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Dáil Éireann debate -
Tuesday, 15 Apr 1975

Vol. 279 No. 10

Ceisteanna—Questions. Oral Answers. - CIE Subventions.

27.

asked the Minister for Transport and Power if a final decision regarding the payment of subventions to CIE to conform with EEC requirements has been made; if he has made proposals in this regard; if so, their outcome in so far as Govern-will consider taking similar action in relation to the national airlines.

I would refer ment policy is concerned; and if he the Deputy to my speech on the Second Stage of the Transport (No. 2) Bill, 1974, on 3rd December, 1974, in which I outlined to the House the proposed new subvention structure for CIE to comply with the provisions of EEC regulations governing State aid to transport undertakings. Under these regulations, the previous blanket subvention arrangements for CIE were no longer appropriate and it was necessary to provide that in future grants to CIE would be paid under specific headings.

The new subvention structure has been introduced with effect from 1st January, 1975, and the necessary provisions have been made in the 1975 Estimates for my Department. The introduction of the new subvention structure does not involve any significant alteration in existing Government policy in relation to CIE.

These EEC regulations do not apply to air transport and there is no proposal to subsidise the air companies.

If the regulations cannot be adopted to national airlines surely the Minister should investigate any possible means by which some subvention could be got from the EEC to help our national airline at this time when their workers are faced with the prospect of unemployment.

I shall have the subject matter of the Deputy's question looked into and shall communicate with him.

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