I move:
That a sum not exceeding £54,086,000 be granted to defray the charge which will come in course of payment during the year ending on 31st day of March, 1974, for the salaries and expenses of the Office of the Minister for Posts and Telegraphs and of certain other services administered by that Office, and for payment of certain grants-in-aid.
This Estimate was prepared under my predecessor. In my remarks on the main part of the Estimate I shall confine myself, this year, to the necessary explanatory comments. In the second part of my remarks, dealing with broadcasting, I shall also discuss the present stage in policy-formation, and some proposals for the future.
I have followed the practice in recent years of having notes in relation to the Estimate circulated to Deputies. As these notes contain a good deal of valuable information in well-presented form, I have arranged for them this year to be circulated also to the press. I hope Deputies will find the statistical and other information in the notes useful in their consideration of the Estimate for my Department.
The net Estimate of £54,086,000 shown in this year's Estimates volume represents an increase of £6,581,000 on the corresponding figure for 1972/73, including a Supplementary Estimate and an amount transferred from the Vote for Increases in Pensions and Allowances. The increase is made up of extra provisions totalling £9,180,000 under nine subheads, offset by reductions totalling £486,000 under three subheads, and higher receipts amounting to £2,113,000 under Appropriations in Aid.
The biggest increase is in subhead A where an extra £6,004,000 is needed. About £4,800,000 of this amount is for the extra cost of pay increases under the second phase of the 13th round and the first phase of the 14th round. I should, perhaps, explain that the second phase of the 13th round came into operation on 1st January, 1973, and it is, therefore, necessary to provide for these extra costs for 12 months in 1973-74 as against three months in 1972-73.
The first phase of the 14th round is due to take effect from 1st June, 1973, and provision has, therefore. been made for these further increases for a period of ten months. Additional staff for the telephone and postal services is responsible for most of the balance of the increase, £1,204,000 in this subhead.
The following comments are offered on the other subheads which show substantial variations from last year's provisions: Under subhead C an additional £500,000 is required mainly to meet higher expenditure on new sites and buildings, the cost of additional leased accommodation and higher charges for maintenance, electricity and fuel.
The decrease of £116,000 under subhead D is mainly due to the incidence of presentation and clearance of accounts for air mail conveyance.
The decrease of £246,000 under subhead E arises mainly because of a reduced provision for purchase of postal and general stores.
Under subhead F £327,000 more is provided to cover the cost of engineering stores and equipment and contract works, arising from expansion of the telephone service.
Subhead G provides for telephone capital repayments and it increases each year because of the continuing investment of capital in the telephone service. The extra amount required in the current year is £1,500,000.
The increase of £512,000 under subhead J is needed mainly to meet the cost of higher pensions and gratuities following increased rates of pay.
Subhead L.1 provides for an increase of £162,000 in the ordinary grant to Radio Telefís Éireann because net receipts from licence fees are expected to go up by this amount as a result of an increase in the number of television licences.
There is a decrease of £124,000 under subhead L.2 in respect of the grant for capital expenditure on Radio na Gaeltachta.
Provision is being made under a new subhead L.3 for a grant-in-aid of £155,000 to Radio Telefís Éireann as a contribution towards the capital expenditure on a new high-powered radio transmitter.
On the receipts side, the increase of £2,113,000 shown under subhead T arises mainly because an extra £1,770,000 making £19 million in all, is being provided this year for telephone development. Expenditure on telephone development is first charged to the ordinary subheads—principally subheads F and A and to a lesser extent subheads C and B—but the cost is subsequently recouped from telephone capital funds and brought in as an Appropriation in Aid.
In 1972 letter traffic was at virtually the same level as in the previous year but parcel traffic increased by nearly 7 per cent.
Sixty-four new motorised rural delivery services were introduced during the year and there are now 580 motorised services in operation, covering nearly 40 per cent of the total mileage travelled on postal delivery. The motorisation programme is helping to keep down delivery costs without adversely affecting the standard of service.
Last December, the 50th anniversary of the first Irish postage stamp was commemorated. The 1973 programme provides for the issue of six special and commemorative stamps. The first of these was issued on the 1st January, to mark Ireland's entry into the European Communities. The programme also includes the Europa stamp, a stamp in the Contemporary Irish Art series, stamps to mark the centenary of the World Meteorological Organisation and the holding of the World Ploughing Championships in County Wexford and, finally, the Christmas stamp. I should like to take this opportunity of expressing my appreciation of the work of the committee, under the chairmanship of Father Donal O'Sullivan, who advise on stamp design.
