I move:
That a sum not exceeding £5,006,400 be granted to complete the sum necessary to defray the charge which will come in course of payment during the year ending on 31st March, 1966, for the Salaries and Expenses of the office of the Minister for Transport and Power, including certain Services administered by that office and for payment of sundry Grants-in-Aid.
In the Revised Estimates the net Estimate of £7,609,100 for the year 1965-66 is compared with a sum of £7,251,800 granted in 1964-65, including a Supplementary Estimate taken on 24th February, 1965 too late for inclusion in the printed Book of Estimates, and shows a net increase of £357,300.
The principal increases in 1965-66, after taking into consideration the effect of the Supplementary Estimate, are in the provisions for Post Office Services £40,950, Subhead B.2; Grants for Harbours £60,000 (E); Grant-in-Aid for Tourism under Tourist Traffic Acts £597,000 (Subheads F.1 and 2); Radio Equipment £282,490 (J); Expenses in connection with International Organisations £87,310 (M) and Rural Electrification £94,170 (O). Small increases in other Subheads amount to £21,585 bringing the total increases to £1,183,505.
The increase in the provision of post office services is required in order to cover the loss on the operation of the post office at Shannon Airport. The nature of the traffic at Shannon Airport is such that it is necessary to keep the post office there open all round-the-clock to suit the convenience of passengers. This necessitates the operation of the post office at a considerable loss. Consideration is at present being given to see whether the post office could be closed for certain hours a day without causing any inconvenience to passengers. The increase in the provision for radio equipment arises because payment has to be made in 1965-66 for equipment, which it was anticipated would be paid for in 1964-65. The increase in expenses for international organisations is due to our adherence to Eurocontrol to which I shall refer later. There is a corresponding increase in Appropriations-in-Aid for Eurocontrol of £90,000.
The principal decreases in 1965-66, after allowing for the Supplementary Estimate, are in the provisions for Salaries £29,995 (Subhead A); Córas Iompair Éireann Redundancy Compensation £250,000 (D.2); Grant-in-Aid for Development of Holiday Accommodation £165,000 (F.3); Constructional Works at Airports £100,000 (G.2); Grant-in-Aid to Shannon Free Airport Development Company Ltd., £70,000 (Subhead K.1 and 2); Recoupment to Aer Lingus of certain costs in connection with pilot training £7,490 (Q) bringing the total decreases to £622,485. To this must be added the increase of £203,720 in appropriations-in-aid which is equivalent to a decrease in the net grant and brings the total decrease to £826,205.
The salary provision is less this year as it is not necessary to make provision for arrears arising out of arbitration and conciliation awards. When pilot training in Ireland was inaugurated by Aer Lingus it was anticipated that extra expenses would arise as compared with training abroad. Accordingly, provision was made to recoup these extra costs to Aer Lingus. Experience has shown, however, that the anticipated extra costs have not arisen and no provision is being made this year except for a token sum. The increase in appropriations-in-aid is due to receipts from Eurocontrol for agency services for that Organisation, £90,000, to increase in profits on the catering service at Shannon Airport, £51,000 and to an increase in estimated receipts from the passenger service charges at airports, £45,000.
On the basis of actual increases and decreases as stated above, namely, £1,183,505 increase and £826,205 decrease, the net increase compared with the 1964-65 provision is £357,300 as shown in the revised Estimate.
Since the election of the new Government, the opportunity has been taken to discuss with each State company under my supervision the targets to be achieved under the Second Programme for Economic Expansion. The major directives of the Government have been restated and modifications to meet new situations, changes in emphasis on particular problems emerging have been fully debated. Capital requirements have been examined with care and the productive effect of expenditure assessed.
These meetings are merely the first of regular discussions which will take place during the life of the present Dáil interspersed by regular discussions with the chairmen and managing directors of the companies.
The State companies are efficiently operated but inevitably there are some shortcomings. My Department continues to investigate all complaints on matters which appear of national concern and to have discussions on the causes for any repetitive complaints. My aim is to ensure maximum efficiency in every detail of administration.
I am glad to inform the House that every State company has examined and continues to examine every aspect of administration, financial control, management, operational efficiency, under every head, using the most modern methods. At the same time all companies provide advanced training in the latest techniques of management including, in many cases, the search for new ideas abroad. This is a never-ending process and the State companies concerned set a splendid example to private enterprise in their completely modern approach to management.
I have also emphasised the need to achieve the very best possible system of communications between the executive staff and the workers, to perfect as far as possible procedures for conciliation and grievances examination, to provide information to workers giving a general picture of each company's objectives and the necessity for high productivity.
The existing conciliation machinery in all the companies is elaborate. Changes may be needed in some cases, such as the ESB and these are being considered by the Minister for Industry and Commerce.
Group union committees are an essential feature of negotiating machinery and these exist where required. The consolidation of the trade union movement—an objective of ICTU—is, of course, a far better solution of this problem.
I regret that there have been a number of unofficial strikes in the State companies and I join with the responsible leaders of the trade union movement in deploring them, particularly in essential services. The levels of remuneration and working conditions in these companies and conciliation procedures are sufficiently satisfactory for me to say that unofficial strikes should be non-existent in our essential services.
The total capital expenditure on Shannon Airport up to 31st March, 1965, has amounted to about £5.6 million. For the year ended 31st March, 1964, total revenue at the airport was £776,000 and expenditure was £755,000. The working of the airport including cost of air traffic control, communications and meteorological services showed an operating surplus of £21,000 per year. This figure, however, makes no allowance for depreciation and interest on capital expenditure which amounted to about £480,000. The overall deficit on the airport in 1963-64 was, therefore, about £459,000 or about £76,000 more than for 1962-63.
The total number of passengers at Shannon Airport in 1964 increased by 14 per cent to 380,000. This is the first time since 1960 that total traffic at the airport showed an increase over the preceding year. Terminal traffic has been increasing steadily for some years but the drop in transit traffic had, until last year, been such as to offset the increase in terminal traffic. In 1964, terminal traffic increased by 30 per cent and comfortably offset the 6 per cent drop in transit traffic. Freight traffic at the airport amounted to 16,000 metric tons, a drop of 8 per cent over the 1963 total. Terminal freight increased, however, by 31 per cent to 4,250 metric tons.
In addition to Aerlínte, scheduled passenger services were operated to Shannon by Pan American Airways, Trans-World Airlines, Air Canada, KLM, Seaboard World Airlines and Sabena. During the coming year, turn-around flights to the airport will be operated by Trans-World Airlines and Pan American Airways, in addition to through flights. Arrangements have been made by CIE for the provision of an express bus service between Shannon and Dublin and Shannon and Killarney in connection with these flights. The Shannon/ London route will also be operated during the coming year by British European Airways, in conjunction with Aer Lingus, thus doubling the total frequency, while Aer Lingus will operate new services on the Shannon/ Manchester and Shannon/Paris routes.
