I move that the Bill be now read a Second Time. Deputies will observe from the Bill and the explanatory memorandum circulated with it that it deals with various miscellaneous provisions, most of which have little relation to one another but which it has been found necessary to enact for various reasons.
Section 2 of the Bill authorises the board to make regulations for various purposes. It is intended when these regulations are made that they shall be submitted to the Minister for Industry and Commerce who, if he approves them with or without amendment, shall confirm them by Order. The regulations, therefore, will have no force or effect until so confirmed by Order.
Under Sections 33 and 34 of the Electricity Supply Act of 1927, the Board has wide powers to make regulations in regard to various matters. Through a defect, the Act makes no specific provision for the publication of the regulations so made. Having this in mind, the board has been advised that it is very doubtful if regulations made by it under the sections are enforceable. Apart from these considerations, it has long been considered undesirable that the board should have power, without reference to any other authority, to make regulations enforceable inter alia against itself. Section 2 will remove these defects, while at the same time providing a satisfactory and convenient method of providing such regulations as may be necessary, including regulations for the protection of public safety.
At this point I might add that the board has also found that the provisions of Sections 33 and 34 of the Act of 1927 are defective in certain legal and other respects and the enactment of Section 2 will enable these defects to be removed.
Section 3 relates to another important purpose, namely, the establishment of an arbitration tribunal for the members of the staff of the board, other than manual workers.
This tribunal will be established on exactly the same lines as those which relate to the corresponding tribunal for manual workers which was set up under the Electricity Supply Board (Superannuation) Act, 1942, which latter tribunal is confined to matters affecting the manual workers employed by the board. The composition and features of the new tribunal will be apparent from the relevant provisions in the Bill, but I may add that it is proposed, as in the case of the Manual Workers' Tribunal, that it shall consist of a chairman and two ordinary members, one to be appointed by the Electricity Supply Board and the other by the general employees concerned. The chairman will be appointed by the Minister for Industry and Commerce preferably on the joint nomination of the two ordinary members, but where agreement on this matter cannot be reached between these members the chairman will be appointed by the Minister.
It would, I think, be superfluous for me to enter into a justification of the establishment of this tribunal. Deputies on both sides of the House will, I am sure, support any legislative proposal which, on the one hand, is likely to enhance the security of an important public utility such as electricity supply and, on the other hand, may tend to promote better relations between employer and employee by providing a ready and smooth means of settling disputes between them. The Manual Workers' Tribunal established in the year 1943 has proved to be very successful and there is no logical reason why the general employees of the board should not have at their disposal a similar means of adjusting disputes as those which the manual workers already possess. As a matter of fact, the general employees of the board have asked for this tribunal to be set up. It may be argued by some people that the machinery of the Labour Court would be appropriate in place of a specialised tribunal; but I think in the case of a vital public utility undertaking possessing, as it does, a virtual monopoly in its own sphere, such as the Electricity Supply Board, it is preferable that any differences which may arise between the employees and the board, which often involve technical problems with which both sides would be familiar but which another body could not be expected to be cognisant of should be submitted to and decided by a tribunal of the kind envisaged in the Bill.
Sections 4 to 8 also relate, directly or indirectly, to the new tribunal and are in line with the corresponding provisions of the Electricity Supply Board (Superannuation) Act of 1942 for the Manual Workers' Tribunal.
Section 9 is in the nature of a drafting amendment to Section 15 (2) of the Superannuation Act of 1942, which section relates to the payment by the board of allowances supplementary to any pension which may be payable under the appropriate superannuation scheme to certain persons transferred to the services of the board from the service of other electricity undertakings, not being local authority undertakings, who had no rights to pension at the time of their transfer to the board. A number of these persons have long service in the electricity supply industry and it was found that adequate provision, having regard to the length of their service, could not conveniently be made in the appropriate superannuation scheme. While the board has power to grant supplementary allowances in such cases it cannot legally declare, in advance of the date of retirement, the amount of such allowance it intends to grant. I think it will be agreed generally that it is reasonable and equitable that the board should be placed in a position to make this supplementary provision and to advise the employees in advance of the extent to which it intends to exercise this power.
Section 10 deals with the superannuation of certain persons formerly employed by local bodies. Provision was made in the Electricity Supply Act, 1927, that on the acquisition by the Electricity Supply Board of an undertaking formerly owned and administered by a local authority the pension rights of any employees who possessed such rights at the time of the transfer should be preserved to them in respect of their service with the former undertaker. In other words, they were to suffer no loss of pensionable service by reason of their transfer.
