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Dáil Éireann debate -
Wednesday, 4 Dec 1957

Vol. 164 No. 9

Committee on Finance. - Supplementary Estimate. Vote 51—Transport and Marine Services (Resumed).

Debate resumed on the following motion:—
That a supplementary sum not exceeding £1,800,000 be granted to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1958, 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.— (Minister for Industry and Commerce.)

There are three salient points which emerge from the Minister's statement in relation to this Supplementary Estimate. The first is that C.I.E. is in its usual bankrupt position, a position in which it has been since the Minister put his hands to the amelioration of transport in this country. The second is the remedy to be taken. This is in two parts. For the time being we are to vote it further subventions until, through a lengthy process, some way is found to get C.I.E. to solvency. These subventions are likely to be heavy. At the moment £1,800,000 is needed. It is only kept at this figure because of the fact that a sum of £400,000 is carried over to the next financial year. Taking it all in all, nearly £2,400,000 is needed, reduced for the moment, by economies and postponements to the figure asked for in the Supplementary Estimate.

Whatever technical improvements may be under consideration, it did emerge from the Minister's statement that the C.I.E. Board feel there is considerable staff redundancy. Of the 14,000 members of the staffs in the railway services, it is estimated that two-thirds are not required. That deals with the railway services alone; it is not mentioned whether the staffs on the other services were more than adequate. The conclusion to be drawn from this is that there are 4,200 people facing the prospect of unemployment.

We are in peculiar circumstances in this matter. The Minister has established a new body called the Dundalk Engineering Company and the chairman of that body wrote to the Dundalk Urban District Council a brutal letter in which he told them that certain work in connection with railway locomotives, rolling stock and bridges were no longer open to the engineering works. The calculation made, on receipt of that letter, was that anything between 600 and 700 workers now employed would be thrown out of employment. It is to be remembered that the chairman of that body is the individual whom the Minister appointed to another controlling position in recent years and that, in his first appointment, he indicated that a tremendous sum of money would be required to replace existing railway lines and to get rolling stock into good order. He contended that there were far too many people employed in the transport service of this country.

The letter of this gentleman came as a shock to the people of Dundalk. There have been protests in Dundalk against this onslaught. Workers who made a walking protest said there had been meetings between their trade union representatives and Messrs. Lemass and Reynolds, the result of which was just more confusion. It is not human to leave more than 4,000 people working on the railways of this country, plus 600 more in Dundalk, facing the prospect of unemployment.

I hope the Minister will be able to give more hope to these people than the Deputy for Louth, the Minister for External Affairs, did when speaking to his Fianna Fáil meeting in Dundalk the other evening.

The Minister for External Affairs told his meeting the other night, according to a newspaper cutting I have got, that it would be impossible for anyone to foretell the steps that must be taken to improve the Dundalk Engineering Works or the exact type of equipment that would be needed. He spoke of the necessity for co-operation between management and workers and said that anyone viewing the position ten or 20 years hence would not look at it as the disaster it now appeared but as a great new industry which would grow and prosper. He spoke of the Dundalk Engineering Works and of the skill and equipment it would employ which would make it, in ten or 20 years, a great engineering enterprise.

That is great consolation to the people who walked in protest in Dundalk against the brutal letter sent to them by Mr. Reynolds the other day. It is the old slogan: "Live horse and you will get grass." The forecast of the Minister for External Affairs is that maybe it will not be so bad in ten or 20 years if you live the ten or 20 years in between. I have here a comment made by the Minister for Industry and Commerce in 1951 where he spoke of the Coalition's management of transport. He said the Coalition's efforts in regard to transport were without aim and without object. He asked how they had the audacity to ask to be put back in charge in view of their incredible shortsightedness and blundering interference in regard to transport.

That was six years ago. The best the Minister can do on the 27th of November, of this year is to say that the Government would have responsible proposals probably ready for discussion next year. In this speech in Waterford in 1951 he said Coalition propagandists were whispering to railway workers that Fianna Fáil would take some action which would reduce transport employment and that, of course, was denied.

I did not hear of those whispers at the time. The Tánaiste apparently did, and he set out to restore the morale of railway workers by speaking in these terms, that there were whispers to railway workers that Fianna Fáil would take some action to reduce transport employment.

The best we could be told—I at least hope it is the worst we could be told—on the last occasion when this was discussed, was that one-third of the 14,000 people employed on the railways could be regarded as redundant and might have to be taken off work. The Tánaiste did go on after that to speak of superannuation proposals. I do not know whether in the course of this debate he will be more precise about these.

At the time when my colleague, the then Deputy Morrissey, got the Milne Report, the author of that report asked both Deputy Morrissey, as he then was, and myself to see him and he outlined certain views he had with regard to redundancy on the railways. He had not reported directly on that matter because he did not, apparently, feel it came within his terms of reference but, in the pursuit of his terms of reference, he had got enough information to lead to a certain conclusion and that was that there was redundancy in the railway world. His proposal or suggestion then was that people should be enticed out of railway work.

There was no question of compulsorily making people leave, giving them their papers and telling them to walk out, and there was no question of dismissals, particularly on a large scale, because he said he thought that in the conditions of railway workers that would be completely inhuman. I think I know what he meant when he said that. Railway work in the old days had a characteristic of permanency and was exempt from the impact of the unemployment insurance code. They were not asked to contribute to that, because it was felt they would never have to draw on it. That is a measure of the strength of that characteristic of permanency in regard to railway work in those days. In no circumstances, could the author of the Milne Report have suggested putting into operation, in the case of work which had such a characteristic of permanency about it, a policy for mass dismissals which he thought would threaten if some of the proposals were put into practice. The Tánaiste has now left the House, and not merely the House but the men concerned, under considerable doubt and anxiety in regard to what his proposals in regard to them are.

The Milne proposal was that a scheme of pensions should be arranged at an earlier date than that at which pensions are usually given so as to provide for a person to retire, say, five years before the time at which he would have to go having earned a pension, so that an earlier retirement might be attractive for him. It would be less than his pay, but more than the pension which he might receive if he stayed on until the pension was due to him. Naturally, this would have the effect of increasing the bill for pensions but it would also have the effect of reducing the bill for salaries. If there is something like that in the Tánaiste's mind I think it is time it was revealed because it is hardly fair to people concerned that they should learn in the course of the debate that one-third of them are regarded as redundant and that there is some question of pensions or compensation but that that will be attended to afterwards.

I do not know where the anxiety at Dundalk arises. Apparently they got a letter from the chairman of the Dundalk General Engineering Company on the 28th ult. At least it was in the newspapers dated the 28th and presumably was written about that date. The debate took place on the 27th and was reported on the 28th. On the 29th November the Dundalk workers issued a special protest against what they described as the misinformation given by the Tánaiste with regard to their pensions and they put into inverted commas the statement that the Tánaiste had said that they had no pension rights or no rights to compensation. That may be their reading of the debate on the 27th on this particular Estimate, or it may be that the chairman of the Dundalk Engineering Works, who apparently had some conference with these people made some statement to them that they were not entitled to any scheme of superannuation if they were to close down because there was insufficient work on which to engage them. Where that springs from I do not know but they made that part of their protest. They are clearly in a state of anxiety in regard to their position.

They have had these indications in the papers, and in the newspapers of December 2nd it was reported that after they had met Mr. Reynolds and the Tánaiste the result was "just more confusion." The main points in their protest are:—

"(1) Work must not leave Dundalk; this we will dispute and resist with everything in our power, and

(2) we demand that our compensation claims be settled and pension rights preserved before the new company takes over."

That has reference to what was in the newspapers. As I say, whether that was a special statement made to them arising out of their special circumstances or whether it is the reading they had of what was said when the Dáil was considering this Estimate, reported on the 27th November or next day, I do not know but it would be well to have it cleared up.

It seems to me that no proposal has any chance of getting through this Parliament unless there is provision made for the proper compensation of people who are to be regarded as redundant. Again, I think it is most unlikely that Deputies could withstand the storm of protest that would be aroused if any proposal came in to force people out of employment even if they were to be benefited by pensions at an earlier age.

The Milne proposal, as put to the then Deputy Morrissey and myself, was made on the basis of something to tempt people to leave the railway service by bettering themselves and by entitlement to pensions. But there was certainly nothing in the Milne proposal, in the spoken proposal, to indicate to both of us that he would have favoured —certainly we would not have done so —any proposal to compel people to leave the railway service, but favourable consideration might have been given to a proposal to induce them to leave their employment for their own betterment. For the remainder of the debate we shall have to wait until we see what the Minister will propose. Many commissions have been set up on this matter and many different proposals have been put forward but none accepted, in the main, in regard to the betterment of the railway position.

