andMr. T. O'Donnell asked the Minister for Transport and Power if he will comment on the financial loss of the B & I Line since it came under State control.
Ceisteanna—Questions. Oral Answers. - B & I Line Loss.
3.
The financial position of the B & I Company was very fully explained in the chairman's address to the recent annual general meeting, which received wide publicity in the public press. As explained by the chairman, the company's loss in the year ended 31st December, 1965, was due to increases in overheads and direct labour costs, coupled with a decrease in earning from livestock, conventional goods and passengers in circumstances outside the company's control. The company has reorganised and strengthened the management structure and has under active review passenger and car transport and the rationalisation of livestock traffic. The company's unit load carryings increased by 50 per cent in 1965 and a further increase of 50 per cent is expected in 1966.
The Board of the company has set itself profit targets for future years. It expects to make a profit in the current year and to improve the profit position in succeeding years.
I am confident that the vigorous steps taken by the Board will lead to more profitable operations in future.
Is the Minister quite satisfied that this company is going to make a profit in the future? I appreciate his long and somewhat detailed reply but I have also read the report of the company and somehow am not very impressed. Has the Minister anything more definite to say?
I can only be reasonably optimistic, but the Deputy will appreciate that the Board took over in March, 1965 and it took some time for them to understand the operation of the company and to appoint new staff and undertake the most modern type of investigations and engage in sales and development work on a modern pattern. They have not had very long, certainly in the case of the shipping company, to make their final plans. In the meantime, as the Deputy knows, cross-Channel traffic is very rapidly changing to that carried by unit loads. For example, the kind of problem they have to face is that the actual realisation per ton for freight is about the same as it was in 1960, even though regular freight charges have increased since that time, and that because of the very dramatic change from carrying goods loose to carrying them in containers, the Board entered into a transitional period in the case of a company which has carried up to now a great deal of general traffic. I hope that they will be able to rationalise and improve their methods of operation so that they will have a profit in the future.
Does the Minister's reply not suggest that the directors of the B. & I. are a bunch of greenhorns who know nothing about shipping and have to learn the job to make the company pay? That would rather arise from the Minister's reply because heretofore the company was paying quite well. Is he satisfied that the directors are the right men for the job?
If the Deputy recalls the debate in the Dáil, it was made clear at the time that the profits had been declining for some period.
They were not losing money.
The profits were declining. In relation to the other part of the Deputy's question, I do not think it is right that one should mention the names of the directors but if he looks at the personnel of the Board, he will see that they include people who have been successful in the case of other ventures.
Is the Minister aware that, despite the assurances given in this House, one of the economy measures already taken has resulted in the laying off of the personnel of the M. V. Dundalk and a number of these people are now unemployed?
There has to be rationalisation.
The Minister gave an assurance that these people would be re-employed immediately and they have not been re-employed.
Most of them have been re-employed.
Not all of them, and they must eat to live.