Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 12 May 1964

Vol. 209 No. 9

Committee on Finance. - Vote 43—Posts and Telegraphs (Resumed).

Debate resumed on the following motion:
That the Vote be referred back for reconsideration. — (Deputy Crotty.)

When I was speaking on this Estimate last Wednesday, I made it clear that, in my view, some substantial changes were required if the services provided by the Department of Posts and Telegraphs were to be such as would accord with what is needed in modern times. In my criticism of the present situation, I made it fairly clear that I regarded a new and radical approach as being urgently necessary. I also made it clear that, in my criticism, I did not desire to imply that I had ever received anything but the utmost courtesy from the officials of the Department. I want to make it quite clear now, in case anyone thinks otherwise, that in putting it that way, I was not in any way implying that I received any discourtesy from the Minister himself. On the contrary. If courtesy alone were the mark of efficiency, the Minister and his officials would be entitled to claim that theirs was the most efficient Department. Unfortunately, efficiency involves more than courtesy and, as I said already, unless we have a really efficient means of communication in these days, we will not be able to achieve the greater production, and the economic growth, which both sides of the House urgently desire to achieve.

It so happens that last night I was at a meeting in Kildare and I put to that meeting the criticisms I had made here last week of the telephone system in so far as it affects my constituency. I repeated the criticism I had made here of the trunk line between Naas and Dublin, and in that I include the satellite exchanges in Newbridge and Kildare. As I said, people have the greatest difficulty and must dial repeatedly to get the number they require. I came across what I think was one of the most amusing examples which I have yet met. A subscriber in Kildare told the meeting that he dialled a Dublin number and instead of getting that Dublin number he got Liverpool. A subscriber in Celbridge told the meeting he had dialled a number in Naas on 11 occasions without getting any result at all, much less getting the right number.

I am afraid it is a fact that however accurately the telephone system may work in its own exchange in Kildare, when it comes to getting a Dublin number through the trunk dialling system, it does not work properly. It is virtually impossible to get a number from the Celbridge group of numbers through the Naas, Newbridge and Kildare dialling systems, the first time. I have experience only of what I have to do myself. I find, in relation to my constituency, that since the fault was found in the Newbridge exchange, local calls can now be got reasonably accurately. However, it is not an exaggeration to say that if we get one out of three calls correct, dialling up to Dublin, it is about all one can get and that, across the county, the average is very much worse. That was the experience of a cross-section at a meeting last night of between 60 and 70 people, all of whom have regular occasion to use the telephone.

Human error does sometimes come into it and one cannot grumble too much about that when it falls down. A few days ago, I was endeavouring to dial my own home from here. After half a dozen shots and having failed, I rang the exchange and I asked the man who answered me if he would please give me 0457200. I said that I had dialled it six times and could not get any dialling at all. The man replied: "Of course, you cannot. There is no such number." It happens to be my own number at home. I thought I would be a reasonably good judge of what my number is. It shows that there must be some fairly widespread confusion in the telephone exchange system that I could get such an answer that there was not any such number when, in fact, I should have thought everybody in ordinary life would know that there would be four digits and the 045 prefix as well. I do not know what the explanation of that is. I am quite certain that the man concerned did not say it out of pure stubbornness or to annoy me or to prevent me from getting the number. It showed that the organisation in the Exchange was not such as it should be.

Now, we shall have to pay substantially more for telephone calls. The burden of my objection in relation to these increased charges is that every Minister in the Government, particularly the Minister for Industry and Commerce, the Minister for Finance and the Taoiseach, are going out and saying, and properly saying, that increased costs must be absorbed as far as possible by greater productivity. But the Minister for Posts and Telegraphs takes the easy course merely of slapping on increases in costs in the very way that his colleagues are advising, and correctly advising, it should not be done.

The Taoiseach also, I must say, speaking immediately after the Budget, gave away his Minister for Posts and Telegraphs in a very unfortunate manner for the Minister. On the day following the Budget, the Taoiseach announced that the Minister was then going to look into the matter to see what new procedures could be initiated. I want to make it clear that in my view the Minister should have been looking at this for months. Everybody knew, from the beginning of December last, that the ninth round was coming and that methods of productivity to offset to some degree ninth round increases were necessary.

I do not know what the Minister was doing from the beginning of December onwards but the Taoiseach has put it on the records of the House that the Minister was doing nothing until 15th April. I must confess that I imagine there have rarely been cases before when a Taoiseach showed so clearly that he had found out a Minister failing in his duty to such an extent——

——and that he had not called for his resignation.

That is not so.

I am not saying whether or not it is so. I am saying what the Taoiseach said. The words of the Taoiseach are crystal clear.

The Deputy is putting his own construction on it.

The words of the Taoiseach are crystal clear that the Minister for Posts and Telegraphs was going, then, to initiate an examination of the problem. I want to say clearly to the Minister that if he was only going, then, to initiate an examination of the problem he was not doing his job and, if the Taoiseach was wrong in that phrasology, he was not, as a Minister should, keeping his boss acquainted with what was transpiring. But, regardless of whether or not it was done, it has been stated categorically that it was not and the very system that was strongly advocated by the Minister's colleagues in Government has not been adopted by him in relation to the postal and telephone systems. I must confess it is not out of keeping either with another matter that occurs.

