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Dáil Éireann debate -
Thursday, 5 Dec 1974

Vol. 276 No. 7

Transport (No. 2) Bill, 1974: Second Stage (Resumed).

Question again proposed: "That the Bill be now read a Second Time."

When we adjourned the debate last night I had made one point on prices. I intended to go on to deal with CIE's position as a semi-State body. I had no idea I would be resuming this debate against the background of last evening's later proceedings.

Now I have to add comment, firstly, to what I said about prices — a complete underlining of the point of view I was making yesterday. Last evening at 5.55 p.m. I was making the point that one sided unco-ordinated interference with prices results in the tax-payer having to pay an additional £3.3 for transport on foot of the Bill before the House. If the Minister were to ask me how I make up my calculations, I could tell him that I do so very simply. I simply take the Minister's own speech. The CIE deficit was £13.95 million; take away from that the grant in existence and one is left with £11.3 million which we are asked to vote under the Bill. But the Minister said specifically in the paragraph I quoted last night and which I repeat:

The main reason for the excess of £4.7 million in the board's deficit over the Estimates provision was the decision of the Government to ameliorate the impact of the July, 1974 increases in CIE rates and fares by limiting the increases in Dublin city bus and suburban rail fares and provincial city and town bus fares to 20 per cent, instead of the 33 per cent proposed by CIE and approved by the National Prices Commission. This, combined with a delay of three months in the implementation of the increases, resulted in a reduction of an estimated £3.3 million in the anticipated yield from the increased charges.

In other words, because of the Government's attitude about prices in July, the taxpayer is going to have to fork out £3.3 million for transport. I should like to point that out—on the basis of general policy—in connection with another Minister coming in last evening and putting up petrol costs for another section of the community to 65p per gallon. It is this kind of contradiction; it is this kind of wriggling; it is this kind of living from hand to mouth in which the Government are indulging at present that is costing the taxpayer money all the time. Keeping strictly to the terms of this Bill—and you will notice that I am not attempting to deal with the affairs of last night when the representatives of the people were precluded from even expressing their opinions—here I am in order in expressing the opinions of elected representatives. I cannot comment on how people using petrol are going to pay the increased price or what will be the effect on the whole transport system from that point of view. But I can comment certainly on what will be the likely effect now on CIE.

In the light of what the Minister's colleague brought in here last evening, I want to ask the Minister what is going to be the effect on the requirements of CIE? I can see a little bit more of the cuteness and I can, perhaps, understand the slickness of the Government at present—while this Bill is before the House—dropping reference to these matters. And do not give me the short answer that CIE are concerned mainly with diesel oil because the secondary, if not the primary, repercussions are there and very relevant to this vote of moneys for CIE.

Let me try to untangle some of the obviously confused thinking behind this, apart from the cynical somersault of the Minister for Finance on the questions of the economy and of price control. First of all, I ask the Minister this question. Just how much petrol—will the Minister answer this because we are being asked to vote a sum of money here—is involved in this for CIE? By how much are the costs of CIE going to be increased as a result of the increased price of petrol? I know they are largely users of the other oils not covered by the increase in petrol announced last evening, but will the Minister tell me what is the direct increase involved because there must be some? CIE use some ptrol. That point is very relevant here. Of course, the Minister may try to avoid the issue by coming in and telling me that, of course, this is for 1974 only, that there is less than a month left and that, therefore, the impact will not be so great in this year. I will deal with that on a later point but first, I would ask the Minister for a straightforward answer as to what is the estimated increase in the cost to CIE between now and the time at which he will introduce another Bill of this nature to sanction grants for the company as a result of this decision? The whole sudden imbalance in the transport situation as a result of the manoeuvre indulged in last night is bound to have repercussions on CIE. This House may have been taken by surprise. We were excluded from participating in the decision of the Minister but is it fair to spring a surprise like that on the management of CIE? Are they in the same position as we are this morning —confronted suddenly, so near to Christmas, with this piece of emergency dictation?

I am assuming that CIE did not know in advance. However, if CIE or any other State-sponsored company or anyone other than the civil servants concerned were informed in advance of the Minister's decision, while this House was not so informed, it is time that a serious look be taken at a situation that would allow of such behaviour.

I want the Minister to tell me whether the chairman or the managers of CIE had any prior notice of this decision. As a matter of privilege, this House is entitled to have an answer to that question. In the case of some Ministers I would consider it futile to put such a question but because of the integrity of the Minister present, I am confident of receiving an honest answer. I want to know, also, what is the Department's estimate of the likely consequence of this change in the situation from the point of view of the overall economic position of CIE. I cannot refer to last night's decision as legislation. It is not that. I can only call it panic Government action. When such action takes place public reaction generally settles down after a while but it is my opinion that this may not be so in this case because we are now approaching Christmas, a time when people will be using their cars more, a time when there is usually some strain on personal budgets and the situation is aggravated this year by the general economic situation. In such circumstances it is reasonable to anticipate that the Minister's decision will have some repercussions on the transport situation and that within the period covered by this Vote it is likely that extraordinary demands will be made on CIE.

Anybody who has ever managed anything more than a file will realise that such circumstances impose not only organisational and administrative problems but financial ones as well. One person's guess is as good as another and, perhaps, I may be proved wrong. It would be very good for the country if I were completely wrong but the points I have made must be taken into consideration. They should have been taken into consideration by the Government in reaching the decision they sprang on us last night especially at a time when a Bill of this kind is being debated in the House. If their decision is to have any repercussions so far as this Bill is concerned, they have not been keeping faith with the House. We were allowed to continue discussing the Bill all along while under the impression that nothing would happen to alter the transport situation. There was not the decency to give a hint of what is the real position to a Deputy who was taking part in the debate. It is a disgraceful situation. We are not a democracy any more. This House is being used as a rubber stamp for a bureaucracy that maintains an incompetent Ministery.

Thank God for our civil servants. At least they can keep us going but it is not fair to leave the whole load on them. I wish to make it clear that my remarks are not intended to cast any reflection whatever on our fine public servants and I include in that the managements of our semi-State bodies. My remarks, though, are an accurate description and prognostication of where we are going.

I do not wish to wander from the Bill but I will try to make this Parliament work and it can only be made work by keeping within the rules of order and proper procedure. I am within the rules in asking the Minister those two questions. First, to let us know whether anybody other than the proper officers of the Departments concerned were informed of the Minister's decision in advance of this House being so informed. It would be a great relief to me to hear that this did not happen.

I can tell the Deputy that the answer is "No".

Good. What, then, in the name of goodness is the use of the Minister bringing in a Bill like this and having it debated at this time, talking about costs when we have only half of the information? I think it is grossly unfair to the Board of CIE—apart from the public—to create a situation like this. I unreservedly accept what the Minister said now not only on principle but where the particular Minister is concerned. If anyone should say that I was making an imputation the other way, I was merely asking a question and I unreservedly accept this Minister's answer but I go on to ask: "Was it fair? Who is running CIE in effect?"

That brings me logically to what I intended to say when we adjourned the other night on the question of State bodies. The Minister in his opening speech refers to the comment of the Committee of Public Accounts on the necessity for supporting legislation when moneys are being paid to supplement CIE's annual grant. I need not go into details as to why I think the Minister thought it advisable to make that statement. It was necessary for the Committee of Public Accounts to make general comments about payment of grants to these semi-State bodies and I agree that legislation is necessary but this whole area of semi-State bodies, and of CIE in particular, is now in a most unsatisfactory position, from the point of view of the management of the undertaking and from the point of view of the public, the taxpayer, and this House, the Oireachtas as a whole, as the representative and guardian of the public. We seem to have reached the position where you have the Minister and his Department controlling some State bodies, particularly CIE, to the extent of being virtually their proprietor, being protected from any question here and this is bringing about a situation where it is an illusion, in a sense, that the Board of CIE are a board free to manage: they are merely acting in the last resort on the instructions of the Minister and his Department. On the other hand, in defiance of all democratic principles, the Minister and his Department are immune from responsibility or questioning in this House.

