, 1980, of a fund in excess of One Million Pounds should be well within the power of the Society to achieve.

7.15 There are still, however, many Members who have probably not considered the Scheme in detail and I would now urge upon them to look at it very closely as I feel sure that, in the words of the old legal

Gerald Hickey,

Chairman

advertisement, they will find something to their benefit.

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