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Dáil Éireann debate -
Tuesday, 13 Dec 1983

Vol. 346 No. 9

Supplementary Estimates, 1983. - Transport Bill, 1983: Second Stage (Resumed) and Subsequent Stages.

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

Tá mé an-bhíoch do na Teachtaí a labhair ar an mBille, go mór-mhór do urlabharaí an Fhreasúra ar an ábhar seo.

I am very grateful to Deputies who spoke on the Bill. Many of the points raised were interesting and constructive. As is inevitable on a Bill of this kind, the debate ranged between great philosophical issues about transport on a national plane to more parochial matters, as Deputy Tunney pointed out. In my reply I hope to deal with as many points as possible.

The most important point is that 1983 will be the best year for CIE since 1977. In real terms the deficit this year will be lower than it has been at least since 1977. That is very good news. Those who work in CIE have to take much criticism and it is only fair that I should record my sincere congratulations to them for their performance this year.

When we discussed this Bill a few weeks ago it appeared that the deficit for 1983 would be £104 million, that is £5.2 million less than last year. That would be the first time there was a reduction in the deficit over the preceding year. However, the latest news is even better because the monthly figures at the end of November suggest that the deficit will be of the order of £102,500,000. In real terms that represents a reduction in the deficit of around 15 per cent, which is an incredibly good performance in a severe recession. I am sure Members on all sides will want to join with me in congratulating CIE and those people working in that organisation. We express the hope that this trend will be continued in the future, as I believe it can be.

Will the Minister say in which area were the improvements?

I do not have the precise details but perhaps I will have some of them for the Deputy at the end of the debate. I must add that there are still a few weeks to go to the end of the year. They are still projections, but that is the way they look. It bears out my belief, which I expressed a year ago when I took up office, that great improvements could be brought about in CIE and in the Exchequer subvention without massive redundancies or massive cuts in services. That happened in 1983.

I believe there can be further improvements in CIE without massive redundancies or massive cuts in services, although I have to admit that some of these things may be necessary. I have said this to the board on every occasion I met them during the year and I repeated that message to them about two months ago. We do not necessarily have to equate reductions in the deficit with redundancies or cuts in services. There is great scope for improved worker-management relations. Everyone will accept they are not the best. It must be emphasised again and again that all the blame for poor industrial relations in CIE cannot be laid at the door of the workers or of management. As with many things in relation to CIE, it has to be said that Governments during the years, sometimes by deed and often by omission, have added to the difficulties of CIE. I will give one example. During 1982 CIE applied for a fare increase. All of us want lower fares and we wish to avoid fare increases. A decision was taken at that time that a fare increase from 1 July would not be allowed. During the preparation of the Estimates, which were published during the election campaign, my predecessor, Deputy Wilson, courageously and honestly admitted that the Estimates implied an increase in fares from 1 January of this year. Deputy Wilson deserves great credit for his honesty in that regard, but the effect of the delay was to add £12 million to CIE's deficit last year. I am only citing that as an example of the omissions by Government which can add to the problems of CIE, who are then berated for the huge increase in their deficit.

There will be further fare increases. There is an application at present before the Prices Commission which will have to be decided very shortly. Bad industrial relations and bad financial results cannot be laid at the door of the workers or management or both; others must share the blame, primarily the Government. I hope the policies we are now pursuing will help to minimise or, preferably, eliminate any contributions the Government have been making towards the problems of CIE. For that reason when I become Minister I felt that we must adopt a new approach to CIE. As I said in my opening speech I pursuaded the Government in June of this year to adopt that new approach, which I will repeat briefly because it is important.

First, the Government have identified that about one third of CIE's services are social and, therefore, one third of their expenditure will be met by the Government subject to that expenditure reducing in real terms by about 2½ per cent per annum over the next five years to give a total reduction of about 12 per cent. An expenditure reducing by 12 per cent and linked to the subvention also implies a reduction in the subvention of 12 per cent over that period. Secondly, that subvention will, in economic jargon, be paid "above the line". I consider that very important because it affords an opportunity for CIE to make a profit. If CIE do as well in 1984 as they did in 1983 they will achieve profits which will be a great morale booster for them and badly needed. I have told the board on several occasions that low morale is inevitable when an organisation is being constantly berated—and I have fallen into that trap myself—but when morale suffers so do results. Conversely, if morale improves following the achievements of this year and a hope for profits next year, that will stimulate even greater performances in CIE, better service, cheaper fares, fewer redundancies and fewer cuts in service. That is what our new policy was designed to achieve last June.

