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Dáil Éireann debate -
Wednesday, 23 Nov 1966

Vol. 225 No. 9

Committee on Finance. - Vote 41—Transport and Power (Resumed).

Debate resumed on the following motion:—
That the Vote be referred back for reconsideration. — (Deputy P. O'Donnell.)

I am sorry for not allowing the Minister to conclude but I believe that what I have to say is of the utmost importance. Last night, when the Taoiseach was addressing the Árd Fheis, he used words which I am going to employ here: "fresh thinking on old problems", particularly having regard to early entry into the EEC which is inevitable.

There is only one aspect of the Minister's very extensive field which I should like to deal with—air transport. At the moment we are not allowing foreign airlines into Dublin. We must be one of the few capital cities of the world into which foreign airlines are not allowed. Of all the American tourists who come to Ireland, 75 per cent visit Dublin. I do not believe you can make people go where they do not want to go. In spite of the fact that the American airlines have only been able to fly into Shannon, many of their passengers have made their way to Dublin in hired cars. All the car hire firms had record years and their cars are still touring the country. All the countries of Europe at the moment are crying out for tourists, literally opening the floodgates to let them in. We are closing the floodgates by limiting the transatlantic air liners to Shannon. When Shannon was established, planes had to use it of necessity, as it was the last stop between Europe and America. Aircraft these days fly nearly halfway around the world without having to refuel.

I realise that Irish International Airlines are making a profit of £1 million a year which is very good and they are to be congratulated on it, but I believe that in the long run it costs the country much more than that. For the £2 million or £3 million they make, the country will lose £4 million or £5 million. It is also a well-known fact that people like to fly by their own national airlines. They have a strange feeling about this. Many of the people who fly by Irish International Airlines come from America and are coming to stay with their families. Many of them do not use hotels at all. It is well known that the other international airlines are willing to spend a lot of money advertising Ireland. Irish International Airlines have nine offices throughout the United States, I understand. Two of the other major airlines, TWA and Pan-American, have 240 offices. One can imagine the advertising to visit Ireland that goes on from those offices. In fact, one airline is already spending a tremendous amount of money on advertising Ireland, even though they are only allowed to fly into Shannon.

I believe it is not a good thing to have three directors of the Tourist Board having an interest in either Irish International Airlines or Shannon Airport, and these incidentally include the Director General and the Chairman, who are directors of the Tourist Board and Irish International Airlines or Shannon Airport. Naturally, whilst Irish International Airlines is making a profit, there is no pressure on the airline to compete with other airlines. If it were announced that, by a certain date, American airlines would be allowed to fly into Ireland, I believe there would then be immediate foreign investment in hotels and motels. I can draw a parallel here with New Zealand. New Zealand restricted the flight of other airlines into the country. Other countries retorted by saying: "If you do not let us in, then you will not be allowed into our countries". They were forced in New Zealand to let other international airlines in and, as a result, the figures for tourism have shot up at a tremendous rate. I have been promised these figures and, as soon as I get them, I shall let the Minister have them.

The American traveller likes to take in the capitals. That is a well-known fact. Americans are not adequately serviced from that point of view through Shannon. Shannon, of course, is very useful and it will continue to prosper; the industrial estate will ensure that. There is a service to all parts of Europe from Shannon and I do not believe my suggestion would in any way lessen the traffic into Shannon. Those who want to take in the whole of Ireland can just as easily start from Shannon as from Dublin, but I know Americans who will not fly on Irish International Airlines because they cannot land in Dublin. They have factories here but they cannot come into Dublin by PanAm or TWA and they, therefore, fly to London and travel by Aer Lingus or BEA to Dublin. Now we lose as a result of that. The Tourist Board has given it as its opinion that there would be no advantage to the country in bringing American airlines into Dublin. The hotels argue that that is not so; they say the return on capital in the hotel business has been below ten per cent and difficulties have been experienced in obtaining investment. The major difficulties in gaining returns on investment are experienced by the traffic flow which is too low. If development is to grow in the cities or in the country a much greater traffic flow will have to be generated.

As I have already said, you will get foreign investment in the country in the building of hotels and motels if these people know they can advertise Ireland with confidence. I have been told that if we get twice as many tourists as we get at the moment, we would have nowhere to put them. If that is true, let us announce immediately that four or five years from now we will allow international airlines to fly into Dublin. A hotel and motel programme will be started immediately. There is need for fresh thinking. It is most essential that we should plan now. I shall delay the House no longer except to say that I should like to pay tribute to the wonderful staffs of Irish International Airlines. They are doing a tremendous job, particularly in New York, which I visited not so long ago.

I intervene in this debate to indicate once more the interest of the Labour Party in the State bodies for which the Minister has responsibility. We have persistently urged the necessity for the Government embarking upon the creation of more and more State enterprises. In an atmosphere of monopoly-capitalism private enterprise is clearly unable or unwilling to do the job, a job which would provide much needed employment for our people. We have harped time and again on the moral obligation on the shoulders of the Government to intervene directly in the establishment of public bodies of the type we are discussing here tonight. We are proud of the bodies we have at the moment—Cómhlucht Siúicre Éireann, Bord na Móna, Irish Shipping, the ESB and even CIE. These essential services are very largely in the hands of our Minister for Transport and Power and on him devolves the responsibility of ensuring that these State enterprises are brought as near as possible to perfection in order to serve our people.

One reason I intervene is to appeal to the Minister to do what he can to bring about a change of policy in relation to the charges made by the ESB for the provision of electric current to consumers. It is wrong that excessive charges should be laid down by the ESB for providing current. Because of the charges, potential customers cannot avail of the current. The policy pursued is anti-social because it militates against the small farmer, the small householder, the small shopkeeper, the cottier in those areas not yet covered by the ESB. In a reply to a Parliamentary Question last week, we learned that a sum of from £40 to £500 is required to be paid in advance for the provision of current; recoupment of the deposit paid will be made when circumstances permit. Such a policy militates against those of little means. The rich have no difficulty in availing of current because they have no problem in finding a deposit of £100 or £500, as the case may be.

The Deputy knows that has now been cancelled.

How about the people who have already been charged?

They will be recouped in three months.

That is very heartening news. We were appalled last week to learn in a reply to a Parliamentary Question of the thousands of people who were obliged to pay large deposits in advance, with the assurance that, when circumstances permitted, they would be recouped.

This showed the extent to which the Minister and his Department were bankrupt from the point of view of capital, and that at a time when the ESB had floated a loan, which was oversubscribed, for £4 million. One wondered where the capital subscribed in this loan went when the ESB were obliged to insist on their consumers paying in advance for electric power. It has been said that the Minister for Finance filched in a very large measure the capital provided in the ESB loan. If that is true, it is to be greatly deplored because this is a State body which required its capital for the extension of its various services and it ought not to have been placed in the humiliating position of having to charge its customers in advance for the provision of power. It ought not have been placed in the humiliating position also of having to tell the public representatives in this House that it would be some considerable time before vast areas of our constituencies are supplied with electric power. I am particularly conversant with the areas in my own constituency which are, as yet, without electric current, large patches of rural areas, some of them populous, crying out for electric power and for which, by reason of alleged shortage of capi tal, the Minister's Department is unable to provide power with the urgency we feel it should be supplied.

I note, too, that in respect of some of the other State bodies for which the Minister is responsible there would seem to be a lack of initiative and enterprise. This is particularly notable in Bord na Móna where there is evidence of an acute shortage of turf briquettes. This ought not be so in a State company. There is obviously a rare abundance of turf in this country. We have vast reserves of bogland, as yet, unexploited; we have a vast pool of labour under-utilised, under-employed, and there is no good reason why we should experience an acute shortage of briquettes. It is all the more alarming when one considers that there was a lay-off of substantial numbers of turf workers this year. We had to raise questions in this House about the lay-off of turf workers in our various constituencies and I was primarily concerned about the lay-off of a large number of men in the bogs at Littleton, part of which converges on my constituency.

It would seem to us, therefore, that there is a lack of proper administration in Bord na Móna, when we are suffering shortages of the produce of the bog, such as turf and briquettes on the one hand, and experiencing the redundancy and under-employment of bogworkers on the other. This is flagrant inconsistency which the Minister ought not tolerate. He ought to insist that the Board utilise their plant, machinery and manpower to the fullest possible extent, that there ought not be redundancy at various times of the year particularly when, in the long run, we experience shortages of briquettes. This is a fuel which has become very popular of late, is much in demand by housewives, and there is an obligation on the Minister and Bord na Móna to ensure that it is made available: furthermore, that the various agencies responsible for distributing the briquettes should increase to the greatest possible extent.