I think that is going a bit too far. I realise it was not the Minister and his Government who set up this situation but, whoever set it up, it is now drifting to the stage where there is taxation for the purposes of these bodies without representation. Whatever could be said for the original theory when these bodies were able to pay or nearly pay their way there is nothing to be said when they have now virtually degenerated into being social services and have to be financed and consequently run, in effect, by the Government and the Minister responsible for the particular activity.

Do the public realise how far this is going? Do they realise what the procedure now is, whether it is done by an Act or manoeuvres like last night, and the Public Accounts Committee have been able to assert themselves to the extent of making it necessary to have an Act in this case: but it is a comment in itself on what is happening that it should be necessary for that committee to comment on such a matter—that in itself should be a warning light—or by order, or by dictation, like last night, and that the effect is the same? These grants, no matter how well dressed up, are degenerating into being, in effect, grants-in-aid. They have long since ceased to be grants for specific purposes in any real sense. The financial business of the House is, to a very great extent, in effect reduced to being grants-in-aid.

There was much ado about grants-in-aid some time ago and the Public Accounts Committee made some very general recommendations about them and these have been accepted in principle by practically everybody but I should like to point out that whatever dressing-up you have, all this is now beginning to work out as procedure by grants-in-aid. If you take this Bill in its own terms, we are asked to vote £11.3 million for the CIE Board. We are removing conditions in other Acts. All the restraint on the board is what is called a table in the Bill:

It shall be the duty of the Board to conduct its undertaking, so that, after taking into account payments made to the Board by the Minister out of moneys provided by the Oireachtas, its operating expenditure, including all charges properly chargeable to revenue, shall not be greater taking one year with another, than the revenue of the Board.

Therefore, we have a State body with good management—and it has had good management—doing its best, as everybody will immediately and wholeheartedly concede, but dependent on the Government for its finances—or its running finances. Remember, there was an earlier Bill dealing with capital this year. This is the Transport (No. 2) Bill dealing with running expenses. It is merely a grant-in-aid. Here is a board in that position being, if you like, the piper but the Government are calling the tune. It is an illusion and an evasion of responsibility for the Government to say they are not responsible for this. In the case of CIE and other State bodies it is high time we looked at the question of whether the Minister is responsible and if he is responsible it is very important that he be answerable in this House. The device of evading the responsibility of answering for the activities for which the Minister is responsible should cease. It should cease in fairness to the board.

There is something else the public may not know and at this time it is especially important they should know it. The Comptroller and Auditor General who is supposed to be the constitutional watchdog over the Departments is not in a position to say how these moneys are expended. He is excluded by this device also. Do the public realise that not only are Ministers coming here, using a political majority in the Dáil, asking for large sums of money and having them voted—in effect they are grants-in-aid—but afterwards they are immune from questioning about the matter? They can give their reasons but if, for example, I attempted to put down questions to the Minister to get real information that would enable me to interpret properly the paragraph in his speech which I quoted last night I would be told the Minister has no function in the matter.

This is where we have got with semi-State bodies. I happen to be chairman of the Committee of Public Accounts but when the accounting officer comes before us my colleagues and myself on the committee will not be able to get the information. We will be told we are not entitled to it. When a previous committee raised this matter they were insulted by being simply presented with the already published accounts of the State organisation. Do the public realise what is happening? Do they realise that the whole Parliamentary procedure is becoming a window-dressing farce for a degeneracy into bureaucratic control? Do they realise that the only thing saving us from corruption is the integrity of our civil servants? We are putting all the power and the responsibility on them even though they are overloaded. We should remember what power does and also what absolute power does. It is grossly unfair to the civil servants. It is they who are running the country, not the Dáil or the Government, and they have done a very good job. However, it is time for us as the representatives of the people to wake up and see if we can make democracy work or, if not, to realise what is coming next.

Perhaps I would not have made these issues so specific on this Bill had it not been for the shock we received last night in the totally cynical attitude of the Minister for Finance. This is what is involved for the thinking people of the country. This is an element of why people are paying more in the present economic situation. With regard to the present Bill £3.3 million have gone down the drain and it will have to be paid by the taxpayer. It makes me wonder if part of last night's manoeuvre was not to find moneys like this £11.3 million or to make up deficiencies such as the £3.3 million, quite apart from the high-sounding sentiments and the somersaults of the Minister for Finance.

In effect, CIE is run as though it were the private property of the Minister and the Government of the day. I want it understood that I am speaking objectively and when I use words such as "Minister of the day" I mean that. When I speak about the Government in this context I am including all Governments. One of the defects in the last 25 years has been the inability of Governments since the war—perhaps it was what caused the trouble—to see the necessity for using the democratic process to get ultimate efficiency and stability in the country. When I referred to the Minister in that way it was not specific to the present incumbent or his Government but it was a general reference to Governments as a whole.

When I say CIE is operated as the private property of the Government of the day through the responsible Minister, what I mean is that to all intents and purposes the State is the owner of CIE just as one person in a limited company holding an overwhelming majority of shares is the proprietor. As everyone knows, in such a case the management jumps to his tune. The situation is comparable with regard to CIE. The Minister and the State are in the position of being the overall proprietor and the management are subject to them in that sense. I am not objecting to that but I am objecting to the Minister and the Government of the day appropriating completely that proprietorship to the exclusion of the real proprietor which is the State. The real proprietor is represented not by the Minister alone but by this Parliament, the Oireachtas generally and the whole constitutional set-up. What I am complaining of, therefore, is an evasion of the proper democratic process in regard to this matter.

I am not making any charge of turpitude. I think everything is perfectly above board but I would refer to the desirability in principle of having some independent financial control of the nature of an audit for submission to this House. I am not suggesting for a moment that the unfortunate Auditor General and his Department should take over the detailed auditing of all semi-State companies including CIE. One must be practical here. However, the Comptroller and Auditor General, as the guardian of the national purse, in the sense in which he is the guardian, should have the authority to get any information he wanted and if necessary to audit the auditor so to speak and to co-ordinate the audits of semi-State bodies including CIE. This is completely excluded. CIE is not able to function as a commercial concern. It is a social service in many ways. A rational organisation of that would be welcome. There are two points which make the situation very serious. The responsibility of this House is totally excluded by the mechanism that has been adopted and there is no means by which the normal control of the State can really operate. The combined effects of this are that what is being done in this Bill and in similar Bills is to give grants-in-aid. I ask the Minister whether grants-in-aid of these proportions to any body are a desirable way to proceed with our financial business? There is an obvious disparity between this and State expenditure of comparable amounts. Where a Minister is directly responsible one can get answers to questions but where a semi-State body like this is concerned one can get no information.

It is significant and underlines my point about this being a grant-in-aid that this is the Transport (No. 2) Bill. We have had the Transport Act, 1974, since February of this year. The first Transport Act was to give CIE £55 million for capital purposes. That of course is a totally different kettle of fish. That is a very proper thing. For any undertaking that is of national importance it is, in certain circumstances, right that this House should vote sums for capital purposes but the House is entitled to know for what capital purposes. Assuming for the moment that this House was in a position to have the information that first Act was relatively unobjectionable but it brings out by contrast the nature of this second Bill which is nothing more than a disguised grant-in-aid to CIE. Here we are asked to make this grant without having any idea of the workings of the concern. Even in the capital case there were restrictions. I might as well say it. The very set-up inhibited the presentation of information in the first case.