In 1951 the Minister was so annoyed over the fact that years had passed without anything being done, in what was called "a policy of blind drift, without aim or hope," that I am sure he will be more alert to bringing in adequate proposals at the earliest possible moment. I presume they will be brought in with a better realisation of the circumstances and with more humility than accompanied the proposals that were brought in in 1944 when the Dublin people, who have borne the brunt of the heavy charges that had to be imposed in order to keep the rest of the system in some sort of operation, were told that the well-running bus and tram services in the city were being handed over to C.I.E. They were told that we could count on more efficient running and cheaper services. Certainly the prospect that the railways under C.I.E. would puff or propel themselves into a position of prosperity and of giving cheaper service to the community was held out, but the passage of the years shows that we are now down to the point where very many thousands of railway employees may have to seek employment across the Channel.

We are apparently back again at the same sort of proposal but this time with some humane background, namely, that of doing something for those who will be rendered redundant and those who are discovered to be redundant by way of providing them with some compensation. We have to give this money to keep C.I.E. going and, though it is not a pleasant thing, the money will have to be found again by the taxpayer. We hope that proposals will not be long delayed and, while they may be produced with less exhilaration than heretofore they may be more realistic and give us a chance of getting a full account of the transport muddle which started in 1944, if not earlier.

I do not suppose we shall be able to see the transport situation clearly until we have an opportunity of seeing the Bill the Minister proposes to introduce. At the same time, the Minister has said sufficient on the subject of C.I.E. to merit some comment on our part at this stage, in the hope that the views so expressed may assist the Minister in his approach to this whole transport problem.

It is unfortunately true that since the establishment of this State in 1922 this House has had transport before it as an ever-pressing problem and from time to time, over that long period of 35 years, the House has had to pass transport Bills and amending Bills of all kinds. In fact, I imagine that if all the Bills and all the amending Bills were totalled they would probably equal the number of railway engines owned by C.I.E. to-day. Despite all the Bills which we have had introduced over that period of 35 years we still have a transport problem and no one can say that the problem is any less serious to-day than it was on every occasion on which we introduced a Bill to remedy the situation then extant and for which we believed the Bill would provide a solution.

The fact of the matter is we have failed to solve our transport problems by legislation. We have to recognise the fact, that if our transport problem could be solved by legislation, Bills and Acts of Parliament, the problem would have disappeared from the political arena many, many years ago. In spite of all the Bills, in spite of all the speeches, in spite of all the hopes and all the beliefs, and in spite of all the certificates of a guarantee of success, we still have a transport problem presented to us to-day in a financial form, a problem in relation to which C.I.E. is losing at the rate of £2,000,000 per annum. This problem is not one which can be solved by legislation and I do not believe this new Bill will solve the problem. I believe that somebody sitting here ten or 20 years hence will be confronted with a similar problem so far as railway transport is concerned and will probably receive the same assurances as we are getting now, namely, that this new Bill will go a long distance towards remedying the difficulties of C.I.E.

I think we must go back to the beginning, though I do not want to do so in any detail. The fact is that railways were instituted when there were no motor-cars and no commercial vehicles and, so long as there were no motor-cars and no commercial vehicles, the railways had a virtual monopoly of transport, certainly of long-distance transport for passengers and long haul so far as freight was concerned. They had no competitors in the form of the private motor-car. They had no competitor in the form of the licensed merchandise holder or of the private firm which transports its own goods. Of course, the railway companies of those days were buttressed, too, by the fact that they paid notoriously low rates of wages. The railways, therefore, when they started, started off with three positive advantages, all of which have been stripped from them to-day.

They started with the advantage of no motor-car competition, no lorry competition and a permanent subsidy in the form of Irish sweat which they got from the lowly paid workers whom they employed. But those days have gone. The motor car now abounds on our roads. Commercial vehicles have grown in numbers each year and, thanks to trade union organisation on the railways, the workers employed there are getting a better standard of living than they ever got before, though many would say, and many will agree, that the financial position of the railways has been used to depress their standard of living to a lower level than that at which it should be, having regard to the responsible work which those engaged in transport perform.

While one can punch holes, innumerable holes, in the case put up by C.I.E. to the Committee on internal transport there was at least one realistic understanding by C.I.E. as to the way in which the problem could be met. C.I.E. takes the view that this country is too small to keep two parallel forms of transport and they say that, if we want the railways, then we must make sure that freight is carried by the railways; but you cannot economically run a railway whilst you allow a very large number of private hauliers to haul goods for reward or for their own use and a country with a population of less than 3,000,000 cannot support two entirely separate forms of transport. That is true. I do not think there is any answer to it. You can keep the two forms of transport, if you like, but they will never be economically rewarding. Railways can be kept forever so long as we are willing to pay the subsidy. The other form of transport can be kept also so long as it is tagged on to a business which is otherwise progressive and which can subsidise the carrying portion of the business because of the facilities it gets from the carrying portion in order to operate its other commercial arms.

I agree with the C.I.E. statement that you cannot operate two paying transport services in a country with a population of less than 3,000,000, where the use of the motor car and the lorry is daily increasing. If we had wanted to stop the development of road transport we might have done so away back in 1938 when there were approximately, speaking from recollection, about 10,000 commercial vehicles in the country. But it was not done then. There may have been good reasons for not doing it, and I will come to these in a moment.

The fact is a situation has now been reached in which we now have 127,000 private motor cars on the road—that is for the year 1955, the latest figure I could get—and we have 40,000 commercial vehicles on the road as well. When one remembers that in 1952 there were 104,000 motor cars on the road, so that the figure for motor cars has increased by 23,000 in three years, and the number of commercial vehicles has increased from 28,000 in 1952 to 40,000 in 1955, one can get some picture of the intensity with which the elements competing with C.I.E. are entering into competition with C.I.E.

So long as these continue to operate they will continue to carry goods which in other days were carried by C.I.E. Every ton of merchandise carried on the roads every week of the year by the 40,000 lorries represents merchandise which at one stage or other was carried by C.I.E. and would be carried by C.I.E. if it were the sole freight transport authority in this coountry. So long as you have motor transport in the form of commercial vehicles carrying traffic which would otherwise go to C.I.E., then C.I.E. will be impoverished for that traffic. It will have to carry overheads on a lesser volume of traffic, which continues to fall. It is because of these considerations that the House is constantly troubled with Supplementary Estimates to stop a haemorrhage in the financial body of C.I.E.

I think the Minister's decision to retain the railways as an integral part of our transport system is the only decision which could be taken in the circumstances. To contemplate the abandonment of C.I.E. at this stage would be just economic lunacy. If we had all just arrived on this island of ours yesterday and decided we wanted a transport service, well we might doubt the wisdom of starting a railway service. We might say there are other methods of transporting people besides railways. In those circumstances, perhaps it would be possible to consider some other method of transport besides railways.

However, the fact is we now have a railway system into which considerable capital has been injected and, because of the substantial subsidies which C.I.E. has got in recent years, its rolling stock and equipment are now in a very good state of repair. It has embarked upon a dieselisation programme on which millions have been spent. That programme is now almost complete but, of course, it has not yet had a fair opportunity of operating to demonstrate its improved efficiency over the older method of steam transport.

Therefore, I think that in present circumstances it would be unwise to contemplate any abandonment of C.I.E. or of our railway service, which is in fact the main bulwark of our transport organisation. I think it is vain to hope that C.I.E. can make any great impression on privately hauled goods traffic or that it can induce merchants to abandon their own methods of transport and go back to the railways. The fact is that the private lorry has immense advantages, from the point of view of its operator, over the public transport system.

A man who owns a warehouse in the West of Ireland can send his lorry to the cities of Dublin, Cork or Belfast. It can drive into the factory from which he wants goods. The goods can be loaded, handled by his own employees and brought back the same evening. A few hours later, perhaps, they will arrive at the warehouse of the merchant who has ordered the goods. On the other hand, if the goods are sent to him by rail, he may feel they have to undergo loading at the factory, unloading at the railway terminal, transport by railway, unloading at the nearest railway station to the warehouse and then reloading again, with all the handling and all the possibility of breakages involved.

So long as merchants can get door to door delivery and collection, I think C.I.E. will find it extremely difficult to woo back to the railways the traffic they have lost to the private lorries. It might be possible, however, for C.I.E. to offer to provide merchants with an alternative service, such as a door-to-door service or a factory to warehouse service operated by C.I.E. on a contract basis, which would do for the private commercial owner what is done to-day by the operation of his own lorry.

However, this will be a slow process. C.I.E. will have to be able to show that it was better for the firm concerned to permit C.I.E. to operate a lorry for it on a factory to warehouse basis, and to maintain the lorry in a state of efficiency, rather than that the private firm should maintain a fleet of lorries purchased by itself for use in a service of that kind. I have reason to believe that C.I.E. did endeavour to do that in some instances but were not very successful in their approach to the firms concerned. It is one way—possibly the only way—in which C.I.E. can hope to woo back to the railways traffic lost by the introduction and growing utilisation of the private lorry as a vehicle for transporting goods.

