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Dáil Éireann debate -
Wednesday, 14 Dec 1955

Vol. 153 No. 10

Private Members' Business. - Rural Electrification Charges—Motion.

I move:—

That Dáil Eireann is of opinion that extra service charges should not have been and should not be imposed on persons availing of the rural electrification scheme, and calls on the Government to introduce the necessary amending legislation to abolish these charges with retrospective effect.

There are many Deputies on all sides of this House who must, in their hearts, agree with the idea behind the motion. We have only to search through the Dáil Debates for the last three or four years to find Deputies from Fianna Fáil, Fine Gael, Labour and Clann na Talmhan requesting the Minister for Industry and Commerce to ease the burden placed on certain sections of the rural community in respect of extra service charges imposed for the new amenity—electric light.

I have the greatest respect and the greatest praise for the E.S.B. This State body is an example of what can be done if the proper men are selected and if the goodwill of this House is behind the work. The work of the E.S.B., pursued as it has been throughout the entire country, can be used as an example anywhere of how successfully a State body can function if properly organised and conducted. We all realise that, were is not for the fact that the State stepped in and decided that private enterprise was not capable of embarking on such a nationwide programme, to-day in rural Ireland the people would be depending on the paraffin oil lamp and the penny candle. It was a State body, and not private enterprise, that was responsible for the revolution that took place in rural areas. No greater amenity has been given to the people of rural Ireland.

Frequently, inside and outside this House, expert views are expressed as to the reasons for emigration. It is accepted that one of the causes of emigration is the lack of social amenities in rural areas. To-day, the E.S.B., through the rural electrification programme, is helping to meet that great need and demand.

The motion before the House is to persuade the Minister for Industry and Commerce, a man with a generous heart, to ensure that the rural electrification programme, which is now being pursued so energetically, will receive greater impetus by the acceptance of this motion. If the motion is accepted, it will remedy an injustice that has been perpetrated on many people who have already taken advantage of the rural electrification scheme.

As I have said, a search of the Dáil Debates for the last few years will disclose questions from Deputies on this subject, some Deputies asking that the facilities be extended to certain smallholders in rural areas, and the reply given by the Minister or his Parliamentary Secretary, that a contribution towards the capital cost of extension is necessary to render the supply economic.

In another case, we find a Deputy from the West of Ireland requesting that the scheme be extended to the Gaeltacht areas, pointing out that the locality was very sparsely populated. The reply was that the extension of the service in these areas—mark you, the Gaeltacht areas—involves special service charges which would be quoted to the interested residents on application to the board. That is another way of saying that there is no hope of these people getting the supply at a fair charge.

The Parliamentary Secretary, Deputy Crotty, is in the House. In reply to a question on this very thorny problem, he pointed out that neither he nor the Minister had any power to remit, ease or reduce the extra service charge. According to Deputy Crotty, Section 93 of the Electricity Supply Act prohibits the granting of preferential treatment to consumers within the same area of supply.

That is a very important sentence. The Parliamentary Secretary said that Section 93 of the Electricity Supply Act prohibits the granting of preferential treatment to consumers within the same area of supply. I suggest that what is happening at the moment is that preferential treatment is being given. Otherwise, how have we the unfair situation that two or three small farmers who happen, unfortunately, to live perhaps 200 or 300 yards outside the area planned by the E.S.B. are expected to pay double the charge for the installation and that that charge should remain permanently on them? I think that they are not getting preferential treatment but that the people in the actual planned area itself are getting preferential treatment to the detriment of these other people.

In a recent Dáil question the Minister for Industry and Commerce stated that at the present time the number of consumers paying special service charges amounts to 4,831. That represents 3.2 per cent. of the consumers who are using rural electrification. That may not sound a very large percentage but I would like to point out to the Parliamentary Secretary that we have no figures available of the number of people who have refused to accept service from the E.S.B. as a result of the likelihood of an extra service charge being imposed on them. The number who have not accepted the service from the E.S.B. far exceeds those who have had it installed with the extra service charge involved.