For the first time CIE know in advance what their subvention will be over the next five years. They will not have to wait until the end of December when the Book of Estimates is published to know what they are getting for the following year. Very often decisions had been taken in the previous year or years which had cost implications for the following year. At least now when CIE are making decisions they will have to take into reckoning the cost implications for succeeding years and how they fit into the subvention they are getting. In addition to that part of our package in June was an additional decision to set up a permanent capital committee—which has been set up—whose job it will be to analyse and assess every major proposal for capital expenditure in CIE. This is modelled on the airport construction committee which has been operating very successfully for 40 years. I hope it will achieve better and speedier decisions and better evaluation of proposals. The committee is comprised of officials of my Department, the Department of Finance and CIE.

In June we also decided to make decisions before the end of this year on the McKinsey Report. My proposals, as distinct from those which were in existence when I came into office, are now ready and I have had preliminary discussions with the new chairman-designate. However, in fairness I felt I should delay bringing them to Government until he has had a few weeks to find his feet. For that reason our decision on that will be a little later than expected, perhaps two months into the new year. A decision will have been made in that time on the options in the McKinsey Report. As I said in my speech, McKinsey does not make any precise recommendations on any of CIE's activities. For instance, with regard to the railways he cites the options—keep them, expand or reduce them, or close them. He said it is not really worth thinking about expanding or reducing them so our options are to keep or close them. He went on to say that the system costs of either option in a ten or 25 year span is more or less the same, although it has to be said that the direct Exchequer cost of closing would be a great deal less. Given that the railways constitute two-thirds of CIE's deficit, it is obvious that the major issue is the question of the railways, which Deputy Wilson never fails to remind everybody does not serve County Cavan—

It does not serve Monaghan or Donegal either.

Unlike Deputy Wilson's constituency, the headquarters of the railway are in my constituency and Inchicore Railway Works are almost part of my blood as I was born and reared right beside them.

I want to turn to some of the points made by Deputies during the course of this debate. Before turning attention to the longer term transportation problems in the Dublin area, I should like to refer to two issues which came in for particular comment. These are the cheap day bus excursions to Newry being advertised by CIE and bus services in the Finglas area. As some Deputies pointed out in relation to the Newry traffic, it is anomalous on the one hand to press CIE to perform more commercially and on the other hand to complain when they try to compete with the private sector as in the case of the excursions to Newry. Independently of this debate I have been considering this problem and have come to the conclusion that commercially, if that can be taken in isolation, CIE were correct in seeking to capture a part of this market.

I am very keenly aware of the damage that this type of traffic can do to jobs and trade. There can be no doubt about where my first loyalty lies. It is most regrettable that so many people are travelling to Newry for the purpose of shopping though down through the years the situation has varied as between traffic coming southwards and traffic going northwards. It is going northwards at present but this is something that I deprecate. However, having considered the situation and taken advice on it, I decided it would be wrong of me to make any approach to CIE on the matter because first there is the consideration that very often CIE's problems have been added to either by deed or by omission of Government. I have made a conscious decision to try to keep out of the day-to-day affairs of the company. As I have said, I will not be dealing with deputations in respect of day-to-day matters of CIE. There has been too much of that. It is not the role of the Minister or of the Government especially when pressure created in that way has had implications and has left the company in a situation of defending criticism of a deficit thus created, criticism from politicians who pressured the company into foregoing revenue and adding to the company costs. Therefore, I will not be interfering with CIE in relation to their Newry bus service. That is a matter the company can decide for themselves, they have heard the widespread criticism that has been levelled against them in this regard both by Deputies and by people outside of here.