I listened with interest to the Minister's statement indicating it was proposed to pay C.I.E. a subsidy for five years. The Minister was not able to indicate what the amount of the subsidy would be, and I appreciate that to do so would involve much examination of many complicated accounts. I think the Minister is optimistic if he imagines that, at the end of five years, C.I.E. will be a self-supporting proposition. If I could see C.I.E. a self-supporting proposition in twenty years' time I would not be appalled at the consequences of bearing portion of the burden in the meantime, but it is unrealistic to think C.I.E. could get on a paying basis within five years. It is losing £2,000,000 a year at present and all the indications are that it will not lose less, but very likely more, unless it can by reorganisation produce a situation which will relieve it of some of its heavier expenditure.

We have got to recognise that C.I.E. will have to face up to growing competition from motor cars and commercial vehicles and that it will find no great consolation in any possibility of an increasing population within the foreseeable future. The experiment which C.I.E. adopted last year to try to cut its losses by increasing freight rates to meet wage rises proved a disastrous experiment from the point of view of C.I.E. Last year C.I.E. increased freight rates by 10 per cent. The result was that instead of getting 10 per cent. more income, their income was down and the traffic carried was down.

I think that, in the face of the use of lorries at the present time, it is too much to imagine that C.I.E. will find any solution for its problems along the line of increasing freight or passenger rates. Any further increase in these rates will intensify the competition of motor cars and commercial vehicles which C.I.E. has to face.

I am glad that the Minister has decided to abolish the common carrier restrictions imposed on C.I.E. I agree that these restrictions were understandable in the circumstances of the misty past but they have no place in transport operations of to-day. As far as C.I.E. was concerned, these restrictions constituted another of the factors which prevented them from competing with their private haulier rivals. I know of one case which came to my notice which showed that the common carrier service was operated not to the advantage of C.I.E. but eventually to its disadvantage. I have in mind one carrier who sent out a fleet of lorries with a load of commodities which were delivered to large towns and substantial villages all over the country. Having done that, there was still a residue of these commodities to be delivered. The instructions given to the drivers of those lorries was that when they had reached a stage when there were only three or four packets to be delivered they were to hand that remainder to C.I.E. for delivery. That firm delivered its goods as cheaply as possible to places where there was the densest volume of population and then left the deliveries for three or four isolated places to C.I.E. Each of these packets had to be sent out in four different directions from the nearest railway station.

In this case C.I.E. was being compelled to quote that firm the minimum rate for carrying the residue of the goods to remote areas while it was quoting the same rates to a producer of similar goods who was giving C.I.E. all his transport. I think it is good to get rid of the common carrier restrictions and that it would help C.I.E. to meet its competitors in a way in which it has never been able to meet them before.

The Minister made reference to the work of the committee. I set the committee the job of producing their report within three months. Let me say now that I never believed they could do that. No one else believed that they could do it. The officials did not believe they could do it but C.I.E. presented to me a document which, in my view, represented the confession by C.I.E. that, unless something was done urgently they had thrown in the sponge so far as their obligations to operate the transport service was concerned. If the Minister looks at that document he will find that it is one in which fear and grave anxiety was expressed by C.I.E. as to their ability to carry on. That was C.I.E.'s side of the case.

What were we to do? Were we to accept C.I.E.'s view that the problem could be met only by pushing back the private lorries and limiting them to an area of 100 miles for the first year, 75 miles for the second year, 50 miles for the third year, and so on, until we had finally pushed them off the roads altogether, or were we to send the problem to a committee, not biased in one way or the other, but composed of persons who had distinguished themselves by their ability to analyse such problems? Consequently, the last Government decided to institute the Internal Transport Committee. It was given three months in which to make a report. It might have been possible to make an interim report in that time but the three months' limit was set to indicate the urgency of the problem and the necessity of doing something to stop the deterioration in the whole railway system which appeared to have shattered the nerves of C.I.E.

I think the committee did a good job. They have taken eight months to do it but I think the Tánaiste knows of committees and commissions set up by this House which took five and six years to draft their reports. This committee, it can be said to their credit, produced a report within the short period of eight months as compared with the five and six years which other bodies took to report and they have produced the most effective transport report that we have had. There has been a thorough investigation of the situation and the report has produced a wealth of material which must be of value.

I know the committee has been criticised. I have criticised it myself on some of its findings. I have already expressed my views on the finding of the committee but that does not take from the value of the committee's work nor does it detract in any way from the excellent statistical material and the deductions which they draw from their examination of the whole problem. If the report had not been as challenging as it is, it would probably have gone the way of other reports of committees which took five and six years to do the job. It was the urgency of the problem and the challenging character of the report which earned my highest commendation.

I do not stand over the committee's report. It is their report, not mine. There are many points which I criticised and which will continue to be the subject of criticism but that does not detract from the excellent work which the committee performed on behalf of the whole community without any reward whatever.

The Minister has indicated that the Government proposes to wipe out the capital liability of C.I.E. to the extent of £11.6 million. That is good but it is only good as a tidying-up operation. It does not put another penny into the coffers of C.I.E. I never expected that C.I.E. could ever repay any of that money but it was only there as an indication to them that they could not expect to dive into a bottomless pit and swim out every time with a substantial cheque in their mouths. There never was a hope that C.I.E. could even pay £6 million much less £11.6 million. Wiping out this transaction stops everybody from asking when they are going to pay the £11.6 million because if you mentioned that you received a look which indicated that you were unbalanced. I think it is just as good to wipe it out but believe me it does no more than cut out a piece of dead timber from the complicated accounts of C.I.E.

The Minister made some references on the last day to some matters affecting the staff of C.I.E. on which I should like to make an observation. From my inquiries the Minister said that the Government would not object to a departure from the principle of last in, first out. I did not understand at the time, and still do not understand, what the Minister's idea is in mentioning that proposal or on whom it is supposed to confer an advantage. I agree it could confer an advantage on the Government. There is only one way in which I could see that scheme being implemented and that is by giving the long service employees the right to retire voluntarily on payment of full compensation. But I could see no likelihood of their being tempted merely by taking their accumulated pension rights. I can tell the Minister that I think there would be strong objection to getting away from the last in, first out principle and I think it could only be worked in circumstances where long service employees who might desire to retire voluntarily would get their full compensation on such retirement from the company.

In regard to this 30 per cent. redundancy which C.I.E. have indicated is their estimate of the situation, so far as I can understand this statement was received with astonishment by the railway organisations. They cannot see the 30 per cent. redundancy; they can see less of the redundancy in view of the fact that in recent years C.I.E. have been recruiting additional staff while all the time, according to themselves, there was 30 per cent. redundancy in the service. Where you get a situation where C.I.E. asserts that, on the one hand, and the trade unions have not got an opportunity of checking it on the other hand, you will always get some misunderstanding.

That brings me to another point to which the Minister made a passing reference. It is the position of trade unions vis-á-vis the operations of C.I.E. I have always said that they should try to develop a spirit of co-operation between themselves and the trade unions and should try to get the trade unions with them in order that both of them could make a contribution to the maintenance of C.I.E. as an efficient transport organisation.

About a year ago I called the Secretary of my Department, then Industry and Commerce, to see the directors of C.I.E. I think all the directors were brought along and told that I was most anxious that some kind of consultative machinery should be set up so that the unions and the directors of C.I.E., or some top level executives, could meet the unions with a view to ensuring that their joint experience and collective wisdom was pooled for the benefit of the transport undertaking. They had previously met only at a point of friction where there was a claim for increased wages or reduced hours or some other improvements. I wanted to get some joint consultative council meeting regularly where they could understand one another and one another's problems and jointly endeavour to find a solution to those problems. Although that was done a year ago, and although I understand that C.I.E. promised to take the initiative in setting up consultative machinery, I understand no effort has since been made to establish that machinery.

If C.I.E. want the co-operation of the unions they should go out and look for it. I do not think it should be above their dignity to look for it. In a national transport undertaking which belongs to the whole people the directors of C.I.E. should be told to work out with the unions, and the unions should be told to work out with C.I.E., some acceptable method of joint consultation which would ensure that the people's property, the C.I.E. undertaking, will be operated in a manner which will give the best returns and the best posisble service. There is no use bleating for co-operation in times of difficulty and when the coffers are empty. If co-operation is to be got, it has to be a fundamental principle, between the unions on the one hand and the transport undertaking on the other hand.

I should like to get it into the heads of C.I.E. that they ought to substitute consultation for conflict and there will be no peace on the railways, or understanding between those who operate them and those who direct them, until such time as both bodies recognise that this is a joint undertaking, owned not by greedy capitalists seeking the biggest dividends they can get but that this is a public undertaking owned by the people, and the people have a right to expect both sides to co-operate in the operation of a service which will give the maximum satisfaction.

I hope the Minister, if he shares my view on the matter, will endeavour to get the unions and the directors together with a view to instituting regular machinery for consultation which I think can make a big contribution towards eliminating friction and conflict and which will substitute for these two vices co-operation and understanding. I welcome the statement made by the Minister as indicating that we are going to make another effort to deal with the ever-present and seemingly unending problems of C.I.E. I think the problem is a much more serious one than the Minister's speech indicated. Railways are an important part of our transport organisation and it is, therefore, inevitable that the problem should be dealt with as expeditiously as the solution is called for.