Taking it on the basis of equal rights for all our citizens, surely it is unfair and unjust that a man with a valuation of £8, £9 or £10, who happens to live along a bohreen 200 or 300 yards from the area mapped out by the E.S.B. has, under the terms of the Act, to pay exactly double the charges that his neighbours within the area have to pay. Some Deputies may argue that the cost of the installations have to be paid for. Suppose we grant for the moment that the smallholder has to pay an extra service charge for the initial installation, why should that extra service charge be imposed on him for all time, long after the plant and wire have been paid for? He, and his people after him, have to bear this particular service charge.

I have letters from many parts of the country from people who have taken advantage of the rural electrification scheme and who are to-day bearing the exorbitant charge of this nature. I will give a few examples, but I will not give the names, although if the Parliamentary Secretary wants the details I will let him have the letters when the debate has concluded. I take the case of three neighbours in a certain part of my constituency. I will call them A, B and C. The letter from the E.S.B. to Mr. A states that, due to the distance of his premises and those of Mr. B and Mr. C from the nearest point of supply, he would be obliged to bear a special service charge in addition to the ordinary fixed charges if he wished to avail of the service. These are the charges involved for these three smallholders who live outside the planned area. For Mr. A the ordinary two-monthly charge would be 16/2 and the extra service charge imposed is 15/10, making a total two-monthly charge of £1 12s. For Mr. B the ordinary two-monthly charge would be 13/10 and the service charge 13/9, making a total two-monthly charge of £1 7s. 7d. For Mr. C. the ordinary two-monthly charge would be 15/- and the service charge 14/10, making a total two-monthly charge of £1 9s. 10d. The letter added: "Should you wish to avail of the service at the above terms, please let me know and I will arrange to have the necessary extensions erected."

The ordinary charge for the householder within the specified area in which the E.S.B. has been working would amount to 16/2 for two months but these three people, because they happen to live a couple of hundred yards outside the area, have to carry almost double that amount, not over the period in which the value of the plant and line are being repaid, but for all time. I think that is a gross injustice to people in the rural areas.

This is a letter to another prospective applicant. It states that, in the original survey of X area, Mr. A was advised that 14/6 was the charge applicable to his case. In the course of development it was found that a longer length of line was required to get to his premises. The normal fixed charge of 14/6 did not cover the cost of the extra line and it was necessary therefore to seek an additional fixed charge of 11/7. That is the case of an unfortunate smallholder who, because he was unlucky enough to have his house built outside the planned area, perhaps by the Land Commission or somebody else, has to pay 11/7 extra every two months. That is almost double the normal charge. It would not take very long to pay off the value of the extra line which the E.S.B. had to put up but why should he have to pay for that for the rest of his life?

The purpose of this motion is to secure the amendment of the legislation to ensure that this injustice will be remedied and that it will have retrospective effect, wherever these charges have been imposed in the past.

Deputies may say that this may sound very nice but they may ask how is it going to be done and where will the money come from? We have had this statement of the Minister for Industry and Commerce that, so far as the E.S.B. is concerned, there is plenty of money available. All we want is to have it directed towards this purpose.

In Volume 149, column 484, the Minister for Industry and Commerce, in reply to a question by Deputy Lemass, is reported as having said:—

"In each of the last six years during which the Deputy sat in Kildare Street as Minister for Industry and Commerce, the E.S.B. yielded a surplus as it yielded a surplus last year and as I have no doubt it will continue to yield in the future."

These are the words of the Minister himself, pointing out that the E.S.B. have a surplus revenue. I understand that under recent legislation the E.S.B. themselves are now required to bear the burden of rural electrification. My belief is that whatever profit is made by the E.S.B., with particular reference to the rural electrification programme, should be ploughed back into rural electrification to subsidise the people who pay extra service charges. I do not think that is an unfair suggestion to make.

If, as we understand, there was a surplus of from £80,000 to £90,000 last year on rural electrification, why should that money not be used to subsidise these unfortunate householders who just happen to be in pockets that are by-passed by the E.S.B. in their normal programme? It is not unfair to suggest that the Minister should have this matter reviewed. I have on a number of occasions discussed this matter with E.S.B. men and I have found that all of them are more than sympathetic towards these people in rural Ireland. I think these men believe that some Government should take the necessary steps to amend the E.S.B. Acts in order to ensure that this extra service charge is removed.