What I would like to know is how long will this go on? We are handing over £11½ million to CIE when this Bill is passed to make up the deficit they cannot meet out of their trading. We are not allowed to find out why, how or where. The one thing on which we were given a bit of information I have fastened on already—the price control end of things. I sympathise with the management of CIE. What a ridiculous performance. A Government going through a political exercise like that, costing the taxpayer £3? million, and then coming in such a short time afterwards with the performance we had last night. I am asking the Minister where are we going? Will we be asked for more grants-in-aid?

There is, as I say, bound to be some perturbation. Only a couple of weeks are left in this year. It depends, of course, on one's accounting system. If one draws the line at 31st December the accounts will be all right. But how will the new energy situation affect all this? Is there an element of robbing Peter to pay Paul? The Minister for Finance talked about saving and waste, expenditure and the cost of fuel. If the Minister for Finance succeeds in putting the private motorist and the petrol user off the road how will CIE cope with this situation? Will they have to operate extra buses and trains? Will we now need more fuel oil? Will we be robbing Peter to pay Paul? What the Minister did last night will put a greater strain on people's pockets. Remember, diesel also comes in from outside. The juggling between diesel and petrol and petrol and diesel will not relieve the taxpayers in the long run. The financial implications have changed overnight.

The Minister will pass this Bill. He will mobilise the boots on his side of the House. Boots in the lobby are the only function of a Member now. Where will the £11.3 million be found? The money will be taken from the taxpayers, by way of PAYE, by way of VAT and other taxation. The Minister for Finance said last night that the few millions involved did not come into the picture. They will come into the picture in increased costs. It should be realised that Estimates, Bills and everything else involve money and that money has to be found by way of taxation. We should realise what is involved in this Bill. The Bill is necessary, but it is a sad commentary on the points I have made. We are voting taxation. Let every one remember that.

Finally, it is not good enough that the people should be deprived of the information that should be available to their elected representatives. No taxation without representation: through this twin device of semi-State bodies and ministerial statements we are now at the stage where we have taxation without proper representation. It is time democracy and democratically-minded people took note of this.

I have a sad postscript: out of the £11.3 million that will have to be found by way of taxation £3.3 million represents a loss incurred through the political manoeuvring of a Government who refused to be properly answerable. These are the facts. I am putting them quite objectively. When I refer to "Government" I am referring to a wide range of Governments. This dangerous process has been at work now for 25 years.

Lest anyone should think I was casting any aspersions on the present Minister, I will accept wholeheartedly any answers he gives. My only complaint is that he will probably shelter, like his predecessors, behind the device of not giving the answers that should be given.

It would appear from the Minister's speech that up to £14 million is the loss which has been incurred by CIE during a period of nine months. We are given to understand that the greater part of that loss was incurred by the rail section of CIE. Is there any hope that this ever-escalating increase in the amount of the loss being incurred, for whatever reasons, can be minimised and ultimately wiped out, or are we to continue to accept year by year ever-increasing losses and therefore ever-increasing subventions from the taxpayers? Is it not about time that we were given an overall picture of where we are going in regard to our transport system?

We have the rather unusual situation—and this does not apply only to this State body but to other undertakings as well, some of which come under the aegis of Minister's Department—in which the taxpayer is being asked for an ever-increasing contribution towards the provision of what can only be regarded as an essential service and money is being provided by a large number of taxpayers who can never hope in any way to gain anything from the service which they are being called upon to subsidise year in and year out at an ever-increasing rate.

There are people in far-flung and remote areas from Dublin, such as my own County Donegal, who pay their share through the normal taxation codes towards this and other subventions and devices for the provision of transport within the country, and outside the country through another State body, and in respect of which they are getting no service whatsoever, nor is there any likelihood that they ever will. Because of our remoteness we require an improved transport service more than anybody else.

The Minister referred to his intentions, and perhaps his obligation, with regard to the EEC regulations. Can we expect anything worthwhile to emerge in the future? The Minister said:

These EEC Regulations are merely part of a comprehensive structure which is being built up in the development of a Community Common Transport Policy. One of the aims of this policy is to eliminate disparities liable to distort conditions of competition in the transport market and for this purpose it is necessary to harmonise laws, regulations and administrative provisions relating to transport.

Does this give any hope to those who are inadequately serviced at the moment by way of transport? Does it give any promise that, in the not-too-far-distant future, they will be recompensed for their contributions over the years to a service from which they gain nothing? I refer to the areas not served by air and not served by rail. If not, the Minister is, unwittingly, perhaps, perpetrating an injustice which has been increasing year by year so far as people from remote areas are concerned. He should seriously examine and consider what he proposes to do to provide a proper transport system for all the people.

For a number of years Donegal has been isolated apart from transport by road. I remember the day on which a little function was held to inaugurate the express bus service linking Donegal with Dublin. It was admitted at that function by the then chairman of CIE that the coaches being provided were not the type envisaged for the future. I suggested publicly that steps should be taken to provide the best possible long distance coaches for the areas where people depend solely on road transport. Despite the added difficulties and delays now caused by cross-Border checks on the way to and from Donegal and Dublin there has not been any improvement. The coaches are no better than those running between here and Bray. We have no better facilities.

No consideration is given to providing toilet accommodation. The people are not served with light refreshments by a steward or stewardess. At this stage in our history that is the minimum to which we are entitled in areas such as Donegal because of our remoteness and because of the difficulties created at cross-Border checks where there are delays lasting for hours. I strongly appeal to the Minister to give this matter serious and urgent consideration and to give us coaches second to none with proper on-board services which would be of great convenience and comfort to long distance travellers who have no alternative to that service.

The delays at the cross-Border checks can run from half-an-hour to an hour-and-a-half or even two hours. It is not good enough to say: "There is toilet accommodation in Monaghan when you get there, if you do", or: "We will be stopping at Lifford or Strabane or Letterkenny when we get there, if we do." This has aggravated the situation but does not, in itself, constitute the reason why I raised this matter. I raised this matter on the day of the inauguration of this service and I was given promises then, publicly, that an attempt would be made to do what I was seeking. Many years have gone by but nothing has been done. In fact the provision of coaches, at times when additional coaches are required, is worse than when the service was first provided.

All of this is not being provided for nothing or anything like it. A single ticket from Donegal to Dublin costs £4.50 which is a very hefty sum. A taxi or licensed mini-bus can be chartered and ply to Dublin for less than that, and at a profit. I can only assume that, with the much bigger vehicle CIE provide, and it is quite a common practice for them to have to supplement the single bus by an additional two, it is a profitable run. Those people who are dependent solely on this link as their public transport system are not only providing sufficient to cover a proper, good, comfortable and convenient service but are, in addition, paying, as all taxpayers are paying, for the losses being incurred mainly on the rail system from which no benefit accrues to the county, its trade, its commerce or its people.

Nobody can tell me that what is provided at Sligo, and the distribution freight depot there, is the answer. It is not. I am not being cynical or sarcastic when I say that the advertisement: "Anything, Anywhere, Any Time" as is depicted on hoardings is not well-intentioned but in so far as its application to servicing my county is concerned it is a joke, very often a sour joke. For some reason we can lose freight and, after weeks, it may be located at Sligo. If it is found it must be taken by road almost as far again north, if one wants to go to the very northern part of the county which some of this freight must do; almost as far again as from Dublin to Sligo. It is 132 miles from Dublin to Sligo by road and it is almost 150 miles from Sligo to the point of Malin Head. This is something which never seems to get into the minds of the people who operate any type of service or are providing any sort of service. Sligo is only half way between Dublin and the northern part of Donegal but there is a sort of acceptance by various official agencies, and Government Departments, that the north-west, embracing Sligo, takes in Donegal and the hinterland immediately around. In fact, Sligo is nearer Dublin than it is to the northern part of Donegal.