Another recent development at Shannon has been the commencement of operations by a new non-scheduled airline based at the airport. This new company is Shannon Air Limited and it undertakes passenger and cargo charter flights on a world-wide basis.
Construction of a new control building, designed to cope with the expected growth of traffic at the airport, has been completed and installation of the equipment for the building is in progress. It is expected that the new control building will come into operational use towards the end of the year. The new building will be more centrally situated in relation to the runways than the existing control tower and it has been so located and designed as to give the air traffic control officers a full view of the entire area of the new main runway on which the traffic is mainly concentrated. It will provide accommodation both for the air traffic control and radio services staffs, thus facilitating the efficient co-ordination of these services and ensuring the most economic utilisation of personnel. When the new control building becomes available for operational use, the existing control tower will be adapted to other uses.
The terminal building has recently been improved and it is in process of further alteration to provide improved passenger handling and catering facilities for the steadily increasing numbers of terminal passengers and visitors to the Airport. Improvements to the public catering area, including the provision of a modern grillette service, were completed in time to meet the requirements of the peak traffic period in the summer of 1964 and work is at present in progress on the reconstruction of the concourse in order to provide better accommodation and other facilities in that area. Extensions to the customs hall and the mechanical baggage conveying equipment, which are necessary to cope with the increased traffic at the airport, are also being carried out.
Air traffic control services to North Atlantic air traffic in the Shanwick area which extends approximately halfway across the North Atlantic from the domestic control areas of Ireland and Scotland have for some years been the joint responsibility of oceanic control centres at Prestwick in Scotland and Shannon, with communication centres at Birdlip in England and at Ballygirreen. The increased speed of jet aircraft and the continuing growth in volume of North Atlantic air traffic have so reduced the time available for co-ordination between the two centres that consolidation of control on one centre became essential.
The Governments of both countries have, therefore, agreed that control of all en route North Atlantic traffic within the Shanwick flight information region will be exercised by the Prestwick control centre, with Shannon Aeradio as the communication centre. The new arrangement will be phased into operation during the next year or so and will be the subject of a formal agreement to be concluded between the two Governments.
There will be a very substantial long-term saving under the arrangement both in capital expenditure and in annual running costs. Retention of the oceanic control centre at Shannon would have entailed capital expenditure of the order of £500,000 on computers. The saving in cost of air traffic control staff will not however result in redundancy as surplus staff can be absorbed. Shannon Aeradio will have an enhanced status as the sole communication centre for North Atlantic traffic on the eastern side of the ocean.
The International Airline Transport Association has congratulated the authorities in both countries for thus improving the efficiency and providing for more economical operation of air traffic control service on the North Atlantic.
The total capital expenditure on Dublin Airport up to 31st March, 1965, amounted to about £3.9 million. For the year ended 31st March, 1964, total revenue at the airport was £640,000 and expenditure was £474,000. The working of the airport, including costs of air traffic control, communications and meteorological services, therefore, showed an operating surplus of £166,000 in that year. This figure, however, makes no allowance for depreciation and interest on capital expenditure which amounted to about £309,000. The overall deficit on the airport in 1963-64 was, therefore, about £143,000 or about £40,000 less than for 1962-63.
All sectors of traffic at Dublin Airport continued to increase in 1964. Passenger traffic rose by 14 per cent to 1,263,000, while freight rose by 6 per cent to 25,300 metric tons. Services are operated to and from the airport by seven foreign operators: British European Airways, BKS Air Transport Ltd., British Midland Airways Ltd., KLM, Cambrian Airways, British United (CI) Airways and Iberia Airlines. A feature of activity at the airport recently has been the operation of flights in connection with the carriage of meat from Dublin to points on the Continent. These flights are mainly operated by British carriers but Aer Lingus and Shannon Air Limited also participate in the traffic. Car-ferry and horse-ferry services also continue to be operated at the airport with great success.
The continuing increase in the volume of both passenger and freight traffic at Dublin Airport has necessitated the preparation of a long-term development plan designed to cope with the estimated growth of traffic at the airport in the foreseeable future. Portion of this plan has already been implemented by the erection of two pier buildings. These buildings have been so designed and constructed as to provide the nucleus of a flexible system of passenger handling and accommodation facilities which can readily and economically be extended as and when the growth of traffic warrants.
Work is also in progress on the construction of two new taxiways and an extension to the apron. The additional taxiways are necessary to provide increased manoeuvring facilities for aircraft. Extension of the apron is necessary in connection with the use of Pier Building No. 2 for passenger handling.
The buildings and facilities at Dublin Airport, as originally planned and provided, have proved adequate to cope with the requirements of rapidly expanding traffic for a period of over 25 years which is no mean record. It has, of course, been necessary from time to time to provide additional building and facilities but it has not been found necessary to make any radical structural alterations in the original buildings which are still in use. Future buildings at the airport will, so far as practicable, be integrated into the existing complex of buildings.
Future developments at the airport, under the long-term plan, will be designed and phased to meet the requirements of increased traffic as they arise. All buildings have been designed to permit of their further extension and space has been reserved for additional buildings and facilities which may be required. In general, the long-term plan provides for the maximum degree of flexibility and co-ordination in the development of the airport and for the orderly integration of new buildings and facilities into existing ones.
The total capital expenditure on Cork Airport up to 31st March, 1965, amounted to about £1.4 million. For the year ended 31st March, 1964, total revenue at the airport was £66,000 and expenditure was £129,000, including the cost of air traffic control, communications and meteorological services. The working of the airport therefore showed an operating deficit of £63,000 in that year. This figure makes no allowance for depreciation and interest on capital expenditure which amounted to about £115,000. The overall deficit on the airport in 1963-64 was therefore about £178,000 or £9,000 less than for 1962-63.
Traffic at Cork Airport also continued to increase. The number of passengers rose in 1964 by 18 per cent to 113,000 while freight increased by 26 per cent to 1,300 metric tons. Services are operated to Cork by Aer Lingus, British United (CI) Airways, British Midland Airways and Cambrian Airways Ltd. The car-ferry service between Cork and Bristol operated very successfully during 1964 at an increased frequency.
Cork Airport has now been in use for 3½ years and the growth of traffic has far exceeded all expectations. The airport was specially designed to permit of extensions and it is my intention that the facilities will keep pace with the traffic requirements.
