I move:—
That a supplementary sum not exceeding £344,700 be granted to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1956, for certain Transport Services; for Grants for Harbours; for the Salaries and Expenses of the Marine Service (Merchant Shipping) Acts, 1894 to 1952, and the Foreshore Act, 1933 (No. 12 of 1933); for certain Protective Equipment for Ships; for certain payments in respect of Compensation, including the cost of medical treatment (No. 19 of 1946); and for the Coast Life Saving Service.
The original Estimate of £500,000 for the State's share of the G.N.R. revenue losses and capital expenditure has proved insufficient to meet the Board's requirements up to the 31st March, 1956. It is necessary to provide a further sum of £396,398 by way of Supplementary Estimate bringing the total provision for the Board to £896,398 for the year.
The original Estimate included provision for £350,000 to cover our share of the Board's revenue losses. Detailed estimates recently furnished by the Board indicate that a further sum of £297,429 will be required to meet revenue losses up to the 31st March making a total provision of over £647,000 for the year. This, however, is not a true measure of our share of the Board's losses within the financial year. In the past the procedure was that so far as our share of the losses was concerned the Board operated on temporary bank borrowing against their own securities and a State guarantee of £200,000 and applied for advances only when these resources were nearing exhaustion. Previous estimates of the Board's losses were framed therefore on the basis of meeting the Board's requirements substantially in arrear. It is now, however, proposed to provide for the Board's full requirements up to the 31st March and in future to make more frequent advances to the Board so as to reduce the extent of their temporary borrowing. The present total provision for the financial year, therefore, contains an element for paying off the Board's overdraft.
The Board's accounting year ends on the 30th September. The accounts for the year ended 30th September, 1955, have not yet been published. They were due for submission to me by the 31st December but I have authorised an extension to 31st March. Because of the detailed apportionment of receipts and expenditure between the two areas provided for in the scheme of apportionment drawn up under the Great Northern Railway Acts the preparation of the accounts requires more time than would normally be the case especially in the first few years' operation of the Board. It is understood that our share of their losses for the year was in the region of £360,000 including interest payable on the acquisition price of the undertaking and subsequent Government advances, as compared with the corresponding figure of £207,598 for the Board's first accounting period of 13 months ended 30th September, 1954. The present indications are that for the year ending 30th September, 1956, the loss will be still greater. These heavy losses are to be deplored and if there were no hopes of reversing the present trend and eliminating the need for subsidy the outlook would be very grim indeed. But the G.N.R. Board, after an investigation of the position, has made proposals to both Governments for the reorganisation of the railway involving conversion to diesel traction and the renewal and modernisation of rolling stock. Having regard to the experience of C.I.E. I believe that the dieselisation of the railway would put a very different complexion on the problem and would hold out good hopes of putting the railway on a self supporting basis within a reasonable period. For that reason I am prepared to approve in principle of the Board's proposals. As Deputies will be aware, however, the Six-County Government has proposed the closing of three cross-border lines and statements made in the Six-County Parliament yesterday suggest that further pruning of the railway system in the Six Counties now under consideration may include the line from Portadown to Derry. If the Six-County Government have made up their minds irrevocably to close these lines and, in effect, to confine the G.N.R. system in the Six Counties to the main Dublin-Belfast line, then the Government here will have to reexamine the whole matter very carefully.
The estimate of £150,000 for the State's share of the capital expenditure of the board for the current financial year has also proved inadequate and an additional sum of £97,000 is required to meet the board's requirements. Since the original Estimate was framed further capital projects by the board were approved. The additional sum will enable the board to discharge fully their commitments on capital account up to the 31st March, 1956.
In addition a sum of £1,985 is due to the board in respect of expenses incurred in connection with Greenore Hotel. This property has now been disposed of to an industrial firm.
It is also necessary to provide for a sum due to C.I.E. in respect of an overhaul of the Dún Aengus carried out in 1952. The operation of the Galway/ Aran service was taken over by C.I.E. in 1951, but legal transfer of the Dún Aengus to C.I.E. was not effected until October, 1952. In the meantime a sum of £23,302 was incurred on an overhaul of the vessel and this sum falls to be recouped to C.I.E. The C.I.E. claim for recoupment of this sum was not made until September last as claims made on the insurance company and underwriters were not finalised until then.
The total of the additional sum which it is necessary to provide for the G.N.R. Board together with the sum necessary to recoup C.I.E. the cost of the overhaul of the Dún Aengus amounts to £419,700. Against this sum may be offset a saving of £65,000 arising on sub-head B of the Vote (Grants for Harbours). In addition Appropriations-in-Aid of the Vote (sub-head O) are expected to realise approximately £10,000 more than was estimated for due to a payment of interest by the G.N.R. Board being made in the present financial year instead of in the previous financial year. The net excess of the Vote is, therefore, £344,700 and a Vote for this amount is now required.