The system, and the service we are getting for our freight transport and public transport for passengers, is not anything that we can be proud of. We cannot point to it and say that the best is being done. This is not so. No effort is being made to provide what I believe is the only true additional supplement to that road transport, an air service of a proper kind, but that is another day's work. I mention this in passing because of the obligation that would appear to rest upon the Minister in conforming to EEC regulations which, as I have quoted, are for the development of a Community Common Transport Policy. If there is to be a common transport policy I take it that all our citizens should be as near equal as possible. Transport provided by CIE is not equal in so far as many of our people are concerned. Certainly, it is far from being near equal as far as Donegal and the people there are concerned.

The practice over the years has been that while, through the Minister's good offices and his own goodwill, he may give various pieces of information to the House that provides the money from the taxpayer to meet CIE losses there is not available to the Minister, or to the House, the right to get the information in detail. There should be an obligation on CIE to provide this information to the Minister for the benefit of the representatives of the people, the Members of this House. This is a weakness that is not of the present Minister's creation. It started a long time ago, has grown in importance over the years as the amounts of subvention have increased, and are likely to continue to increase. When this was begun no detailed accounting was necessary to the House nor was there any obligation resting on the Minister to furnish the House with detailed information. That may have been understandable at the outset but the passage of time, and the increasing amounts being demanded, have altered that outlook. It should be reviewed and there should be an obligation on the Minister to be answerable to this House for every pound spent, every pound which is contributed through the subventions provided by the taxpayer and voted and agreed to by this House.

This is not the only body, nor is the Department of Transport and Power the only Department, which would need to have a look at this situation. I urge the Minister for Transport and Power to look at this matter urgently, to change the system and to wipe out the situation where millions can be called for, millions may be granted and there is no real obligation on either the board in question or the Minister to account to this House who provide the money in the name of the people and out of the pockets of the people.

It is strange to find that, according to the Minister's speech and the records available, we have this continuing increase in the losses of CIE while, at the same time, it is pointed out that passenger numbers are, and have been, increasing, that freight, even though the percentage may be small, also shows an increase. However, the losses of the company show a substantial increase. The Minister has indicated that quite a substantial input of capital is envisaged in order to conform with the recommendations of the McKinsey Report, to update and to make more efficient—we hope—the operation of many depots. While we may brighten them up and may make them, in themselves, more efficient and more "with it" the question is, will the expenditure of this additional capital money not only bring us up-to-date and modernise our various depots but will the ultimate effect of such additional capital expenditure result in any true savings, in greater efficiency and greater economy in the running of the undertaking? If it does not, we have got to ask ourselves: is there any point in spending these amounts of capital unless there is a long-term advantage to be gained therefrom? I wonder whether this has been examined to the degree it should be, whether the Minister's advisers and, ultimately, he will be fully satisfied—and eventually the Government satisfied—that the provision of this additional capital expenditure will result in any real saving and improvement of the service regarded as essential.

I question also the whole approach to our transport system in that while we are not providing, certainly for large tracts of the country, anything like the sort of service present-day conditions demand, we seem to ignore completely the only alternative available, which is private transport. Private transport supplementing the public transport system in the more remote areas is all that is available. When I say that, I mean road transport, public and private, are the only two types of transport available to large tracts of the country very remote from where we are now discussing this matter. Have the Government taken this into consideration? Have they given any importance whatsoever to the question of aiding and helping the provision of that supplement—if such it can be called, I am not sure—of private transport? Will the Minister—indeed, he may have to get other Ministers and Departments to play their part—improve much more speedily the roads being used in remote parts?

Has the Minister had any real say in regard to recent increases—and I do not mean last night's increase— which have a very severe impact on private transport essential in supplementing public transport in the more remote areas? Has the Minister a say in the field of insurance? If not, I believe he should have a very definite say, even though it is immediately within the ambit of his colleague, the Minister for Industry and Commerce, to set or agree to increases in that respect. I say this not in any argumentative way. We come to this House looking for vast sums to subsidise our transport undertaking as an essential and national service. The Minister responsible in requiring the House to provide these moneys in order that such a transport service may continue to operate should have an absolute say in what is done and which may have an impact on the adjunct to that public transport in the more remote areas where no alternative exists, such as rail or air, services. I would strongly urge that the Minister should have a very big say in such matters. I would say also that the Minister for Transport and Power should receive backing in so far as he might have a very definite say, for instance, in the matter before us last evening of an increase in the price of petrol.

All of these things together amount to a very substantial sum of additional expenditure necessarily incurred by those living in the more remote areas that are not and, perhaps, cannot be served adequately by public transport but in respect of which those people are paying their share by way of taxation in order to provide the subventions we are regularly called upon to vote and pay to CIE and other semi-State bodies.

The Minister for Transport and Power must have a say also if we are to harmonise—this is, indeed, his expressed intention—and arrive at a common transport policy. Without a very definite and specific say in all of those related matters which have an impact and impinge on the overall cost of private transport, his efforts in providing an adequate or fair distribution of public transport cannot be truly satisfied. Those two things are so complementary to each other that the Minister requires to be given an absolute right in this matter if not equal to then next to the responsibility vested in the various Ministers, such as the Minister for Industry and Commerce and the Minister for Finance in the two instances I have given. There is the other—this would be for the Minister for Finance through the Revenue Commissioners —under which 75 per cent of the on-the-floor garage cost of any passenger vehicle, whether a private saloon, minibus or other, is accounted for by the imposition of import duties, taxes and VAT. Lest I have not put that clearly, let me put it another way. A car landed on a garage floor today at, say, £1,600 costs £2,800 with the addition of duties. Surely, that is another matter of striking significance in the cost of transport to people in the more remote areas whom the Minister may not, despite his best efforts and those of CIE, be able to serve adequately by public transport. Insurance cover, fuel and import duties constitute three very large items in the cost of vehicles, the parts, the knock-down value, whatever one likes to call them. An imposition of 75 per cent by way of duties, taxes and so on is added to the price of the vehicle the ordinary person because of lack of public service or other reason is obliged to buy in order to provide transport for himself for business or other purpose. And here I am speaking again about the deprived people of the more remote areas who either are not getting or cannot get an adequate service although they are being asked to contribute their full share by way of taxation as voted by us in subventions to undertakings such as CIE.

If he is to grapple with the difficult problem of a national transport system, I feel the Minister should and must have a very definite, official say in the fixing of any of these increases whether they relate to insurance, import duties, VAT, petrol or any other fuel. He must have such a say if there is to be any sense in his being given the responsibility he carries at present of having under his wing the national transport undertaking, namely, CIE. This is fundamental and, indeed, elementary to the proper co-ordination of the two methods of approaching the provision of very necessary transport. and to endeavouring to equate the availability of transport services to all our citizens at a reasonable cost while not leaning too heavily on those for whom the service is worst. It is not fair that the people who get the worst service are those who must pay most. The further away from growth centres that people are, the more they need transport but the more meagre are the services provided in those places because of the difficulties involved. Yet the Government continue to penalise those for whom a private motor vehicle is the only means of transport available. From the day a car is purchased there are continuous demands on the owner not only in respect of fuel but also in respect of all the other elements involved in the running of a car. Whether a car is assembled here or is imported already assembled there is a massive amount of duty involved. The Minister for Transport and Power does not have any say in such matters other than his say as a member of the Government in general. He should have a specific say because he is responsible in a very definite way for transport within the country. The only authority he has is to carry the baby although he has no say in what the baby is doing or how it is being nurtured. We cannot talk of the provision of a national transport system without recognising the true situation that no matter what the Minister may do, there will continue to be a very heavy leaning on private transport so as to supplement public transport.