Although there is a decrease of £100,000 in the Estimates provision for Constructional Works at Airports, it is anticipated that actual expenditure this year will exceed that for 1964-65 by £50,000 as the payments made that year under this subhead amounted to £450,000, out of £600,000 contained in the Estimate.
The turnover of the Sales and Catering Service at Shannon Airport for the year ended 31st January, 1965, amounted to approximately £1,645,000, an increase of 20 per cent over the figure for the previous year and the highest cash figure yet recorded. This satisfactory outcome is due in part to the 14 per cent increase in Shannon passenger traffic in 1964 but also reflects unremitting effort by the Sales and Catering Service to maintain and outstrip its previous performance.
The Sales and Catering Service has in the past encountered setbacks caused by changes in the pattern and character of air traffic and the restrictions on duty-free imports by Americans returning from visits abroad. The Sales and Catering Service has coped with these challenges in the past with zeal and ingenuity and I am sure will continue to do so in the future should this be necessary. These difficulties still exist and indeed tend to increase.
With effect from 1st January, 1965, Ireland became a member of the Eurocontrol Organisation which was established under a Convention of December, 1960, and which came into operation on 1st March, 1963. The power to give effect to the Convention in this country is contained in the Air Navigation (Eurocontrol) Act, 1963.
The purpose of the Organisation is to provide a unified air traffic control system for general air traffic in the upper airspace, i.e., above 20,000 to 25,000, over the territories of the seven member states — Belgium, France, Germany, Great Britain, Ireland, Luxembourg and the Netherlands. Ireland's accession to Eurocontrol is an important event because it will increase the effectiveness of Eurocontrol by extending its area of control to the Irish upper airspace through which the main streams of air traffic between the old and the new worlds pass. This country can hope by its membership of the Organisation to benefit by the consolidation of its position in relation to international aviation and by sharing with other member states the cost of providing expensive technical equipment, including computers, which this country itself would, otherwise, have to purchase.
The need for the establishment of a unified air traffic control system on an international basis arises from the fact that air traffic control systems organised on a national basis are handicapped by the speed with which jet traffic in the upper airspace passes from one air traffic control centre to another and from one national boundary to another.
In accordance with the Convention Ireland is required to contribute its proportional share of the investment costs defrayed by the Organisation prior to 1st January, 1965. As from that date Ireland is also required to contribute its proportional share of the annual operating and investment expenses of the Organisation. While Ireland's total contribution to the operating and investment expenses in the year ended 31st March, 1965, is not yet known it is expected to be appreciably less than one per cent of the total for the Organisation's 1965 operating and investment budget. It is estimated that the figure of £80,000 provided in the Estimates should be sufficient to meet the contribution, which is expected to be more than offset by reimbursements estimated at £90,000 due to be paid by Eurocontrol before 31st March, 1966, in respect of the cost to this country of providing in the year 1965 air traffic control personnel and facilities to Eurocontrol on an agency basis.
A sum of £430,000 is being provided for the Shannon Development Company by way of grant-in-aid in 1965-66, compared with £480,000 issued to the company in 1964-65, to meet the running expenses of the company and to provide financial assistance for the setting up of industrial, commercial and trading enterprises at the airport. The reduction in the provision for 1965-66 is due to an anticipated increase in receipts from the company's revenue earning activities which go to offset the amount of grant-in-aid required. Up to 31st March, 1965, a total of £1,605,500 had been paid to the company by way of grant-in-aid voted annually by the Oireachtas.
The Shannon Free Airport Development Co. Ltd. (Amendment) Act 1963 provides for the payment to the company of housing grants and subsidies. The grant is a single payment equivalent to the grant that would be paid by the Department of Local Government if a house were erected by private enterprise. £48,000 was paid to the Shannon Company in 1964-65 in respect of houses provided by them. The number of houses expected to be erected in 1965-66 is less, as the original backlog has been overtaken and the amount under this subhead is £31,500.
In addition to the grant for the building of the houses, an annual subsidy is also payable in respect of the amount by which the rent payable falls below the economic rent. This is similar to the subsidies from local rates which local authorities use to keep rents to a level that tenants can reasonably afford. Grants under this head in 1964-65 amounted to £31,000. The amount for 1965-66 is £44,500, as the number of houses built and occupied has increased.
A sum of £1,150,000 is being provided in the Capital Budget for 1965-66 to meet share capital and repayable advances compared with £1,025,000 issued to the company in 1964-65. The share capital is used mainly for the construction of factory premises and warehouses and the repayable advances are in respect of the provision of dwellings and community services for workers employed in the Industrial Estate. Up to the 31st March, 1965, the total amount paid to the company by way of share capital and repayable advances was £5,301,000.
I do not propose to dwell on the activities of the Shannon Development Company because I propose to give the House a comprehensive review of the affairs of the company in connection with the Shannon Free Airport Development Company Limited (Amendment) Bill, 1965, which has recently been introduced.
I should take the opportunity of commending the initial activities of the Shannonside and Ivernia Regional Tourist Companies and their associated development associations for the programme they are now formulating. The people in the western and south-western areas can by their own investment do as much to make Shannon the natural centre for tourists coming to the region as the air companies or the Shannon Free Airport Development Company. A campaign run locally to bring people of Irish origin to see the homeland is an example of promotional work that could be profitable. The recent increase of traffic at Shannon by the foreign air companies indicates I hope that more promotional advertising can be expected in the future.
The issued share capital of Aer Rianta at 31st March, 1965, was £12,950,047, of which £5,692,994 was invested in Aer Lingus and £6,921,477 in Aerlínte, the balance being retained by Aer Rianta for investment in Irish and Intercontinental Hotels and for its own capital purposes. The final accounts of Aer Lingus and Aerlínte for 1964-65 are not yet available but I understand from the companies that once again they have had a very successful year's operations and that taking the two companies together the operating profit for the year will be of the order of £1,250,000, approximately the same as in the preceding year.
The four BAC III aircraft purchased by Aer Lingus at a cost of £5 million approximately will be in service this summer on the company's continental routes. The company propose to dispose of their Friendship aircraft and to operate all their cross-Channel passenger services with Viscount aircraft. The extra Viscounts will be purchased from KLM at a favourable price and this addition to the fleet should effect a considerable improvement in profitability.