I think we have reached a stage with C.I.E., as I think we have reached on other matters as well, when we should try to get some national policy. I do not think it is important now to quote something the Minister said ten or 20 years ago just as I do not think it important for him to quote what an opponent said five or six years ago. That now belongs to the past. I do not think it has any interest to-day and I do not think it is likely to produce a solution to C.I.E.'s problem.

I tender this advice: in the new Bill that is to be introduced I hope some effort will be made either by consultations beforehand or by the reference of the Bill to a committee to evolve some kind of common policy for which we should all be responsible in an effort to put C.I.E. back on its financial feet and so as to avoid the continuously recurring Bills which are apparently necessary to sustain it in the sickly state of half animation in which it has lived for too many years already.

I think every member of this House will agree that the railways are essential. I am one of those who consider that the first mistake was made when C.I.E. went into road transport. I think it would have been far better for this country and C.I.E. if they had never touched it. In plain language they are a common nuisance both to themselves and to everybody who has had the misfortune to employ them. It is just as well to talk plainly in this matter.

Every penny that could be collared in this country has been twisted into the C.I.E. coffers. If you want an example you can take the subsidy that was given by the American Government for ground limestone production. Who got that subsidy? Did the farmers get it? Did the men who owned the ground limestone plants get it? No. It was divided between two State-owned, State-controlled firms—the Irish Sugar Company who got the lesser portion and C.I.E.

Why should a man who starts an industry in this country for the manufacture of ground limestone for the agricultural community, and who buys one, two or three lorries and maybe a spreader to deliver the ground limestone to the farmers concerned, have to pay hush money to C.I.E. for every ton of lime delivered? That is one I should like to know. That is where the money given by the American Government to subsidise the production and distribution of agricultural lime in this country went.

The owners of ground limestone plants have to pay 7½ per cent. to C.I.E. on every ton of lime they load on their own lorries to spread on the farmers' land. That is one instance of the unseen subsidies that are paid to C.I.E. in addition to the moneys voted by this House. C.I.E. also control the number of lorries that a ground limestone producer may use. To the ground limestone producer who has two or three lorries they can say: "You can have ten lorries but you may use only one." That is the manner in which C.I.E. are using their control in that matter.

I raised this before in the House and I gave instances of it. The position has not improved since; indeed it has got worse. If a public carrying concern must pay a man a couple of guineas a day to prowl around with his back up against the walls of rural Ireland in the vicinity of ground limestone plants to watch how many lorries of lime leave those plants, I suggest such a concern is not worthy of subsidy. That is happening. We are told that commercial vehicles, privately owned, are taking the life blood from C.I.E. Times have changed. As a matter of fact it can be put this way: there are four beet factories in relation to which one Minister said the proper thing to do was to blow them up. If they went up the spout in the morning, as the same Minister said he hoped they would, 70 per cent. of the freightage of C.I.E. would disappear immediately, because those four factories are responsible for 70 per cent of C.I.E. traffic.

Nonsense!

Go and look. The worst of it is that a lad like you would know nothing about it.

A pity the Deputy did not know more about C.I.E. in 1944.

Deputy Corry must refer in a respectful manner to the members of this House. Deputy Corry made a disrespectful reference to a member of this House. Deputy Corry referred to a member of this House as "a lad".

I am sorry if I made any disrespectful reference.

The Deputy will control his tongue in referring to members of this House.

That was a term of endearment.

The people who own these private lorries have wives and children to support. They have to earn their livelihood in this country and they are entitled to be considered as much as anybody else. Take the C.I.E. lorry that goes to a farmer for a load of beet. The gentleman driver will sit in his cab while the farmer and his men are out in the rain forking in over the sideboards. But take the owner of the ordinary lorry. He is not above taking his fork and helping the farmer and his men. That is the difference that leaves C.I.E. without the work and gives it to the local owner. The local lorry owner may also have a loader which he brings along to the farmer's rick of beet. C.I.E. will not employ any mechanical equipment. Those are the differences that account for it.

I have thought this matter out as well as I could and I suggest the proper thing is to carry on the railways as they are until the country decides it can do without them. I do not believe the country can do without them but I believe the country cannot afford two systems, and cannot throw millions into roads and a couple of million more into railways. We have been brought to the point where that will have to stop.

The service given by the ordinary private commercial vehicles is a service that cannot be given by any Government organisation. A man with a private lorry back in West Cork will set out for a load of pigs and drive to four or five or six farms for that load. C.I.E. will not do that. That is the difference between the service that is economic and one that is not.

Take beet. A lorry owner may not carry beet even to the local station unless he pays hush money to C.I.E. of 7½ per cent. on every ton of beet he draws. When we talk of giving C.I.E. £2,000,000 to carry on, let us see how many more million pounds they are getting and from whom they are getting it. The unfortunate man who, perhaps, got a couple of hundred pounds when leaving the Army and bought a lorry to make a livelihood finds that on everything he endeavours to carry he will have to pay hush money. That is what it amounts to. Now that we are discussing a period of five years, I think something must be done which will bring us down to earth and let us know where we are. I do not want to be unfair to anybody but I have seen these things happen and I have seen the appeals that were made. We are living in a mechanical age and you will no longer get a man for a flail. An ordinary private vehicle coming out to take in beet from a farmer is equipped with a mechanical loader and avoids much of the slavery attached to that work, but you find the C.I.E. lorry, when it comes out, has no such equipment. That is the difference. If C.I.E. is to continue in that line it should provide these facilities.

I am sorry I cannot agree with other members of the House, but I am giving the facts as I know them. I say it was false pretences to have a couple of million pounds provided by the American Government for the purpose of making ground limestone available to the farmers, switched into a subsidy for C.I.E. That was wrong and should not have been done. The same thing happens in other cases——

The Deputy should not repeat himself.

That is as I see it. Unless we approach this matter in a common-sense way so as to get out of our difficulties now we shall have the same problem next year and we will find we only improve the financial situation of C.I.E. by giving them £3,000,000 next year instead of the £2,000,000 we are giving this year.

There is no doubt but that this Estimate must be passed. I think it is a real "must" in this particular year but, when one hears what Deputy Corry has said, and the allegations he has made, one becomes perturbed about what can happen in this House. He uses such phrases as "hush money". It is not a good phrase unless it has its proper meaning, which is well-known. Whether Deputy Corry means it in that sense or not I do not know, but from the way in which he said it, it seems that he does. If there is a question of hush money in that sense it is a very serious matter. I should like to suggest that not only should the rules of order prevent Deputies from insulting colleagues but they should ensure that that type of phraseology would not be used in the House. However, I do not intend to lecture Deputy Corry. I do not mind what he says, but at the same time perhaps we should keep this point in mind.

Deputy Corry has not told us his solution to the railway problem. He says, on the one hand, the railways must be kept and, on the other hand, that they are getting hush money and this, that and the other, and that instead of being £2,000,000 as in this year, the bill will be £3,000,000 next year. I feel that both the Minister and Deputy Corry should be in sackcloth and ashes, because when they brought in the first Transport Bill in 1944 they said they wanted it passed immediately because it would mean more efficient and cheaper transport service, that it would save money for the country and would lead to great internal economic development. I remember the Minister, speaking with great emphasis, telling us what would happen the moment the Bill was passed.

The war was still on.

The Minister was powerful.

The war was still on.

The war was still on. The Minister went one better. The House was dissolved and the Minister came back and declared emphatically here that the people had enacted the Bill and that there was really no necessity for him to bring it before the House at all. Would the people have enacted that Bill if they had understood that, instead of providing the efficient transport service the Minister outlined to assist us in our national development, it was going to cost us all the millions that it has cost since?

The Minister gave an elaborate survey of the circumstances in which C.I.E. now finds itself. He did not say: "I have been disappointed. It has not lived up to my expectations." Neither has he suggested any solution except to tell us that he proposes to bring in yet another Bill to deal with the matter. He has a big responsibility. We can only wait and see what his proposals are but I ask him, when he does bring in his proposals, to approach the matter in a realistic way and not use the hyperbolic phrases that he used in the past.

Remember, introducing the second Bill to deal with public transport, he said that it was common ground in the Dáil that we would have cheap and efficient transport facilities, facilities vital to our economic development. What part have they played in our economic development unless from the point of view of what Deputy Corry said, namely, that £2,000,000 of Marshall Aid were thrown into C.I.E.? That is the only step that C.I.E. took in our national development. I do not know whether or not they got £2,000,000. I do not know if other transport systems did not get portion of the Marshall Aid. Deputy Corry should tell us something about the others who benefited.

The Deputy will find it in reply to a question of mine in this House.

