I move that the Bill be now read a Second Time. The Bill provides that (a) the Minister for Transport and Power, with the consent of the Minister for Finance, may from time to time make a superannuation scheme or schemes for whole-time members of the Board of Coras Iompair Éireann; and (b) Coras Iompair Éireann be authorised to pay Mr. Thaddeus C. Courtney, a former Chairman of the Board, a sum of £3,636 as compensation for the loss sustained by him by reason of his resignation as from 31st August, 1958, on the ground of ill-health, from the office of Chairman of the Board. Mr. Courtney's period of office was not due to expire until 31st May, 1960.
In the Transport Act, 1950, specific superannuation provision was made for Mr. Courtney, Chairman of Coras Iompair Éireann. The Act also provided superannuation benefits for other whole-time members of the Board. In fact, this latter statutory provision has never been applied because, since the passing of the Act, the Chairman has been the only whole-time member of the Board. The existing superannuation provisions in the Transport Act are not appropriate to the position of the present Chairman of the Board and accordingly substantial amendment of the Act would be necessary to cover his position. I consider, however, that instead of, in future, legislating for named individuals, it is preferable to provide that power be given to enable the Minister for Transport and Power with the concurrence of the Minister for Finance, to prepare a superannuation scheme covering whole-time members, including the Chairman, of Coras Iompair Éireann. This course is in line with that adopted in legislation enacted since the passing of the Transport Act, 1950, in regard to the superannuation of whole-time members of semi-State bodies. Similar provisions, for instance, are contained in the Turf Development Act, 1953. This course avoids the necessity for amending Acts of the Oireachtas when there is a change of personnel.
I might mention that Dr. C.S. Andrews, the present Chairman of Coras Iompair Éireann, was appointed for a period of five years beginning on 1st September, 1958. He had previously had service with other State companies and for many years had been whole-time managing director of Bord na Móna where he had enjoyed the benefit of a superannuation scheme made under Section 5 of the Turf Development Act, 1953. On his resignation from Bord na Móna, he lost the right to superannuation benefit under the Bord na Móna scheme. In equity, therefore, it will be necessary to provide in the superannuation scheme for Dr. Andrews that he be given credit for previous service with State bodies. The scheme will be presented to the Oireachtas in due course.
The superannuation position of Mr. T.C. Courtney in respect of the office of Chairman of Coras Iompair Éireann is specifically provided for in the Second Schedule to the Transport Act, 1950, and, on resignation on the ground of ill-health, he became entitled to a pension of one-eightieth of his yearly salary for each completed year of pensionable service (subject to a maximum of one-half of the yearly salary) together with a gratuity of one-thirtieth of the yearly salary for each completed year of pensionable service subject to a maximum of 1½ times the yearly salary. On his resignation on 31st August, 1958, Mr. Courtney had not become entitled either to the amount of the pension or retirement gratuity which he would have earned if he had continued in office until 31st May, 1960, when his term of office would have expired. His resignation, therefore, before the expiry of his term of office meant that he obtained a reduced pension and reduced retirement gratuity. It also involved him in the loss, for the balance of the period, of the difference between his pension and his salary as Chairman. It has been calculated that this loss amounts to £3,636 made up as follows:—
|
loss on retirement gratuity |
£300 |
|
loss (on actuarial basis) of pension |
£792 |
|
and the difference between pension and pay for the balance of the appointment period, less tax |
£2,544 |
|
Total loss |
£3,636. |
I recommend the Bill for the approval of the House.
