asked the Minister for Industry and Commerce if he will state the exact amount of (1) debenture stock and (2) common stock of Córas Iompair Eireann, which, under the provisions of the Transport Bill, 1944, will at the outset be substituted for stocks of the Great Southern Railways Company; if he will further state (a) the annual sum which will be required to redeem such debenture stock under Section 16 of the said Bill by equal annual payments with such addition as may be necessary to meet taxes chargeble thereon, if any; (b) the annual sum required to pay interest on such substituted debenture stock, and (c) the annual sum required to pay 1 per cent. on such substituted cumulative stock; also, if he will state by how much the sums required under (a), (b) and (c) above exceed the average, over the years 1925-1938, adjusted net income of the Great Southern Railways Company as shown in Appendix No. 11 of Transport Tribunal Report, 1939.
Ceisteanna.—Questions. Oral Answers. - Córas Iompair Eireann.
The amounts of debenture stock and common stock of Córas Iompair Eireann which will be substituted for stocks of the Great Southern Railways Company under the provisions of the Transport Bill, 1944, are, subject to possible slight adjustment in respect of the conversion of fractions of a £:—
Debenture Stock: £8,048,556
Common Stock: £3,525,734
The answers to parts (a), (b) and (c) of the question are:—
(a) £640,800 (to the nearest £100, and assuming a rate of 3 per cent.);
(b) £241,457 (assuming that no debenture stock is redeemed before 1955);
(c) £35,257.
The total of these three figures is £917,514 which exceeds by £349,669 the average adjusted net income of the Great Southern Railways Company as shown in Appendix No. 11 of the Transport Tribunal Report, 1939, for the 14 years 1925 to 1938, viz: £567,845.
The total net income of the company for 1943 before making provision for depreciation was £1,191,774. The net amount appropriated for depreciation over the whole 14 years was only £183,360, an average of £13,097 a year which should be added to the average adjusted net income of £567,845, making an average net income of £580,942 to compare with the 1943 figure of £1,191,774.
Is anything included in the figure of £640,000 odd under (a) for taxes on profits which would have to be paid before any redemption of debentures would ordinarily be allowed?
That is the sum which would be required to redeem the debenture stock in that period.
My question asked for the figure with such additions for taxes, if any, as may be necessary.
That is the figure with such additions.
There is no addition?
That is the answer to the Deputy's question.
There is something for taxation?
Yes.
Will the Minister agree that if the £6,500,000 new capital is raised, there will be an extra charge on the company per annum of £180,000—3 per cent. on £6,000,000?
There will.
Does the Minister agree that the average net income was criticised as being very seriously deficient in the allowances made for renewals, maintenance and repairs?
That is right.
And that the net result is that the new company, on the average of the period 1925 to 1938, would have to more than double its income?
It would have to more than double its nett income on the Deputy's assumptions.