I did not interrupt the Deputy. No solution has been suggested this evening. Neither can I suggest a solution except to say that there should be greater co-ordination between the two systems. It is rather odd to see a bus leaving Galway, as I saw it, and a train five minutes later, both bound for Dublin. That does not make sense. Admittedly, they were taking different routes. If the time lag were greater, then they would not be running in competition with each other.

It is important that we should have an efficient transport service. It is equally important that we should have a cheap transport service. We have dieselisation to-day and it should be easier for C.I.E. because of dieselisation to handle the railway system in the future, or at least more efficiently than they have handled it in the past. Let us hope it will be a success. Let us hope that the proposals which the Minister will bring in will be brought in in a realistic way and with not any blatant shouting about a plan—the only plan that will solve the problem. If he does that the House will meet him in a reasonable way, but we will not tolerate his giving us, for the fourth time, an efficient transport service.

This transport undertaking is not short of doctors prepared to write prescriptions. Every Deputy who has spoken here since the 1944 Act was passed has been able to write his special prescription for the management of C.I.E. The last speaker had practically six years' experience as a Cabinet Minister and, if he had any constructive proposals to rectify any shortcomings of the 1944 Act, he had ample time in which to have those proposals implemented. Unfortunately, the inevitable commission was set up and duly reported. When the findings were published we were just as wise at the end of the report as we were at the beginning.

Certain suggestions were made. The people on the commission were supposed to be experts. But only for the 1944 Act we would have very little public transport to-day. We must face facts. Is it our intention to maintain public transport? Is it essential to our economy, or will we let it go altogether? Deputies often find themselves torn between pressure groups. People want private transport and they will tell you that Johnny Murphy down the road has a plate and they should have a plate because they had lorries before ever Johnny Murphy had them.

Every Deputy has a responsibility in this matter. He must examine his conscience and ask himself should we have a public transport system, paying its way, or a private transport system with cut-throat competition? I listened to a colleague of mine speaking a few moments ago. He dealt with something that concerns only himself and a few farmers. We have to look at this from the national point of view and it is from that point of view that we must consider it if we intend to get anywhere.

C.I.E. is the biggest employer in the State. We have been faced here over the years with a good deal of unemployment and emigration. The Minister has generously tried to do the best he can for these employees. He has tried to meet a difficult position in a most efficient way. I have given his statement serious consideration since I have been closely associated with the railway over a long number of years. I have met some of the directors and some of the people concerned and I cannot speak too highly of them. However, I met one gentleman, whose name I shall refrain from mentioning, and he should be sent to school to learn something about human relations before holding such a post. I have no use for any man who is discourteous and not helpful to public men. We have our responsibilities and we are entitled to co-operation. When some people get into sheltered jobs they feel they have the cure for all ills and that they can get away with slighting people responsible for the well-being of all sections of the community. On the other hand, I have nothing but the highest praise for the majority of the officers of C.I.E., from the chairman down, who gave us whole-hearted co-operation.

We have to ask ourselves if the railways are to go, what will take their place? What happens if we have a national emergency? What happens if we are short of fuel? I blame a number of people in the small towns who are crying out when branch lines are closed down and are running up to the Minister. They are the very people who have given no lead whatever to see that the lines are kept there. The lack of general co-operation is responsible for the position facing the Minister. I feel that every Deputy should try and help the Minister in dealing with the difficult task that faces him and the Board of C.I.E. The Tourist Board is very perturbed about the situation. C.I.E. contributes much towards making our tourist industry a success.

I admit that a number of branch lines are dead wood. I admit that no Minister or no directors of C.I.E. can do anything but scrap them. But there should be greater co-operation between the management and employees of C.I.E. The human touch and common understanding and goodwill should be encouraged between the management and the workers. The friction that has existed there on occasion should be replaced by goodwill.

A consultative committee, composed of workers and management, should be established and should be told that the people of the country cannot afford to keep subsidising C.I.E. year after year. But any man, either in the workships or the offices, who has a constructive suggestion to contribute to the management should, through such a consultative committee, be given the opportunity of doing so. Each employee, if he wants to save his employment, should give of his best and should understand that he is working not for a boss, but for himself and his own company. Such a position cannot be brought about without discussing these problems.

It is essential that C.I.E. should carry out a complete stocktaking. I am not pleased with these commissions —these men who come over with a cure for all ills. I am more concerned with the ordinary man working for the company day after day who has a suggestion to make. His suggestion should be listened to. Such co-operation between management and workers is essential if we are to save our transport system.

I want to congratulate the Minister on his efforts to deal with this problem. Now we have the G.N.R. on our hands as well as C.I.E. I hope the Minister will get intelligent co-operation and constructive criticism from the people who matter in this country.

The Minister is asking for funds for C.I.E. In the course of his remarks he foreshadowed legislation to deal with our transport problem. I had not the opportunity of listening personally to the Minister's opening remarks but I read carefully his contribution in the Dáil Debates of that day. I should like to say straight away that I welcome the Minister's statement. It is not everything we could hope for, but at any rate it will relieve the minds of the public who up to the present have been rather perturbed at the various types of pressure brought to bear on this and previous Governments to do away with our railway system.

The kernel of the Minister's speech was that he was prepared, for a limited period at any rate, to keep the railways for social and economic reasons and to preserve them from the tender mercies of private operators. I cannot agree too strongly with that statement. What I do not agree with, however, is the Minister's argument that the action he is likely to take in these new measures will ensure the preservation of the railways. I should like to clarify that point.

In his remarks the Minister pointed out that those people who are in favour of a railway system must justify railways in view of the very many heavy losses involved in their maintenance. He stated that he had received suggestions from various bodies and parties and that he had received many protests against any proposal to curtail the railway system. He went on to say that he also wanted assurances to be given of local effort to ensure that the particular freight or traffic would be available for the maintenance of any branch line in question.

The Minister is putting the onus on the traders, and other people, who live adjacent to towns where there are branch lines to put up the support necessary to keep the branch lines open. We know that in recent years there has been a great increase in the number of lorries, tractors and heavy vans in rural areas. The ordinary trader, whether in the rural areas or in the towns will, human nature being what it is, take the easiest way out. He will employ somebody in a private capacity to carry his goods and it is only when he finds that there is a danger of his branch line closing down that a group will get together as a body to protest against it. I believe that national transport should not be left to groups of individuals like that down the country.

There is another point of great importance in this matter. When considering the development of national transport in Ireland over the past number of years the one outstanding fact that emerges is that we have a surfeit of transport in the country. To my mind the kernel of the whole problem is that we have too much transport for the population, for the goods, and for the industries we have. It is a question of how we are going to get rid of this surplus transport and utilise the remainder in the most suitable manner from the point of view of the national economy.

The Minister, and rightly so, wishes to give a further chance to the railways. I maintain that although he may wish that, and hope that it will happen due to the new legislation which he proposes, he should not leave the national transport in the hands of private individuals who will use only the method of transport that is most suited to themselves. In a matter like that you cannot be in favour of the railways and at the same time give a free hand to private enterprise. You must, at some stage, come down at one side or the other.

I can appreciate the difficulties of the Minister and his Government in regard to pressure groups. The Minister has gone so far as to suggest in his statement at column 1052 No. 7, Volume 164:—

"... that existing losses from the operation of the C.I.E. railways are met from taxation and that taxation imposes burdens upon other economic activities and restricts their growth and employment. The losses on the C.I.E. railways and the resulting tax burdens are helping to produce amongst important sections of our people what I could describe as an anti-railway mentality—an outlook which could very easily build up into a demand to end the railways."

I should like the Minister to clarify to the House which are the important sections of the community who may be in such a strong position as to dictate to this House, in five years time or whatever time it may be, that they no longer want the railways. Who are these people who could say: "Let us dig ourselves up to the elbows in the pocket of the community by letting private enterprise do its best." I do not think we should ever reach the position where any vested interests should be able to dictate to whatever Government might be in power. I would go further and suggest that there is a strong lobby at the present time composed of individuals, with only their own interests at heart, who wish to get rid of the railways and want to get back to the dog-eat-dog system of private enterprise in transport. I am glad that that pressure has been resisted by the Minister.

I want to put one or two other points to the Minister. I suggest to him that, having made the decision to give every possible opportunity to C.I.E. to conduct its business in the most efficient manner possible, he must take into consideration the interests of the people in rural Ireland. We must not forget the fact that, as far as the postal services are concerned, whether a person lives at the tip of West Cork or in the centre of the City of Dublin, he is entitled to the daily delivery of his letters. The transport system should be a national service also. People, because they have to live far away from the large centres of population, should not by reason of that fact be deprived of transport and of the communications that go with transport. If we allowed the position to develop that the railways or the branch lines should be closed down and transport in the rural areas left to private individuals we know well that they would only go for the cream of the trade.

