I move:
That a sum not exceeding £125,787,000 (one hundred and twenty five million, seven hundred and eighty seven thousand pounds) be granted to defray the charge which will come in course of payment during the year ending 31st December, 1984 for the salaries and expenses of the Office of the Minister for Communications and of certain other services administered by that Office, for a cost alleviation payment and for payment of certain grants and grants-in-aid.
I welcome the opportunity to open the first debate on the Estimate for the Department of Communications. I wish to express my gratitude to the Opposition for facilitating the taking of this debate today at short notice. This arose notwithstanding an enabling section in the Postal and Telecommunications Services Act, 1983, because of doubts — in view of the fact that we are a new Department — whether sufficient authority existed for the expenditure of funds. It was felt proper that we should have the Estimate passed before the end of this month.
These Estimates are being discussed against the background of economic recovery in Europe and the United States. Indeed, the recovery in the United States is now well-established. From its low point at the end of 1982, the US economy expanded by 3½ per cent in 1983. This compares with an average growth of over 2 per cent in the OECD area as a whole. Economic activity in the EEC was somewhat subdued with output growing by only 1½ per cent in 1983.
Foreign trade — on which this country depends vitally and to a much greater extent than many other industrialised market economies — also started to resume growth last year. As measured by trade between the OECD countries, there was an estimated volume growth of almost 5 per cent last year, as compared with little or no growth in volume in 1982.
The outlook for the international economy is certainly more favourable now that it has been for some years. However, there are good reasons for introducing an element of caution into our expectations. Uncertainties still surround the strength and durability of world economic recovery. I need only refer to the persistence of high real interest rates in the United States, the uncertainty stemming from the debt problems of the less developed countries and the increase in protectionist measures worldwide. This confirms the importance of policy-makers internationally co-ordinating policies in such a way as to reduce the uncertainties and to strengthen and broaden the economic recovery. On the home front, we will continue to pursue policies, as confirmed by the budget measures, to enable the economy to benefit to the maximum extent from a recovery in the international markets.
Up to now the recovery in the world economy has been neither strong enough nor sufficiently broadly based to contribute significantly to growth in the Irish economy, but there are some encouraging signs. In case those economists, whose models are oiled with pessimism, have their eyes closed, let me refer to a few of those signs. The volume of exports of goods and services is estimated to have grown by about 10½ per cent last year, compared with 4 per cent in 1982. Even more significantly, industrial exports increased by about 14 per cent reflecting to a large extent the strength of the electronics and chemicals sector. Underpinning the exports growth we had an expansion of over 7 per cent in the volume of manufacturing output last year.
I am not suggesting that the trumpets should be blown too loudly about the positive developments in our economy, but I do wish Deputies to be made aware of definite encouraging features that are appearing on the economic front. There is still a long way to go before our public finance problems are solved or before the economy can be said to be truly on the path of growth in terms of employment and output.
While the size of the budget deficit and the level of Exchequer borrowing tend to capture the spotlight, the steps taken to ensure the efficient use of our resources and productive capability will have to continue to be a very important feature of economic policy. The rate at which the economy can expand depends on the productive resources and on the efficiency with which they are used. Large demands will continue to be placed on our resources in the future. In order to respond to these demands, today's decisions must be formulated to foster tomorrow's productivity of the country's resources. It is in this general economic context that these Estimates are introduced.
This is the first Estimate for the Department of Communications which was established on 2 January 1984, under the Ministers and Secretaries (Amendment) Act, 1983. The Estimate is comprised of the charges in respect of the Office of the Minister for Transport and the residual element of the Office of the Minister for Posts and Telegraphs both of which were abolished following the reorganisation of the postal and telecommunications services with effect from 1 January, 1984, under the Postal and Telecommunications Services Act, 1983.
Because this is the first Estimate for the new Department it is difficult to provide meaningful comparisons of estimated expenditure in 1984 as compared with the provisional 1983 outturn under a number of subheads. However, if Deputies are interested I would refer them to the addendum in green at the back of the Volume of Revised Estimates for Public Services, 1984. The addendum sets out separately the position of the former Votes for Transport and for Posts and Telegraphs which have been included in the new Communications Vote.
The taking-over of the postal and telecommunications services was, as Deputies generally are aware, a major undertaking and was the biggest single change in the Civil Service since the foundation of the State, transferring half of the staff out of the Civil Service into the State-sponsored sector. Change naturally involves some fear but I am happy to place on record that the staff generally and the unions and associations representing them were mature enough to recognise that the change was in their own long-term interests as well as that of the services they provide and, given certain legislative guarantees in relation to their terms and conditions of service, was accepted by them as such. I wish the two new companies, and all who work in them, well.
The decision to establish the new State-sponsored bodies was taken against a background where the services were in bad shape following industrial action and, in the case of the telecommunications service, under-investment over a long period. The Post Office Review Group had recommended that these commercial services should be given the freedom to develop by organising them as State-sponsored bodies. The evidence so far since the two new bodies took over control on 1 January leaves no real room for doubt that the decision taken was the correct one. I am greatly heartened by the refreshing approach to the services adopted by the two boards. I need refer only to the "penny post" and the St. Patrick's Day cards by An Post, and the lower call charges over the St. Patrick's Day week-end, the changes in connection charges, and the lower telex charges introduced by Bord Telecom Éireann. I believe that, just as intended, new life is being breathed into the new services, and I am looking forward to other initiatives by the two companies designed to improve service to the customer.