It has come to my knowledge that there is restriction in the distribution end with regard to briquettes. The distributors would seem to be limited to a small select group of people in various towns and cities and the average fuel merchant, village grocer or small shopkeeper, who now like to carry a supply of briquettes— especially as they are neatly packed— cannot secure supplies. The few distributors available would seem to be selfish in so far as they look after themselves and their own special friends in the first instance. The Minister ought to have a look at the distributive end and, where an application is sent to his Department or to the Board for permission to act in the capacity of distributor for the produce of Bord na Móna, this licence or approval should not be withheld without very good cause.

I was very pleased to see in operation the car ferry between Rosslare and Fishguard. This is an achievement on which we congratulate Irish Shipping Ltd. I was pleased to hear today that yet another boat, the "St. Andrew", is being converted for the purpose of car-ferrying in the future. It will increase to the greatest possible extent the number of cars which can be ferried from Fishguard to Rosslare in the years ahead. It is a service widely availed of by English tourists. We have seen at first hand the vast number of cars which come off the ferry at Rosslare and stream inland to the various towns and cities of our country. The more the Minister can increase this facility the better.

I do not know if I am entitled to advert to the new Department for which the Minister is now responsible, that is, the Department of Posts and Telegraphs.

No; it would not be allowable on this Estimate.

I appreciate that, and realise that we will be afforded another opportunity of talking about the Minister's responsibility in his new position as Minister for Posts and Telegraphs. I want to refer briefly to tourism. One of the most heartening features of tourism is the interest aroused in the rural areas in the creation of the farm guesthouse plan. This is a scheme which the Minister could and should support to the very best of his ability. The small guesthouses in the towns and villages and the farm guesthouses in the rural areas will be a boon to tourism in the future. Too much of the taxpayers' money in this country is being expended on luxury hotels for the millionaire classes, or the very wealthy people who come here from time to time, and there is little regard for the average tourists who come here in very large numbers, workingclass people from Britain, in the main, and other places, with limited means and limited amounts of money to spend, and who are seeking accommodation of a reasonable kind. They simply cannot afford the cost of the luxury hotels that are being built in this city, in other cities, and in many of our seaside resorts.

This innovation of the family guesthouse, and the farm guesthouse in particular, is to be admired. We wish to see it extended very much in the years ahead. I am aware that where these guesthouses and farm guesthouses are known of, they are very fully availed of and very much appreciated by tourists. Many of us have been told of the feelings of gratitude these tourists have on finding accommodation in these places. The intimate family life which is available to them, the ingrained hospitality they find, the reasonableness of the charges and the very good home cooking, appeal to the average tourist.

Moreover, the feature which is most admired, I think, about the farm guesthouses is the feeling that one gets away from the madding crowd, that one has an opportunity once again to commune with nature. This is appreciated by foreigners, and especially perhaps by foreigners who are engaged in active work in the big cities, in the big noisy cities. They very much appreciate gaining access to guesthouses of this type in the quiet rural scene, in rural areas amid the rural scene. I am aware that the Irish Countrywomen's Association, Muintir na Tire and other rural bodies are actively supporting this idea. I am aware, too, that this type of guesthouse is a very valuable means of supplementing the income on the small farms in rural Ireland. It is no mean way of providing employment and, given the State aid to which it is entitled, this will become a valuable means of attracting more and more tourists to our land.

We in the Labour Party are intensely proud of the various State bodies for which the Minister is responsible. The dissatisfaction we have experienced from time to time is due to the unwillingness of the Minister to be fully responsible in this House for the undertakings and operations of these various bodies. So far as we are concerned, these are essentially nationalised industries created and maintained by the taxpayers' money. They are the people's industries. We are the people's representatives in this House, and we are entitled to ask questions appertaining to the operations of these State bodies. We are entitled as a matter of courtesy to receive the fullest information on the operation of these bodies. One can imagine the frustration and indignation felt in this House from time to time when the Minister, when questioned in regard to the operations of Bord na Móna, CIE, Aer Lingus, Cómhlucht Siúicre Éireann or any other State body, says that he cannot give the information, that he is not responsible for the day to day operations of these boards, or when the Ceann Comhairle or the Leas-Cheann Comhairle intimates to us that our questions are technically out of order.

I am afraid legislation would be required to deal with that point.

We would hope that the fullest information would be given in respect of those bodies in order to eliminate the feelings of suspicion and distrust which the secrecy to which the Minister holds fast creates, of necessity. If the Minister took Members of the House into his confidence, and gave them the factual information required in reply to their questions, things would be in a healthier state and we would have much better relations between employees and staffs of the various bodies.

It is greatly to be deplored that the highest incidence of industrial unrest has been found within our State bodies, such as CIE. That is an indictment of the Minister and his senior staff in respect of the manner in which they deal with their employees. I will not go into any detail now as to what is wrong, but it has been revealed in this House by various Deputies, especially from these benches, that the rash of strikes and industrial unrest which was evidenced in CIE and other State bodies in recent months, was indicative of a breakdown in human relations within those bodies. That is something for which the Minister must accept responsibility. It is not good enough to bring legislation into this House such as the ESB (Employees) Bill and hope by the enactment of anti-working class legislation of that kind to resolve this problem.

You cannot force men to accept intolerable conditions. You cannot force men by law to go to work and stay at work if they do not want to. It has been clearly revealed that the ESB (Employees) Bill which was passed in this House to deny the right of those people to take industrial action, strike action, if you like, is a worthless piece of legislation, and not worth the paper it is printed on.

The Deputy will appreciate that it is not in order to criticise legislation on an Estimate.

Also, it is now formally a matter for the Minister for Labour.

I am merely admonishing the Minister to try to bring about better human relations within the confines of the various State bodies, and indicating that the culmination of this industrial action within the ESB at that time was the accumulation of the various pinpricks of industrial unrest which had not been attended to by that body and which eventually reached the crisis point of strike action. We saw its repercussions during the passage of the Bill to which I have referred.

These are the sentiments I wish to express about the various State bodies for which the Minister is responsible. I should like to assure him that as far as we on these benches are concerned, we wish him well in his efforts to improve, develop and enlarge these various bodies. We will support enthusiastically any plans the Minister may have when he brings them to the House for the furtherance of any of the State bodies of which we are so proud. We only wish that in a country with such a chronic problem of under-employment and unemployment and high incidence of emigration, the Minister and the Government will turn to the ideal of public enterprise more and more so that more bodies like Bord na Móna, Irish Shipping, ESB, Aer Lingus and others will be created, thereby providing more secure and lucrative employment for our people.

In the main, our State bodies bear the mark of permanency. There may be problems from time to time and there may be criticism from time to time, but in the main these State bodies have the mark of progress and permanence, of security for the employees concerned, apart altogether from the essential services they provide for our people in regard to transport, power, fuel and lighting. We in these benches take special interest in these bodies. We have been advocating their establishment since the inception of our Party and we have always regarded ourselves as watchdogs of their progress. Our desire is to see them grow and prosper.

We were concerned when it was hinted here by a former Minister for Finance, now Senator Dr. Ryan, that there was a possibility that certain of these State bodies, which had been nurtured and developed by the taxpayers' money and brought to the point of success, might at some stage be passed over to private enterprise. We challenged it at the time as something wholly unjustified. It is something we must watch very carefully in the future. Therefore, we should welcome any assurance from the present Minister that there is no intention of departing in any way from the primary purpose for which these State bodies were established—the maintenance of essential services. We want to see them continued and developed on behalf of the people by the Minister responsible.

I thank Deputy Treacy for his good wishes to me. This was very pleasant to hear from him. This has been a very long debate and I propose, if I have time, to continue the tradition of giving a reply to virtually every question asked during the course of many hours of discussion because I wish to make it clear that I believe the debate on the Estimate is a time when a great deal of information should be given on matters of a very detailed character which would not ordinarily be the case throughout the year. At the beginning, I wish to deal with the parrot cries issued by various Deputies alleging that I have no function as Minister for Transport and Power. Though these parrot cries are funny and though I am aware of the fact that the great majority of Deputies are fully aware of my position in relation to the State companies, I nevertheless think it right, in view of the wide publicity given in the newspapers to those Deputies who spoke of me as having no function, to reply to what has been said.

I am obliged once again to state very briefly my relations with the State companies and to indicate just what are my functions. I examine with the boards of the companies, through my officials, the annual accounts of all the companies and all matters that seem to me to be of interest or significance in connection with the accounts. I sanction in most cases the expenditure of capital. I give sanction to that expenditure in relation to what I consider to be the Government's policy in relation to each State company and that means a very definite form of specific control of the general policy of each State company.

I discuss at regular intervals with every State company all the important aspects of its administration, the frequency of these discussion depending on the company and the kind of work it undertakes. For example, in connection with companies whose functions are promotional, I take a very deep interest in everything they do. I do not suppose there is a single item of Bord Fáilte's general programming that I have not discussed in great detail and I have made suggestions in connection with many of the policies at one time or another. I bring to the Dáil and Seanad at frequent intervals Bills for the enlargement of the capital of State companies and for other purposes. At such times details are given to each House of the companies' progress. I deal with every complaint of faulty services that comes to my Department and if faults are repetitive, I discuss them with the chairman and the general manager or with the board as a whole. I incidentally meet the chairmen, managing directors and boards of the companies regularly. Irrespective of the fact that I have matters to discuss with them, as a matter of policy I meet them at regular intervals.