Let me give an instance to the House. When the land project scheme was in operation the Government decision was that it should be carried by Government Departments and Government engineers carried out the work themselves. Some other Government decided to sell the machinery and the next thing we had was that private individuals were carrying out the land project on a contract basis. The result has been, and I do not blame the contractors for it, that small farmers in remote areas are waiting for three and four years to get a contractor to go in and do the job. The same will apply if we give any extensive scope to private individuals as far as transport is concerned.

Other State enterprises, such as Bord na Móna and the E.S.B., are under very little pressure from private interests. Private interests see no chance of profit in these State enterprises but there is a chance of profit in the public transport service if these private groups could get their paws into it.

We must ensure that what comes first is the national interest. I am not afraid of any vested interest in this House and there are many in my constituency who would like to see me a long way from the remarks I am making about private interests. Our main interest must be the people as a whole. The last interest we should have in the matter of public transport is profits and allowing private interests to make profits at the expense of the community. As I said the Minister has admitted, in the course of his remarks, that we have suffered from an excess of transport. There are a number of ways by which that matter could be dealt with. I would suggest that a forceful and sustained curb on national investments in lorries is essential. That can be achieved by the introduction of necessary legislation which would permit the importation of lorries and component parts.

The Deputy may not advocate legislation.

The Minister indicated in the course of his remarks what the lines of the legislation would be to deal with this problem of C.I.E., and surely if the sum of over £2,000,000 is to be voted for C.I.E. I am entitled to suggest my approach to the matter?

The Deputy is not entitled because Standing Orders forbid it.

I cannot understand why I am picked out and why Standing Orders should be applied to me. I listened to Deputy Norton——

Standing Orders apply to all Deputies alike.

It has been a fair debate up to this.

I am not criticising Deputy Norton.

I am only suggesting that the Deputy be allowed carry on the way he was.

I shall deal with it this way. The Minister has put it that there is an excess of transport and surely I am entitled on that basis to suggest how we can get rid of that excess. The problem the Minister faces is to how to get a suitable transport service and to preserve the railway system. I maintain that he cannot maintain the railways while he allows scope to the hauliers. One of the methods he should adopt—and the necessary power may already be there and may not require legislation—is that vehicles, lorries and component parts, be imported under licence, and that those who engage in private haulage should conform to certain standards with regard to employment, wages and conditions of their drivers and staff generally. Thirdly, these individuals who apply for the necessary licences to import the lorries should be able to show or give reasonable proof that they had the necessary business themselves to warrant the importation of these lorries. I would go further and provide that if they wanted to operate outside a certain radius from their own localities, they should be allowed to do so and that they deliver to any part of the country, no matter how remote the address of the particular client might be.

Deputy Corry mentioned the question of the Sugar Company. I think the Minister will have to grasp another nettle here. We have at the present time C.I.E. dealing with internal transport and the carriage of goods down the country and we have another State body with its own large fleet of trucks in competition with C.I.E. That is something which creates an intolerable situation. This should be of great interest to the members of this House who are members of local authorities as these heavy trucks pass across various counties— and we know the amount it takes to keep up roads at the present time— while in the vicinity we also have a rail service. I see no reason why there should not be a dove-tailing of the two State companies.

Another point which I think the Minister should consider, and I think Deputy Norton made reference to it when he spoke about the employees of C.I.E., is that there seems to be a suggestion that C.I.E., by cutting 30 per cent. of its personnel, could operate just as efficiently as it does to-day and at the same time save the public purse to the extent of the wages of the 30 per cent. I am not in any position to argue or criticise that but I do feel, and I have discussed this with a number of people outside this House, that when the axe is to fall, if it is to fall, it should fall from the top to the bottom. I do not like to see little branches lopped off and the weaker sections of the railway hit. If there is to be a pruning, some of the heavy branches on this big trunk will have to come off.

Only a few months ago I had occasion to put down a question here in regard to C.I.E. At a time when they were in debt up to their two eyes and when they were pointing out that they would like to get rid of a lot of employees, they actually advertised for a new manager. How can the public have any trust when these "top-notchers" take action like that and at the same time suggest that they want to get rid of workers at the bottom? It means that the ordinary worker is suspicious of the people at the top and that the public have no confidence in C.I.E. There is no good in the Minister telling C.I.E. to go ahead and get rid of superfluous workers. Is it not natural that if a man is in a position to do so he will get rid of two or three people who are junior to him? He is not going to apply the axe to himself. No man is going to be his own executioner.

We had here in recent years a number of efficiency experts who I understand did a reasonable job in certain departments. Having decided, as the Minister has, that he is going to give C.I.E. this further break, I am all with him and I want to see it successful. I think he should take in consultants. I do not care where he gets them but they should be first class consultants and he should let them have the free run of C.I.E. The Minister will find that if the axe is to be applied here he will get a fair decision from the people to go ahead.

Having said that, I want to conclude by saying that I hope the Minister, with a large majority in the House, will not be afraid, that he will bring in a measure that the people as a whole will support and that as a result of his efforts he will give the people an opportunity of regaining confidence in C.I.E. so that we will not be coming in here year after year listening to the wails of people, both in the House and outside, that C.I.E. is always looking for money. All these wails have one significance—that we are preparing the ground all the time for reverting to private transport. The longer we can put off that the better. I do not think the Minister himself would be in favour of restoring that position. I only hope that when the legislation he envisaged during his opening remarks comes before the House it will show strength sufficient to deal with the pressure groups.

The speech the Minister delivered last week in the House was of great interest, indeed not only to the House itself but also to railway workers in general and the public throughout the Twenty-Six Counties. The most outstanding feature of that speech is the fact that a further respite has been given to C.I.E. as a result of Government decision. The report of the Committee of Inquiry on Internal Transport has been examined by the Minister and I presume also by his colleagues. I am glad that the recommendation made by the committee in reference to a drastic cut down in railway lines has not been accepted.

I think it is right to say that the Government came to their decision to maintain the C.I.E. system at least for a trial period because they recognised the force and the value of the various views that were submitted by organisations and public bodies interested in the retention of the railways. The Minister has now made his eagerly awaited statement on public transport policy in this country and while it gives a very welcome relief to C.I.E. employees, I regret to say it will not serve much to allay the fears of G.N.R.

The Minister, last week, referred to the termination of the agreement with the Northern Government, and he said that in the event of the agreement being terminated—and, as the House is aware, we have been told it is the intention in Belfast to terminate it— the part of the G.N.R. system within this State will be amalgamated with C.I.E. He spoke of working parties being set up to iron out and resolve the many intricate problems attached to that venture. I want to take this opportunity of asking the Minister to ensure that this amalgamation with C.I.E. will be effected with the minimum of hardship to G.N.R. employees. I fully appreciate his task in that regard is a difficult one.

I admit that, but I also feel he has the interests of these men at heart. Proof of that interest is to be found in his recent guarantee of £500,000 to the new company. The workers, I might say, are grateful for that but they feel their cause somehow will be lost if repair work which is being done at present in Dundalk is transferred to Inchicore. I think it is intended to transfer it next September or October. As the Minister himself said, there are many intricate problems to be attended to, many difficulties to be overcome before amalgamation with C.I.E. can be finalised. He said that working parties were attending to these problems.

I want to impress on him the vital importance of this matter and to remind him that for over 100 years this work has been done in Dundalk by Dundalk tradesmen, men who are among the most skilled in the country. I feel sure the Minister will agree that these men have become specialists at their job. We often hear a lot of talk about centralisation—that everything must come to Dublin. Speakers on many occasions have condemned the practice of bringing all things to Dublin. On the one hand, successive Governments down through the years have condemned this practice, while on the other hand, they have done very little to prevent it.

Here now, in my opinion, is a golden opportunity for the Minister to help a place outside Dublin. Here is a chance for him to prove that his concern for Dundalk is genuine. I understand that the Minister is awaiting a report from the C.I.E. Board in connection with the proposed amalgamation, and it is my firm hope that negotiations which are, I presume, going on at the moment between the working parties of C.I.E. and the new company in Dundalk will result in a continuance of repair work in that town. Before that report is presented to the Minister——

The Deputy may not discuss this report at the moment. The Deputy is confined to what is in the Supplementary Estimate.

With due respect, the Minister referred to the terms of the agreement and the proposed amalgamation with C.I.E., and I am discussing the implications of that and expressing the hope that certain things will not occur. I suggest that I be allowed to continue.

The Deputy has been allowed a lot of latitude because on a Supplementary Estimate the debate is confined to what is in that Estimate and nothing else.

The Minister has, by this time, got the gist of my remarks. The workers in Dundalk do not know where they stand at the moment because there is a spate of rumours freely in circulation among them. Some say they are to be dismissed this month, others that there are not going to be any dismissals. I do not say there is any foundation for these rumours and if the Minister can dispel these fears I shall be very grateful. The position at the moment is far too vague to be encouraging.

I agree there is bound be to a certain amount of redundancy because a change over from a railway workshop to a private engineering concern is of such great magnitude that dislocation of employment, to a certain extent, cannot be avoided and certain dismissals are bound to occur. We all accept that unfortunate fact, but those workmen who are affected by this crisis desire naturally that this possible redundancy be kept at its lowest possible level and they consider that one sure method of achieving that is by allowing the work to which I have referred to be retained in Dundalk.

