andMr. Deasy asked the Minister for Tourism and Transport if he will outline his attitude to the conclusion in paragraph 4.3 of the 1972 Occasional Paper of the National Prices Commission that social benefits from CIE's operations should be quantified and the Government subsidy paid on this basis and not on a generalised basis as is still the case.
Written Answers. - CIE Government Subsidy.
51.
The conclusion at paragraph 4.3 of the 1972 NPC Occasional Paper would appear to involve the identification and quantification of the social costs and benefits of CIE's operations on a route or service basis. This would be a very difficult and costly task and I am doubtful whether such an exercise would yield sufficiently worthwhile practical results to justify the expense involved.
I should point out that CIE are no longer being paid subvention on a generalised or global basis. Since I January 1975, subvention has been paid in accordance with the public service obligation provisions of EEC 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 economy in operation. Losses on rail freight services, in so far as they cannot be met by rates increases, economies and so on, have been covered by a combination of payments under the provisions of EEC 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.
The Deputy will no doubt have seen my recent announcement that I have appointed McKinsey and Company Inc., Management Consultants, to undertake a study of the financial position of CIE. I expect that, as in 1970-71 when they undertook a similar study of CIE's financial position, McKinseys will make an evaluation of the social costs and benefits involved when assessing the future prospects of the board's loss-making operations.