The savings services had a successful year in 1972. Details regarding new investments, repayments and totals remaining invested for the savings media with which my Department are directly concerned are contained in the notes circulated to Deputies. The notes also give particulars of the growth of trustee savings bank business.
I should like to express my appreciation of the excellent work done by the National Savings Committee in the cultivation of the savings habit particularly through their promotion of group savings schemes.
The value of money orders issued in 1972 was £55.2 million or about the same as in the previous year. The value of postal orders issued in 1972 was £14.4 million which was about 9 per cent higher than in 1971.
Agency service payments made by the Post Office, mainly on behalf of the Department of Social Welfare, increased from £92.7 million in 1971 to £103 million in 1972. Post offices took part as usual in the sales of prize bonds, handling about 27 per cent of the total collected in 1972.
The Department are going ahead with the provision of new post office buildings and the extension and improvement of existing buildings. A new district sorting office has recently been completed at Glenageary, County Dublin, and improvements have been carried out to the post offices at Roscommon and Bandon. Works in progress or contracted for include new post offices at Nenagh, Dungarvan and Listowel and improvements to Blackrock, County Dublin post office. Plans are well advanced for the erection of new post offices at Donegal, Shannon, Longford and Mullingar and for improvements to the post offices at Ballyhaunis, Castlebar, Kilmallock and Boyle. Since the last debate on the Estimate new automatic telephone exchange buildings were completed at Shelbourne Road and Tallaght in Dublin; extensions were also completed to the telephone buildings at Roscommon, Malahide and Merrion Street, Dublin. Work on 24 new exchange buildings or extensions to existing exchanges is at present in progress.
Demand for telephones rose by an unprecedented one-third over the figures for the previous year. Some 27,000 new lines were connected as compared with 21,000 in 1971-72 but the increased connection rate was not sufficient to meet the higher demand and the waiting list grew by 9,500 to 32,000. This figure is a cause of concern to me. As the telephone is no longer a luxury, but an essential for many purposes, including business and economic development, a major expansion is required to meet the projected demands.
The telephone service makes an extremely heavy demand on capital. In the current year the approved allocation is £19 million. It is certain that massive further investment will be required in the coming years. For this purpose I shall be coming to the House later in the year with a new Telephone Capital Bill that will provide an appropriate opportunity for a full debate on the telephone service.
Particulars of additional trunk lines, new exchanges, exchange extensions, et cetera, provided during the year are shown in the notes circulated to Deputies and I do not propose, therefore, to repeat them here. Altogether 1,600 extra trunk lines giving about 80,000 miles of additional circuits were brought into service and 199 telephone kiosks were erected, mostly in rural areas.
Major works at present in progress include the conversion of Clonmel, Cavan, Dungarvan and Fermoy exchanges to automatic working; new Dublin exchanges at Rathmines, Beggars' Bush (Ballsbridge) and Tallaght and the International Exchange at Marlborough Street; extensions of existing exchanges at Phibsboro, Ship Street, Merrion and Dundrum; and at numerous provincial exchanges. Installation work at new exchanges in the central city and Santry is due to begin shortly.
An extensive programme of local underground cabling works and of new coaxial cable and microwave trunk schemes is under way. The acquisition of sites for new exchanges and planning and erection of telephone buildings throughout the country is being pressed ahead with all possible speed.
In the past few years special attention has been given to improving the services with the Continent and abroad. There is however quite legitimate criticism of the inadequacy of the service to some EEC countries. This matter is receiving attention.
Direct routes have been established between Dublin and a number of the largest Continental cities. A route to Amsterdam was opened recently and arrangements are being made for a direct route to Switzerland. Early next year the new international exchange, at present being installed, is expected to be brought into operation with numerous extra circuits. We have recently got extra submarine and cable circuits to America and we have signed an agreement a week ago with 15 other European administrations and the major USA telecommunication carrier companies to secure circuits in a new 4,000 circuit transatlantic cable which is due to be completed in 1976.
Our immediate problems, however, are the difficulties affecting the telephone service at home and the mounting demand for connections to a system which is in many areas overloaded. Lack of sufficient capacity in the Dublin exchanges is a major cause of the difficulties generally. Because so much of provincially originated call traffic is for Dublin numbers or is switched at Dublin, trouble there affects the service in provincial centres also. Many Deputies are very familiar with this problem and have frequently addressed and are frequently addressing representations to me, representations I consider as rapidly as I can and on which I get as much action as I can, but there are certain technical limitations here.