They are not asking for something new. They are anxious only to retain what they have and what they have had down through the years. I hope the Minister will not take from my remarks that I or any G.N.R. employees in Dundalk begrudge C.I.E. the fixed subsidy every year for five years. It is essential that a network of railway lines be maintained. Special legislation is to be introduced to provide certain compensatory benefits for C.I.E. personnel and in addition to that certain capital liabilities incurred by the C.I.E. Board since 1950 are to be reduced. All these things are welcome but if these measures are to result in the elimination of Dundalk as a railway repair depot then I have to register a very emphatic protest.

I referred earlier to the tendency to bring everything to Dublin and if the Minister allows the transfer of this work to Inchicore his action will be deplorable and indefensible. It is bad enough to set up a new industry in Dublin at the expense of a provincial town but when it is proposed to transfer an existing one from a place like Dundalk, the strongest protest must be made and, as the representative of that town, I am making that protest here and now. I trust the Minister will leave no stone unturned to save the Dundalk works.

I am sure he will agree—because it is obvious—that the new company, if it is to attract new work and obtain new orders from commercial firms, will have a very stiff, uphill fight and in my opinion, to saddle it with the added handicap of withdrawing the railway work would be very unjust. We must remember that since the closing down of three cross-Border lines within the past few months the volume of work now in Dundalk is comparatively small and when the agreement with the Northern Government terminates, as it appears will be the case next year, the existing volume of work will diminish still more because the northern authorities will not leave any Northern Ireland work in Dundalk. Obviously it will be done in Belfast. I hope the Minister will pay attention to the matters I have raised and that he will eventually solve this problem, but I must add that I sympathise with him in his efforts.

The Minister made some reference to legislation in regard to compensation for G.N.R. employees and he also said that any G.N.R. employee who might be absorbed by C.I.E. when the amalgamation takes place would be entitled to similar scales of compensation. I asked the Minister previously to state the position of the G.N.R. employees with regard to compensation and he informed me they had no statutory right to it and added that while he could not give any guarantee he thought it was the aim of all concerned to solve that problem so that it would leave no permanent grievance. That is a very vague statement which I think requires some clarification and I take this opportunity of expressing the hope that in the new Bill which the Minister is to bring to the House early in the New Year he will make some provision for these workers.

As I informed him earlier, they have been legally advised that they are entitled to compensation and if they are transferred to the Dundalk works in my opinion—and in their own, I would say—they will be suffering a worsening of conditions especially if no railway work is to be done there in future. If they are not transferred to Dundalk and if not absorbed by C.I.E. what will be the position? I assert that G.N.R. employees in Dundalk are as much entitled to compensation as C.I.E. employees in Inchicore and if the Minister contends he is legally debarred from paying such benefits I suggest that he should cover that point by inserting a clause to that effect in the new Bill.

I suggest they have at least a moral right to that pension. It is interesting to observe that the Minister is providing compensation for employees on the Sligo-Leitrim railway. He will probably retort that the number there is very small and that the position bears no relation to that of the G.N.R. workshops at Dundalk. One reason he gave for the payment of compensation in the Sligo-Leitrim case was that the workers were domiciled in the State and would not be absorbed by C.I.E. He thought they were entitled to compensation. I would like to ask the Minister now—and if he could give me some definite information I would be very grateful—could he say how many G.N.R. employees are to be absorbed by C.I.E.?

With the permission of the Chair, I would like to digress briefly to refer to one of the cross-Border lines which was closed in recent months. I believe it is relevant to this Estimate. The reasons for the Government's decision to preserve the C.I.E. system relate to the ability of C.I.E. to pay its way contingent on the subsidy and the effects that a close-down would have on employment, on tourism, on peak periods of passenger and freight traffic and also the possible effects on provincial industries. They also relate to the comparative costs of operating rail services as against road services. The Minister gave the cost of operating the railway service as £8,000,000 as against £11,000,000 for the operation of a road service of similar capacity. In view of the fact that the same reasons apply to the retention of the line from Dundalk to Bundoran——

The Deputy may not discuss matters outside the ambit of the Estimate.

But these are matters, I submit, which relate to the proposed amalgamation.

The Deputy must confine himself to the matters in the Estimate.

On a point of order, am I correct in my understanding of the position that on this Estimate the Minister made a statement of Government policy arising out of the recommendations of the Committee on Internal Transport? I put it to you as a point of order that in that context, on this Estimate we are entitled to discuss Government policy in relation to transport.

This is Government policy in relation to transport in the Six Counties.

Not exactly.

As far as the Chair is concerned, it must do its utmost to confine Deputies to what is in the Estimate.

But may we not discuss the Government's policy on transport?

In so far as it pertains to the Estimate.

I shall content myself by hoping that when the Minister organises the new C.I.E. Board into which he will attempt to infuse new life, he will ask the new board to consider the possibility of reopening the Bundoran-Dundalk line for the very reasons that the Government gives for maintaining the C.I.E. system.

Before concluding, I would like to refer to what appears to be a conflict of views between the Minister and the Chairman of the Dundalk Engineering Works. There appears to be a definite conflict between the assessment of the Minister in relation to future repair work and that of the chairman. Deputy McGilligan referred to a letter which the chairman wrote to the Dundalk Urban Council following a letter from that council to him. In that letter he said:—

"I am afraid, however, that when the G.N.R. Board is dissolved there will be no work for Dundalk on the maintenance and repair of locomotives, rolling stock and bridges as this work will be done in the Republic by C.I.E. and in the North by U.T.A."

I will stop there for a moment and concentrate on the phrase "... in the Republic".

I submit that does not necessarily mean that the work will be done in Inchicore. In my opinion there is a loophole there and I believe that work done for C.I.E. will be done in Dundalk actually by the Dundalk Engineering Company. Further on he states:—

"Maintenance and repair work for the G.N.R. Board will continue to be done at Dundalk until September next and it is hoped that as from mid-December it will be done for the railways by this company."

Referring to that particular matter here recently, the Minister said in relation to the time when amalgamation would be achieved that, by that time, Dundalk workshops will of course be a separate commercial enterprise and the arrangements that may be made between the management of that workshop and C.I.E. for the repair and maintenance of road vehicles is a matter for negotiation between them. There appears to me to be a conflict of views there and I would be very grateful if some clarification were forthcoming from the Minister in that regard. I trust the Minister will clarify the points I have raised. The most important one is that relating to Dundalk as regards railway work. I suggest such work be retained in Dundalk until such time as the new company at least establishes itself and finds its feet. If that is not done, there is one sure thing—untold misery will be caused to many families in the town of Dundalk.

It is true to say that no industrial undertaking or organisation since this State was set up has been subjected to the same type and volume of criticism as has C.I.E. All down through the years, week in and week out, the searchlight of publicity has been beamed on C.I.E. from this House, from local councils, from newspapers and from practically every cross-roads and house in the country. Some of the criticism has been fair and just. In so far as the criticism was constructive either to the Board of C.I.E. or the Minister in Office it was to be welcomed. But the greater part of the criticism, however, levelled against C.I.E. has come from misinformed sources and, very often, biassed sources. At times, one could understand that. One can understand criticism based on misinformation. On the other hand, it is difficult to remain calm in face of the unfounded and unfair criticism, such as that made by Deputy Corry this evening, levelled by people who ought to know better and who ought to make it their business to inform themselves.

We should endeavour here to get the whole matter of State subsidisation of C.I.E. in its proper perspective. We have all read leading articles and we have all heard prominent people refer to this subsidisation as colossal subsidisation. If one takes the financial years 1951-1952 to 1955-1956 the average subsidy from State funds to C.I.E. was £2,000,000. Over that same period the total average national expenditure was £500,000,000. State subsidisation of national transport over that period works out at less than one-half of 1 per cent. of national expenditure. We freely condemn in principle subsidisation of national transport and, at the same time, close our eyes to the fact that industry in all its branches and agriculture in particular, either directly or indirectly, are being heavily subsidised by the State and by the community.

I shall not delay the House by quoting the innumerable instances of subsidisation in our economy either by way of direct financial aid from the Exchequer or indirect subsidy from the consumer. Quite recently here the Minister, when pressed as to the total amount of subsidies included in the Book of Estimates, said approximately 75 per cent. Bearing that in mind I do not know how anybody can quibble at the extent to which the State has been called upon to finance our national transport undertaking.

In his opening remarks the Minister quite rightly stressed that there are very few railway undertakings in the world making a profit or even breaking even. Those of us who have studied transport are quite aware of that. We know that in the eight years from 1948 to 1954, in only one year of those eight did British Railways break even and over the whole eight years British Railways lost to the extent of £100,000,000, a loss which had to be made good by the Exchequer. Similarly, the French railways, which are regarded as the fastest and most up to date in Europe, lost large sums annually which have to be made good. The railways in Italy, Austria, Spain and Belgium are losing money.