I get a detailed statistical picture of every company in all its main activities. I examine constantly the steps taken through industrial consultants and work study, both those employed by the companies and those employed outside, to improve productivity. I ask for comparative productivity estimates, when these are possible, in order to compare the efficiency of one or other of our State companies with those of a corresponding character and size outside the country or with private enterprise within the country. I might add that is not always possible because such an examination has a limited value. Nevertheless, results can be significant in certain cases.

I ask for long-term estimates of production or achievement of one kind or another and I ask all companies to do such long-term planning as is possible, making a fair and a generally optimistic estimate of their future, based on whatever programme the company concerned has in mind or the Government have suggested. I regularly inspect the premises of all State companies. I ask for information from the management of companies regarding their industrial relations because I have realised that if a company is to be efficient and successful, there must be satisfactory industrial relations. This will be a matter for the Minister for Labour in future but I shall be equally concerned with the provision of a background of economic information in so far as it is important for the Minister for Labour in order that he can visualise what it is possible to achieve in the field of industrial relations, taking into account the importance of State companies in the life of the nation.

Then, I also have always received from the State companies general statements of their wage levels and fringe benefits so that I can be assured that, allowing for national income per head compared with that of the British and other people and the average of wage levels in the country and the particular economic position of any State company, the position of any State company is not one meriting any serious criticism. There, again, the companies are supposed to work under the finest possible conditions of management and they are supposed to pay what might be described as a good average wage compared with a good wages paid in other similar occupations by good companies. While, again, there must be variations because of the character of the company and its capacity to pay, nevertheless there must be general recognition that the State companies should not be subject to any extreme criticism in regard to the wage levels or fringe benefit arrangements they make for their people.

I need hardly say that all that takes a great deal of time and no one can conceivably advocate that I have no function in regard to the State companies. I wish some of the Deputies on the opposite side would stop talking their appalling nonsense and not be trying to confuse the people. I have presented this House on the occasion of this Estimate with 30,000 words of detailed information and documentation together with notes showing that those companies have been, right up to 1966, in the main, fulfilling the aims of the Second Programme, including CIE, with all its difficulties.

If Deputies had really read the notes prepared in advance for them and circulated in advance before I read my Estimate speech, and if they had read my Estimate speech in detail, and in particular in relation to CIE, and the statement by Mr. Herlihy of CIE, which I got distributed, and which appeared, very luckily, at the time of the Estimate, they would have had, not 30,000 words but 40,000 words of detailed information enabling them to understand the progress and the problems of any single one of the State companies and enabling them to take part in this debate in a positive, constructive manner, as many of them did. The idea that I had not given information to the Deputies and to this House is so ludicrous as almost to need no argument. I want to make this clear.

After having said all that, do I have to repeat the reason why the Acts have been passed through this House in a form that makes it the duty of the Ceann Comhairle to decide whether a particular question is one which refers to the day to day operations of the company or whether it may be asked? Do Deputies really want me to repeat what I have said before on that matter? Do Deputies realise what would happen if there was no limit on questions and if deluges of questions were asked on every conceivable matter regarding the working of particular State companies? I make a prediction here that any Minister who takes my place in the future, regardless of what Party to which he belongs, will make very little amendment, if any, in the law in regard to this matter because the questions which would be asked would involve the most minute circumstances of the operation of every company. They could concern industrial relations and once Deputies of this House attempt to do the work which should be done by the branch executives of trade unions or by the Irish Congress of Trade Unions in relation to State companies there would be absolute chaos in the State companies.

One of the things I have noted about this debate is whatever the Labour Party may have to say as to their attitude towards State companies, about whose conditions they were speaking when they described what they regarded as inadequate industrial relations in CIE, they were of a very general character. It was not Deputies of the Labour Party—most of whom are union people—who started to try to create agitation in regard to the operation of a particular section of CIE, the Inchicore works. It was, regrettably, two Deputies of my own Party. This was because they have not had sufficient experience of trade union work.

Deputies know in everything I have said in relation to State companies and industrial relations that I never said on any occasion that any particular group of men should be treated in any particular way or given any particular wage. That, again, is a function of the trade unions and the management in our system of free collective bargaining. I have never gone beyond doing anything other than uttering warnings to the management and the staffs of certain of the companies. I have referred to the subsidy which could be afforded to them by the Government. That is as far as I have gone.

Deputies can imagine what would happen if there were unlimited privilege to ask questions. If questions relating to the day to day activities, in which industrial relations were concerned, were allowed we would have absolute chaos. Just to give an example in relation to quite a different type of question. What would happen if Deputies could ask a question about the level of excursion fares for any GAA match, an excursion going from any part of Ireland to Dublin? Does the House realise what would happen if such questions were allowed and the intolerable pressure which could be exercised on CIE, locally and otherwise? I could give many other examples of what would happen if questions in regard to the day to day working of CIE were allowed without limit.

Deputies know in their hearts that what I am saying is absolutely correct. May I also say that in countries which have had a long experience of either left of centre administration or a Government of the European social, democratic type, which can be described now as moderately labour and very, very left Conservative Government, a concept which is coming close as time goes on, in that kind of administration there is absolutely no difference in regard to the rule about answering questions on State companies. The reason is that when a State company is set up, it is supposed to operate as a commercial company, and whereas questions of a general kind can be asked in the Parliaments of those countries and whereas during debate members can learn fully about the operations of the company and can have their questions answered in a general way, the tradition is maintained there the same as it is here.

Again, in order to answer those allegations that the House is ignorant of what is going on in our State Companies, during the financial years of 1963-64, 1964-65 and 1965-66, in other words, during the last three years, two Bills in this House were discussed in relation to tourism in which I answered every reasonable question asked. There was one Bill on the British and Irish Steampacket Company, two on Air Navigation, two on the Shannon Free Airport Development Company, one on the Air Companies, two in connection with the Electricity Supply Board, one about Bord na Móna and there was another Bill of a private character about the ESB houses in Fitzwilliam Street. During this period, there were four major discussions on Bills in relation to transport. In addition to that, there were four resolutions discussed during Private Members' time. I defy any Deputy to read the records of the discussions on those Bills and to say that I did not, in a reasonable manner, answer all questions asked of me in regard to the operations of the companies concerned. My conscience is quite clear about this.

I suppose I really should laugh when I hear Deputy Coogan murmuring all the time "He has no function", because as I have said, I have taken a detailed interest in the operation of these companies and conveyed a large amount of information about them to the Members of this House. I could, of course, reply to this debate by saying that I accept that there is criticism of every State company, that no State company is perfect, that obviously there are problems, that the management do their best and I have trust in the board of directors and that the proof of their judgement right through these State companies lies in what has been accomplished during the period of the Second Programme for Economic Expansion. However, I am going to repeat what has been accomplished and I will go on to give details in reply to all the observations that have been made and all the questions that have been asked.

I should like to say that these State companies have led and are in the van of the Second Programme. Most of them have lived up to everything asked of them in that Programme. Some of them have experienced difficulties, such as Irish Shipping, which went through a period of abnormally low freight rates throughout the world but which in the past year has shown a small profit, after allowing for depreciation. There has been a very complete re-organisation in the company. New types of ships have been acquired and a large carrier is being built. The company will be able to achieve its objective in the future, provided freight rates do not fall alarmingly.

In the case of the air companies, their success has been splendid. The number of passengers carried by Aer Lingus during the period of the Second Programme increased by 53 per cent. That is beyond the demands of the Second Programme. The number of passengers carried by Aerlínte increased by 301 per cent and they carried 1,437 per cent new freight. The airports constantly extended in order to carry more passengers. Shannon Airport shows an increase of 137 per cent in terminal passengers during the period of the Second Programme and terminal freight traffic increased by 216 per cent. Dublin Airport shows an increase of passengers passing through it of 64 per cent since 1960. Total freight has increased by 89 per cent. All these figures were up to and in advance of the requirements of increased production in the Second Programme. Cork Airport only opened in 1962 and the number of passengers is up since that time by 72 per cent.

Of very great importance to the economy is tourism, which has lived up 100 per cent to its requirement in the Second Programme. I am very proud of that because it is a tremendous tribute to Bord Fáilte, to everybody concerned in the industry and to the many private individuals who invested millions of pounds in new accommodation. The tourist industry, as the House knows, provides at the moment 18 per cent of the total export receipts of the country and is absolutely essential to our economic existence. Without it, we would collapse and go bankrupt as a nation.

