asked the Minister for Transport and Power whether any extra subvention from central funds will be needed by the British and Irish Steampacket Company, Limited up to 1970 in view of the losses registered in the past year; and whether there are any plans to improve the financial position of the company.
Ceisteanna—Questions. Oral Answers. - B and I Steampacket Company Limited.
2.
The B & I Company, although State-owned, is under a mandate to operate on a fully commercial basis without any special State subventions. The financial position of the company was very fully explained by the Chairman in his address to the recent annual general meeting. As explained by him, the loss of about £400,000 sustained in 1967 was due largely to the adverse effects of the Liverpool dock strike and the foot and mouth epidemic coupled with the fact that heavy development costs arising from the re-organisation of the company's operations were written off in the revenue account instead of being charged to capital account. The Chairman indicated that the company's operations were being completely recast and that the losses were of a short-term nature. He added that the aim of the company was to return a breakeven in 1968, a modest profit in 1969 and, with the new assets fully operational in 1970, to generate in that year a profit which would show a reasonable return on the State investment. The cost of capital development will be financed by loans from commercial sources.
Can the Minister assure the House with some confidence that no subsidy from central funds will be required in the foreseeable future to this company?
Yes.