Why, then, if we regard railway transport as essential—and it appears from the evidence we have here and from the representations made to the committee inquiring into the problem that, by and large, the people regard the railway as necessary—must we make such a moan about the subsidy paid to C.I.E. which, in relation to our total national expenditure, is relatively small? I am not to be taken as saying that, because of that, I or anybody else should subscribe to the view that no effort should be made by the Government to produce a policy whereby the losses on the railway would be reduced. Any policy directed towards that target should be welcomed by the House and any Minister producing a policy on those lines should get the support of all sides of the House. Therefore, I must say straight away that in so far as the Minister's statement of policy is directed in that way, it must be welcomed here.

Personally, I was very glad to hear some of the concessions and reliefs given to C.I.E. For several years the national transport undertaking had been asking to be relieved of the common carrier obligation. Without a doubt the obligation imposed on C.I.E. as common carrier had been working to their detriment and putting them at a very serious disadvantage in relation to their competition with other forms of transport. It will come as a relief also to find that the deadweight of existing capital liability is being removed from their shoulders. Quite obviously they were not able to bear it.

The Minister was wise also in stating that he intends in his coming legislation to give powers to C.I.E. to exercise their own discretion in the elimination of branch lines which appear not to have any prospect of paying at all, not even now but in five or ten years' time. They will not be burdened with the cumbersome procedure it had been subjected to previously before they could close any branch lines.

One of the most welcome portions of the Minister's statement was that in which he indicated that compensation provision for employees will not have to be met out of C.I.E.'s own resources. He stated that he intends to set up a State fund out of which this compensation will be paid. He is to be congratulated on that. It is most encouraging to the people bound to be affected and it is encouraging also to the Board of C.I.E. that they are being relieved of this large burden.

I wish that we had more information regarding the annual Grant-in-Aid which the Minister intends to pay over a five-year period. I appreciate it would not be easy at this stage to give any definite indication but, when the Minister is replying, perhaps he might give some picture of what he has in mind. The merits of the Minister's proposals and of his impending legislation will largely depend on the amount of that Grant-in-Aid. I hope that at the earliest possible date he will give some indication to the House as to what that is to be.

The Minister stated also that C.I.E. had informed him that they estimated they could do with 30 per cent. less of their operative staff on the railway side of the undertaking. I do not know whether C.I.E. conveyed that to the Minister in a bald statement or not or whether they gave any further details. In view of the confusion, frustration and indignation it has caused amongst railway employees, if the Minister has any further information on the matter, it would be wise for him to give it to the House. The trade unions are at a loss to know where the 30 per cent. redundant staff are; and the implication is, of course, that one railway employee in every three is kicking his heels around the country with no work to do. In fairness to the workers concerned that statement should be substantiated.

We cannot forget that already there has been a pruning in the staff of C.I.E. Between 1950 and 1956, C.I.E. reduced its staff by over 1,200 people, or 10 per cent. Passengers and freight over that same period actually increased. The only increase in wages and salaries paid during the period amounted to 7 per cent., which was offset by the reduction in staff to which I have referred. It appears to me that there actually has been an increase in the productivity of the railway operating staff over that period. I appeal to the Minister to clarify the statement he made because it may be that he or the board is being misunderstood.

While the concessions and reliefs outlined by the Minister are welcomed, and must be welcomed by anybody sincerely interested in the transport undertaking and in the welfare of the people employed therein, nevertheless C.I.E. will still have to suffer continued disabilities of one kind or another. One of the chief disabilities still with them is that they have to maintain completely out of their own resources their own railway highway —the permanent way. That has been a very heavy charge on C.I.E. down through the years and may well drive them to the bottom again.

As we know, road users get very much more preferential treatment. From figures I have seen, the average cost per mile in 1939 of maintaining roadways in Ireland was £66. That has risen down through the years until in 1955 it cost £213 per mile of ordinary highway. It is interesting to note how that expense is met. Of the £213 per mile, £82.4 was met out of the Road Fund, £39.7 from central funds and about £91 out of local rates. Of all the moneys raised by local authorities in that year one-third went to road maintenance.

C.I.E. are also very large ratepayers. They have paid their contribution towards local rates and also the taxes and licences in respect of their road freight department vehicles. In that way they have contributed towards the maintenance of roads largely occupied by people in competition with them. On the other hand, they have been obliged to maintain their own railway highway completely out of their own resources.

In a recent year's trading, to earn on the railway side £6,750,000 the railway had to expend on the permanent way £1,000,000. In that very same year they earned in their road freight department £7,000,000 and it cost them in road tax and licences £250,000. It is significant that in that year their railway losses amounted to £750,000. If the cost of maintaining their permanent way had been in the same proportion as their payment to the Road Fund for the maintenance of roads, there would have been no deficit in railway operations in that year.

Similarly, and even on a larger scale, the cost of canal maintenance, with which C.I.E. is also burdened, is disproportionately heavy. Actually it usually runs to about one-third of the revenue from canal working to maintain the canal. That means that one-third goes to maintenance as against 1/28th which is the contribution to road maintenance. All this seems to me to suggest that there might be some means of relieving C.I.E. in a genuine and just way by making a contribution towards the cost of capital maintenance and rail maintenance. There have been different suggestions made regarding that matter in the past and even at present. In the Milne report a recommendation is made for the setting up of a central highway authority and that all means of transport such as road, canals and the railways should be maintained by the authority. I would ask the Minister to have another look at that suggestion and to see whether or not, in the new legislation which he proposes to introduce, he can embody some section to diminish the burden which is imposed on railways of the maintenance cost.

Whatever may be said regarding the effectiveness of the Minister's proposals for cutting the losses of the railway operating side, I feel that the main problem of bringing traffic back to the railways and of attracting new traffic has not been adequately dealt with. I feel, and other people in this House have indicated they feel, that if we confine ourselves to the measures already outlined we will not get the results we hope for.

It is good to know that it is intended to give C.I.E. discrimination in the quotation of rates. I hope that when that is embodied in legislation, and when they get the opportunity, they will not let the grass grow under their feet and that they will go out and quote competitive rates in order to attract new traffic and get back the traffic they have lost. They got opportunities in the past and it has been suggested that they fell down on these opportunities. Here they are getting the opportunity to fight for the traffic and I hope that they will avail of it.

One of the things the Minister might further consider, and there is no doubt in my mind that he has already considered it, is the question of giving effect to the recommendations made by C.I.E. regarding the curtailment of private haulage. The suggestion has been made that some restriction of a certain radius and on lorries over a certain tonnage might be made. I think it is not in the national interest lorries should be plying on roads, many of them heavy lorries with trailers attached, between towns where there is a railway connection and a road freight service. While I feel that the Minister has given this matter full consideration I also feel that, if there is not that limited restriction on private transport, the Minister's proposals will not do what he intends them to do. In making that suggestion I am not suggesting that to-morrow morning we should say to the lorry owners: "You are out." What I am suggesting is that when any of these lorries, for any reason whatever, go into disuse they should not be replaced.

C.I.E. should also be given the opportunity of operating transport in Government undertaking contracts. It does appear to be Gilbertian that a Government Department, having the necessity to use transport, should not have in their contracts a clause that national transport should be used. In regard to Local Government contracts very many of which contain an element of State subsidy, there should be some clause that only C.I.E. transport should be used. If the Government and the local authority will not use the Government's own transport how do you expect private merchants to use it? I would ask the Minister to consider that point and also the point already made regarding State and semi-State bodies such as Comhlucht Siuicre Eireann and the E.S.B. It appears ridiculous that you should have one State company competing with another State company on the roads and everybody sitting back and no one doing anything about it.

A suggestion was made that Government trade loans should not be given to a concern unless some undertaking was given by that concern that the capital thus provided by the State would not be utilised for investment in large transport vehicles. I also feel that in the present situation which we find ourselves, and with the present shortage of money, there is room for the introduction of some quota arrangement as far as the importation of large commercial vehicles is concerned. We have seen the large increase in lorries and private cars down through the years and we have now reached the stage where capital for investment in productive work is scarce and much needed. I think that the Minister should say, for the time being at least, that he would impose a quota on the importation of the heavy type of road vehicles.

There is one very important factor that I would like to mention in relation to the severe competition that C.I.E. had to face in the operation of its road freight service. It is the fact that, particularly in the provincial towns there are people against whom C.I.E. has to compete who are employing workers at a rate of wages and with hours of duty and conditions of service far below those enjoyed by C.I.E. employees. The Minister may say that that is a job for the trade unions, but you will appreciate that I am referring to places outside the larger areas of population where it is difficult to organise the workers. I hope the Minister will again consider the suggestion that he should take some steps to ensure that C.I.E. will no longer be forced to face that type of unfair competition. He might meet the case by setting up a joint labour committee for road freight transport under the Industrial Relations Act.

Progress reported; Committee to sit again.
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