Consumption of electricity has gone up by 58 per cent since the inception of the Second Programme and in the case of rural areas, it has increased by 70 per cent. Bord na Móna has experienced fearful weather difficulties, as I indicated in my opening Estimate speech, but nevertheless there has been an increase of 174 per cent in the milled peat produced since the inception of the Second Programme, 103 per cent in the amount of briquettes and 115 per cent in the amount of moss peat. These again are figures which show complete compliance with the general industrial requirements of the Second Programme. One cannot really refer to the Shannon Free Airport Development Company in relation to the Second Programme because in one sense it started from scratch in 1957 and now employs over 3,000 people.

I could end the debate and save the House a lot of time by saying that I admit that there are criticisms and difficulties but nevertheless the State companies have done wonderfully in so far as their contribution to the life of the nation is concerned since 1960 and since the time we started planning our future, but I am going to speak in very great detail in regard to all matters raised during the debate. I just want to make one short observation on Deputy Dunne's remark that apparently I created a sensation for him by admitting the existence of inflation in this country. Deputy Dunne must be innocent or he was pulling my leg because all the Ministers, the former Taoiseach and myself in particular have given the clearest picture of the future of the country ever since 1962 when the first signs of inflation appeared. I can quote speeches which I made in that year in which I warned the public that if income exceeded the growth of productivity and if at any time there was a recession in England or international difficulties, inevitably whatever programme we had which envisaged an increase in production and exports, would be temporarily halted. My speeches are on record and can be read by anybody who looks back over the newspapers of the time. Every responsible Minister warned the people that firstly, under our free collective bargaining system, they had an absolute right to negotiate wages in the way they wanted to, but gave a perfectly clear warning that unless guidelines in relation to income were observed, the cost of living would rise, the cost of government would rise, the price the Government had to pay for every service, for its own officers, for every service which they subsidised, would increase and that a great deal of the increases in income would inevitably be lost in increases in the cost of living.

I do not know whether at this time it would be tactful to draw Deputy Dunne's attention to the fact that Great Britain is being run by a Labour Government. A great many of the speeches made by Conservative Ministers, by Labour Ministers and Ministers in the Fianna Fáil Government ever since 1962 have been almost exactly on parallel lines, but in many cases for different reasons. The people of neither country were willing to accept the advice given to them. One can now see the difficulties in which the British people and the people of some other countries in Europe find themselves. I mention that simply in reply to Deputy Dunne's extraordinary statement that I was making for the first time the admission that we faced inflation.

I want to deal in great detail with CIE because most of the criticism was directed against CIE and I want to reply again to it. I want to repeat that Dr. Andrews and his Board have undertaken and carried out a splendid job of organisation. I am not going to give details of it; they have already been given. At a time of tremendous expansion of private motor car traffic here, the actual figures for the carriage of freight and passengers show either a remarkable stability or a very large increase, thanks to the efforts of the Board and thanks to the acceptance by the vast majority of the staff of a perfectly tremendous re-organisation.

When I hear of industrial relations that may not be so good in one sector or another of CIE and when I hear indignation expressed at certain changes that have been made in working techniques in certain sections of CIE, I say to myself: I do not suppose any company in the history of this country had to have such a tremendous re-organisation effected after a long period of gradual decline of the railways system which faced difficulties here similar to those experienced by railways in other countries. Allowing for the changes that took place in attitudes, habits and techniques, a very great deal was accomplished with great co-operation by the vast majority of the staff for which the staff and management of CIE must be congratulated. Such reorganisation and progress must leave its trail. There will be misunderstandings of new principles and procedures in CIE until they are fully understood and until workers and management come together and see the final course on which CIE is embarked.

Having made that general statement, I now want to clear up one matter of a purely personal kind in the House. There was some strong objection rightly expressed to remarks of Mr. T.P. Hogan, part-time Chairman of CIE, in regard to members of this House. Certain Deputies who spoke were not prepared to be sporting enough to forgive Mr. Hogan when he had made an express apology. I think we are all fair enough in this House—I do not think there are many mean Deputies— and I want to say here that Mr. Hogan did express to me his regret for a foolish statement. He is a very well-known engineer who is highly reputed and has an excellent reputation in industrial relations. He has been director of a number of important concerns. I hope the House will agree with me that having expressed his apology, the incident should now be forgotten and that he should be given due chance as part-time Chairman of this very great organisation to carry on in that job without any prejudice against him because of a single statement at an indiscreet moment. I take it all Deputies here will agree with me on that and I hope they speak on behalf of all Deputies in the House.

I was asked a question by Deputy Oliver Flanagan, who incidentally very much commended the appointment of Mr. Hogan as Chairman. I noticed that in the course of his speech he asked why it was decided to appoint a part-time Chairman. I had already given the reason for that in reply to a Dáil Question, namely, that the organisation and revolution that had been required in CIE had, in the main, been completed, that the line of organisation had been laid down and that it was felt it was sufficient to have a part-time Chairman and the Board and that they, operating through the General Manager, who had been a director of the Board, would continue this work of reorganisation and do their very best to ensure that CIE played its rightful part in the national life.

There were also some observations in regard to Dr. Andrews' pension. I do not want to raise that matter again, except to say that I am quite certain that if one could be sure that, by offering an individual a pension of the amount received by Dr. Andrews one could, each time the pension was offered, see between 4,000 and 6,000 people employed in a new industry, if that was the way industry could be established here, why then, I do not believe this House would be unwilling to grant such pensions. Dr. Andrews was responsible for the establishment of Bord na Móna, along with other members of the Board, and his inventiveness and initiative in that regard and the way he was able to inspire others and gather around him good workers and good engineers should be commended. If providing such people with pensions at that level would bring us the kind of industrial revolution we need here, it would not be a bad way of doing it. Unfortunately, that is not the practice. We give grants in a different form. I am speaking in a fanciful way simply to answer some of the criticism made in regard to his level of pension. I should also say that in the case of the previous Chairman like terms and like pension were granted and there was nothing in his case that was particularly exceptional.

I was asked by one Deputy about the charges made by CIE. Of course CIE freight rates, charges and fares have gone up, as they have in Europe generally. There is no excessive inflation in the cost of travelling by CIE or in the cost of sending goods. It relates in general to increases that have taken place elsewhere. I have looked at the figures and I find there is no exceptional inflation there. I was asked why it was that CIE had more staff cars now than they had before. The answer is that whatever considerable increase there has been in the number of staff cars since 1958 is due to the fact that they have had to establish a sales organisation that would sell all around the country. It is no use for an official, whose job is to sell freight all over the country, to go only by train: he must visit people and must get to area managers quickly and move around the country and see everybody. The extra cost of the cars in relation, for example, to the £1 million worth of package deals effected by CIE, is negligible. The extra cost of cars in relation to the turnover of CIE, which is £24 million, is negligible.

This is part of the mean little talk one hears from certain Deputies who like to arouse envy in the minds of CIE workers by suggesting that, because there are a dozen or so more cars or because of the flower beds, the workers are being deprived of some extra benefits they could have had or that the company is being wasteful. If only they would remember that figure of a turnover of £24 million, they would realise that if you added together all the alleged lushness in CIE, the whole thing in toto would not make a bag of nuts in the difference to the general level of the company's operations. That sort of petty talk will not get us anywhere. It will not benefit the workers or advance the interests of CIE.

Deputy Dunne raised the old question of the closing of the railways. I have already dealt with that in such detail that I need scarcely go into it here tonight. When a branch line is closed, it is closed because it is really a bus line forced to run along rails, stopping infrequently, carrying far too few passengers and too little freight to justify its existence. Thousands and thousands of miles of railways have been closed all over Europe in the past ten years, and if a better service can be provided by road at less cost to the taxpayer, the policy in all countries, subject to certain exceptions for special reasons, is to close down railways of this kind.

Deputy S. Dunne implied that CIE was not run as a social service, that it was a purely commercial operation. There it is again. Deputy Dunne does not bother to read the information I provide him with. On the Second Reading of the Transport Bill, 1964, all the information was given about the social services operated by CIE, about the 39 services in Dublin that do not pay and never will pay; about the high proportion of provincial bus services that do not pay and will never pay; and about the remarkable services which help to make up for the nonpaying services and which provide a very large proportion of the revenue. For example, in Dublin, three of the bus services provide one-third of the entire revenue of the bus service in Dublin, and if those services were not highly profitable, either the taxpayer or the people of Dublin would have to pay very much higher taxes or fares for taking buses in Dublin. This, of course, is common to bus services in other countries.