During 1964, Aer Lingus carried almost 990,000 passengers, an increase of about 13 per cent over the previous year. Freight carried by the company during the year amounted to almost 15,500 metric tons, an increase of about seven per cent. The company maintained its services on all routes during the year and, in order to cater for increased traffic on cross-Channel and continental routes in the summer season of 1964, had to charter aircraft from BOAC, British Midland Airways and Skyways Ltd. The three Carvair aircraft operated by the company on its car-ferry services have been adapted for the carriage of horses and the first horses were flown by the company from Dublin in September, 1964. The adapted aircraft can carry up to eight horses in specially arranged horse-boxes and a sloping ramp enables the horses to walk on and off the aircraft. This type of traffic was previously handled solely by British operators, principally BKS Air Transport Ltd. and British United Air Ferries. The Aer Lingus Carvairs are also used for the operation of all-cargo services, particularly during the winter period when car ferry services do not operate. The company continues to operate with one of the highest load factors of all European air carriers.
Aerlínte have recently taken delivery of a second Boeing 320 and the rapid traffic development has necessitated the placing of an order for a third Boeing 320 for delivery in 1966. This will bring the total cost of the transatlantic aircraft to £10 million in the years 1964 to 1966 of which the company will provide a considerable proportion from its own sources, the balance being provided through short-term borrowing. I should add that any surplus earned by Aerlínte is urgently needed for the financing of capital requirements or the extinction of earlier accrued development expenses.
In the past two years there has been an increase of 23 per cent in traffic on the companies' cross-Channel and European network while traffic on the transatlantic route has grown by a remarkable 65 per cent. The company had the highest load factor of all operators on the North Atlantic route. The question of introducing services to Canada is under consideration at present. A record level of publicity and sales activity has been initiated in the highly competitive tourist markets of Britain, Europe and North America in an effort to increase tourist traffic from these areas. It is expected that in 1965-66 the air companies' promotional expenditure abroad will amount to £2¼ million including the cost of sales, offices and staff.
I should clarify the position with regard to the air companies' capital structure. At 31st March, 1965 the air companies' share and loan capital amounted to about £16 millions of which about £3 millions was loan capital. As I have stated on other occasions, Aer Lingus was promoted on so rapid a basis that surpluses earned on the profitable routes were insufficient to finance the capital required for the development of more marginal services. Major capital commitments entered into during the past three years involve outlay of about £18 millions of which £16 millions will come from the air companies' own resources and from commercial borrowings. The remaining £2 millions has been provided from the Exchequer by way of share capital. The very high proportion of the capital requirements which is being met from sources other than the Exchequer indicates that the companies are progressing towards a stage in which their earnings will be sufficient to remunerate the capital invested in them. The companies have been advised to plan ahead on a progressive but economic basis, to develop further westbound traffic from Europe and to keep in touch with me and with Bord Fáilte on their particular requirements in accommodation for package charter tours.
There is ample competition for Aer Lingus and Aerlínte and new routes are opened up by foreign airlines with my consent but with the object of ensuring that traffic breeds traffic and not to the detriment of the national airline. Aer Lingus have recently installed an electronic reservations system at Dublin Airport which will enable the company to process expeditiously the thousands of bookings, inquiries and alterations received every day—no small feat considering that over one million passengers are carried every year. The system which is one of the most up-to-date in the world is linked directly with key booking centres on the company's network in Britain and indirectly with various booking offices in Europe, North America and Australia.
Shipping freight rates in 1964 continued to improve but at a much slower rate than in the previous year. In 1963 the average index figure for the year (base 1960=100) was 109 giving an increase of 20 points over the 1962 average. The average figure for 1964 was 112, an increase of three points only over the 1963 average. The improvement has been maintained in the current year the average figure being 120 against 114 in the corresponding period last year.
During 1964 there was a steady decline in laid-up dry cargo tonnage. From a peak of 846,000 tons in January, 1964, it fell to 480,000 tons in December, 1964. Since then there has been a further decline, the laid-up tonnage at the 1st May, 1965, being 303,000.
The fact that dry cargo freight rates remained relatively steady throughout the year 1964, which was unaffected by world crisis or states of emergency and the falling off in laid-up tonnage suggests that a more stable equilibrium between supply and demand is now in sight. Even with an improvement in freight rates, however, it seems unlikely that any but the most modern tramping vessels will be able to operate at a profit.
A feature of the shipping industry in recent years has been the rapid increase in the size of new vessels, particularly tankers. An order for a 160,000 ton tanker has recently been placed—in Belfast I am pleased to note—and tankers of 200,000 tons are mooted. Tankers of 50,000 tons and upwards are becoming commonplace. The outstanding economy of operation of these vessels tends to keep freight rates very low and the situation is of course much aggravated by the substantial overall surplus of tanker tonnage much of it consisting of older and smaller vessels.
In the case of dry cargo ships the size of the bulk carrier vessels suitable for ore, coal, grain and similar cargo has grown rapidly also but not to the same degree as tankers. There are now about 320 bulk carriers on order in the world's shipyards of an average tonnage of 32,500 deadweight.
Tanker freights continue to be most depressed. The world surplus of tanker tonnage is aggravated by large scale new buildings which lead to even more severe competition.
The accounts of Irish Shipping Ltd. for 1964-65 which have recently been presented to the House show that the results for the year although not yet entirely satisfactory are appreciably better than in the previous year. It is particularly gratifying to report that the operating surplus of £521,732 is up by £68,462 on last year and is the highest which has been recorded for eight years. After providing £838,177 for depreciation of the fleet and allowing for investment income, bank interest, directors' and auditors' fees the net commercial loss amounted to £274,842 as compared with a commercial loss of £556,721 in the previous year. The loss is almost entirely due to tanker operations. The dry cargo fleet as a whole did not fall far short of earning full depreciation the losses on the older and less economic vessels being offset by profits on the larger and more modern vessels acquired in recent years.
Irish Shipping Ltd. was established to ensure an adequate fleet for the carriage of our essential needs in emergency conditions. The continuance and expansion of the fleet after the war was also based on strategic considerations. Accordingly, when considering the financial results of the operations of Irish Shipping Ltd. it should be remembered that they are not comparable with those of ordinary commercial concerns. If the company had been guided by purely commercial considerations only over the last ten years its fleet would be of a very different composition and possibly much smaller than it is. As long however as the company is expected to fulfil a strategic role it cannot be expected that its earnings will be high or bear comparison with purely commercial firms either here or abroad.
Following a radical reappraisal of the company's operation the Board of Irish Shipping decided that a number of the older and uneconomic units of the fleet should be replaced by a bulk carrier of 30,000 tons deadweight. This vessel will be able to use the Port of Dublin as current dredging will enable the necessary depth to be provided within about a year. The Government have approved of this decision and the company are taking steps to place an order for the vessel.