In the year 1929 the Electricity Supply Board acquired certain electricity undertakings owned by local authorities, notably those of Rathmines. Pembroke and Dún Laoghaire and on acquisition the electricity staffs of those authorities became employees of the board. These employees had no pension rights at the time of transfer. Subsequently, the urban districts of Rathmines and Pembroke were merged in the Dublin County Borough and that of Dún Laoghaire with other local authorities in the newly-formed Borough of Dún Laoghaire. Following this rearrangement the employees of the various bodies constituting these new authorities who possessed no pension rights up to then acquired them under the statutory provisions covering the mergers, both in respect of their service with the dissolved authorities and such later service as they might have with the newly-created boroughs. These benefits did not, however, extend to those of the former employees of the dissolved bodies who had, prior to the mergers, been transferred to and entered the service of the Electricity Supply Board.
At a much later stage the responsibility for public lighting in the Rathmines, Pembroke and Dún Laoghaire areas, which had been assumed by the Electricity Supply Board on its acquisition of the relevant electricity undertakings was, by arrangement, re-transferred to the two boroughs concerned and, in consequence, a certain number of the former employees of the Rathmines, Pembroke and Dún Laoghaire Urban Councils who had been engaged upon maintenance of public lighting were re-transferred to the service of the bodies which had succeeded the urban councils, namely, the Boroughs of Dublin and Dún Laoghaire. By the provisions of the Local Authorities (Electrical Employees) Act, 1937, the employees so re-transferred were given the benefit of (i) past service with the local authorities; and (ii) service whilst with the board; and (iii) later and future service with the relevant boroughs, the aggregate service under the three heads counting for pension purposes on ultimate retirement.
Those of the transferred employees who had no option but to remain in the service of the board made representations pointing out that their former colleagues who at no time had left the service of the local authorities concerned, and, more particularly, those who had been transferred with them to the service of the board and later re-transferred to the two boroughs, had acquired pension rights for their entire aggregate service whilst they who were still in the service of the board had obtained no such corresponding rights. Following these representations, which were supported by the board and by the Arbitration Tribunal established under the Electricity Supply Board (Superannuation) Act, 1942, it has been decided that it would be only fair and equitable to give to the transferred employees remaining in the service of the board the same pension rights as have been acquired by their former colleagues. The number of persons concerned is 32 and the cost which will be borne by the board will be relatively small.
Section 11 relates to the superannuation of certain persons who were employed at the Pigeon House generating station when it was closed down following its acquisition by the board and is framed to meet the case of a few former employees of the Dublin Corporation who were compensated by means of lump sum gratuities on the termination of their employment by the board following the acquisition by the board of the Pigeon House generating station. Other such employees who had longer service at the relevant time were compensated by way of pension in respect of their service up to the closing of the station. At a subsequent stage the board found it necessary to reopen and maintain continuously in commission the Pigeon House station, the former employees being re-employed.
Those who had been compensated by way of pension were, on re-employment, paid at the appropriate rate for the work on which they were reemployed, the pension being abated during their employment. Provision was also made that on final retirement the pension to which these employees would be entitled would be calculated by reference to their full service both with the former undertaker and the board, the pension which they had been awarded on their earlier retirement being then terminated.
It was pointed out in the case of the persons in the pensionable category that the break which had occurred in their service during the short period in which the Pigeon House station was closed by the board operated to deprive them of the pension rights on ultimate retirement in respect of service after the reopening which they would otherwise have possessed under the Dublin Corporation pension scheme. Provision was, accordingly, made in the Electricity (Supply) (Amendment) Act, 1942, to enable, on final retirement, the pension already awarded at the time of the closing of this station to be terminated and a fresh pension substituted, the latter being based upon the aggregate service (a) up to the closing of the station, and (b) from the date of re-employment to the date of final retirement.
The position of those persons employed at the station who had been compensated by means of gratuities has only recently been brought to notice, and it is felt that these persons should not, through no fault of their own, be prejudiced by losing pension rights in respect of their service from the time of re-employment by the board. In their case, however, since these persons were awarded lump sum gratuities in respect of their service up to the closing of the station and since these gratuities are not capable of being recovered from them it is proposed that the pension rights to be restored to them by the Bill should be those in respect of their service from the reopening of the station.