This situation did not, of course, develop recently but it will have to be remedied without avoidable delay. As the considerable quantities of plant and equipment at present being installed and on order are brought into operation the situation should gradually improve. I am afraid there has to be a certain emphasis on "gradually". The cost of such orders at a recent date amounted to over £20 million.
The telex service continued its rapid growth and the number of subscribers increased by over 24 per cent to 1,756 on 31st March last. A new telex exchange of the most modern kind costing close on £1 million is expected to be brought into service early next year. It will provide welcome relief for the existing exchange which is carrying an increasingly heavy load.
As Deputies are aware, the Department publish commercial accounts which present their position as a trading concern. It is largely on the basis of these accounts that financial policy, including the fixing of charges, has been determined.
Appendix C to the Estimate provides a summary of the commercial account results for the four years 1967-68 to 1970-71 and provisional figures for 1971-72. It will be seen that there was an overall deficit of £1,707,000 approximately in 1970-71. The provisional accounts for 1971-72 show an overall deficit of £1,447,000 made up of deficits of £86,000 on the postal service, £367,000 on the telegraph service and £994,000 on the telephone service.
Reliable figures for the different services for 1972-73 will not be available for some considerable time, but present indications are that there will be an overall deficit of the order of £3½ million in that year. A further deterioration is expected in 1973-74.
These figures have been determined after charging interest on the entire net capital investment in the Post Office and after charging depreciation on a replacement basis. Many uneconomic services are provided by the Department on social grounds, and a case can be made for the payment of a subsidy from the Exchequer in respect of such services. There must, however, be some limit to the extent to which certain Post Office services are subsidised by the taxpayers and an adjustment of Post Office charges cannot be indefinitely postponed.
Turning to staff matters, I would like first to express my appreciation to the staff of the Department for the manner in which they are serving the public. There is a traditionally high spirit of service in the Department and it will be my aim to see that this spirit is fostered and developed.
The Estimate provides for 22,621 posts for the current financial year, an increase of 841 over the corresponding provision for last year. The vast majority of the additional posts are required for the telecommunications services. About 100 extra postman posts are, however, included for deliveries to new housing estates, et cetera, in urban areas, particularly in Dublin.
Staff training and development are obviously very important in a staff organisation of the size of the Post Office. The Department's training schemes are kept under review to ensure that they meet present-day requirements, and to take advantage of developments in training methods in recent years. One innovation this year will be the introduction on a pilot basis, of programmed-learning in the training of telephone operating staff.
The staff in the various grades in the Department have benefited from the various rounds of national pay increases. The second phase of the 13th round which came into operation on the 1st January, 1973, provided for a 4 per cent increase in pay plus a cost of living supplement of 63p per week. This added a total of approximately £2.36 million a year to the Department's wages bill. The first phase of the 14th round will become due for payment on 1st June next, and this will add a further £3.66 million a year to the wages bill.
Increases in expenditure of this order cannot, of course, be met by growth of business or increased efficiency. These pay increases are largely responsible for the Department's deteriorating financial position to which I have already referred.
The computer which my predecessor mentioned last year is being installed at present and it is expected that it will be in operation quite soon. Some work is at present being processed for the Department on other computers. This work will be taken on by the Department when their own computer is ready. Preparatory work necessary for the processing of a number of other activities in the Department is in hands and it is expected that over the next few years much of the main blocks of clerical work in the Department will be done by computer.
In connection with broadcasting I wish to refer first to certain developments which have already taken place. I shall then go on to consider the present stage of policy-making, and some ideas of future policy.
The Broadcasting Authority (Amendment) Act, 1973, which was passed before the Easter recess provides statutory authority for continuing to pay RTE a grant equivalent to the net receipts from licence fees for a further two years ending on 31st March, 1974. Accordingly, the grant of £3,625,000 provided under subhead L.1 of this Estimate has been calculated in the usual way.
Deputies will have seen the RTE Report and Annual Accounts for 1971-72 which was published a few months ago. There was a small surplus of £9,231 in that year. Present indications are that there will be a surplus of over £200,000 in 1972-73. I am advised that the improvement in RTE's financial position is attributable primarily to the buoyancy of advertising revenue in the latter half of the year. However, RTE have claimed that a significant increase in licence fee revenue will be needed in 1973-74 because of higher current expenses and so that a reasonable proportion of development works can be financed from internal sources instead of by loans which involve heavy interest payments. This matter is being examined at present.
Efforts to maximise receipts from licence fees are being continued. The provisions of the Wireless Telegraphy Act, 1972, which concern television dealers are being implemented with effect from 1st March, 1973, and it is expected that this will make a major contribution in combating evasion of payment of licence fees.