With Government approval, Irish Shipping Ltd. invested £150,000 in Palgrave Murphy Ltd. in 1964. The investment is made up of £90,000 in ordinary share capital and £60,000 in 6½ per cent debentures, and has shown satisfactory returns. With the growth in continental trade the integration and rationalisation of common services should lead to improved profitability.
State companies have always been encouraged to avail of the services of management consultants and other technical advisers with a view to increased productivity and efficiency. Irish Shipping Ltd. have engaged management consultants to review various aspects of their operations and advise on methods to effect greater efficiency.
A work-study expert has been to sea on one of the company's ships to study and report on solutions of problems of ship operations. This active approach by management and staff and the forward looking mentality of the board augurs well for the future of the company.
The acquisition by the Government of the British and Irish Steam Packet Co. Ltd. is very recent and all aspects of the matter were dealt with very fully during the passage of the Act. The board are making a complete and searching analysis of the immensely complex operation involved in carrying passengers, cars, cargo and cattle in the cross-Channel trade on the lines of the directives which I gave them and which are set out in my Second Stage speech on the B & I Bill. Some time must elapse before final decisions are reached or results show but I know that the new board have got off to a good start. They are implementing a re-organisation of administrative and clerical procedure drawn up by consultants with the co-operation of the trade union concerned. They are also re-organising the management structure and are carrying out an intensive survey of the scope for development of unit load and container traffic.
The provision of £250,000 which shows an increase of £250,000 on 1963-64 for grants for harbour improvement works covers works in progress or works expected to commence shortly. The increase arises because it is expected that more progress will be made this year on works which have commenced recently. The principal current improvement schemes are those for Galway, Wicklow, and Arklow for which grants totalling nearly £500,000 have been approved. Grants of £15,000 and £17,000 have been approved for Sligo and Ballina respectively. Progress on works at Drogheda, for which a grant of £175,000 was approved, has been suspended pending the carrying out of necessary technical investigations. Work on the projects at Galway and Wicklow is already well advanced.
The Second Programme for Economic Expansion assumes that normally all harbours should be operated as commercial undertakings and that maintenance charges and improvements required by expanding trade should be financed on a commercial basis. I must stress again that State assistance for harbour works should be regarded as an exceptional measure and reserved for essential and productive schemes, the full cost of which cannot be met locally or where the establishment or expansion of a particular major industry requires improved harbour facilities. It is desirable that any State assistance and, indeed, any investment at such harbours should be related to the specific and identifiable requirements of new trade or industrial development and should not be undertaken merely by way of providing general facilities in the hope of attracting new and unspecified business. It is equally desirable that the expected return on the investment be measured as accurately as possible and that an appropriate local contribution should be a condition of any State assistance.
The working group, which I set up to investigate the possibility of accelerating the movement of cargo through sea and airports, has completed its inquiries and has just reported to me.
It is vitally necessary to continue to emphasise the constant need for increased productivity in the handling of goods at ports. It is satisfactory to note that appreciable progress has been achieved at several ports. At some other harbours there were most undesirable restrictions and no solution had been found. It is to be hoped that with a more enlightened climate of public opinion the ports which have hitherto been lagging will concentrate on raising their productivity and that all ports will endeavour to keep abreast of the latest developments in this field.
The Irish Port Authorities Association could and were helping to develop the most modern ideas about port productivity and this work was an essential contribution to national economic progress. The larger harbours can make a special contribution in that they have the expertise and are often in a position to give sound advice to the smaller harbours. The smaller harbours also have their part to play.
I now come to energy. The country's total primary energy requirements in 1964 are estimated at 6.7 million tons coal equivalent or about five per cent higher than in the previous year. The increased demand for energy reflects the growing industrial activity in the country, the increased use of mechanisation in farming operations and the improving living standards of our people. Less than two-fifths of our total primary energy requirements in 1964 were supplied from native sources, i.e. turf, hydro power and native coal.
The accounts for the Electricity Supply Board for the year ended 31st March, 1965, are not yet available. Hydro conditions were a little better than average during the year but generally costs have been moving against the board as indicated in their annual report for 1963-64. It is expected that the results for 1964-65 will show a small debit balance.
The growth in demand for electricity is an accepted indicator of the progress in the economic development of a country and in the improvement in the living standards of its people. The demand of nine per cent to 1970 as ensome 12 per cent higher than in the previous year and compares with an estimated average annual increase in demand of nine per cent to 1970 as envisaged in the Second Programme for Economic Expansion and which is about two per cent above the European average. The peak demand in 1964-65 was 755 megawatts compared with 674 megawatts in the previous year and was reached during a cold spell early in March this year.
The consumption of electricity in the urban areas where a comparison can be made without the complication of a rapidly growing rural network amounted to 1,476 million units in 1960-61 and 1,853 million units in 1964-65, an increase of 26 per cent. The increase in industrial power consumption over the same period was 40 per cent.
During the year 160 megawatts have been added to generating capacity and the total is now 1,009.5 MW, but this includes 90 megawatts of old plant at Pigeon House which is available for stand-by purposes and the four 5-meg-watt hand-won turf stations. The approved programme of plant construction up to 1970 includes 120 megawatts at Ringsend, 120 megawatts at Great Island, Wexford, and 120 megawatts at Tarbert, County Kerry, all based on oil, and 40 megawatts at Lanesboro based on milled peat. These will be followed by a 120 megawatt oil station at Ringsend.
As Deputies are aware, it has been decided, following discussions which I had earlier this year with the Northern Minister of Commerce, to undertake a joint investigation, under the chairmanship of Sir Josiah Eccles, into the technical and economic possibilities of cross-Border co-operation in the field of electricity. It is hoped that this investigation will be completed early in 1966.
The initial development of all rural areas under the Rural Electrification Scheme has been completed and the ESB are proceeding with the re-canvass of all areas under the post-development scheme. The total number of rural premises connected at 31st March, 1965, is 310,000 or about 82 per cent of the total. When the post-development scheme is completed in 1968 some 340,000 premises or about 90 per cent of the total will have been connected.
Apart from the rapid increase in the number of rural connections in recent years, the consumption of electricity, in rural areas per consumer, has increased by 30 per cent approximately since 1960-61. The use of electricity for farm production is illustrated by the following percentage increases in the numbers of electrically operated equipment since 1959.
|
Percentage Increase. |
|
|
Infra-red lamps |
17 |
|
Water pumps |
42 |
|
Milking machines |
98 |
|
“Burco” boilers |
77 |
|
Grain grinders |
92 |
Further evidence of the improvement in social conditions may be given by recording the percentage of farm residences using the following domestic equipment:—
|
Percentage |
||
|
Electric |
irons |
79 |
|
,, |
washing machines |
19 |
|
,, |
kettles |
47 |
|
,, |
cookers |
20 |
|
,, |
vacuum cleaners |
10 |
I have in every year encouraged the Board to expand and improve their sales organisation in rural areas in order to increase still further the use of power-driven farm equipment and domestic appliances. I understand that the sales organisation is again being expanded and re-organised with the object of increasing the use of these equipments, so essential to modern farm production and to the development of up-to-date social amenities in farmhouses.