In the case of the Finglas area, I must disagree with some of the views expressed. As a percentage of the population, Finglas has no more or no fewer trouble makers than any other locality. However, the grim fact is that in Finglas bus crews have been seriously assaulted and buses damaged. These problems will not be resolved by describing them as harassment. They will not even be resolved by better insurance schemes for bus crews. Though I have no direct responsibility for any particular bus service, I should like to record my concern that bus crews, whose jobs are difficult enough anyway, cannot go about their normal work of servicing the general public without fear of assault. It is disgraceful that CIE bus crews trying to serve the genuine needs of the people of Finglas and else where should be assaulted in this manner by a small unrepresentative minority. I very much regret that the responsible majority must suffer because of the misbehaviour of a small number. I am hopeful that efforts by the Garda and by community leaders in the Finglas area will lead to a full restoration of services. While I understand Deputy Tunney's concern in this matter, I considered his contribution to be lacking in terms of balance. I cannot recall making any reference to efforts made by him or by any other public representative from the constituency to ensure that bus crews would not be attacked in future. I say that because last year a similar problem arose in part of my constituency. In that instance Deputies for the area went to the locality concerned, convened a meeting and were successful in mooting an effort which would ensure that there would be no repetition of attacks on bus crews. That effort was successful and the bus service was promptly restored with agreement from the bus crews and from their unions. Perhaps Deputy Tunney and the other Deputies concerned in the case of the Finglas area might try a similar effort, if they have not done so already.

The longer-term transportation problems of the Dublin area have been raised in the context of the Howth-Bray scheme, developments in relation to the DTA, the Tallaght rapid transit proposal and current road policies. I agree fully, as some Deputies suggested, that the Howth-Bray service should be marketed heavily by CIE so that the daily carryings reach the projected targets as quickly as possible. Undoubtedly, in purely transport terms the scheme is very attractive. However, as I pointed out in my introductory remarks, the point at issue is not so much the improvement in transport itself but rather the cost at which this is being achieved. Both the capital and operating costs of the scheme clearly underline the magnitude of transportation decisions for the Dublin area.

Deputies have mentioned the CIE proposal for a rapid transit link from Tallaght to Heuston Station. This proposal, like its predeccessor for the Howth-Bray line, derives from the recommendations of the Dublin Rapid Rail Transit Study. I am more than well aware of the pressing demands in the Tallaght area for improvements not only to the transportation system but also to any other facilities and amenities. We would be doing no good for the people of Tallaght if we embarked on a very costly project of this nature without being certain beforehand that the proposal was merited not just in terms of the capital investment costs but also having regard to the ongoing interest charges that will accrue from such investment. At this moment the question of Tallaght transportation is on the agenda of the permanent capital committee.

Unfortunately in tackling transport problems there has been a tendency on the part of various bodies to opt for high technology and costly solutions when very often something much less costly might prove equally effective. A prime example of this are the bus lanes that have been introduced throughout Dublin. It is only fair to congratulate the Dublin Transportation Task Force in this respect and also Deputy Reynolds who as Minister for Transport initiated these lanes with great gusto. All of these bus lanes will repay their investment within three years, some well within that period. There is the question also of the competing demands for investment in either road or rail solutions of our difficulties. These are the considerations that prompted the Transport Consultative Commission to recommend the creation of the Dublin Transport Authority. In that regard proposals were agreed by the last Government and, while I am very committed to the introduction of a Dublin Transport Authority, I am happy with the details of those early proposals. I am having another look at them before a decision is made.

Deputies have raised questions in relation to CIE's new buses, the manufacturing arrangements at Shannon and the export prospects. As Deputies will appreciate, the Shannon company is a private concern and I have no direct dealings with it or responsibility for it. I am glad to confirm that a small export order is just being completed and I hope that the company's efforts to secure export orders will be successful. The arrangements for meeting CIE's future bus needs will be influenced by the outcome of negotiations going on between the Shannon firm and CIE in relation to the board's 1984 requirements.

The renewal of the school bus fleet from the mid eighties onwards is an issue which, I understand, the Minister for Education has under consideration.

The poor condition of CIE's mainline rolling stock, particularly on trains to the west, has been mentioned. As I have already told the House, CIE's carriage building programmes envisages the acquisition of 124 carriage units over the next few years. The first train sets will be available from Inchicore before the middle of 1984, in the next six months. I understand that it is CIE's intention to use the new stock to gradually upgrade the standard of carriages in use on the western lines, though of course the decisions as to which services they will be used on is a matter for the board.

Deputy Kelly in the course of the debate repeated his rather novel suggestion that some attempt be made to get private sector involvement in the proposed Tallaght rapid rail link. Novel as the suggestion is I know of no successful urban transit systems in which private sector interests participate directly. Given the costs involved, the lack of population density and the rather meagre revenues, I see little private sector involvement in any urban rail transit operation here. There is, however, some potential in the bus area for private sector involvement in public transport. The Road Transport Act, 1932, effectively governs the operation of the private sector road passenger industry in Ireland and I have initiated a review of the operation and the provisions of that Act.

