asked the Minister for Industry and Commerce if he will state the present position concerning the proposed transatlantic air service.
Ceisteanna—Questions. Oral Answers. - Transatlantic Air Service
asked the Minister for Industry and Commerce whether inview of the decision of the Civil Aeronautics Board it is intended to proceed with the hire of American planes for the purpose of providing a transatlantic air service; and, if so, whether, having regard to the limited operational permit granted by the board, he will make a statement on the new situation created by the restricted permit.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 3 and 4 together.
I have been advised by Aerlinte Éireann that, as the decision of the United States authorities on the proposed agreement with Seaboard and Western Airlines, Incorporated, was not issued until the end of January, they are of opinion that plans for the operation of a transatlantic air service this year should be abandoned. The Government have accepted this advice and are giving further consideration to the matter.
I understood from the published reports that the Civil Aeronautics Board had only given an operational permit for two years and that the granting of the permit was couched in such terms that would indicate that, as a matter of public policy, they might be unlikely to extend the operation of the permit beyond the period of two years. If it is limited to two years is it proposed to go ahead with the service?
That matter is under consideration. The only decision taken is that, in view of the delay in reaching a decision in the matter, it is not being proceeded with this year.
When this matter was discussed in the House recently I understood the Minister to say that we would have to be prepared to face up to losses for the first and second years and perhaps in the third year, and then break even. If the operational permit is limited to two years' duration it would look, if the Minister persisted, that we would just have sufficient time to lose all our money in the two years. Is it proposed, in view of the restriction of the permit to operate for two years and having regard to the Minister's prophecy of losses for thefirst two years, to go ahead with the service?
The reply is that the matter is under consideration.
Could the Minister inform us how much has been spent on the project so far?
Nothing.
I understand that there has been some money spent in America?
No.
Can the Minister state whether, if it is decided to discontinue now, the penalty clause comes into operation?
The agreement did not become operative at all.
That is the point I want. Would the Minister give the House an assurance, in view of the position now that the facts are entirely different from what they were when the Supplementary Estimate came before the House, that a further token Supplementary Estimate will be brought before the House before any decision is taken?
The only fact taken into account so far has been the considerable delay in getting a decision from the Civil Aeronautics Board.
There is a very different factor now. According to the published reports there is only a possibility of a two years' contract. The Minister told us, when he brought in the original Estimate, that there was no hope except for losses for the first two years.
Am I right in assuming that no agreement with Seaboard and Western Airlines has been signed yet?
The agreement with Seaboard and Western Airlines was conditional upon permission to operate the services being given by the Government of the United States and the Government here.
I understand that the question of entering into an agreement was conditional on the scheme being able to run for a period of four years. Will the matter now come up for further review in view of the fact that it is to be operated only for two years?
Because of the delay in issuing the decision on the part of the Civil Aeronautics Board of the United States, the Government's permission to operate the service has not been given for this year.
I would like to underline the question asked by Deputy Sweetman. Surely what has transpired now completely changes the whole aspect of the matter put before the House when the Minister got the token Estimate? Surely the House is entitled to ask for an assurance that nothing further will be done by way of entering into commitments to expend the £460,000 until the matter has been brought formally before the House again, the new facts put before the House and an opportunity given the House of deciding for or against the proposal?
As I said, the future position is under consideration and until that consideration is completed, I cannot make any statement.
And the Dáil will then be informed?
Question No. 5.