In reply to a letter which I forwarded to the E.S.B. I got this reply from them in connection with a case I mentioned: "I appreciate that these charges may fall heavily on the householder in this case but you will understand that under existing conditions no reduction is possible." In reply to a further letter I got a similar reply. Therefore, you have the E.S.B. officials and engineers themselves appreciating and admitting the fact that there are hardships imposed on people who have to pay the extra service charges. I am sure that Deputies on all sides of the House have received similar letters. I am sure there are Deputies who have received requests from their constituents to try and have this matter adjusted.

In bringing forward this motion, I do not want under any circumstances to halt the present programme of the E.S.B. or to alter their present plans with regard to the particular areas in which rural electrification is likely to be installed in the near future. If the decision were made straight away to do away with these extra service charges, I know perfectly well there would be an increased demand immediately from all over the country from people who have up to this refused to accept rural electrification. I am not suggesting that they should get priority of installation or anything like that because I do not think we should alter the arrangements made by the engineering section of the E.S.B. But I do think legislation should be changed so as to ensure that this burden will be no longer placed on the backs of these people. I think that the general view of Deputies in this House is that the areas yet to receive E.S.B. benefits are the hardest areas to deal with.

I think many Deputies will agree with me that what I should describe as the most favoured areas have received rural electrification benefits already and that the areas which are still to come before the board present greater problems. In many cases, frequent and repeated surveys and canvasses have been carried out of people in the poorer areas where the population is widely scattered and where the holdings are poor. It will be very difficult for these people if they are asked to bear these extra service charges.

I shall not say any more until I have heard what the Minister has to say on the question but I do think the Government should give some consideration to the motion. If there is any snag with regard to the wording of the motion that can easily be got over. The Parliamentary Secretary himself is aware of what I have in mind. If it is found, on closer examination, that it would be unwise to remove the extra service charge immediately, then I would suggest that, when the cost of repayment of the extra lines and the extra poles is met, the extra service charge would be eliminated. I think the House should make it quite clear that when these costs are repaid through the extra service charge, the charge should cease altogether.

Of course, the Parliamentary Secretary may tell me there are areas where, if other sections of the populations come in later, the extra service charge will be lightened on those who have been linked up earlier. That may be with regard to certain individuals, but the Parliamentary Secretary is as well aware as I am of the pockets of single individuals scattered throughout the country who have no relief and who must, under present circumstances, bear this extra service charge. I would ask the Parliamentary Secretary to give this matter his most careful consideration.

I formally second the motion.

I think I could not fully accept the wording of this motion. People who have been electricity consumers since the inception of the E.S.B. are paying through the nose. We have them in the towns especially in the area from which I come. We should approach this matter in the light of what will it cost and who will pay for it? Certainly I would agree with much of this motion if the Gaeltacht area was mentioned. We hear a good deal about saving the Gaeltacht, and on the question of power in the Gaeltacht I think it would help to encourage industry. If this motion were worded to suggest the Gaeltacht areas it would help, but definitely I would not be in favour of giving special charges to wealthy farmers who can well afford to pay—and we have such in this country.

I agree with Deputy McQuillan that this extra charge should not be retained after the expenses of wiring an area and putting in these special transformers have been covered. I think the first thing we should find out is how much this proposal would cost and who will have to pay for it. We can then approach this motion in the proper light.

While one may agree in principle with the motion that has been proposed, it raises a good many problems. The first problem that arises to my mind is: if these people who, by reason of the fact that E.S.B. equipment is on the spot, take advantage of an extension and a consequent priority for which they are willing to pay, do they by so doing cut off, so to speak, the merits of the particular parish or locality to which they belong in seeking its due place on the list in any subsequent survey? Are these people counted in or out? In other words, if they are already supplied, if a number of them in a particular area pay for a priority and get it, are they, by that very act, delaying the extension of the supply to the particular area or locality to which they belong?