I should like now to refer to the transport statistics mentioned by Deputy Wilson. There are a number of trends in these statistics that are worth referring to. In the case of railway receipts for passengers, parcels mails, etc., there was an increase of just over 5 per cent in the first four months of this year, by comparison with the same period last year. However, when account is taken of inflation during the period, rail passenger receipts fell in real terms by almost 5 per cent.

The picture for revenue from freight trains is a little more encouraging, although the revenue base is smaller than that for rail passengers. Nevertheless, in the first four months of the year the CSO show that freight train revenue rose by 17 per cent over the comparable months of 1982. This represents a real increase of nearly 6 per cent after account has been taken of inflation.

In terms of rail passenger carryings there was a welcome increase of nearly 7 per cent in the first four months of this year. The trend in rail freight tonnage was in the opposite direction. The CSO show a 10 per cent drop in the first four months of the year by comparison with the same period of last year.

As Deputy Wilson pointed out in his speech, the CSO have more up to date figures on road motor passenger services. Statistics are available for the first five months of the year. They show that gross receipts for road motor passenger services are up over 18 per cent in the first five months of the year. After adjusting for inflation this represents a real increase of over 6 per cent by comparison with the same period last year. In terms of actual passenger journeys there was only a slight increase of just under 1 per cent in the first five months of the year.

I do not have time to refer to all the points raised by Members but I undertake to send a detailed reply to all Members who raised issues during the debate. In regard to the Dublin passenger service I should like to tell Deputy Wilson, who asked me about the component parts of the great recovery in the position of CIE this year, the best year they have had for a long time, that I do not have the full facts. However, I should like to tell him that one of the areas where there has been an encouraging trend was in the Dublin city passenger service. For example, the amount of loss compared to the amount of expenditure has fallen from a figure in the region of 42 per cent in 1981 to 27 per cent. For the first time in several years the number of passengers carried has increased. That halt in an adverse trend is welcome and, hopefully, this new development of increased passenger numbers of Dublin buses will continue. It is not easy to be certain of the reasons for this, but three factors have contributed to it. Firstly, with the renewal of buses there are fewer breakdowns resulting in a more reliable service. Passengers feel more comfortable and happy travelling on the new buses. The second factor is the introduction of bus lanes and they have helped to reduce the journey times of many buses. The third factor is that we have had fewer strikes on the Dublin bus service. I do not have figures for this and this is only an impression I have.

I should like to say to people working in CIE, particularly those working on the Dublin city services where there has been an undue number of stoppages, that one man can put up to 250,000 people walking over a trivial matter. I appeal to CIE employees to stop this practice. If there are one-man, undemocratic pickets employees should pass them. When such strikes take place CIE lose more people than the passengers unable to use the service for the duration of such strikes. It is because people are not sure when a strike will occur that they resort to using their cars to get to work. If people could be sure of a comfortable and speedy bus service they would use it to a greater extent. We could then look forward to a greater increase in passenger numbers carried. That would greatly help the performance of the company in achieving the new targets set by the Government. It would avoid the possible necessity for cuts in service which may lead to redundancies. In fact, those employees might be saving their own jobs.

Given the very encouraging trend this year there is a great incentive for all CIE employees to break out of old practices and bad habits which have not helped the position of the company in the past so that the company and the travelling public can look forward to a better future.

With regard to the carriage building operation, the Minister in his speech referred to early 1984 but in his reply he referred to mid-1984 for the first carriages. I saw a news item to the effect that the shells of the carriages had arrived.

I am sure the Deputy understands my interest in this matter because the carriages are being built at Inchicore, near where I was born and reared. I am glad to be able to tell the Deputy that the target date is April 1984.

What is the name of the new company that replaced Bombardier?

GAC, General Automotive Corporation.

I am now putting the question as provided for in today's Order of Business.

Question: "That the Bill be now read a Second Time; the Bill is hereby agreed to, is reported to the House and the Fourth Stage is hereby completed and the Bill is hereby passed"— put and agreed to.

I wish to thank Deputy Wilson and the other Members on the opposite side of the House for their cooperation on this Bill.

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