asked the Minister for Transport and Power the method by which capital is advanced by the Government for the purchase of transatlantic aircraft (including the jetplane Pádraig); and whether in relation to the turnover of the tourist industry of this country such investment is justified on a strictly productive basis.
Ceisteanna—Questions. Oral Answers. - Transatlantic Aircraft: Capital Advances.
32.
The capital necessary for the purchase by Aerlinte Éireann Teo. of aircraft for the transatlantic service is being provided by the Government by way of investment by the Minister for Finance in Aer Rianta Teo. The latter company in turn takes up, for cash, an equivalent number of shares in Aerlinte Éireann Teo.
As regards the second part of the Deputy's question I am fully satisfied that such investment in Aerlinte is justified. This view, I may say, is amply supported by the increases in transatlantic traffic and by American Tourists' expenditure in this country.
American tourist expenditure is increasing at the rate of $1 million a year. A greater increase is only possible if more capital is invested in transport and other tourist services. This capital expenditure will inter alia (1) markedly increase the consumption of agricultural produce each year; (2) add notably to employment in hotel and other services. The interest on the total capital invested in transatlantic aircraft will represent only £2 15s. Od. per terminal passenger taking the number estimated for the single year 1965.