I agree with Deputy McQuillan completely that pockets which can easily be linked up and which lie between areas already served should be linked up while E.S.B. equipment is on the spot and while these charges would be small. But where this system of priority in the case of people who are anxious to get a supply and pay for it applies to my mind, if that were extended too widely, it would cut out the merits of selected areas. A point is made about reducing these special service charges when payment is completed for the service given. Of course there is a certain amount of equity in that, but my point would be that, as soon as that particular area is selected for connection under the rural electrification scheme, those charges should no longer apply. I do not know whether charges already made could be remitted. I feel that would probably require legislation and it would not be easy to administer but at least the extra charges should be removed when the particular areas in which people have got priority by paying for it are included in the general scheme of rural electrification.

These are the few points that strike me about the matter. While we may all agree with Deputy McQuillan that the extra charges that have been made should not apply for all time, the simple point to my mind is that when these areas are selected in the ordinary way, the special service charges should then cease.

I think Deputy McQuillan's motion is a very sensible one. I do not think Deputy MacCarthy got the real point of the motion because it is not suggested in the motion that people who do pay for priority should have a refund or that anything should be done about them. What I think Deputy McQuillan is aiming at is that people who happen to be sandwiched in between two areas already connected— that happens in a big number of cases —should not be ruled out because it would cost the E.S.B. a little more to provide poles and wire to reach those outlying areas and because they are not in many cases in a position to pay the extra charges they would be asked to meet in order to get a supply.

We can all agree with linking up the pockets.

As I read it, these are the terms of the motion and I heartily agree with it. It is not a question of areas out in the mountains that are omitted. Even in places like my own constituency, where rural electrification is almost completed, we have one, two, three or four houses, usually odd houses, but sometimes groups of three or four, that are not connected simply because it would take a few extra poles to bring them in. In one particular case of which I got notice a few weeks ago, a county council labourer earning £4 17s. 6d. a week was asked to pay on top of 12/7 ordinary meter charge, 14/7 extra per two-months period to have electricity installed. In his case it would take an extra pole, and I think it is a bit unfortunate that cases like this should occur. If it were a question of a company or some concern working on a profit-making basis, I could understand the E.S.B. carrying out this system, but in my opinion electricity is a public service and, since people all over the place are being serviced without any extra charge, it seems rather unfortunate that those who are least able to pay are in many cases the people who are left out of the scheme simply because they cannot pay the extra charge.

That is a problem, because when one meets these people they do not blame those who are really responsible but blame the local E.S.B. officials whom they sometimes call terrible names. The people believe that they were deprived of electricity because of some spite or some reason of that kind. The people concerned do not realise that the officials are not responsible; the members of this House are those who are really responsible because the officials are bound by a regulation which was passed here during the passing of the Act and that is why these isolated houses are excluded.

As Deputy McQuillan says, the local officials are only too anxious to have those houses serviced at the usual charge because they know quite well that it is unfair to discriminate against those people who should be subject to the same rate of charge as anybody else. Very often one individual may be in a position where he will use a lot of electricity and the service is brought to him over a long distance, at no extra charge, because he uses such a lot of current the service will eventually pay for itself. But that does not apply where there is an isolated householder using very little electricity—perhaps lights and a radio and so forth—and the fact that he is using a very small amount of current is held against such a man. He will not get the current at the same rate as his neighbour who consumes a lot of current.

I think this motion should be accepted by the Minister. It is now recognised that the E.S.B. are coming to the end of their programme and they should ensure that everybody who wants current should be given current and they should get that current without having to pay a charge which amounts in most cases to an extra £3 or £4 per year over the lifetime of the tenant and possibly over the lifetime of three or four generations to come. In that period not alone will the poles and the wiring be paid for by the particular consumer but all the poles and wiring used in the area will be paid for because of the extra charges imposed on him. Possibly someone slipped up in framing the Act. There may have been an oversight. The Act may have been drafted without advertence to the hardships which would be imposed on people like those to whom I have referred. If there has been a mistake the position should be remedied at the earliest opportunity. If there has not been a mistake it would be no harm for the Minister's officials to check on the areas where people are affected and check on what is the actual position.

