When this debate was adjourned I was urging on the Minister for Transport and Power that, the euphemism which was now so widely employed by State companies of "an operating surplus" was inappropriate and was designed to cause confusion in the public mind. The Minister urged that that was not so and that nobody mistook the phrase "an operating surplus" for a profit in the generally accepted sense of the term. I think it is true that at least four or five Fianna Fáil Deputies, in the course of this debate, have in fact referred to an operating surplus as a profit. It is just that confusion of mind which I deem inappropriate, and I am not altogether certain that it is not part of a studied policy on the part of the Minister for Transport and Power to use this terminology in order to conceal the fact that, with the exception of the Electricity Supply Board, every public company for which he is answerable to this House is making heavy annual losses which it ought to be his duty to defend as such on social or other grounds, and for which he is prepared to justify the very heavy payments which have to be annually made from the Exchequer or taxation in order to meet the losses being incurred by those companies.
In connection with Aerlínte and Aer Rianta, the Minister interrupted at column 732, volume 198 of the Official Report to say: " `Operating surplus' is the term used by all the air companies. They try to get some uniformity." That may be true, but if you want to use it here and defend it on the ground that other companies use the term, then you ought to be able to demonstrate that that is not the only phrase in the accounts of other air companies that you have adopted. If you are quoting that phrase as used by Aerlínte and Aer Rianta, you ought to be in a position to show that the accounts of Aerlínte and Aer Rianta are in all particulars the same as those of other air companies, which I very much doubt.
I do not know whether the depreciation provisions and the liability for charges in respect of meteorological and airport facilities represent an identical charge in the accounts of Aerlínte and Aer Rianta, as they do in the other accounts to which the Minister referred. If we got a true and honest picture of the losses these various companies are generating each year, it ought then be possible for us to determine on the merits which of them we are prepared to continue and which of them we believe ought to be brought to an end.
Some of them, it may seem, are a necessary charge in order to maintain essential services. I would be prepared to argue that in regard to any losses sustained by Aer Lingus, because, in the day and generation in which we live, it is as necessary to have some outside contacts with the world by air transport over which we have control as it is to have access to the outside world by any other method of transport and as I do not believe that it is expedient that we should be wholly dependent on BEA or BOAC for that kind of communication, I think it is justifiable to maintain Aer Lingus, even at the cost of some annual charge to the Exchequer. I am not so convinced that that is the case in regard to Aerlínte and I am not satisfied that Aer Rianta is recovering from its customers a sufficient part of the total cost of maintaining their operations.
I should be glad to hear from the Minister his view on the consequences of establishing the services maintained by Aer Rianta. I understood that one of the reasons Aer Rianta was to be established was to make sure that other air services would continue to use Shannon. I know a variety of other representations were made by the present Taoiseach at the time the legislation was before the House but, as is customary with the present Taoiseach, he was bluffing and blabbing and very largely prevaricating when he made those speeches. He frequently is. He said on that occasion, at column 1304 of the debates of 15th July, 1959:
We are going into the development of the transatlantic air service in the confident expectation of making a cash profit as well as conferring other benefits directly or indirectly on the country. Our expectations are based upon estimates prepared by very shrewed people who know this business thoroughly and who rarely have been wrong in similar estimates before. Deputy McGilligan said I had justified this development on grounds of prestige. I never mentioned the word "prestige." I have no interest in prestige in this regard. The decision to proceed with this transatlantic air development, which had been pressed on me by the Board of Aer Lingus, was taken on hard, cold commercial facts and nothing else.
It subsequently transpired that the Board of Aer Lingus had never made any such representations to the Taoiseach and I constrained him by Parliamentary Question into admitting that that was a misstatement of fact and that in fact the board to which he referred was the Board of Aer Rianta, a very different body. But, observe that he was induced to embark upon this by "a confident anticipation of a cash profit." That has gone up the spout pretty effectively. I do not believe that many people believed the Taoiseach when he said that in this House.