I appeal to the Minister to think seriously on these points. No doubt this House would at any time be much in favour of empowering the Minister to play a very specific role in what is now the preserve of a number of his colleagues, a situation that may be said to have developed historically rather than by design. It is time that situation was changed and that the Minister for Transport and Power was charged with the responsibility of providing a transport system throughout the country.

The Minister spoke about proposals for a new subvention structure for CIE to comply with the provisions of the EEC regulations and he told us that these proposals have been submitted to the EEC Commission and that arrangements are being made for their introduction from the 1st January, 1975. There is a sense of urgency in this matter because if there is to be a real facing up to the situation of serving as equitably as possible the needs of all our people, there is not much time at the disposal of the Minister if he is to meet the deadline on which the new structure is due to come into operation. While it may not be necessary to have everything in detail by then I expect that since the proposals are before the EEC Commission, the die may already have been cast. If there is to be any real attempt to rectify the injustices that are being wrought on some of our citizens because of the remote areas in which they live, I suggest that the Minister add to the submissions that are before the Commission because if we start on the wrong foot in regard to this new subvention and structure, it is likely that those Deputies who come after us will be talking, too, of the grievances that I am endeavouring to expose today. Now is the time to do everything possible to improve the situation, to up-date it to meet present day needs rather than to be relying on what has become a sort of traditional exercise which began on the basis of different circumstances from those in which we live today and which was never tailored to meet the needs of today's situation.

Is there any way whereby the Minister might devise a scheme of special assistance that would be aimed at reducing the cost of transport from areas such as I have mentioned? It costs £4.10p to travel to Dublin on the Donegal express. That is for a single ticket. This fare could be reduced with justification as a result of the new subvention structure and this structure, too, could be used to supplement the ferry service for passengers to many of the islands off our coasts. I applaud the manner in which these services are being provided and I hope they will be increased. In any case, every effort should be made to reduce the cost of public transport from far away areas. The people concerned are dependent totally on the bus service which often is inadequate and not as comfortable or as convenient as it might be.

Another suggestion I would put to the Minister might be the means of effecting some saving in costs to passengers travelling from the extreme north-west. There is the ludicrous situation whereby the Derry to Dublin express runs twice a day on weekdays while a Letterkenny-Dublin express runs also twice a day on week-days and once on Sundays. The point I wish to make is that both Letterkenny and Derry are of equal distance from Strabane, that both services go through Strabane and start at intervals of only ten minutes apart. Surely it would not be beyond the ingenuity and the spirit of co-operation that exists and which was in existence long before Sunningdale, to mesh these two services so that instead of having two departures from Letterkenny and two from Derry with only ten minutes in the difference in the departure times from each terminus, there would be four services, leaving at regular intervals and starting alternately from Derry and Letterkenny with a feeder line in respect of each service from Strabane to Letterkenny or Strabane to Derry as the case may be. In this way the services from both Letterkenny and Derry would be improved substantially.

If, however, it should be found that during some periods in the year, four services daily would not be justified, it would not be necessary to run the four buses. In this way a saving would be effected. There is no need for the present situation because the route taken by both services from Strabane to Dublin is exactly the same.

I would ask the Minister to examine that suggestion. Perhaps he would take it up with the Ulsterbus people to see what could be done not only in the interests of an improved service but in the interests of the more economic operation of the service which, whether it comes from Derry or Letterkenny, serves the extreme north-west. Without impinging on any part of the subvention being sought here, we might be able to afford to improve the service, improve the type of coach and improve the on-board service which is essential in these days on that length of journey, and particularly because of the long delays that are occasioned quite frequently at the Border at present.

Without appearing to have any particular grouse about it, might I ask the Minister to examine the manner in which these delays occur and the fact that people are left standing on the roads for as long as an hour-and-a-half. While the coaches are unloaded while the passengers and their luggage and the coaches themselves are being searched, there must be some way in which the people can get shelter from the weather, particularly in the wintertime but even in the sort of summers we have had. Many people have suffered after this experience with colds and 'flu and some people I know myself who were not at all well have suffered more seriously from such delays. I hope the Minister will consider what can be done to alleviate that sort of treatment, if it cannot be removed altogether.

The Minister mentioned in his speech that EEC Regulation No. 1191/69 provides "for payment of compensation to transport undertakings in respect of losses incurred on services operated under public service obligations which are deemed essential to ensure the provision of adequate transport services". I would be quite happy if the Minister would have due regard to the last line of that regulation. There is no point in trying to spell out in detail what I would regard as essential to ensure the provision of adequate transport services. This is something I believe the Minister and his advisers, in consultation with the transport undertaking, are much more suitably endowed to examine and decide upon. I hope full cognisance will be taken of that wording.

The Minister also refers to Regulation 1192/69 which provides "for compensation in respect of specified financial burdens borne by railway undertakings which are not borne to the same extent by other transport undertakings". I can readily understand that the level crossings would not be shared by other undertakings, but I cannot understand why "retirement and welfare benefits, et cetera”—what the “et cetera” covers I do not know—should differ or should be regarded as anything extraordinary and peculiar only to railway undertakings. There may be some explanation for this but it is not very clear from the intention of the regulation as quoted by the Minister.

Then there is Regulation 1107/70 which specifies "certain additional circumstances in which State aids may be paid to transport undertakings." This Regulation enables the grant of State aid to cover, inter alia:

(a) public service obligations not coming within the meaning of Regulation 1191/69;

That is the regulation I have already mentioned in regard to the provision of adequate transport services. This may mean the provision of services above and beyond adequate transport services, and I would love to know what they are. But it will be time enough to be talking about what goes beyond that requirement when we have got to the happy stage, if we ever do, of having an adequate transport service, as Regulation 1191/69 recommends we should aim at. Paragraph (b) of Regulation 1107/70 reads:

railway infrastructure costs, to the extent that competing modes of transport do not bear their full share of infrastructure costs.

I suppose this means permanent ways, level crossings, signal boxes and so on. Paragraph (c) reads:

balancing subventions to meet the residual deficits of railway undertakings.

If there was ever a provision made for manipulation, that must be it. I am glad it is there, and I hope we shall avail of it to some extent at least. I am sure the Minister and his Department must be fully aware of the outlet that may provide for them, and I do not think there is anything that would not be capable of being brought within that provision, paragraph (c) of Regulation 1107/70.

I shall not delay the House any longer. I do not intend to talk on petrol, much as I would like to. As I said, I seriously think the Minister for Transport and Power should have a specific say in such a matter, it is so vital to his responsibility for transport generally, and in relation to insurance, car import tax and so on. All of them are really part and parcel of his responsibilities.

There will be an opportunity on Tuesday to talk on the other more vexed question. I will not attempt in any way to intrude it into this debate other than as far as I think it necessary to do it to illustrate the additional powers the Minister for Transport and Power requires.

While on that subject, despite the manner in which the House departed last night, I am very thankful to the Ceann Comhairle for his handling of the situation which to him, I am sure, was not acceptable. The fact that there is to be a debate next Tuesday may not justify but it at least mitigates the circumstances in which the situation last night was created.

I commend the Minister to look fully at the points I have made. I have not drawn them to his attention merely on a parochial basis. I was making a case for the inadequacy of the transport system in Donegal. We labour under extreme difficulty there. Since the departure of our railways a considerable time ago these difficulties have been added to. The ears of previous Ministers have been half-open but probably permanently plugged by their Ministers for Finance. There have been pleas that there should not be just a glorified landing strip for private aircraft in Donegal but that there should be a proper integrated service. If one draws a line across the country one finds the three airports at Dublin, Shannon and Cork. In the north-east there is one, and the entire west and north-west area, where an airport is needed most, has not got one. In relation to his overall responsibilities, I am asking the Minister not to allow his ears to be plugged by the Minister for Finance. We have not a rail service in the north-west and sometime, someone must give us a transport service of some kind.

