I wish to inform the House that a new Transport Stock issue by C.I.E. will open for subscription on Monday next, the 25th May. This stock, in common with previous Transport Stock issues, will be guaranteed as to principal and interest by the Minister for Finance.
The issue will be for £3,000,000 of which the Minister for Finance is taking up £500,000 for Departmental Funds. The balance of £2,500,000 will be available for subscription by the public and will be fully underwritten by the Irish banks. The rate of interest will be 5 per cent. per annum on the nominal value and the issue price £96 for each £100 stock purchased. The yield to final redemption date is £5 7s 7d. The stock will be redeemed at par not later than 1975 and may be redeemed any time from 30th June, 1970. Investors who hold their stock to redemption stand to make a capital gain of £4 for every £100 of stock which will be tax free to the ordinary investor. The purchase price may be paid in instalments but investors who wish to pay in advance of the due dates will be entitled to a discount. Interest will be paid without deduction of income tax, though, of course, assessable to tax in the hands of recipients.
The objects of the stock issue are to provide C.I.E. with capital required for the provision of additional diesel locomotives, rolling stock, road transport vehicles, the acquisition of new plant and machinery, and equipment including containers, for the mechanical handling of goods; the improvement and extension of buildings and for other purposes properly chargeable to capital. The new diesel locomotives and rolling stock to be financed out of the new Stock issue will enable C.I.E. to extend the operation of services by diesel traction on the former G.N.R. lines and to replace the obsolete rolling stock on these lines with modern stock. This should result in substantial economies to C.I.E.
The success of the C.I.E. drive to attract new business depends on the provision of efficient services and modern facilities. The capital now being sought is necessary for the provision of an up-to-date efficient and self-supporting public transport system. There is no need for me to stress the importance of such a transport system in the national interest. Subscribers to the new stock can, therefore, rest assured that they are contributing to the economic development of the country while at the same time enjoying an attractive return on their capital in a safe investment.
I confidently ask for the full and active support of every Deputy for the issue.