He said that he hoped it would confer other benefits directly or indirectly on the country. As I understood it, the other benefits were these: that the Government apprehended that with the development of jet aircraft, SAS, Swissair, TWA, Pan-Am, and the other great international airlines might get into the habit of overflying Shannon. If the Irish trade were left in a position that they had no other carrier to turn to if these foreign firms combined to resolve not to use Shannon any more, it was, therefore, important that an Irish firm should intervene in the traffic and fix all and sundry with notice that they were going to land at Shannon and those who wanted to cater for the Irish trade had better realise that they either land at Shannon or the Irish trade would be lost to them.
That seemed a specious enough argument but what has happened in fact? Is it or is it not true that, contrary to expectations, the nationalistic feeling of our people has proved to be so strong that the Irish emigrants or persons with Irish affiliations coming on a trip to Ireland, even though they intend to go on subsequently to the continent, have all patronised Aerlínte, with the result that we have a relatively high seat occupancy on Aerlínte compared with the other lines on the transatlantic route but with the astonishing effect that we have emptied Pan-Am, emptied TWA, emptied Swissair, emptied SAS, and the other transatlantic operators of Irish custom, with the result that the tendency for these lines to overfly Shannon has been greatly intensified and we are now faced with the prospect of reducing the whole status of Shannon Airport owing to a lack of terminal and in transit traffic there and, where we used to maintain a 24-hour restaurant service which was fully utilised and urgently required and where we had a large transit trade in commodities at the Shannon shop, we now find that the prospect is that the catering facilities at Shannon will very materially dwindle, that already a considerable number of staff are being laid off and that it is quite possible that in the foreseeable future only very restricted catering facilities will be required at Shannon at all and that the custom for the Shannon shop will tend to dwindle away because the transient traffic that used circulate through the airport while the various international lines paused at Shannon to unload their Irish passengers or to take them on have ceased to appear there at all because they either overfly the port or, if they come down, do not leave the aeroplane but go straight on.
If this be true, then I apprehend that both of the brash and brazen kind of prophecies, which one would expect from the Taoiseach, of a cash profit and other benefits directly or indirectly for the country, have failed to materialise and that both calculations in that regard have proved to be wrong.
I understand we have sought to remedy that situation by an effort to generate freight traffic through the Shannon Industrial Estate. I always understood that one of the principal reasons for establishing the Shannon Estate on a site 15 miles removed from Ennis, and 20 miles removed from the city of Limerick, was that we wanted to put it close to the airport, in the belief that the bulk of the output would be carried on aircraft and, in some measure, substitute for the diminution of passengers traffic. We took that decision at a very considerable cost to the town of Ennis and to the city of Limerick.
Am I correct in my belief that far from our anticipations in that regard having been realised, the situation now is that more than 60 per cent. of all the traffic generated by the Shannon Estate is going by rail and sea, that only about 30 per cent. of the incoming traffic in raw materials and outgoing traffic in finished products is using aircraft and that the trend appears to be away from air transport and toward rail and sea freight in growing degree? If that is true, all I can say is that the calculations made in regard to this matter are strangely unrealistic. It is more than high time for the Minister for Transport and Power, who is responsible to this House for these matters, to take the House into his confidence so that we can take decisions in the knowledge of the facts and not live in a kind of cloud-cuckooland, created by the perversion of language and the twisting of words to mean something far different from what people probably understand them to mean and what it is manifest, from the course of this debate, that the backbench members of Fianna Fáil have clearly understood them to be, because they have thought that operating surplus was synonymous with profits. It is now manifest that the two concepts are entirely different and that operating surplus of £29,000 very frequently means a real annual loss of £500,000 or more, which must be ultimately made good by the Irish Exchequer.
I have been looking at the references by the Minister in his introductory speech to the accounts of Irish Shipping. Here the company is declared to have shown an operating surplus of £279,000 for the 12 months ending 30th April, 1961 but, when the depreciation for the fleet over 11 months has been allowed for, the commercial loss is £409,000.