Section 12 modifies Section 45 of the Electricity (Supply) Act, 1927, which section relates to the compulsory acquisition of land, etc., by the board. It has been found that the procedure laid down by the provisions of the Act of 1927 referred to is cumbersome and in some cases involves undue delay. To remedy these defects, the opportunity was taken when the Electricity (Supply) (Amendment) Act, 1945, was being prepared to modify the provisions of that Act relating to the acquisition of land, etc., under that Act, but these provisions apply only to the acquisition of land to be acquired in connection with hydroelectric schemes. It is now proposed to avail of this Bill to extend the modification to the board's development schemes generally. It may be explained that it happened in a number of cases recently for the interested parties to prolong proceedings for the acquisition of land under the 1927 Act for periods up to three years before the board found it possible to gain possession. It will be appreciated that such lengthy proceedings may sometimes be resorted to in the hope of gaining a higher price from the board which, in the ultimate event, usually has to bear the extra cost involved by such delay. The board are anxious that the more expeditious procedure in the 1945 Act should apply generally in all cases including acquisitions in connection with the rural electrification scheme. While the board will give the longest possible period of notice to the persons concerned it is necessary for the minimum periods referred to in the Bill to stand if it is not to be hampered or delayed in proceeding with necessary work.
Under Section 45 of the 1927 Act the board has, by special order, to declare its intention to acquire property and before making the order should (a) deposit plans and maps at a suitable place, (b) publish notice of its intention so as to reach people affected, and (c) if necessary, hold a public inquiry.
All these formalities have to be complied with and completed before the board's order becomes effective, and where objections are raised several months must elapse before the order becomes effective. In one instance two years had elapsed and the order had not become effective. Under the Bill the board serves notice on the people affected and enters after 30 days on land and after 90 days on occupied premises.
Section 13 of the Bill amends Section 53 of the Act of 1927 which latter section relates to wayleaves across land. It will be clear on examination of the section that the amendment is of a minor drafting character. It may be explained, however, that in practice the board has found it difficult to describe in writing or by maps or plans the nature of each line or fixture concerned. In fact, the board has been advised that as Section 53, sub-section (3) stands a very full and complete description must accompany the notice to the occupier of any land or building affected if the section is to be complied with.
This is so difficult to attain in many cases that it was found necessary to send a representative to the site to explain in detail the nature of the work following the serving of the notice. In the majority of cases, none the less, such a detailed description of the work is not required by the owner or occupier although the statute requires that it must be provided in every case.
In the normal development of the transmission and distribution system, this requirement would not impede the board to an extent that would call for an amendment of the Act. Now that the development of the supply in the rural areas is being undertaken the number of wayleave notices to be issued weekly has been, and will be enormously increased and it is considered that these complete descriptions of the work to be performed should be provided only where they are requested by the owners or occupiers. As the individual areas to be developed are small in extent and as the staff responsible for the development will be close at hand, in all cases, the owners and occupiers of lands and premises affected will be in a position to obtain the fullest information regarding what the board propose to do with the minimum of trouble or delay on either side.
Section 14 of the Bill, it will be observed, amends sub-section (1) of Section 2 of the Superannuation Act of 1942. Amongst other things, that Act authorised the payment of pensions to whole-time members of the board under certain conditions. Under the provisions of the sub-section of the Act referred to, a member of the board, in order to qualify for a pension, must have at least ten years whole-time service as a member and that service must include at least one term of office of five years as a whole-time member of the board. In the case of one existing member of the board who has served as a whole-time member since the 11th February, 1935, the various warrants under which he was appointed by the Government have been for a period of four years; 77 days; one year; three years; three years; one year and the warrant at present in operation is also for one year only.
Consequently, having regard to the terms of sub-section (1) referred to, this member of the board or any other member who might be similarly circumstanced would fail to qualify for a pension under the Act as it stands for the reason that he has not completed one term of office of five years as a whole-time member and this position would continue until he had the opportunity of completing at least one term of office of five years under one warrant. It is considered that this limitation is inequitable and Section 14 of the Bill amends the provisions of the Act of 1942 so as to provide that a pension will be awarded, (a) after not less than ten years' continuous whole-time membership or, (b) after two or more periods (whether continuous or discontinuous) of whole-time membership of the board which amount in the aggregate to not less than ten years and include at least one term of office of five years as a whole-time member of the board.
This amendment, it will be appreciated, will enable any whole-time member of the board to qualify for a pension provided he has at least ten years' continuous whole-time membership and without having had one term of office of five years. A member who has not had ten years' continuous service must have at least one term of office of five years' duration in an aggregate service of at least ten years.
Section 15 of the Bill amends Section 8 of the Superannuation Act of 1942 which latter section relates to certain financial provisions in relation to superannuation schemes. Under the section of the 1942 Act referred to, the trustees of the superannuation fund set up under that Act may lend superannuation moneys to the board and the board may accept such loans, the rate of interest on which must be approved by the Minister for Finance. The amendment provided for in this section of the Bill merely provides that the consent of the Minister for Finance to the interest rates will no longer be required but, in lieu of that consent, provision is being made that the rate of interest shall not exceed 4 per cent. per annum.
