When we adjourned last night I was discussing the situation that faces CIE. From the Minister's statement introducing this Bill it is clear that the situation that faces CIE arises out of the appalling deficit on the railways side of the operation. I was discussing the steps CIE appear to be taking to remedy this position. It would appear that there is now a bankruptcy of ideas within CIE as they have adopted the last resort of bankrupt State bodies and have called in industrial consultants. I was criticising this business of consultancy as being a modern bluff science. I am disheartened to see CIE having to rely on these people to produce a report to get themselves out of their trouble. I do not for one second think that a report produced by this firm, an American-based firm of consultants, will solve this problem.
It would appear that losses on railways will be with us for a long time, possibly for ever, and we have to make up our minds whether we want to have railways and pay for them or cut them out and do away with this annual subsidy. I have no doubt that we should retain the railways even to the extent of their having to be heavily subsidised by this House. The Minister will have to come back here year after year seeking this subsidy. He will be met with complaints regarding CIE and their workings and complaints regarding the constantly increasing losses incurred by CIE in their railway operations. I do not think anyone in this House would have any objection to voting a subsidy if we were satisfied that the loss would be a constant figure instead of a continually increasing figure. I do not think anyone would expect CIE to turn the railways into a profitable operation since it is worldwide experience that railways incur losses. We would like to see the loss contained at a more or less consistent figure.
Some years ago—possibly it is ten years ago now—the railways were losing substantial sums of money and an investigation within CIE showed that the numbers employed on the railways were far greater than the numbers needed to operate the service. A very large number of employees were retired with pensions for life. I know several people in my town who had been working with CIE and who were retired at that time with a pension for life, men who were then in their twenties or early thirties. That such staffing problems were allowed to occur, that there should have been so many excess workers in that section of the operation, shows that something went wrong within CIE. One wonders what is the present staffing position. One hears criticism from the men on the line that the railway end of CIE is top heavy with executives and management staffs. One hears from the executives and management staffs that the problem of the railways is that there are too many men on the line and in the lower positions not pulling their weight. Whether it is a question of morale or spirit I do not know, but it is not the best situation for the part of the operation showing the biggest loss. However, I have no doubt we have to retain the railways and I would strongly urge that there should be no further chopping of the railway system. It is an essential social service and it must be maintained.
In some areas where the railways have been chopped, express bus services have been substituted. They are probably contributing to the healthy financial position of the provincial bus services. Nevertheless, for persons without private cars who have to make long journeys from remote parts of the country to the city it is quite a hardship to have to travel four to six hours on a bus and it is nearly an intolerable hardship if a person has to take small children or any amount of luggage. As Deputy Murphy—or perhaps it was Deputy Finn—indicated, the temptation then is for a number of people to come together and hire a motor car. The individual cost is not any greater that way and they can achieve comfort. This is the sort of service a railway is geared to provide and I would not like to see it being taken away from the remoter parts of Ireland where amenities should be increased rather than decreased. I would strongly urge the Minister to retain the railway system as it stands at present. I am apprehensive that the size of the losses will be used as justification for further chopping of the railway system. The Minister said :
A study in depth to establish what measures might be taken in the long term to achieve a reduction in ClE's losses will also be undertaken. Arising out of this study, which will outline the various alternatives....
And one of the possible alternatives mentioned is a reduction in services. I would be afraid that this could be the thin end of the wedge and that the consultants, advised by CIE, from whom they must get their advice, would come up with the obvious remedy : "Chop the railways; this is where the loss is." I would be afraid that the Minister would accept from a firm of consultants, whose base is outside this country and whose thinking would have nothing whatever to do with our problems, a solution reached purely on financial and economic terms without consideration of the social implications.
I know that within CIE there are people who have been trained in all the latest management skills. There is a very comprehensive management structure—too comprehensive, some people would say. It is disappointing that this structure and all these skills cannot devise a solution to their problem and that these outside consultants with their own particular brand of smooth gobbledegook have to be brought in to advise. That is the position and it is unfortunate it is so. I have no objection to this House voting money to support the railways, but I would like to know that the bill will not get bigger and bigger.
That the bill has got bigger this year is attributable to the fact that the profit coming from the Dublin city passenger services has fallen drastically. This year it is down to £61,000 from £177,000 last year. All the indications are that the factors which contributed to that drop are continuing and, it would appear, multiplying, so that one can guess that next year for the first time the road passenger services in Dublin will show an operating loss. The causes of this loss must give rise to serious urgent concern. It would appear that it is a mixture of two things—fares have increased but the number of passengers has dropped. Whether the latter is a direct consequence of the former I am unable to say. It has probably contributed to the latter. However, I would say the main reason for the drop in the number of passengers is the unsatisfactory nature of the service which CIE are able to provide in this city—not through any fault of theirs but primarily because of the traffic situation in the city. I have no doubt that if buses were able to travel speedily, particularly in the centre of the city, the number of passengers carried would increase, even with the present extremely high fares structure for short trips. At the moment, because of the slowness of the journey plus the expense of the journey, a great many people in the centre of the city are walking. It is speedier and it is cheaper.
As the Minister says, it is primarily a matter for his colleague in Local Government. CIE should put a lot of pressure, through the Minister, on his colleague in Local Government to take urgent remedial steps with regard to traffic congestion. It is ridiculous that private motorists should be entitled to come in and park in the most valuable space in Ireland for a shilling an hour and in many cases for nothing at all. Some steps will have to be taken to make the cost of bringing a car into this city completely prohibitive so that the people who would normally drive into the city would be directed to public transport while those around the centre of the city who might at present be inclined to use shanks's mare would go back to using public transport. It seems odd that, with the growth of this city and the constant increase in population, the city bus services should be on the verge of operating at a loss.
Deputy Dr. FitzGerald in an article in the Irish Times of November 5th, 1970, estimates that since 1965 Dublin bus fares have risen by 110 per cent. He points out that the increases in fares are greater than the increase in expenses and that the increases in fares would appear to be an attempt by CIE to increase revenue and increase operating profit and so decrease their overall deficit but it has had the opposite effect. It is a classic example of the operation of the basic law of economics, the law of diminishing returns.