Deputy Dunne accused me of having Victorian views in regard to the economics of State companies. Now I accuse Deputy Dunne, in turn, of being a thoroughly Victorian Labour man because the modern labour parties, the modern social democratic parties, while believing philosophically in the social principle, have come to accept the operation of State companies in relation to private enterprise on what might be called a factual basis, that, as long as the system works, it is good to have private enterprise and as long as private enterprise is not supplying what is required for social and economic development, the State should intervene. That is generally accepted in the modern labour world. It is accepted by Mr. Harold Wilson and Mr. Callaghan in England. It is accepted by the Swedish administration which is a left-of-centre, socialist-in-origin government which has been in office since 1925, if I remember rightly. They take an ad hoc view. They recognise that private enterprise and the State company system operating together have succeeded in building up the economy of Sweden.

That is the view we have on this side of the House. Therefore, I repeat for the benefit of Deputy Dunne and Deputy Casey that if I see the number of private motor cars doubled in ten years, a decision made by the Irish people, as made by other peoples, to have their private transport, if I see the Irish people make that decision in common with the French people on the basis that there are more motor cars per £ million of national income in this country than there are in any other country in Europe—and largely because of the scattered character of our population and the lack of village life—there is no reason why I should be obliged, for purely socialist purposes, to pump more and more money by way of subsidy into CIE.

I have no obligation of any kind to ask the taxpayer to pay more and more pennies per gallon of petrol in order to support CIE. We regard the subvention of CIE as the amount of money required to keep a railway system going efficiently that never can be made to pay in any conditions. It is not a subsidy to support an ailing, inefficient company. It is a subvention deliberately designed to maintain a railway in a country which is too big to justify the closing of the railway and which is not quite big enough to enable the railway to operate without entailing a fairly large loss.

If Dublin were 300 miles from the main arterial terminals of CIE, the loss would be less because the railway would be better able to compete on long hauls, as in the case of every other railway, with road transport: 150 miles is a most regrettable length because the railway is still essential and yet it never can pay for reasons I have given so often. We have a low density of population in this country, unlike Great Britain. There is absolutely no transit traffic as in the case of the Dutch railway which has paid but which is beginning to go into the red, or the Swiss railway which is only just balancing its accounts. We have as yet no substantial volume of metal ores or coal—and are unlikely to have—which form some of the basic revenue of railways where there is no large element of subsidy.

Then there is the fact that although we are trying to establish industries in the west, Dublin, the capital city, is in the east and the railways move westwards to comparatively thinly-populated areas, and the length of railway in relation to each thousand of the people is still one of the longest in Europe, even after our having closed 621 miles of line.

We want this railway to operate efficiently in the sphere in which it was justified, namely, long-distance freight, long-distance passenger traffic and the essential commuter service in Dublin. The £2 million at present paid in subsidy, which represents 4d a gallon of petrol to the taxpayer and represents 22 per cent of the rail revenue of CIE or 4/6d on every 20/- worth of rail ticket bought or freight fare paid, is quite adequate. It is ludicrous to suggest that I should encourage a considerable increase in that subvention when I see £30 million a year being invested in private transport and the private sector willing to risk investing money in transport every year. No social democrat or person believing in left-of-centre government or believing strongly in State enterprise would recommend the Minister for Transport to give way easily to demands for an increase in a subvention of that kind. If CIE were not compelled to run railways because it is part of the national economic life, there would be no need for a subvention at all.

Deputy O'Donnell from Donegal asked a question about the buses which run parallel to the railway and he suggested that CIE rail service could not pay because there were buses running parallel. If you examine the CIE bus services that run parallel to the railway, you will find that they call at different towns, many towns not covered by the railway. Equally it would be found, if the ticket sales are examined, that a very large number of people get on the bus during its journey and for part of its journey and that they are not, in many cases, passengers getting in at Dublin and getting out at the final terminal.

All that has been examined very carefully by CIE. If those services were not run it would then be necessary to have services running in a circle from stations at enormous extra cost and at very great inconvenience to the passengers. There are many services relating to the railway already but these long-distance bus routes do not follow altogether the route of the railway. The Dublin-Cork bus, for example, goes completely off the railway route for most of its journey. Therefore Deputy O'Donnell need have no doubts there would be substantial changes if all the buses following railway routes were abolished and the feeder services were established instead.

In reply to Deputy O'Donnell, express bus services are doing very well at the moment.

Deputy James Tully referred to the fact that he thought provincial bus fares were high. The Deputy is right. Provincial bus fares in relation to certain Welsh bus services are somewhat higher when the mileage exceeds eight miles. Up to that point they are about the same. Above eight miles they are somewhat higher than in the case of one particular English operator. I think they are not very different from the bus fares of the UTA, the Northern Ireland transport service, and I do not think there is any way of reducing them. They are not so much higher as to serve as a real deterrent to travelling on the bus. I have asked CIE to consider on a more elaborate plan the examination of excursion bus fares. I hope that they will consider that but that is the answer to Deputy Tully's question.

Deputy Tully also asked a question about the synchronising of bus services with the arrival of railway trains. In most cases the arrival and departure of buses do correspond with railway services. There are exceptions to this and I would be very glad if Deputy Tully would give me the example of which he had a record of a bus which left five minutes before the train arrived because I should like to make inquiry of CIE in regard to the matter.

Many Deputies implied that I never go by bus and do not know what the bus services are like. That is completely untrue. Do Deputies imagine that a Minister for Transport and Power would really seal himself off from the ordinary life of the people of Dublin by never going by bus? That would show lack of imagination, on my part. So, I do go by bus and I have been by bus and I have got into buses, waited for buses at 5 o'clock in the evening in wet weather and I know all the difficulties of the CIE Dublin bus services. I have watched the conductors and noted that 90 per cent or 95 per cent of them are extraordinarily polite and decent to the people they serve. So the idea that I have not travelled by bus is as ludicrous as to say that I have not travelled by Aer Lingus or Aer Rianta or by CIE train. I travel frequently by CIE train and, of course, I have been by bus in order to acquaint myself of the position.

I want to say that I have also compared the Dublin bus services and the provincial services of CIE, as far as I can, with services in other countries with a very much higher income per head of the population than we have and, whether you examine it by looking at a map with the densities of population marked in the main centres and then at the bus services indicated in the case of European countries or whether you examine it by the number of passenger miles travelled by the public in these countries, or however you examine it, there is nothing fundamentally wrong with the CIE bus services in that it cannot be said by any stretch of the imagination that it is not fulfilling a social service as well as running buses that pay.

I can also say with truth, and I am sure any Deputy who has been abroad to the Council of Europe or for any other purpose and who has watched people going to work in the morning in the large cities of Europe in countries with 50 per cent, 60 per cent, 70 per cent, 100 per cent more income per head than we have, will not disagree, that a higher percentage of people travel to work in Dublin seated than in most capital cities with a far greater income per head than we have. Any Deputy who has been to Stockholm, for example, or Berlin or Zurich or Munich and has seen people going to work there will know that what I say is correct. That is not to say that the Dublin bus service is perfect. Of course it is not perfect. One of the great facts about the CIE bus service administration is that the Manager of the bus service knows that it is not perfect and is doing his utmost to improve it.

Deputy Dillon asked a question about my connection with the one-way street operation in Dublin. I have no connection. Of course, CIE are linked with Dublin Corporation in an enquiry into congestion in Dublin. May I say that the one-way street operation has not nearly solved the problem and I myself have recently investigated this. I recently took a bus in Dawson Street at 5.30 p.m. Even when the bus had emerged from the central complex, the bus took 25 minutes to go from Dawson Street to Kelly's Corner because of congestion in an area where congestion is supposed to have been solved through the one-way street operation. I can tell the Deputies of this House the melancholy news that until the congestion problem in Dublin is settled, every time at peak traffic hours, morning and afternoon and at mid-day, the rhythm of the bus service will be deeply disturbed, no matter what is done to remedy the position and that buses that are supposed to travel at five minute intervals will often be travelling in bunches at 20 minute intervals and there is nothing that CIE can do about it except ameliorate it as far as possible by having radio telephone link, inspectors' cars, by turning a few buses where this is possible back into the traffic and by the origin and destination survey about which I will speak later.

I might add that the first specific experiment in factual surveys on bus operation conducted by CIE in Limerick, Waterford and Cork, proved extremely successful and there everybody admits that the bus service has been very much improved indeed.

I was also asked questions about the desirability of CIE not running all their buses into the centre of the city, seeing whether it would not be possible to route buses avoiding the centre of the city. That, of course, involves knowing how many people want to cross the city from one point to another. CIE conducted some time ago a pick-up and set-down survey the purpose of which was to equate the capacity offered by city buses at all times of the day with the number of people travelling. That enquiry of a preliminary kind is now I think fully processed and many improvements have already resulted. CIE, as a result of that, re-scheduled 72 per cent of their major Dublin City routes and also provided new services and provided increased capacity of seven per cent in the morning peaks and 6.8 per cent in the evening peaks on the routes.