The provision of approximately £525,000 in this estimate for rural electrification is in respect of the repayment to the Central Fund of advances made out of it to the ESB in respect of the rural subsidy. The advances in each calendar year are being repaid by a 25 year annuity commencing in the following financial year. The annual charge to this subhead of the Vote will increase while subsidy continues to be advanced from the Central Fund.
I shall deal more fully with rural electrification when the Electricity (Supply) (Amendment) Bill, 1965 is taken in the House. This Bill provides for the raising of the limit of capital expenditure by the board on rural electrification by a further £5 million, bringing the total to £42 million, and for the continuation of subsidy. The Bill also provides for an increase in the capital expenditure which the board are authorised to incur for general purposes, that is to say, for all purposes except rural electrification.
The cost of electric power furnished by the ESB for all purposes is reasonable by any European comparison. The average cost of electricity for domestic consumption in urban areas in 1946-47 was 1.84d per unit. Today it is 1.76d per unit. The cost of living has increased by about 90 per cent. The cost of industrial power has increased since 1947 by 13.7 per cent. In planning for future development, inflation is a real danger and I hope that the ESB will continue to press forward plans for maximum productivity so that prime costs of power will remain at economic levels.
The ESB are keeping under review the developments in the use of nuclear energy for electricity generation. As Deputies will appreciate, rapid technological advances are taking place in this field. It seems unlikely at present, however, that a nuclear generating station will be an economic proposition in our circumstances for about another ten years or so.
The ESB had a further public stock issue of £6 million in March last which was heavily oversubscribed thus reflecting once more the confidence of the investing public in the board's undertaking.
The establishment of a nuclear energy board to advise the Government on nuclear energy matters generally is being considered.
The House has recently passed the Turf Development Bill, 1965, the purpose of which is to increase from £24 million to £28 million the statutory limit on borrowings by Bord na Móna. Bord na Móna's experience of weather conditions over the past number of years has shown that their original estimate of annual milled peat production was somewhat optimistic. They have, accordingly, found it necessary to revise their estimates on the basis of a lower but more realistic yield per acre for the future. In order to achieve the required output of milled peat on the basis of the lower yield the board are bringing additional fringe areas of bog into production.
The Board's milled peat production in 1964-65, while it was the highest ever produced and was about 30 per cent. higher than in the previous year, was still below planned output for the reason I have given. The board produced about 900,000 tons of sod peat in 1964-65 which was up to target, although slightly lower than in the previous year. Briquette production was slightly higher than in the previous year, but, because of some technical trouble at the factory which has since been remedied, was still some 20,000 tons short of the planned output of 315,000 tons.
The accounts of the board for 1964-65 are not yet to hand but I understand that the outcome of operations for the year is likely to show a deficit of the order of £500,000 due to the weather conditions I have referred to and increased costs. This deficit together with the deficit carried forward from previous years brings the total deficit of the board to about £800,000 which is, however, not excessive in relation to the board's present turnover of £6 million approximately.
The decision to mill peat over a larger area of bog each year should enable the board to close their small deficit if weather conditions remain average. Bord na Móna are having considerable success with their minor products, moss peat litter and UCEE potting compost. Moss peat is regarded by the Agricultural Institute as a standard component of glasshouse soil and it is incorporated with all soils for food crops such as tomato and cucumber as well as for flower culture under glass.
The use of UCEE soilless seed and potting compost is increasing among professional and amateur gardeners alike. This product introduced by Bord na Móna has been tested by the Institute as a propagating medium in connection with the early production of tomatoes and the uniform nature of the results obtained so far indicates that it may be more satisfactory than soil-based composts for this purpose.
Work is also proceeding on the development of cultural techniques for using moss peat alone as a growing medium in an effort to eliminate soil as a source of disease in glasshouse crops. A new market for a small quantity of sod turf has appeared in the new activiated carbon factory at Allenwood. The annual requirements of the factory are not great—16-20,000 tons per annum—but it is, nevertheless, a useful market.
Both the ESB and Bord na Móna are constantly re-examining and reappraising their procedures and methods. Among the matters to which the ESB have specially applied the techniques of work study are the location of stores, the transport of men and materials, forward planning, the economics of activities and associated paperwork. As a result, revised arrangements were introduced, including the design and purchase of special transport, alteration in the methods of procuring and delivering materials, re-definition of supervisory functions, organisation and planning of work and simplification of documentation and paperwork.
Bord na Móna have applied time and motion study to many of their operations thereby achieving greater output at lesser unit cost while the workers concerned have obtained higher pay for the efforts required. Method study has resulted in revised machine design for greater efficiency. Among the method study projects at present in hands are aspects of briquette production and baling, communications within the large milled peat bogs and various projects associated with changing techniques in sod peat production.
Coal consumption in 1964 was about 1.5 million tons or about nine per cent less than in 1963. Home production of semi-bituminous coal and anthracite was approximately 200,000 tons which was about the same level as in the previous year. Consumption of coal continues to decline, due to competition from other fuels, particularly oil. This is in line with the trend in Britain and on the Continent.
The investigation into the prospect of using the reserves of high ash content coal in the Arigna coal field in an extension to the Arigna generating station is almost completed and I expect that it will be possible to reach a conclusion in the matter shortly.
Irish anthracite producers have been experiencing difficulty in recent months in disposing of their output. One of the principal mines is on short time and three of the smaller mines are closed. There has, however, been no recent increase in imports of anthracite. In fact, imports in 1964 at 52,000 tons approximately were about 10 per cent lower than in either of the two previous years. Estimated home production in 1964 on the other hand amounted to 142,000 tons or about 10 per cent higher than in either of the two previous years.
The producers' difficulties appear to arise from an increase in home production and from a falling off in public demand due to competition from other fuels and to a lesser extent to the comparatively mild weather last winter. The Buy Irish Committee have been examining the marketing problem in co-operation with the producers and have, I understand, made certain suggestions to the producers with a view to improving the competitiveness of Irish anthracite.
I was approached by the Irish anthracite producers early in May with a request to control imports with a view to enabling the producers to dispose of their output. The matter has been discussed jointly by my Department and the Buy Irish Committee with representatives of the producers and the principal Dublin coal importers. The investigation of the remedial measures which may be feasible is being actively pursued and the possibility of some reduction in imports is being explored in the context of the provisions of the Anglo-Irish Trade Agreement.
