asked the Minister for Industry and Commerce if he will state (1) whether jointly with the Northern Ireland Government he has decided on taking over from the present owners the Great Northern Railway system; (2) the purchase price of the system; (3) how that price was arrived at, and (4) the proportionate part of such price which will be borne by each of the two Governments involved, and to what extent, if any, each Government will bear any future liability in operating the railway; and, further, whether he is aware of the close association and working operations that have existed between the Sligo-Leitrim and Northern Counties Railway and the Great Northern Railway in the past, and whether, in view of the change now contemplated in the latter property, he has considered plans for maintaining the service of the Sligo, Leitrim and Northern Counties Railway as the present obscure position is a matter of grave concern to the community served and employees engaged by this company, and if he will clarify the position now by making a statement on any future plans.
Ceisteanna—Questions. Oral Answers. - Great Northern Railway Purchase.
Mr. Maguire
Following on the rejection of the offer made on 11th January last for the joint purchase of the Great Northern Railway undertaking, the directors of the company were informed on 12th March that it was proposed to introduce legislation in the two Parliaments with the object of acquiring the undertaking at a figure of £3.9 million. This figure is based on the average stock exchange valuation of the different stocks of the company in the three years, 1948, 1949 and 1950.
I am not yet in a position to give detailed particulars in regard to the matters raised in the fourth part of the question.
I am aware that there has been close association between the Sligo, Leitrim and Northern Counties Railway and the Great Northern Railway. The position of the former company will be considered at the appropriate time.
Mr. Byrne
Does the Minister think that the three years mentioned was a fair——
Deputy Maguire.
Mr. Maguire
Is the Parliamentary Secretary satisfied that the basis on which the value is assessed is an equitable basis? He has based the value on the prevailing stock exchange prices over a number of years. Is he satisfied that the stock exchange valuation forms an equitable basis for the purpose of assessment? If he does, what about our national stock issues here which show a substantial depreciation in value at the present time on the stock exchange? Because of that, does he not consider that when acquiring other people's property it should be done on the basis of agreement mutually arrived at which would be a more favourable basis than the stock exchange? The latter is a very uneven basis on which to go when acquiring other people's property in the interests of the State, and the Parliamentary Secretary is certainly not just when taking that basis. I do not believe the proposed Bill will ever pass this House.
I think there is ground for some difference of opinion as to the basis on which the purchase price is fixed, but I think it is only right to remind Deputies that the Government had no desire to acquire this undertaking. Our Government was approached, just as the Government of the Six Counties was approached, when the company found itself in certain difficulties. In the light of those difficulties and because the future prospects appeared no easier from the financial point of view of the company, it was regarded as reasonable to take the stock exchange quotations for the three year period, the last three years in which the company operated as a private enterprise. I might also remind the Deputy that it is the same basis, the three previous years' working, as was taken in the case of the acquisition of the former Great Southern Railways.
Mr. Maguire
The Parliamentary Secretary is, no doubt, aware that some years back a substantial part of the transport services of Northern Ireland was taken over by the Government of Northern Ireland. This action had the effect of leaving the Great Northern Railway without a particular service and placed it in the position of running at a loss for the past few years in the Six County area. At the same time, their service in Southern Ireland, where they had access to road traffic, continued to pay. Has the Parliamentary Secretary kept that clearly in view when entering into a contract to take over a bankrupt concern from the Six Counties and add it to the paying concern operating in Southern Ireland?
It is difficult to deal with a matter of this kind by way of reply to supplementary questions. All these factors were taken into consideration. As I explained earlier, the circumstances under which the Government was requested to provide a system on the same basis made it obvious that there would be difficulties in deciding on compensation or in fixing the purchase price. The Deputy is aware that that part of the undertaking within the jurisdiction of our Government has been run right up to the present as a paying proposition. It is only right, however, that a company of this nature should be regarded as a single unit and it was in those circumstances that the Government felt itself reluctantly obliged to acquire the undertaking jointly.