As the House knows, nearly a quarter of a million passengers, a very representative sample, have been questioned as to the origins and destinations of their journeys. During the survey that took place recently each passenger was asked: "Where did you board? Did you transfer from another route? Where will you alight on this route? Will you transfer over to another route later? To what route will you transfer and at what place will you finally alight? Are you travelling to or from work or school or other activity?" The results of that survey will be examined by Professor Schachterle, the Dublin Corporation traffic expert. Deputy Dowling and other Deputies who said that CIE should attempt to run buses to a lesser extent through the centre of the city, will learn later the results of the survey.

I am afraid my own prediction is that Deputy Dowling will be disappointed. Although it may be possible that CIE will run more routes, such as Route 18, from one area to another and not through the centre of the city and may alter the pattern of services, I am afraid there will be found a very large number of people who want to go through the centre of the city from the periphery. However, I hope it will result in CIE being able to contribute to some extent to the relief of congestion in the centre of the city. I might state in passing that there are certain cities in Europe where buses are given some priority rights travelling through the city. That may be another solution.

I have already spoken about the CIE provincial bus fares. In regard to the CIE Dublin bus fares, these compare at present quite favourably with those charged in London and Manchester. Although it is regrettable CIE had to increase them, the cost to CIE have gone up because of successive wage rounds and increased costs of materials. It is only fair to point out that Dublin bus fares even at this moment compare favourably with those in London and Manchester. To give one example: For 3.2 miles of travel, the fare in Dublin is 9d; the fare in London is ?d; and the fare in Manchester is 9d. Double that to 6.2 miles. The fare in Dublin is 1/1d; the fare in London is 2/-; and the fare in Manchester is 1/1d. Go up again, for example, to something equivalent to going to Dalkey or some place roughly that distance from the centre. The fare in Dublin is ?d; the fare in London for a similar distance, 2/6d; and in Manchester, it would be the same, ?d. Therefore, in reply to those Deputies who asked about fares in Dublin, I can say they compare favourably with provincial cities in Great Britain and very favourably with those in London. I might add that the cost of oil is about the same. The cost of many of the materials CIE buys is either the same or more. The general wage-fringe benefit structure of the bus conductors and drivers in CIE is roughly euivalent at present to that paid by the provincial bus companies in England.

Mr. O'Leary

What about London?

I said provincial bus companies. A number of Deputies pointed out the severe burden imposed on the citizens of Dublin by the present level of CIE fares. Naturally, fares have had to increase. It is unpleasant that they have increased. But it is only fair to point out that between 1958 and 1966, there has been an increase of 55 per cent in the index hourly rate of wages. In the same period, the average fare per passenger journey in Dublin increased by 51 per cent. Therefore, the cost of fares in the Dublin CIE services has not increased quite as much as the increase in the hourly rate of wages. Incidentally, the same thing applies to social welfare payments.

I think I should repeat what I have said before: if you take the loss on the Dublin rail commuter services and the profit of the Dublin bus services, the actual net gain is so small that the argument that the Dublin bus services should not subsidise the rest of the system is not worth very much at present. It is not an argument of importance. Another figure that might be interesting to the public is that the profit on the Dublin bus services represents one-seventh of a penny per passenger journey. Although that may mount up in the course of a year, nobody can say it is an excessive profit.

Again, some further information about the increase in fares that has taken place between 1958 and 1966: I gave the figures for the increases in wages and salaries. The cost of living has gone up by 30 per cent since 1958. Wages and salaries have gone up by 55 per cent. Dublin city fares went up by 51 per cent. Rail passenger fares have gone up by 40 per cent. On the provincial bus and rail services, fares have gone up by 40 per cent. This shows again there has been no desperate inflation in the increase of fares charged by CIE in general in relation to wages and salaries and in relation to increases in the cost of living.

Deputy Dunne made some very outdated observations about work study. He accused me of having a Victorian political mind——

Mr. O'Leary

Edwardian.

——although I continue to provide finance for the expansion of all the State companies and recently have been concerned with the creation of another State company. I do not mind Deputy Dunne's observations, but Deputy Dunne himself is, as I have said, Victorian Labour in mind. Apparently, he has not read the annual reports of the National Productivity Committee, which state that members of ICTU and employers are working happily together in an association to interest both managers and workers all over the country in work study, to point out how work study can be conducted and operated in the interests of the workers, resulting eventually in increases in their pay packets. They have been pointing out that work study, if it is to be successful, must mean that the workers work more happily and more effectively in their jobs. The trade unionists and the companies in the National Productivity Committee and in seminars all over the country have been persuading workers and managers to adopt work study or industrial consultancy of one kind or another.

Deputy Dunne also talked about the work study done in CIE and other State companies as something to be avoided and not in accordance with Labour policy at all. However, I recommend Deputy Dunne to read the reports of the National Productivity Committee and then go and protest, if he wishes to ICTU about their collaboration in carrying out work study propaganda, as I have said, on the basis that it must result in happier working relations for the men as well as in more productivity. In fact, nowadays it is impossible to achieve greater productivity without, at the same time, having an understanding that the workers feel they are doing their work more effectively. It is not the object of work study that men should go home feeling more exhausted than they felt before work study had been operated. Everybody knows that.

Deputy James Tully rather laughingly suggested that I made some observations suggesting that CIE should have a complete monopoly and that everybody should be forced to go by bus. I think he was merely encouraging me to make some observations on the report presented by Mr. Dan Herlihy, assistant manager of CIE, on the problem of congestion in Dublin. It would take me much too long to speak about this matter in detail but I think the House knows that the majority of cities in the world are adopting, sooner or later, as part of their policy a restriction on the entry of private vehicles into the congested centres. The British, with their immense wealth, are doing it in London.

I recommend Deputy Tully, if he ever has time—he is a very busy man —to read the superb report on traffic congestion by Professor Colin Buchanan which far outpasses any other report of a similar kind. He will see particulars of towns of various sizes in England and their methods of completely avoiding traffic congestion. One method is the construction of satellite villages, an enormously costly operation. Another method is that of having two tiers of roads in the centre of the city which either disfigures the city or is prohibitively expensive. A third method is the establishment of an underground railway system which begins to apply when a city reaches a population of one million, but there are other factors to be taken into consideration there. A fourth method imposes some restraint or tax on those who wish to bring their private cars into the city centre and park them there at peak periods. None of these has been decided upon here. It is a matter for Dublin Corporation and their ultimate plans for the avoidance of congestion have not yet been published. In a city like ours I envisage that, in about 20 years' time, more people will have to travel by public transport to the centre of the city unless drastic steps are taken to improve the circulation of traffic by one means or another.

A number of foolish observations were made by certain Deputies—again with the idea of suggesting that CIE is wasteful. CIE has changed its livery, as everyone knows. Deputy Ryan spoke about the various changes, all of which gave the impression that there was waste. Of course, the answer is that the buses were repainted in the ordinary way and that, as they came for repainting, the new livery was painted on the buses. There was no extravagance. It is equally true that the cost of providing the new type of destination scroll and of having the names in Irish does not amount to anything in relation to the vast revenue of CIE.

One of the things that did infuriate me was to hear Deputy Ryan complain of the extravagance of arranging garden beds in Inchicore. That makes me absolutely see red when I think of the filthy ghastly mess in Inchicore as it was ten years ago. I recall the appalling dumps of loathsome refuse lying around the place, the cleansing that has been carried out and the fact that they are trying to make Inchicore a modern factory. Deputy Ryan may know that the most profitable factories come more and more to be those which are surrounded by flower gardens a nice atmosphere and where the staff have a decent environment.

And fewer workers.

If the Deputy wants to talk in that crazy kind of way, he can.

There are 167,000 fewer people at work now than there were at work here 14 years ago. I got the figures last week and they cannot be denied. Those are the true figures.

It has no relation to what I am saying. The Deputy had better keep quiet and allow me to continue my speech in relation to the arrant nonsense spoken by Deputy Ryan. It is arrant nonsense to suggest that there must not be a pleasant environment in a place where skilled men work. The cost is negligible to CIE in relation to the changes made in the Inchicore workshops.

Mr. O'Leary

Deputy Ryan is allergic to flowers.

A more efficient and cheaper service: I should rather see men there than flowers.

Even wallflowers.

Deputies had a good innings. They should now allow the Minister to make his speech without interruption.

Many Deputies spoke about industrial relations in CIE. In so far as there is a solution in which a Minister could play a part, I would just say that that matter is now under the aegis of the new Minister for Labour. In passing over this responsibility formally to the Minister for Labour, I did provide him with all the information, as I could see it, as to how CIE was to operate, in the economic sense, in the future. In the case of the services in CIE where there has obviously been the most strained relations—the bus services—I suggested to the management of CIE some time ago that they might have an independent inquiry into it. The Tavistock Committee has presented a report. But, by the time the committee had reported, CIE had already carried out certain steps that were then recommended by implication by the committee. The decentralisation of management and control of the garages of CIE is one of the very obvious improvements that were made that could be deduced from the character of the report. The report was of a very special kind. It did not make specific recommendations. It gave the facts on the industrial relations and the sentiments of the bus drivers and conductors. Already, quite a number of proposals implied by the report have been adopted by CIE and have been put into operation. I do not intend to comment on that now because it is a matter for the management of CIE and the unions but I think it was interesting that the committee was appointed. The way they operated was interesting. The way they made use of the Tavistock report was interesting. Furthermore, Irishmen assisted in the preparation of the report and I hope it will have a fruitful result.