The superannuation funds and the contributions thereto and the benefits payable are calculated upon an actuarial basis and for this purpose it is essential that the actuary and management of the funds should be placed in such a position to know that when they lend moneys to the board as an investment a definite interest rate will be paid. The funds in this case have, by agreement, been based upon an interest rate of 4 per cent. and this section of the Bill will enable that rate to be paid on future loans.
Section 16 amends Section 11 of the Superannuation Act, 1942, which relates to the reference of disputes to the Manual Workers' Tribunal. Under the definition of the expression "manual worker" as set out in the manual workers' superannuation scheme made under the 1942 Act, workers whose employment is of a casual character are excluded and there is, therefore, no means by which disputes in which they are involved can be brought before this tribunal. The effect of Section 16 of the Bill will be to enable the Manual Workers' Tribunal to deal with disputes in which such casual workers are involved.
Section 17 increases the amount of the advances for general development which may be made to the board by £16,000,000. Capital expenditure by the Electricity Supply Board is financed by means of repayable advances made to the board by the Minister for Finance from the Central Fund. The limit up to which such advances may be made is fixed by the Electricity (Supply) Acts and that limit has been increased from time to time according as the undertaking developed.
The board has submitted under date of 21st January, 1948, an estimate of the capital requirement for its projected programme during the period to 31st March, 1952, including capital expenditure to which the board is already committed. This programme envisages expenditure totalling £29,500,000 and, allowing for the provisions for advances in the Act of 1945, is made up as follows:—
Generation |
£18,783,000 |
Transmission and Distribution |
12,440,000 |
General |
2,762,000 |
Shannon Fisheries |
15,000 |
Rural Development |
8,000,000 |
£42,000,000 |
|
Deducting there from the amounts of £7,500,000 and £5,000,000 provided in the 1945 Act under Sections 38 and 41, respectively |
12,500,000 |
Total |
£29,500,000 |
Having regard to the magnitude of the amount involved and in view of the uncertainty as to the trend of prices and supplies of materials within the next few years it is considered that there would be no useful result in attempting at this stage to estimate with even approximate exactitude the capital expenditure which the board may find it necessary to incur in the period in question or the advances which the board may require. It is, however, abundantly clear that the board's development programme within the next few years will entail very substantial commitments if the demand for electricity is to be adequately provided for and it is, therefore, proposed, as an interim measure until the situation becomes clearer, that the existing statutory limit of the advances which may be made for general development be increased by £16,000,000.
Section 18 of the Bill repeals the enactments set out in the Schedule to the Bill to the extent shown therein, viz., Sections 33 and 34 of the Act of 1927, to which reference has already been made. Sub-section (1) of Section 3 of the Superannuation Act, 1942, is also repealed. This sub-section of the 1942 Act relates to a case in which a whole-time member of the board is entitled to a pension in respect of other and previous service either with a public department or under a local authority, and has the following effect:
(a) If a Civil Service or local authority pension equals or exceeds the amount of any pension calculated under the Superannuation Act of 1942 the latter pension does not become payable, and
(2) If a Civil Service or local authority pension happens to be less than the amount of any pension calculated under the Superannuation Act of 1942 only the difference between the two rates of pension may be paid.
This provision of the 1942 Act affects one member of the present board who is entitled to receive a pension from a local authority in respect of his service with that authority before he was appointed to be a member of the Electricity Supply Board. If the member in question had been allowed to complete 40 years' service with the local authority his pension, under the Local Government Act, 1925, would have been very much higher than that which he was granted when he left the local authority to take up the appointment with the Electricity Supply Board in 1934.
It is considered that although the case is an exceptional one, if the Act of 1942 is not amended in the manner proposed this member of the Electricity Supply Board will, on retirement, be prejudiced by reason of his transfer from a local authority to the Electricity Supply Board and it is therefore proposed to remove the sub-section of Section 3 of the 1942 Act which precluded the payment of pensions in respect of service with the board in the particular circumstances of this case. It is most unlikely that a case will occur in the future where an individual on joining the board as a whole-time member would have an existing right to a pension in excess of the maximum which he would become entitled to in respect of his service with the board. In any event should such a case occur again the probability is that the individual concerned would prove to be entitled to the same consideration which it is now proposed to extend in the present case.
Section 19 deals only with the short title etc. of the Bill and requires no explanation.