The country's consumption of oil in 1964 amounted to approximately 1.7 million tons which was about 12 per cent higher than in the previous year and nearly double what it was in 1958. Oil now accounts for about two-fifths of the country's total primary energy requirements. While the demand for petrol and diesel oil continues to increase the most significant increase has been in the use of fuel oil for the generation of electricity. As the demand for energy grows the country is becoming increasingly dependent on oil as a source of primary energy and it is estimated that on present trends about half of our primary energy requirements will be supplied by oil by 1970.
My Department operates a scheme of grants to meet half the cost of fuel efficiency surveys in Irish factories and hotels. The object is to promote greater efficiency and economy in the use of fuel which will be of benefit not alone for the firm concerned, but also of help to the national economy and the balance of payments position.
In order to speed up application of the scheme arrangements were made in 1962 for a special promotional drive to interest firms in the savings which can be achieved by more efficient use of fuel. Accordingly it was arranged to have a number of firms visited by the National Industrial Fuel Efficieny Service who are a highly specialised expert body in this field, organised by the electricity, gas, coal and other fuel interests in Britain and who have a branch in Belfast. Since the drive was started in 1962, 115 firms have been visited by representatives of this service and on the basis of reports given it appears that there are potential fuel savings of at least 20 per cent of their total annual fuel bill. This could represent a very considerable amount of money. In the case of some 40 fuel efficiency surveys which have been completed the savings possible on the annual fuel bill amounted to about 28 per cent or £120,000 a year for these firms. In many cases these savings can be achieved by inexpensive modifications or adaptation of existing plants. In other cases the reduction in fuel bills may be unimportant as compared with the improvement in productivity possible.
In view of the importance of this job and the very definite savings that can be achieved both for the firms concerned and for the national economy, I propose continuing this scheme with all energy.
The Transport Act, 1964, which became law on 28th July, 1964, provided for payment to CIE in 1964-65 and in each subsequent financial year of a grant of £2 million subject to review in the year 1969-70. The Act also provided that with the aid of this subsidy the Board must break even, taking one year with another. The provisional figure for the Board's net deficit for 1964-65 is £1,475,000. The net deficit for 1963-64 was £1,606,000. The figure for 1963-64 was, however, affected by the net loss of £342,000 incurred through the April-May, 1963, bus strike. When this is taken into account, the apparent improvement of £131,000 in 1964-65 is altered to a relative disimprovement of £211,000. The difference between the subsidy and the net deficit in 1964-65, that is, £525,000, has been applied by the Board to meet essential commitments on capital account.
The operating deficit on the railway in 1964-65 is estimated at £1,202,000 compared with £905,000 in 1963-64. The main reason for the increase in the deficit was that an improvement in revenue consequent on the March, 1964, increase in rates and charges was more than offset by additional wage and salary costs and higher depreciation provisions. There was a reduction in rail freight tonnage and rail freight mileage, due mainly to the 3½ months' disruption in trade which resulted from the strikes in the building trade and in Dublin builders' providers establishments and to an overall reduction in sugar beet traffic and to a reduction in CIE's share of livestock traffic.
On the other hand, despite a reduction in suburban rail passenger traffic due to the return to the road passenger services of commuter traffic diverted to rail during the April/May, 1963, bus strike, there was a slight overall increase in rail passenger mileage. This was due to the fact that there was a big increase in the number of long-distance passengers carried by rail due to better holiday weather and more leisure time resulting from the increasing incidence of the five-day week in business and industry.
There was also a marked increase in excursion traffic. There are a great number of reduced fare schemes available on the Board's rail passenger services including day returns at single fare on selected days of the week, two day returns at single fare and one-third, weekend returns at single fare and a half, special weekend returns during the period from October to May at single fare and special excursions to sporting events at less than single fare. There are also special "rambler" tickets available enabling a person to travel anywhere on the Board's rail system for a period of 15 days for £6 10s. 0d. and on the road passenger services as well for an extra £2. For £11 a person can travel anywhere by rail or road on the CIE and UTA services for a period of 15 days. I have asked the Chairman to make a particular study of the Board's fares structure and have at all times encouraged the Board to experiment with cheaper fares on a still more extensive basis.
On and from 1st May, 1965, CIE introduced a reduction of 20 per cent in its standard wagon rates for conveyance of cattle by rail. Simultaneously the Board terminated the scheme whereby livestock traders were granted rebates based on their yearly freight payments for transport of cattle by rail; under the rebate scheme, traders whose rail freight payments exceeded £500 a year had been granted a rebate at the end of the year of up to 17½ per cent. As a result of the change, traders will, in effect, secure the benefits of the rebate scheme currently instead of waiting until the end of the year. The new reduced rates apply to all traders and it is the Board's hope (based on successful trial application of those reduced rates in the Limerick area) that they will attract new business and thus make a worth-while increase in rail revenue from this source. An increase of 454,000 or 43 per cent in the output of cattle by 1970 is envisaged under the Second Programme for Economic Expansion and, in introducing the new rates, the Board are alive to the need to be in a position to cater for the transport demand arising from this projected increase in output. It is the Board's belief that the railway can make a vital contribution in catering for this demand.
The Board's road passenger services made headway during 1964-65, and, apart from recovering the losses incurred through the 1963 bus strike, they attracted an increase of more than four per cent in passengers carriad with a proportionate increase in gross revenue. This is the only one of the Board's transport services which earns sufficient to meet interest and sinking fund charges in addition to all operating expenses. The surplus, before charging interest and sinking fund, is estimated at £660,000.
Bookings for CIE road passenger tours were a record in the 1964 season. On extended coach tours, 16,800 passengers were carried in 1964 compared with 12,400 in 1963. On the one-day Mediaeval Tours operated by CIE from Shannon Airport, 9,000 passengers were carried in 1964 compared with 4,700 in 1963, which was the first year of operation of these tours. A new package holiday promotion introduced in 1964 was the "Golden Holiday" programme, a relatively new concept in tourism in Ireland, involving the block-booking of accommodation in hotels at particular resorts and the provision of day tours as part of the "package". Weekly chartered air flights from Manchester to Shannon and back were arranged in connection with the "Golden Holiday" programme, which CIE feel is particularly attuned to the requirements of the British and continental markets.