I am glad that nobody, in the course of the debate, contradicted my statement that the best way to get over the major industrial relations difficulties of CIE would be an arrangement undertaken by all the unions working in concert with the management over a very considerable period, particularly in regard to fringe benefits and conditions. I suppose I may be somewhat of an idealist in suggesting that there could be one united action on the part of the unions concerned in this. I am interested to note that Mr. Conroy, the General President of the Irish Congress of Trade Unions, in the Liberty Magazine, July, 1966, said:

There is need for rationalisation of our trades unions but this is a long term undertaking. Every responsible trade union official would hope to live to see the day when all trade unionists in Ireland are organised in industrial unions. The idea is to have the one union catering for all workers in the industry or service or perhaps a single union catering for two or more industries. This is, as I say, however, very much a long term undertaking although it surely is a necessary job of work that should be tackled.

All I have said indicates that a gigantic State enterprise such as CIE providing public services, justifies consideration of Mr. Conroy's objectives, perhaps at an earlier date than might be necessary in the case of other industries.

I have already pointed out that it is not for me to interfere in what the workers could gain by way of collective bargaining, or by way of wages, but it is right to point out that if everything they are asking for at this moment were granted, it would amount to an increase of 70 per cent in the salaries and wage bill since 1963/64. There is no transport company in the world that could pay such an increase. CIE has increased salaries by 27 per cent since the ninth round which compares with 23 per cent as a national figure.

That shows the progress that has been made. I recognise that as we advance in prosperity, there will be improvements, particularly by way of fringe benefits. Therefore, I think perhaps the Minister for Labour could achieve a position whereby all the workers could come together and try to see what can be done in the next six years. Where improved conditions could be achieved, CIE would grow in prosperity, if no strike action would take place, and this would be of ultimate advantage to the men and to the community. I am merely repeating what I have said on a number of occasions, and I must repeat again that I have informed the Minister for Labour that the recent strikes were not the result of a consistent demand of large groups of workers. They were a tragic result of small groups of workers, in their own wisdom, demanding a higher wage or better conditions, resulting in a freeze-up of the whole bus transport services.

I am pointing out the facts as they undoubtedly exist. Long-term examination of the problem would be better because all the demands now lying for implementation on the table of the CIE board—all the demands for improvements and all the escalation through the system—would, for example, mean a minimum increase in the tax on petrol of 1/- per gallon for the taxpayer to pay for the whole of the subvention required.

It seems to me in this case that all the groups in CIE should go into the whole future picture of CIE over a long period, with a view to getting steadily improving fixed fringe benefits to the advantage of all concerned. Nobody can say I am anti-labour, or against the interests of the workers, in making that suggestion. But, according to Mr. Conroy's speech, it will be very difficult to achieve the kind of collaboration necessary to bring that about.

It is only fair to CIE, since there has been so much controversy over strikes, to mention the fact that, after allowing for the total number of staff in March, 1958, 1959, 1965 and 1966, the total increase in the yearly salaries and wages bill is 68 per cent since 1958-59, in relation to an increase in the cost of living of 30 per cent. I merely mention that because it indicates that very great progress has been made and that, even if there were some elements among the workers in CIE who were low paid, this great increase shows that the unions were successful in regard to the real earnings of other categories. This calculation, incidentally, does not include the £1 a week which would bring it up to 73 per cent.

A number of Deputies in touch with the unions, though I am glad to say very few—and Deputies from the Labour Party, with the exception of Deputy S. Dunne—spoke in a very guarded and discreet way about the industrial relations stress within CIE. I noticed that.

Deputy N. Lemass's brief, you know.

I just want to give the other side. A huge system like CIE experiencing a great deal of reorganisation is bound to have industrial troubles. I want to mention many joint consultative council meetings that have been taking place throughout the system in every area; a great many meetings take place each year. At these joint consultative meetings, representatives of the ordinary staff meet management at various levels and they discuss every function of the company's operations, including their own minor grievances. They discuss such matters as service to the public, selling in CIE, tourism and private hire, public relations and adverse criticism by the staff. They discuss every aspect of the operation of the company in connection with bus and rail services. They discuss ways in which industrial relations can be improved. This goes on throughout CIE and I recommend Deputies who are interested in industrial relations to get copies of the CIE Nuacht of October 28th and they will find two pages dealing with the joint consultative council of CIE. The report of elaborate consultation and discussion going on between the workers and management at all levels throughout the whole of the system will be very revealing.

Perhaps the Minister would give his copy to Deputy Dowling; he was rather perturbed about it before.

Deputy Dowling is fully informed.

Deputy Dowling spoke about the character of the work done in Inchicore. Of course the answer is that the system in operation there is known to the trades union, has been approved by the trades union and that anything of a kind which resulted in gross discontent among the staff would be the subject of representations by the trades union. I want to make clear these facts.

The problem of men standing idle for three or four days with waiting cards hardly exists at all. Waiting time does not usually exceed a few hours at a time. Waiting time arises from a number of reasons and is normal in similar industries. The present control system identifies waiting time whereas previously men were without work and this was not regarded. There are certain difficulties in applying production control in a workshop and the procedures adopted by CIE follow normal practice and are entirely satisfactory. Satisfactory procedures have been established for the work measurement and for setting up of standards. Quite obviously when time standards are applied to a particular job very often unexpected work is required and it is necessary to extend the standard time applied and that does alter the movements of the staff but this can be found in all similar workshops where similar work is done.

The statement that the older skilled hands are dispirited in the workshops in CIE is not accepted. Since the 1st September, 1965, in an effort to improve communication between management and staff the assistant mechanical engineer has instituted and participated in two-day seminars with small groups from the various workshops. Approximately 500 workshop staff have attended those seminars and have clearly indicated by their comments and observations that they have confidence in the management and are satisfied with the working conditions. In fact, the older men have played a very big part by explaining to their junior colleagues the many beneficial changes that have taken place in conditions of employment at the workshops.

There was a suggestion that there has been a very large turnover in skilled staff and that a great number of staff have left the service during the past four years. I looked up the numbers who have left in the past four years and there does not seem to be anything remarkable about it, neither particularly low nor particularly high. Since the beginning of the financial year in April the number of skilled staff in Inchicore actually increased from 448 to 461.

Deputy Dowling and Deputy T.J. Fitzpatrick (Dublin) suggested that the workshops have a bad name as far as working conditions are concerned. Employers from other engineering workshops have been directed to Inchicore by the factory inspectorate as an example of good working conditions. So much for that.

All the conditions in relation to the practice of work study at Inchicore are in conformity with the International Labour Office recommendations and exactly the same system of production control is carried out in the USA and in other industrial countries. In some details the system in Inchicore has been modified to suit particular conditions. In the highly advanced industrial countries such as the USA the ratio of staff to supervisors is very much less than at Inchicore so that the suggestion that supervisors are standing around at Inchicore and bullying the men, which incidentally they would not tolerate and it would not be tolerated by the trades union, is not true.

Surely the Minister means the opposite: the ratio of staff to supervisors?

The ratio of staff to supervisors is less in the highly advanced countries than at Inchicore.

I think I have given enough information to show that the Deputies who want to talk about workshop conditions should be very careful to get their information correct. There is no big workshop anywhere in the world where you will not get distorted stories of industrial conditions. No doubt there is some discontent at Inchicore and I have no doubt it will take some time before the new system is accepted by one hundred per cent of the workers. Nevertheless, with the holding of these seminars and the effort being made by the management to acquaint the staff with the necessity for central control, which is found everywhere in the world in workshops of a similar kind, it is possible to improve the position. Of course, there is naturally a turnover of staff. If Deputies were to go from one factory to another in Dublin where there are fitters of the kind employed at Inchicore it would be found that there is work that is more pleasant than repairing huge diesel engines. There is work of another kind, an easier or more pleasant kind and that could account, in some cases, for the fact that workers leave Inchicore, apart from whatever strained conditions there may still be there. The physical conditions under which the men work are a vast improvement on what used to obtain and everybody knows that. I think I have dealt sufficiently with that subject.

Somebody talked about a huge pylon being erected at great expense at the Inchicore works for an advertising sign. The pylon was not erected for an advertising sign. It was erected in order to provide better lighting which had been requested both by the staff and the workers.

Observations were made about the store system at Inchicore. All that is being re-organised and is now centrally controlled, productivity greatly increased, paper work gone down and not up as was suggested by Deputy Ryan. There is nothing adverse to report in connection with that whole operation.

