—I move:—
Go ndeontar suim Bhreise ná raghaidh thar £2,356 chun íoctha an Mhuirir a thiocfaidh chun bheith iníoctha i rith na bliana dar críoch an 31adh Márta, 1935, chun íocaíocht fé Acht na mBóthar Iarainn, 1924, agus chun crícheanna eile bhaineann le hiompar in Eirinn.
That a Supplementary sum not exceeding £2,356 be granted to defray the Charge which will come in course of payment during the year ending 31st March, 1935, for payments under the Railways Act, 1924, and for other purposes connected with Irish transport.
With regard to sub-head C, the position is that in the year 1911 the Congested Districts Board advanced a sum of £7,500 to the Galway Bay Steamboat Company for the purchase of the steamer, "Dun Aengus," to be used for the transport of passengers, live stock, and goods between the Aran Islands and the City of Galway. The Congested Districts Board provided, in addition, an annual subsidy of £1,100 out of which the loan instalments were met. This arrangement continued up to 1926. Additional grants were made to the company in the years in which heavy repairs to the vessel had to be undertaken. An investigation by officers of the Department of Industry and Commerce into the company's position resulted in a decision to permit the company to suspend payment of the loan instalments for the four years 1926 to 1929, the subsidy for these years being fixed at £1,000.
In consequence of economies in working resulting from other activities undertaken by the company, the loss in working on the "Dun Aengus" was reduced and for the years 1930 and 1931 payments of £500 and £600 respectively only were made. For 1932 the subsidy had again to be fixed at £1,000 owing to exceptional repairs which had to be carried out on the vessel. With a view to equalising the annual charge to the State, an agreement was prepared which provided for the payment to the company of a fixed subsidy at the rate of £300 per year from the 1st January, 1933, and the writing off of the outstanding balance of £3,693 10s. 6d. of the original loan account. The company's assent to this agreement was only notified in November, 1934, and the £300 originally provided under this sub-head in the main Estimate was applied in accordance with the terms of the agreement in discharge of the 1933 liability. The provision now required is to meet the payment for the year 1934.
There is a second item included in the sum also which arises from the fact that for the period from 1st January, 1931, to 31st May, 1932, during which the State-subsidised Sligo-Killybegs steamer service was in operation, harbour dues at Killybegs were not paid owing to a dispute as to the scale of charges applicable. Agreement has now been reached as to the basis of charge and the sum of £56 is required to discharge the outstanding liability.
Sub-head CC provides for a payment to the Londonderry-Lough Swilly Railway Company. It will be remembered that in anticipation of the undertaking by the company of the reorganisation of their entire undertaking, made possible under the provisions of the Railways Act, 1933. and the Road Transport Act, 1933, a subsidy was provided in 1934 to make good a moiety of the loss on working for the year 1933. The subsidy was paid on the understanding that no further subsidies of that nature would be considered. However, unexpected difficulties arose in effecting the reorganisation of the undertaking, principally in the matter of raising the additional capital required, and also because of the postponement to 1st July, 1934, of the date for the coming into operation of the Road Transport Act, 1933. The position which it was hoped to have reached in 1934 has, therefore, had to be postponed for a further year. Substantial progress has now been made in the preliminary stages of the reorganisation and the subsidy is proposed to make good to the company a moiety of the loss on working in the year 1934. I understand that a corresponding payment, although on a different basis, will be made by the Government of Northern Ireland.
The next sub-head is an unusual item and arises from the fact that certain sums were due to the State by this company. The first of these represents the unpaid moieties and percentages which have accrued as from the 1st July, 1922, under the provisions of the Irish Railways (Confirmation of Agreement) Act, 1919, as continued by the Irish Railways (Settlement of Claims) Act, 1921. The liabilities in respect of the Carndonagh and Burtonport sections were based on the results of working for 1913 when the Londonderry and Lough Swilly Company were allowed, out of gross revenue, £3 10s. per mile, per week, for working these lines, a moiety of the balance of gross revenue in each case being payable to the Government as the owners of the line. The liability in respect of the Letterkenny Railway is based on a pre-war agreement under which the line was to be worked for 65 per cent. of the gross revenue, the balance of 35 per cent. being similarly payable to the Government, through the Board of Works, as mortgagees in possession. The sums due to the Government had to be retained by the company, however, to meet working expenses and the total liability which thus accrued to the 31st December, 1934, is as follows: in respect of the Carndonagh extension, £5,900 4s. 8d.; in respect of the Burtonport extension, £18,234 6s. 4d.; in respect of the Letterkenny Railway, £28,362 9s. 8d.; making a total of £52,497 0s. 8d.
While these moieties and percentages are legally due under the provisions of the Act I have referred to, there is a very strong case in equity for their remission, as during the entire period the working expenses of these lines have been substantially in excess of the gross revenue. In fact, owing to the continuance of losses in working and the inability of the company to meet them, it has been necessary since 1924 for the Saorstát Government and the Government of Northern Ireland to contribute equally in payments to the company to enable the lines to be kept open for traffic. The total Saorstát advances made during the years 1924 to 1934 amounted to £54,191.
With regard to these advances it is claimed that the losses incurred by the company in keeping open the three Government lines since 1922 exceeded the amount of the advances, and, while separate working accounts have not been kept, it is thought that the company's contention is well founded. It may be observed that the corresponding payments made by the Government of Northern Ireland have been treated as free grants and there is no obligation on the company to repay any portion of them. It is proposed, therefore, to wipe out this obligation. No charge on the Exchequer will arise on account of the sums made available under this sub-head, as a similar amount will be brought into credit as appropriations-in-aid. This procedure is necessary in order to have on record the formal approval of the Dáil to the writing off of these amounts.