I will not delay the House very long. The Minister inherited this mammoth complex, CIE, which is becoming more and more a social rather than an economic enterprise. I do not suppose it was ever intended to be an economic one. Public transport is not regarded as such in any of the European countries and we are not an exception. However, it employs about 20,000 people, so it is a significant industry from an employment point of view. From what I have seen of the supertrains. I must commend the, workers for their courtesy and efficiency.

It is understandable that CIE have lost money. Though at the moment the losses are becoming somewhat frightening, that is understandable because much of their transport cannot pay its way. This has got to be the pattern: we cannot afford to cut out certain routes when they become inefficient because we would be depriving the less well-off sections of the community of any public transport at all. Indeed, my special appeal to the Minister today is that he should maintain the services that are not paying for the sake of those very people. This is the way it has to be, in my book.

We have proposed changes in some of the Cork-Youghal routes, apparently to make them more efficient, cutting out places like Mogeely. I hope the Minister will look at not merely this area but at similar routes throughout the country and, where possible, allow the services to continue. Alternative services were provided to replace the rail passenger services when they were discontinued in some areas. People are entitled to public transport. CIE are the people to provide that and it is not even important whether such services pay. What is more important is that people should be given public transport. That applies in particular to the poor, to the old age pensioners, to those who enjoy free travel. Free travel is of little use to them if there is no transport system in existence.

Again, I compliment CIE on their supertrains. I have travelled a little on the Continent and I must say that the quality of the trains, the service they provide, the food, leave nothing to be desired. They are excellent. More people should avail of this supertrain service. It would ease the burden on the roads and lessen the risk of those appalling accidents that are happening all over the place. This applies to all passenger trains.

This also applies to freight. We have not really "cottoned on" to the efficient handling of rail freight and I am very glad the Minister has given such a generous amount of money for the expansion of CIE's rail freight service. In Europe and America we would be talking about infinitely longer distances, but whether the journey is long or short, rail transport has a lot to offer. I am thinking specifically of fertilisers, sugar beet, livestock and frozen meat. CIE are not really geared efficiently to deal with all these commodities. Look at the ease we would give to the highways if more efficient use could be made of our railways. In America there is the piggy-back system. That could be adopted quite easily to suit our own needs. We are making a start on the container service and very little use is being made of the fork lift nowadays.

These improvements are not coming before their time. Those of us who have to deal with sugar beet pulp from railway carriages know what it is like to try to get stuff out of them. Fortunately, CIE are now coming ahead with the times. My hope is that with the proposed expansion in the sugar beet industry, CIE will look again at some of the proposals made to them some years ago by people like me that there would be huge collection areas, such as Midleton, where sugar beet could be weighed and tared and then sent to whichever factory was in most need of beet at a particular time. CIE had the will then to do something but the proposals never got off the ground. The result is there is appalling chaos in Cork and on the Mallow road. All that could be cut out if something along the lines of my suggestion were implemented. There would be goodwill from the licensed hauliers. Quite a number of them would be in favour of it. It would mean much shorter runs and quicker turn-arounds for them and they would probbaly make as much money in the long run.

I am glad to note that the railways to Little Island and Cobh are fairly secure. This is a general area of vast industrial development. More and more we are realising the tragedy of the closure of the West Cork rail link. I would be terrified that anything like that would happen to the Youghal or Cobh lines. More and more use will be made of rail links and I would urge on the Minister to consider expansion in that area. Every effort should be made to improve those lines and make them more efficient. Special provision should be made for rail links for all new industries. That is quite important.

I should like to compliment CIE for their work in the school bus sector where they are doing quite a good job. It is a very difficult job for the personnel involved but from what I know it is being excellently done and most courteously. The roads these buses must travel are not suitable for the large buses sometimes used but, despite this, we hear of very few accidents and generally the service is a great credit to those involved. This is a very necessary service in rural Ireland due to the undue haste in the closure of the small, two teacher schools, something I shall always deplore. We are now committed to having to provide school transport even though it is becoming a greater headache daily and will continue to be a headache but, so far as CIE are concerned, they are doing a very good job.

We cannot get away from the social service aspect of CIE but I should like CIE on the feight side to venture into the competitive area and take on all comers and be able to quote realistically. They have not been very good at this especially in cases like that of sugar beet. They have an opportunity equal to that of all licensed hauliers to compete and to quote but I would not give them credit for being very competitive in this regard in the past. Of late, I believe there is new thinking and they are endeavouring to capture as much of this business as possible, a policy I should like to see pursued because I would like to see as large a volume as possible of goods sent by rail.

Rural buses were mentioned and we all agree that it looks bad to see a huge vehicle thundering along the road with one or two passengers. I wonder if CIE have ever considered providing mini-buses on such routes. It might help to cut costs but in any case they should not curtail excursions; they must maintain these services from the social point of view whatever about economic considerations—these are not even relevant in the case of CIE which is providing a service as it is doing.

I am not in a position to speak about city buses but, to my knowledge they are being hampered very much by too many motor cars. If some motorists working in the city would consider using public transport it would make life easier for everybody and would certainly help us to have a more efficient city service.

I should like to compliment the Minister on his performance in regard to CIE. He has put some new spirit into it and they are tackling their job in a business-like way. In Mallow at present they have probably their largest freight complex in the south and this is a logical approach because Mallow is the key to Munster and the development there is only coming in the nick of time because to an increasing extent we shall have container traffic. We may have overseas competition in regard to freight and that is something we must face in the context of the EEC. We could find ourselves completely swamped by outside competition with Europeans doing all the transport work. I think CIE are now facing up to this. They are in an ideal position to do so because, as the roads become more encumbered with traffic more and more freight will have to be put on rail by piggy-back or in containers. They must avail of all modern methods such as fork-lifting and so on to make the job more attractive and more economic for those with goods to move. The day for manual handling is finished.

I understand there is some problem with the Minister at present concerning pensions for retired CIE personnel. I gather the increases have been sanctioned but are awaiting implementation and I should like the Minister to look into this because I believe these pensioners are far below the level of retired employees of other semi-State bodies.

We are faced with a colossal demand to cover the losses incurred by CIE in the past nine months. If we transmit that to a 12-month period it appears the cost will be about £19 million. Further, when we take into account the increased cost imposed on petrol in addition to increases in wages we can anticipate that the demand in the coming year will be in the region of £21 million or £22 million.

This amount is quite staggering. Most business people believed that the crossroads were reached a long time ago so far as CIE, their management and the usefulness of the organisation to the nation were concerned. I am not trying to make the case that CIE do not serve a purpose or do not have a place in the business life and affairs of the nation. They certainly have a place. They have improved their services and the people who devised the system deserve credit. However, they have neglected what should be the most profitable side of the business, namely, the freight transport section.

If CIE continue as at present it is not unreasonable to think that in five years' time we will be faced with a demand of £40 million or £50 million to keep them going. We should now examine the role and position of the organisation. Now is the time when that organisation should be trimmed down to a realistic concern that can face the problems; now is the time when they should get out of their present state of decadence which is obvious to everyone. They have a colossal management system, one far beyond what is needed. If it was not for the ordinary workers who are always trying to make excuses for the inadequate service given to the public by CIE there would be an uprising against their system of operation.

The money now required is only a drop in the ocean so far as the cost to the public in general is concerned. Because the transport system is so restricted business people cannot avail of the much more efficient and cheaper transport available from private firms. The cost imposed by CIE is far beyond what business and industrialists can bear and it plays an important part in the increased cost of our products and, thus, affects competitiveness in Europe and elsewhere.