Deputy Corish made some observations about an alleged failure by CIE to grant reduced fares to enable a group of boys from the Christian Brothers' school in Wexford to travel by rail to Dublin to see a science exhibition. In consequence two private buses had to be obtained from Waterford to bring the boys to Dublin. We have investigated this and found out that CIE advertised a concession rail fare of 12/- return to enable school-children to attend the Atoms in Action exhibition which was held in Ballsbridge. Copies of the advertisement had been sent to all the schools in Wexford. Groups from two of the schools, the Marian Convent and the technical school, Wexford travelled by rail. The area manager said that the Christian Brothers had contacted CIE and had asked them to provide a special bus to enable them to bring their children to Dublin to see the exhibition on Saturday, 2nd October. CIE was not in a position to supply a bus on that particular Saturday, and he suggested that the boys should travel by train. The fact is all the buses had been engaged on that Saturday when the Christian Brothers made their request. It was unfortunate, but it certainly does not indicate that CIE were not making an effort to get people to Dublin from Wexford at reasonable rates on special occasions.

I have, I think, dealt at great length with CIE and its problems and have answered reasonably all the questions asked with regard to the company. As I have said, it is making progress and will continue to do so in the future.

The next matter then is tourism. Deputy P. O'Donnell seemed to imply that there was something rather bogus about Bord Fáilte and its operations. However, other Fine Gael Deputies made positive contributions and suggested that Bord Fáilte was doing good work. They made constructive criticisms so, perhaps, I can ignore some of the observations made by Deputy P. O'Donnell.

He suggested that more encouragement should be given to British tourists. Bord Fáilte spend what they regard as the right proportion of their promotional funds on bringing British tourists here. Indeed, the greater part of their funds is spent in that direction. As a result of market research, however, they have discovered that the United States market is of immense value. Americans spend more than other races when they come here. They leave something like 20 million dollars a year here. Bord Fáilte will carry out its promotional work in relation to what it thinks provides the best result from the expenditure of any given sum.

Deputy P. O'Donnell, too, seemed to suggest that Bord Fáilte had not fulfilled its promise so far as promoting tourism is concerned. As I have already indicated, the target set has been achieved and a very wonderful increase in tourist income has taken place. In 1960, the value of tourist income was £42.2 million. That rose to £63.6 million at 1960 prices in 1965. Deputy P. O'Donnell also suggested that a great proportion of that income came from relatives returning home or from persons who could not be regarded as genuine tourists. Using the methods of the Central Statistics Office, and by the provision of sample cards, we know now that 75 per cent of the income from tourism comes from genuine tourists. That is the position. The Deputy also suggested that we were pricing ourselves out of the market. Actually, in his own county, the hotels were absolutely booked out this year and I can find no evidence that in the past year we were pricing ourselves out of the market and I hope hotels will be extremely careful in applying their charges. Certainly, so far as the Deputy's county is concerned, what he alleges has not taken place.

The Deputy also referred to the publicity work done by Bord Fáilte as having something in it of gimmickry. We are living in the year 1966 and what may appear to be gimmickry to some is the kind of publicity which draws tourists to the country.

Deputy Treacy referred to the need for more guesthouses and extended accommodation of that kind. He suggested we had concentrated too much on luxury hotels. The position is that Bord Fáilte now conducts the most modern research and is able to tell approximately what the requirements are. It has provided grants to encourage the extension of existing premises and the construction of new hotels in the correct proportions to cater for the various grades of traffic. Other Deputies suggested that not enough had been done to encourage the provision of farmhouse accommodation. I am happy to relate that in 1967 almost 1,000 bedrooms will be available in 230 farmhouses and, at that rate, by 1970 there will be 2,500 bedrooms available in farmhouses. With regard to other accommodation inspected by Bord Fáilte, but not actually registered in 1966, there were 5,000 bedrooms; that again indicates the development of moderately priced accommodation. With regard to moderately priced registered accommodation as a whole, in 1963 there were 12,440 grade B to C and grade C hotels and guesthouse bedrooms and that proportion has increased in the past three years to 13,600 odd. That means that in three years 1,200 extra bedrooms were provided. That shows the progress made and the result achieved by increasing the scope of the grants for the improvement of accommodation.

Many Deputies spoke about the need for more resort development. As Deputies know, the Tourist Traffic Act, 1966, increased the fund for resort development to £3.25 million. This includes the provision of £750,000 for commencing a second resort development programme to include centres other than those already designated as major resorts.

Deputy O.J. Flanagan and others asked for information about tourist development at Tramore. Tramore Fáilte Limited was set up about nine months ago and is now in operation. This company owns the foreshore area, including the gas company property and the railway station. An overall plan is being prepared for the development of the property as a recreational area with both indoor and outdoor recreation facilities. The plan is virtually complete. The first job will be the provision of a caravan site and that will be considered at a meeting of the company next week. It is expected the caravan site will be ready by 1967.

Deputy James Tully spoke very sympathetically on behalf of the tourist facilities at Laytown. Without going into too much detail, Bord Fáilte did, in fact, make a grant of £650, or about ten per cent of the total cost of the development scheme there.

Deputy T. O'Donnell referred to the work of the Shannonside Regional Tourist Company. In reply to him, I hope he will encourage more members to join the regional tourist board because, although they are doing splendid work, they need more field officers to undertake such things as developing the tourist potential. I am sure Deputy O'Donnell will be the first to help them recruit more members and secure more funds from local sources knowing that something like £3,500,000 is being paid in wages in Shannon alone.

Deputy Dr. Gibbons asked about the Rockingham Tourist Park. A plan is being prepared for the development of the Rockingham Estate as a tourist park: there will be access roads and walks through woodland, camping and caravan sites, and so on. This will, of course, depend on the provision of sufficient finance to enable the plan to be implemented.

Deputy P. O'Donnell suggested that Bord Fáilte was wasting money in regard to taking part in angling festivals. I do not think anybody in the angling towns involved would agree with him—certainly in Westport, Moville or Rosslare—that money was being wasted. The more anglers who come here the better, and the vast majority of these anglers encourage their families and friends to come over, resulting in the general growth of tourism. That has been the case, particularly with French people, a great many of whom have come to this country to shoot snipe in the winter, as a result, originally, of having taken part in a sea-angling festival.

A suggestion was also made that we had not done enough to encourage coarse fish angling. The figures for that are that in 1960 the amount of money spent by the coarse fishermen was £336,000 and in 1965, it had grown more than double, to £832,000. Organisation work is being conducted on a proper co-ordinated basis by Bord Fáilte, working in collaboration with the Inland Fisheries Trust.

Deputy O'Donnell also asked about resort development in Bundoran. This is going to proceed: there were difficulties in making the arrangements but a scenic car park is planned for Bayview Terrace in Bundoran. This is to be undertaken with assistance from Bord Fáilte and an amenity grant from the Department of Local Government. The Department of Local Government requested one alteration in the design of the plan but Bord Fáilte do not expect that this will create any difficulties. We hope that the whole of the work will be effected in time for the 1967 season.

A Deputy referred to the work of the Southern Regional Company, known sometimes as the Ivernia Board. This board like others receives a subvention from Bord Fáilte but I would remind Deputies that the tourist income from Cork and Kerry is reckoned to be about £6 million more than for the rates in both counties, which are £4 million, and we all look forward to seeing greater financial support for all these tourist areas or the regional tourist boards because they in future will have to do a great deal of the work which formerly was the work of Bord Fáilte and which, in other countries, is always the problem of the regional companies.

Deputy James Tully criticised the regional tourist boards to some extent but I think if he reads the reports of all of the eight boards, he will find that allowing for the fact that last year was really their first year of operation, they are doing very good work. In the information offices, they have accounted for over 93,000 bed-nights which they have booked. They are also seeking more accommodation for inspection by Bord Fáilte; they collaborate with the local associations, they are assessing the tourist potential.

The Deputy also made the very interesting suggestion that we should consider the mild winter climate as a tourist draw. Bord Fáilte have worked out a list of marketable assets in this country, everything from skin diving, golf and archaeological monuments to the mild winter weather. I hope that some day Deputy Tully's request will be possible and that Bord Fáilte will have a fund large enough to send special advertisements to dehydrated people all over the world saying: "Come to the mild winter rain of Ireland"—but I am afraid we are rather far from that yet; we have not reached the dizzy point of prosperity.

In reply to Deputy Mullen, the registration of restaurants is not practicable at the moment.

I think I have dealt with all the questions with which I could possibly deal on the occasion of this debate. I wish I had more time but there are a great many other Estimates to be gone through, and, if there are any interesting questions to be answered, I will communicate with the Deputies in question.

Motion, by leave, withdrawn.
Vote put and agreed to.
The Dáil adjourned at 10.30 p.m. until 10.30 a.m. on Thursday, 24th November, 1966.
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