I have here in my hands the commercial accounts for the Department of Posts and Telegraphs for the year ending 31st March, 1962. I admit I did not inquire today but I did inquire last Wednesday and last Wednesday I was told that these two years' old commercial accounts are the last accounts that the Department have produced. They may have produced those for another year since last Wednesday—I do not know—but I inquired a week ago and a week ago I was told that the accounts for 1961-62 I have in my hands are the last accounts published. It seems to me pretty much an indication of an out of date concept if accounts can only be produced two years, or thereabouts, after they are due. Perhaps that is an exaggeration because the accounts for which I would look are now 14 months overdue. The accounts in respect of the year ending 31st March, 1963, should surely be ready for discussion by the Dáil in May, 1964, 14 months after the period has closed.

Deputy Colley is an experienced person in commercial affairs. Does he know of any single commercial undertaking in this city where the accounts of that commercial undertaking are not produced 14 months after the year has closed? Of course, he does not. There is not any such commercial undertaking in the city where accounts are not available for a period of 14 months. Indeed, if there were, the Companies Act of 1963 which the Minister for Industry and Commerce brought in would have that company in serious trouble because the company is bound to hold a meeting once every 12 months and one of the statutory duties of the annual meeting is to consider the previous year's accounts. If, therefore, the criticisms that we make of the position in relation to the Post Office and its subsidiary account, the Telephone Account, are out of date, the person responsible for that is the Minister who does not think it desirable or worthwhile, or possible, to publish a more up-to-date account.

Looking at this financial analysis, I may say in passing, giving praise where it is due, that although this may be two years old, it is a valuable book and the method by which the financial analysis is presented is definitely worthwhile. The tragedy is that it is not up-to-date and that we cannot therefore draw the deductions for the up-to-date picture that we should like to have. The financial analysis of the telephone service on pages 32 and 33 show that in 1961-62 there was increased business on the telephone account of £437,000. The expenditure increase in that year was £582,000. Of that expenditure increase, pay awards for existing personnel appear to have come to £147,000. Additional staff costs were £72,000. I presume these were for further personnel to service the increased business. Other increases accounted for £86,000 and there was a sum of £277,000 for capital charges.

I am not clear, and find it difficult to ascertain from these accounts, what those capital charges are. Are they sinking fund as well as interest charges or merely interest charges? On what basis are the capital charges, so-called here, brought into the account? Over what period of years is the depreciation of the system brought in for sinking fund purposes. Over what life has the equipment been amortised? In these commercial accounts, apart from ordinary accounts, is the picture one of sinking fund provision based on the capital as borrowed or is it based on the material as provided for it? Does it provide for increased costs and for the undoubted fact that unfortunately replacement charges are bound to be higher than existing installation costs?

It appears in the two-year-old picture that increased business was not able to meet the cost. Was an evaluation made of whether, by still further providing for increased business, the income could catch up on expenditure or was it the case that the outrun of expenditure over income had reached such a pitch that it was inevitable for the future that such expenditure would outweight income?

On page 34, there is a similar financial analysis of the manner in which each £ of income and each £ of expenditure was received and paid in that year. What is the change in the picture since then? What will be the change in the picture as a result of the new increases by which business lines will now go up from £3 10s. per quarter and the charge for private subscribers' lines will also be increased? Will it be the position that for every £1 of income in subscriber rentals, there will still be about 5/3d.? One cannot prognosticate exactly but I want to know whether the balance thrown up here in this two-year-old analysis still remains the balance and whether it will be altered as a result of the new charges which have so unfortunately been thrust upon us by the Minister? What in 1964-65 will be ratio of expenditure on salaries and wages out of each £1? In 1961-62, the ratio was approximately 7/9d. Where did we stand in 1963-64 and where will we stand in that respect in the current year?

I mentioned depreciation. I notice that 4/6d. in the £ was being set aside for depreciation. Is that depreciation based on material or is it merely something based on the terms of the loan made available for capital development? A general study of these commercial accounts makes one wonder where the development of the services under the Minister's command is leading and whether he realises that the services for which he is charging us can be a brake on progress or can accelerate it.

On previous occasions I remember discussing a very trifling aspect of the postal and telegraph services, the issue of stamps. I said I was amazed to discover some 30 years thereafter that the Department was still running on a dictum of a famous gentleman who was head of the Department in 1927 and that they had not changed from that dictum and that their outlook was the same as when the 1927 dictum was given in relation to stamp issues. What worries me is that in other respects also we have not moved on from there and there is the danger that because of that neglect to move, we shall find our communications, destroyed in respect of railways as they are by the Minister for Transport and Power, will be delayed and charged out of recognition by the Minister for Posts and Telegraphs.

Progress reported; Committee to sit again.
Top
Share