asked the Minister for Transport and Power if he will specify the social costs and benefits of loss-making services operated by CIE in relation to their total running costs.
Written Answers. - CIE Operations.
72.
Precise estimates of the social costs and benefits of CIE's individual loss-making services, for example on individual railway or bus routes, are not available. While I would like to see the social costs and benefits of the various services provided by CIE identified, the Deputy will appreciate that the identification and quantification of such costs and benefits would be a formidable and costly task, and I have some doubts that the likely results would be of sufficient practical use to justify the expense at the present time. However, the social costs of CIE's loss-making services can broadly be equated to the amount of the Exchequer subvention paid to the board. In the current year the total subvention provision for CIE is £26.5 million. This provision is in respect of services provided by rail and road, excluding road freight, the Galway/Aran service and the maintenance of the canals. The total estimated cost in 1975 of operating these services is approximately £80 million.
As indicated in my speech in the House on the Second Stage of the Transport (No. 2) Bill, 1974, a new subvention structure for CIE has been introduced with effect from 1st January, 1975 to comply with the provisions of EEC Regulations 1191/69, 1192/69 and 1107/70. Under the new subvention arrangements compensation is being paid in accordance with the public service obligation provisions of Regulations 1191/69 and 1107/70 in respect of losses remaining on CIE's rail passenger services and road passenger services, including Dublin city bus services, after taking account of fares increases and any possible economies in operation. Losses on rail freight services, in so far as they cannot be met by rates increases, economies, and so on, are being covered by a combination of payments under the provisions of Regulations 1192/69 and 1107/70. The subvention also includes provision in respect of losses incurred on the maintenance of the canals and on the Galway/Aran ferry service. No subvention is provided in respect of the board's other services.
73.
asked the Minister for Transport and Power if he will indicate, in relation to the reported statements of the general manager of CIE on his resignation, the extent to which his Department are consulted by CIE on major policy matters involving substantial expenditure; and if he will make a statement on the matter.
CIE operate within the framework of general transport policy laid down in transport legislation. The statement issued jointly by the board and general manager of CIE concerning the general manager's resignation made no reference to major policy matters.
Forecasts of CIE's subvention and capital expenditure requirements are submitted to my Department each year for approval under the current and capital budgets so that I am aware of any proposals by the board involving substantial expenditure.