Deputy McQuillan has quoted the fact that slightly over 3 per cent. of those who are serviced are paying this extra charge. He says that quite a number of people did not take the current because they could not afford it. Now I cannot make that case in my constituency because a very small number proportionately has been left out there. There are not very many. There may be only 100 or 200 over the whole county. But those people are entitled to current and to service from the E.S.B. and they should not be treated any worse than anybody else in the area just because others happen by a fortunate circumstance to be living sufficiently near to the service to be connected without any extra charge. We had a good deal of trouble from time to time with people who had big, old, rambling houses and who were asked to pay a good deal more than people living in the smaller and more compact houses. That was a big problem in the county, but the present problem is one which affects the whole country and I think Deputy McQuillan was very wise to put down this motion and I hope it will get the support of the House. We may be looking at this from just one angle and there may be factors in it of which we are not aware. I do not agree with Deputy Coogan that the cost should be estimated. I do not think that has any bearing on the problem good, bad or indifferent. I believe these people are entitled to the same treatment, and only the same treatment, as anybody else who is serviced by the E.S.B.

I am sure everybody would like to agree with Deputy McQuillan on this because everybody feels that service charges should be the same for every consumer, if that were possible. That is the popular point of view and I suppose we would all like to see that point of view implemented. At one time I thought I would like to see these people getting current at the same rate.

The E.S.B. was set up for the purpose of bringing electric current to the cities and towns and, when that had been done, to rural areas. When rural electrification was planned in 1943, it was agreed that current would be brought to people where the capital cost of connection was not more than 16 times the prescriptive revenue from the fixed annual charges. While we have given power to the E.S.B. and expect them to balance their books, we do not expect them to be a profitable concern but we do expect them to fix their charges so that they will be sufficient, and only sufficient, to meet all their outgoings properly chargeable to income in any particular year. As Deputy McQuillan pointed out, Section 93 prohibits the granting of preferential treatment to consumers within the same area of supply. If we agreed with this motion we would be giving preferential treatment to these consumers. As I said, it is laid down that the capital cost——

One can read that both ways.

I do not agree that one can read it both ways.

Someone is getting preferential treatment all right.

It is laid down that rural consumers will be supplied where the cost of supplying is not more than 16 times the revenue.

Mr. Lemass

Plus a 50 per cent. capital subsidy. All that argument went by the board when the Parliamentary Secretary's Government abolished the subsidy. That argument is completely fallacious now.

I do not think so. The same burden is on the E.S.B. to pay their way now as there was on them when they were getting the subsidy.

Mr. Lemass

They have to pay £250,000 a year more. The Parliamentary Secretary's Government abolished the subsidy for the benefit of the Exchequer; the money could just as easily have been used to abolish these extra charges.

It was not abolished for that purpose solely. It was abolished because the Minister felt the E.S.B. could meet this charge themselves.

Mr. Lemass

They could meet this charge just as easily.

This was in the original Act.

Mr. Lemass

And so was the subsidy.

I have no doubt that if they are able to show an increased revenue when rural electrification has been fully developed they will then be able to give back all these charges again. Deputy McQuillan pointed out that people were not inclined to take current because of these extra charges. I think the main reason is that people do not like to be charged more than their neighbours, irrespective of whether or not they think it is justified. They like to be on the same plane as their neighbours.

Deputy McQuillan is wrong in his conclusion because originally and up to some years ago, the rate of acceptances was running about 62 per cent.; it is now running about 82 per cent. and, therefore, the argument adduced has not had any material effect on keeping down the number of applicants.

Deputy McQuillan also made the point that people living outside the planned area would have to pay an extra charge. Deputy MacCarthy pointed out that if they want to get priority over other people——

I am not in agreement with Deputy MacCarthy. Deputy MacCarthy took me up wrong. I understand that where a person is outside the actual area—in other words, in a pocket—that person has to pay an extra service charge. He is not looking for the luxury of getting extra installations, but he has to pay an extra service charge because he is unlucky enough not to be in the planned area.

Debate adjourned.
The Dáil adjourned at 10.30 p.m. until 3 p.m. on Thursday, 15th December, 1955.
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