On the capital side, it is estimated that in 1972-73 RTE spent a total of £820,000 which was financed mainly by the Exchequer. A grant of £180,000 was made for Radio na Gaeltachta, and £500,000 was made available by way of repayable advances for general broadcasting works, including the new Radio Centre at Donnybrook. Details of RTE's capital programme for 1973-74 have not been finally settled yet but it is certain that further advances from the Exchequer will be necessary.
Work on extending the Radio na Gaeltachta service to the eastern portion of the country by a link-up with two new VHF transmitters at Kippure and Mount Leinster is nearly completed. Radio na Gaeltachta will then have country wide coverage on VHF. I shall be opening that service on 18th May. Capital expenditure on Radio na Gaeltachta is being borne entirely by the Exchequer. The special grant of £56,000 under subhead L.2 of the Estimate represents the balance of the capital cost of this project.
Maidir le Radio na Gaeltachta, tá bliain slánaithe ag an tseirbhís sin agus ní fada go mbeidh deis ag lucht éisteachta na tíre ar fad éisteacht leis nuair a leathanófar ar an gcóras craolta. Seirbhís réigiúnach é atá ann d'aon ghnó chun freastal ar phobal limistéir gurb í a ngnáth-theanga labhartha an Ghaeilge. Pobal cúng go maith iad, agus nílim go iomlán sásta gur féidir leo maireachtaint ar a bhfuil acu féin amháin. Tuigim dóibh, áfach, nuair a deirid ná fuil cabhair "Ghaeil Bhleá Cliath" ag teastáil uathu, ach caithfear aghaidh a thabhairt ar an bhfadhb so luath nó mall.
Tá sé i gceist agam éisteacht le craolta Radio na Gaeltachta nuair a bheidh an deis sin againn. Tá leis i gceist agam labhairt le muintir na Gaeltachta agus gan amhras lena n-ionadaithe san Dáil, ach go háirithe an tAire Gaeltachta Tomás Ó Dómhnaill.
Plans for the new high powered transmitter to replace the Athlone radio transmitter are also proceeding satisfactorily. A site has been obtained by RTE and the equipment is on order. It is expected that the new transmitter will be in service by the end of the next financial year. It has been agreed that RTE will bear the cost of the new transmitter site and one-third of the other costs and that the balance will be provided by way of a non-repayable Exchequer grant. The total cost is expected to amount to close to £700,000. The provision of £155,000 under subhead L.3 of the Estimate represents that part of the expenditure likely to arise in 1973-74 which is proper to be met by the Exchequer.
In recent years television has tended to become synonymous in some cases with broadcasting and, indeed, much of what Deputies have had to say about broadcasting has concerned television only.
It is, however, worth pointing out that the expenditures to which I have referred above, on the new Radio Centre, on the nationwide availability of the Radio na Gaeltachta network, and on the new high-powered medium wave transmitter, offer the opportunity for important new developments in the radio field. I am sure that the Broadcasting Review Committee will have much to say on these matters. At this moment, I would merely say that I intend to review the present limits on transmission hours, to see if greater choice can be offered to the listener without excessive cost to the licence holder.
In the history of broadcasting in this country, the present is a transitional period. The term of office of the existing authority ends on 31st May. I have thanked the chairman of the existing authority and all its members for the valuable services which they rendered to RTE in a difficult period. I have notified them of my intention in present circumstances to nominate an entirely new authority.
In the Press this morning it is reported that I have dismissed the existing authority. This is not the case. The existing authority remains in office for its period of office which concludes on 31st of this month. What I have done is to thank them for their services and to notify them that I am nominating a new authority. That is quite a different matter, as Deputies will appreciate, from dismissing an authority and in fairness to the people concerned, and to myself also. I wish the distinction to be made.
I am glad to have this opportunity of making the first announcement to the Dáil itself of the names of the new authority. Their names are:
Chairman: Mr. Donal Ó Moráin
The remaining members in alphabetical order are:
Mrs. Sheila Conroy
Mr. William Finlay
Hilary Heron
Mr. Charles McCarthy
Mr. Seán Mac Réamoinn
Mr. James McGuire
Mr. Patrick O'Keeffe
Mr. John Robb.
These names will be familiar to many Members of the House. Without going into detail here I want to say a brief word about each. Mr. Donal Ó Moráin was, of course, the chairman of the authority which was removed on 24th November, 1972. In renominating him I should like to pay a tribute to the members of the authority which he led. In difficult circumstances and confronted with delicate choices, he and they may have made some mistakes, as all of us must do, but they showed a consistent sense of their responsibilities and an integrity beyond praise.