A former manager of St Joseph's Industrial School at Ferryhouse in Clonmel has told the Child Abuse Commission that when he joined the staff in 1975 the school's services were in decline.
Fr Patrick Pierce described the physical conditions at the school as unsatisfactory.
In his evidence Fr Pierce, from the Rosminian order, said there was no money anywhere and the school operated on an overdraft system continuously.
Fr Pierce told the commission that in the mid-1970's the punishment system at the school had 'evolved' and policies were in place to control the use of the strap.
Earlier, the head of the Rosminian Institute told the commission that corporal punishment was an aspect of life at the school.
Fr Joseph O'Reilly told the commission that most of the punishment happened in a spontaneous way.
He also told the inquiry that two members of the religious community running the school were removed in the 1960s for the sexual abuse of boys.
The commission resumes its examination of the school tomorrow when Fr Pierce continues his evidence.