I shall try to give proof to the House of the statements I have made. The cost of delivering cement from Limerick to my premises is £3 per ton. If we could get the cement at ex-factory price in Limerick we could bring it to our premises on our transport at half that cost. However, because of the present system we cannot get the cement at ex-factory cost: if we collect it at the factory we must pay what is called the Zone 1 price. This is the price that operates for a radius of 25 miles around the factory and the charge means an extra £1 on the cost of the cement.

My firm purchase approximately 2,000 tons of cement per year and the extra cost involved is £3,000. However, it is the consumers who have to bear this cost. We have to pay this charge in an area that has no rail service because the railway line has been closed. We have to accept the kind of delivery CIE impose on us. So much material is damaged we are obliged to impose a 5 per cent charge on every ton of cement; in other words, where a ton of cement costs £22 a charge of £1.10 is imposed to cover damages to the material delivered by CIE. Last Monday evening a load of cement was delivered to my premises from Tralee. It was not correctly sheeted, the wheels of the lorry on both sides threw up mud and water from the road with the result that the bags of cement on both sides were damaged. We had to spend a lot of time trying to get it out of the lorry in an undamaged condition but despite our care there were 18 cwt. of broken cement bags on that occasion. This is a regular occurrence.

CIE have an outdated system of loading cement into covered wagons, delivering it to Tralee where it must be re-handled on to the lorries and finally delivered to Killorglin. If we were to collect the cement at ex-factory price it would be loaded on pallets, we have our own fork-lift, and we could deliver at least two loads per day using the same vehicle. It takes CIE three or four days to deliver a wagon of cement. This means that it takes four days to deliver £240 or £250 worth of material. When we consider the scarcity of money today and the high rates of interest this is an unprecedented imposition on business people who are obliged to put up with this system of delivery.

We are faced with the situation that younger workers refuse to off-handle cement, particularly when it is raining. If workmen are obliged to handle broken cement in wet weather their clothes are ruined. CIE are still using the system that operated 100 years ago. On my trips to Europe I have examined the systems that operate, particularly in Germany. There are no goods wagons of the old wagon buffer system which clatter along, for the delivery of ordinary goods in Germany. They all have spring roller attachments between very long coach systems. The sides move into each other and they can forklift everything straight from those trucks to other vehicles or into stores. This is necessary if CIE are to continue but I suppose the money involved in building up this type of system would be colossal and far above what either the company or the country could afford. However, if CIE are to remain in business some changes in this direction must take place. It is unthinkable that in 1974 CIE have not got forklift trucks at every centre where they have to unload heavy equipment rather than keeping lorries standing, often taking two or three hours to be loaded.

To my mind the cause of all the trouble in CIE is the road service. It is absorbing every penny of their earnings and is tending to sink the rail system completely. CIE collect about £2.40 per ton on goods carried from Limerick to Tralee. That is a total on a 10 ton wagon, of £24. It takes about two hours to load the lorries. It takes, with breaks, a total of eight hours to unload the cement in Tralee, travel to Killorglin and unload it there. The charge per hour for that is £3.50, which is roughly £26 a lorry. It must be noted that their entire earnings are only £24. They collect 50p per ton from us which is a total of £5. That leaves them with only £3 for bringing a wagon of cement from Limerick. This is where big losses are incurred and this is done with the full knowledge of the management. They are deliberately channelling away the earnings of the rail service to keep up the road service which is really in competition with the rail service. Those are things which should be considered by the Minister to see how this concern can be trimmed down to serve the public at an economic figure.

The late President, ten or 12 years ago, when he was Minister for Transport and Power, extracted figures which showed that 600 lorries and trailers would have carried the entire traffic that CIE were carrying. This would involve a total of 1,200 workmen at two per lorry and trailer. A total of 800 buses would carry the entire passenger side, with 1,600 workers making a total of 2,800. Add a further 1,200 for mechanics and services of that type plus executives and you have a total of 4,000 people. That number could have operated the tonnage and the passengers carried. CIE at that time had 21,000 people employed to do the work of 4,000.

This is the type of set-up we have which is eating into the energy of this country and absorbing the money that could be so usefully spent on other types of development that would beget employment. The Minister must examine this general position if CIE are to be saved at all. At their present rate of going, five years must see such a collapse that they cannot be allowed to go on with the type of money that has to be put up to keep them going. The biggest strain of all is on business and production outside because of the high cost of moving materials from one area to another. Many of the materials CIE could carry cannot be given to them because they cannot deliver them safely.

I had to go up to an area of the city yesterday evening with one of my lorry drivers. We had to send a truck all the way from Killorglin to collect 50 copper cylinders at a cost of about £30. It was a job we did not want to do ourselves but we could not give those to CIE because they are collapsible if any pressure is exerted on them such as would happen in a railway truck. We had those delivered to Killorglin at about 50p each. If we were to give them to CIE they would have to be placed in specially built containers which, taking the rental cost, the carriage on them and the carriage on the return of the empties would cost at least £1.05 or 55p more than it costs in the ordinary way. I am pointing this out to show the type of equipment CIE have. This is why they are losing 70 to 80 per cent of traffic which they might otherwise get if they were equipped to handle it and if they had trained personnel to handle it. Because of those things they cannot earn sufficient to keep going and the longer it goes on the less they will earn. Operating lorries is not profitable for business people but we have to have them in order to get the goods out in time to the people we serve.

A great indication of the lack of service given by CIE is that there is now no railway in south Kerry. I am speaking about the Cahirciveen-Killor-glin-Kenmare area with a population of about 30,000. There are two lorries in the day, one to Killorglin-Cahirciveen and the other to Kenmare to carry the limited amount of material that has to be carried. There is the occasional lorry carrying cement and so on. Actually there are 150 lorries and, to me, this is a sheer inflation of the usefulness of CIE. It shows how little use the rail and road systems are to the people concerned.

Again, there is a heavy truck from Tralee to Killorglin and on at a cost of £3.50 an hour carrying three or four tons of parcel goods. Because of the density of traffic and parked cars the situation is quite impossible. I have seen a truck pulled up at one end of the town and the driver and his helper delivering goods pushing trolleys 200 or 300 yards or perhaps a quarter of a mile to the other end of the town. This demonstrates the lack of thinking and proper planning on the part of the management of CIE and it is this lack which makes it necessary for CIE to keep coming in here looking for subventions. Surely it should be possible to have some kind of container traffic with a local person employed to deliver the stuff. That would be cheaper than hiring a truck at £3.50p an hour.

The tragedy is that CIE do not have to think because they control the entire transport system. They have been given that control by laws passed in this House and, whenever they are in financial difficulty, they can come here looking for extra money. Once more, I want to make it clear that the workers are doing everything in their power, doing an excellent job; it is at management level the trouble lies.

Even communicating with CIE presents difficulties. If one phones one is transferred from one officer to another and there is such an air of inertia that one can become quite disconcerted. It is a most unsatisfactory situation.

CIE provide an essential service. There is no reason why it should not be an economic service. The road freight service does not really serve any useful purpose. It certainly does not serve the purpose for which it was intended. If private enterprise were allowed to operate haulage of such goods as cement, artificial manures and so on the cost would be considerably less and farmers and business people would get a cheaper and more efficient service. Kerry County Council have to pay very high prices to CIE for whatever haulage they have. They are not allowed to employ private hauliers. This position will have to be corrected.