There was a slight betterment in the results of the Board's road freight services, which showed an estimated operating profit of £45,000 in 1964-65, compared with £37,000 in the previous year. I understand that road freight receipts in 1964-65 were adversely affected by reduced exports of meat and by a falling-off in demand for lorries for livestock, beet and county council traffic. The movement of bulk traffics has, however, shown an increase, notably bulk cement and barytes. During the year an extensive investigation into road freight working was carried out by CIE and as a result changes were made by the Board in the systems of management and administration of these services.
The CIE hotels subsidiary, Óstlanna Iompair Éireann Teoranta, had a very successful year. The operating profit on the hotels and other catering services increased from £135,000 in 1963-64 to an estimated £145,000 in 1964-65 due mainly to improved productivity. Canals, vessels, docks etc. continue to show losses, which in 1964-65 amounted to an estimated £85,000 compared with £76,000 in the preceding year.
Deputies will recall the observations I made during the passage of the 1964 Transport Act in outlining the policy to be pursued by the Board and, indeed, the whole staff of CIE. It is essential to repeat every year the conditions under which this very large subsidy, representing 22 per cent of rail revenue in the past year, is made available. The subsidy is very large by European standards and I have frequently explained the basic causes which necessitate this impost upon the taxpayers, who could spend the money in many other ways and in so doing employ more of our people. A subsidy to cover an operating deficit is a transfer of purchasing power from one direction to another, neither more nor less.
CIE already provide rail and road freight services at considerable loss over the Western and Northern areas, partly subsidised by profitable traffics in certain very limited sectors, so that under no circumstances can it be said that the poorer, less industrialised areas are not receiving benefit from the entire operation. This being the case, CIE will, I am certain, strive for maximum efficiency and productivity and seek maximum traffic with a view to conserving the subsidy at the lowest figure.
The fact that the fixed subsidy exceeded revenue losses by roughly £500,000 this year is not to be regarded as an opportunity for adding to CIE's costs. Over a period of five years costs may be expected to rise for one reason or another and savings in one year can be regarded as serving the following purposes:
(1) enabling CIE to meet capital expenditure out of the saving achieved, thus relieving the Exchequer at a time when capital is urgently required for more directly productive purposes;
(2) helping the Board to meet higher losses in later years.
Having studied the conditions under which rail and bus services operate in countries with a far higher income per head, particularly the working conditions, I can say quite frankly that if the subsidy is not to rise beyond the almost prohibitive level at which it now stands there will have to be consideration given to any changes that might take place which would markedly increase costs.
I wish to make it clear that the subsidy provided in the 1964 Act is already at the maximum tolerable limit and, after 1969, there would have to be fresh and urgent consideration of transport policy if the subsidy should need revision upwards. It is only with the greatest reluctance that I have recommended the subsidy. If the level had been that of other railway subsidies, some two per cent to six per cent of rail revenue, there would have been no great principle involved, but 22 per cent does raise important questions of principle. The other State bodies for which I am responsible have not been treated differently. Either they have been paying their way or they have been now put in a position whereby new capital is remunerated as in the case of the air companies. CIE are, of course, only a partial monopoly and will continue to face severe competition from private road transport.
Consequent on the withdrawal of general freight services by the Ulster Transport Authority in Northern Ireland and the closure of the Porta-down-Derry and Goraghwood-Newry-Warrenpoint lines, CIE have been operating since February last, by agreement with the UTA, express freight train services between Dublin and Belfast, and Dublin and Derry via Lisburn and Antrim, giving overnight delivery to and from Northern Ireland and County Donegal.
From 1959 onwards, I have been pressing CIE for a complete evaluation of express buses, particularly in areas not served by the Board's rail services. I was particularly interested, therefore, in the introduction with effect from 4th January, 1965, of express bus services between Dublin and Derry and Dublin and Letterkenny. The Dublin-Derry service is operated jointly by CIE and UTA and the Dublin-Letter-kenny route is operated solely by CIE. These two new services are the longest road express routes so far operated in this country; the journey from Dublin to Derry is 147 miles and from Dublin to Letterkenny 153 miles. Both services give improved timings on the previous timings and it is now possible to leave Letterkenny or Derry in the morning, spend the best part of the day in Dublin and return home by evening coach the same day. In the short time they have been in operation, both services have been successful. I would like to pay a tribute to the Northern Ireland authorities and to the Ulster Transport Authority, without whose co-operation these new express rail and road links would not have been possible. This is a good example of the type of co-operation and goodwill which will be to our mutual benefit.
I might also mention that with effect from 3rd May, 1965, CIE have extended to Donegal Town the existing express bus service between Dublin and Enniskillen via Cavan. They have also introduced, from 1st June, 1965, a new seasonal express service between Dublin and Shannon with an extension to Killarney. Seasonal express services are also operated by the Board between Galway and Shannon, Cork and Glengarriff, and Limerick and Kilkee. There have been developments in Dublin also. In December, 1964, CIE opened at O'Connell St., Dublin a Centralised Radio Traffic Centre, a scientifically devised traffic control system with the object of enabling the bus services to operate with greater flexibility and effect in the ever-increasing traffic congestion in Dublin city. The traffic congestion gives rise to problems of "bunching" of buses, resulting in long queues, undue delays and frustration for bus users. Reports on "bunching" are channelled through the control centres, which despatches the nearest of the Board's radio control cars to correct the situation in so far as the actual acute congestion will permit remedial action. Likewise, extra buses can now be introduced more readily as required at particular points and where gaps appear in the service due to traffic delays buses are turned short by inspectors with a view to minimising the effect of the disturbance.
As a further aid to improving passenger services in the Dublin city area, CIE have been carrying out a "pick-up/set-down" survey. Passenger movements are being recorded by means of special ticket machines and the results reviewed on punched cards. Services are being immediately adjusted according as the results of this survey are being analysed. A new schedule based on the survey has recently led to the provision of 500 extra seats for workers travelling to the city from the Ballyfermot area in the morning and back to Ballyfermot in the evening. Improved services have also been provided for the Crumlin, Drimnagh, Walkinstown, Templeogue, Terenure and Finglas areas, resulting in the provision of a considerable number of additional seats on these routes at peak periods.
On completion of the "pick-up/set-down" survey later this year, CIE will consider the desirability of any necessary alterations to the existing route pattern with a view to minimising the effect of traffic congestion. Such alterations may take the form of dividing some cross-city routes or making them into hairpin routes which will avoid as far as possible cross-city traffic.
Market research by CIE into the travel needs of the members of the public is not confined to Dublin but is spread over many areas. This research has continued during the past year and tributes from various public bodies and associations indicate that members of the public are becoming more conscious and appreciative of the Board's efforts. To choose just one as an example, Tramore Development Association passed a resolution last year complimenting CIE on the very good services they provided for Tramore during the summer season and, in particular, during the August Race Week.