There is need for rationalisation. Continental firms operating in Killorglin are not used to providing their own transport but, because of the unsatistory situation, one or two firms tried to arrange their own haulage service and immediately found themselves in contravention of the regulations, to say nothing about this adding to our balance of payments problem because these vehicles had to be imported. As it is, vehicles are not used to the full. The regulations will have to be changed. We cannot go on footing this huge bill. I would stress the need for modern handling equipment, with spring-loaded buffers—I think that is the term used—in such a way that anything can be loaded into the rail truck and be safe there.

Referring back to the damage to cement, this is caused by virtue of the fact that the cement people, who used to use five-ply bags in the past, have reduced them to three-ply because of the colossal cost of paper. Because of extra handling this tends to leave the cement much more open to damage and to the bags being torn. If we were able to get this material at ex-factory price, it could be loaded as it came off the conveyors directly on to pallets and fork-lifted in and off-loaded at the other end with fork-lifts. This is the modern way of doing everything. The system which applied 100 years ago was that everything was manhandled into a wagon. It is skull-dragged out today. Nobody wants to lift a bag. People try to drag them along and this is the cause of all the damage to a basic material which is of vital necessity to the country. In the case of my own firm, it is costing us £3,000 a year more than it should. The local community to whom we sell this material could be saved £3,000. The Minister should have a look at the background to all this and set up some type of organisation to find out the purpose CIE could serve and the value that would have for the nation.

CIE have corrected the passenger position. They have a passenger service which is second to none in Europe. I hope to see something done on the commercial side, the traffic goods side, to give us something in line with what is happening in Europe. They should allow our manufacturers to be competitive by restructuring the organisation to enable the material to be delivered at a competitive cost so that we can compete in Europe and in the many corners of the world where we must compete if we are to keep ourselves going as a nation. This is no time to be carrying somebody else on our back. We have more than enough to do to carry ourselves. The organisation must be restructured.

If we got rid of half the management we would get rid of all the mismanagement. It appears that we have managers over managers and there is no management at all. Believe me, there is no management in CIE. If there is any management left, it is the workmen who are trying to keep their jobs going and are taking abuse from day to day without a murmur. They are apologetic about what is happening and they make it clear that while they are doing their best they would like to be able to do much better, but they are prevented from above from doing their job and giving the type of service to the people which would be appreciated and which would make dealings with CIE more pleasant for everyone concerned.

The question posed by this Bill is: "What is wrong with CIE?" CIE are the public Aunt Sally but that hardly provides a solution for the problems of our transport system. Each year in this House under some heading CIE come in for criticism, which is quite right. I wonder is that criticism listened to and is it as constructive as it might be. Does it achieve what the public want and what we want, that is, a better transport system?

Any concern which must get an annual grant of over £11 million is suffering from some industrial or commercial complaint which is very grave indeed. We can accept that we will not go on subsidising or assisting CIE or we can accept that it is another arm of social welfare and be prepared to subsidise it so that a service can be given to the people. There are other branches of Government and branches of the Department which are subsidised and which could never be made to pay. I wonder is the old illusion that some day the transport system could be made to pay still in our minds? If it is, we must get rid of it.

If we examine the legislation passed in this House over the years dealing with the problems and ills of the transport system, we see that there was always wishful thinking that some day CIE would become a very competent concern giving the public an excellent transport system and not looking for subsidies from the central fund. We must disabuse our minds of all that. Every transport system in the world that I know of is suffering in the same way as ours is. We have a very sparsely populated country but we must maintain some transport system even in the most remote parts. This shows the problems we are up against.

We have to examine the component parts of CIE: the management, the staffs, the trade unions and the Government. The Government are interfering in the management of CIE to a great extent to save themselves from embarrassment. When the petrol tax was announced last night, we were told it would not affect CIE but, of course, it will to a fairly high degree. When the Government were deciding on this grant of over £11 million, I wonder did they consult with the management of CIE and say they were about to put this impost on the price of petrol and not on diesel oil. The management and the Government must realise that this will increase the costs of CIE.

The Government have imposed a very savage tax on petrol and I fear that shortly we will see an increase in bus fares and train fares in order to offset the second part of the Government's impost. It is quite normal that the Government should have some communication with the national transport system but in this case CIE, who cannot answer back, will be forced in the near future to look for more money to offset the increased costs imposed by the Government's order last night. I appreciate that the Minister said this would not affect the public transport service but in my view it will.

In recent times CIE has suffered greatly from bus strikes. The most recent strike lasted 11 weeks and crippled the public transport system in the city. While we regard strikes as deplorable we must recognise that there is a reason for them. Men will not go on strike simply for kicks. In a debate on a Bill of this type Members have a right to ask if everything is well with the whole structure of CIE; are the unions playing their part, or is there a need for a new board of management? Those who have suggested the establishment of such a new board of management feel that it should be composed of officials of the company a bigger representation from the trade unions, and representatives of the bus users. If the public were represented on such a board they would then be in a position to see the problems involved in running such a vast organisation.

Such a board of management would stop the public referring to CIE as "they". The company are described as such when people criticise an increase in fares, refer to the poor bus service in the city or to the fact that the railway carriages are not always clean. These are points which aggravate the public but I believe there are more serious matters for consideration. The Government should consider amending the legislation so that Members would have an opportunity of considering an annual progress report from CIE, and other semi-State bodies. The management of CIE give the impression that they are trying to improve matters but without succeeding. In certain facets of their operations they have succeeded.

I am aware that in trying to provide an effective bus service in this city the company encounter many obstacles. When a main thoroughfare is being resurfaced the bus service is disrupted. Such works result in people having to wait at bus stops, often in inclement weather, for long periods. It would be hard to expect such people to take a rational view of the failings of CIE. The Members of this House should do everything possible to help CIE improve their services. It is not enough to criticise the company. Such criticism may relieve the feelings of the individual but is does not help the management of CIE to improve the service or those who use the service.

It has been stated that we should have an underground train service in this city. Such a service would be a tremendous help and, undoubtedly, it will be introduced, but what would it cost? When we consider that within a few years one million people will be living in the greater Dublin area we realise that the population is there to support the setting up of such a service. In this regard consideration should be given to the mono-rail system which has been perfected by the Japanese.

If the company failed to make way for their buses by reducing the number of cars using the city streets it is because they are not providing an adequate bus service to attract those who drive to work in their own cars to use the buses. It is maddening when one uses a bus to see the droves of cars carrying only the driver. Some years ago I suggested that the main bus routes should be made clearways and that parking be prohibited along these routes. This would have the effect of speeding up bus traffic. The fact that the bus service operating in the city is not fast is the greatest encouragement to people to drive their cars to their place of work. I do not believe that the increase in the price of petrol imposed by the Minister for Finance last night will prove any deterrent to the motorists. I do not think that as a result of this increase people will leave their cars behind and use the public transport service.

The Departments of Transport and Power and Industry and Commerce, the local authorities, the trade unions and the Garda should be asked to see what part they can play in making CIE a better organisation. It is wrong and dishonest that we should simply bash the CIE management at every opportunity without offering any help to them. If one stood at a bus queue and listened to the adverse comments of people waiting there, one would want to be a hero to defend the system. However, when such a matter comes before this House we must do something more than criticise. There is an onus on Members to suggest ways and means of improving the service. The question could be asked: should our bus service be completely free as an incentive to people to use it? This may well come about because the roads are being choked by traffic of increasing density all the time. With the cost of motoring constantly increasing, we may well see the time when we will provide our bus services free and class them a branch of social welfare. I feel we should examine that possibility now to ascertain whether or not the time is opportune to put it into practice. Of course, it would mean subsidising CIE to a greater extent but at least people using the service would not have to pay for an inadequate one such as is being provided at present. I do not suggest that that is an original idea. It has been thought of before but the point I am making is that some radical change must be made to improve CIE and ensure that they provide an efficient transport system.

Debate adjourned.
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