These services are major undertakings and to change attitudes and make a substantial impact on the services provided will, necessarily, take time. Changes and improvements will come only gradually but I am confident that they will materialise. I make this point about time being needed because I am aware, for example, that some telephone subscribers expect the quality of service, whether it be by way of speedier repairs or provision of service more quickly, to be improved overnight. This is not a realistic expectation in the short term although, as I have said, I have every confidence that the improvements will come as quickly as they can be expected realistically.
I am sure too that the boards and staff of the two new companies are themselves impatient that they cannot accomplish immediately as much as they know needs to be done to satisfy their customers.
The quality of the postal service in this country has traditionally been high. In the aftermath of the 1979 strike the quality dropped but I am happy to say that it was restored over the course of 1983 to its previous high standard. The target is to deliver 90 per cent of letters within the country on the following working day. That target was reached generally in the second half of last year. The balance of 10 per cent could not be delivered within that time scale because transport connections would not allow of this. The quality of the parcel service too was, in general, satisfactory. In so far as the quality of the postal service is concerned, therefore, the aim must be to build on what has already been achieved and to give the public a reliable, good quality service. Reliability is as important as speed, and users of the services need reasonable assurance that delivery will be made in the time expected.
The charges for postal services here are high by international standards. It must be a continuing priority to make the charges here more competitive. Over 80 per cent of postal costs are in respect of pay and related charges. Pay costs have escalated over the period since 1979 due largely to the high rates of inflation in this country — substantially higher than in most European countries. This, and the low volume of posting per head of population, are the primary reasons for postal charges here not being competitive. This trend can be reversed, as it must be, only by moderation in pay rates and by increasing the volume of mail handled. Pay increases must take into account what the service can bear and what is in the overall interests of the service.
I know that An Post are acutely conscious of the need to market their services and on the basis of the evidence so far, I am confident that An Post will be successful in this. Some may be under the impression that with developments in technology, the postal service will inevitably go into decline. Experience in the UK and the USA do not bear out this and there has been a modest but continuing growth in postal traffic in those countries. This growth will not, of course, come of itself; it will need active encouragement in the form of imaginative marketing, and giving the public the type of services they require. This includes the introduction of new services of which a number have been introduced in recent years such as the surface air lifted parcel service to the USA and Canada, the postbus, a limited express mail service and publicity post service, which was provided experimentally for some users last year. The extension of these is, I know, in the pipeline by An Post.
As I have said, our postage rates are too high. I am particularly pleased that I have been able to resist successfully any price increase since I came to office. This means that for two full years there has been no price increase and I am happy to say that none is planned in the immediate future. This policy has helped to reverse the downward trend in postage volumes in preceding years. However, with pay costs rising faster than traffic growth, charges cannot be maintained at their existing level indefinitely unless traffic can be boosted greatly. This is the task facing Mr. Feargal Quinn and the board and I think it right that I should warmly praise the breath of fresh air that they have brought to the postal business.
The Post Office Review Group in their report in 1979 described the telecommunications services as being in a state of crisis. The accelerated five-year telephone development programme was undertaken to rectify that position. I do not propose to comment in detail on all aspects of the service. Deputies generally will have their own experience of the standard of service, and this varies very much between areas. The objective of the current programme was to bring the standard of service up to the level in other EEC countries in terms of quality and availability by the end of the five-year period and it was recognised that at least five years would be needed to achieve this.
In practice, telephones are now readily available over much of the country, the quality of the automatic service is greatly improved and an acceptable repair service is being given. Dublin is the major exception to this. The main reason Dublin has lagged behind was difficulty in getting accommodation for exchange equipment and for staff. It took longer to secure the accommodation needed in Dublin than it did elsewhere and as a result the new telephone exchanges could not be installed and the additional staff needed recruited. The necessary exchanges are now coming on stream and the staff have been recruited and have been gaining the necessary skill and experience.
Bord Telecom Éireann envisage that the waiting list for telephones in Dublin will be largely eliminated within the next 12 months and, in the meantime, priority will be given to telephones needed for business purposes. Substantial progress has been made in improving the reliability of underground cables in Dublin by means of pressurisation, a programme for which has been in train for some time and by devoting substantial effort to preventive maintenance and to the replacement of life-expired cables. These actions are producing results. The time taken to restore service has been greatly reduced and while it is not yet up to the target set for the end of the five-year programme period, the position continues to improve.
Another target of the development programme was that the speed of answering by operators in telephone exchanges should be greatly improved to a point where 90 per cent of callers would be answered in ten seconds. This target has been largely achieved.
The two main targets of the telecommunications services must be to raise the quality of the services and to make its charges more competitive by international standards. I am satisfied that the targets in relation to the quality of the services will be reached reasonably soon — perhaps not as quickly as we all would like, but they are clearly in sight.
Having the charges more competitive will be a much more difficult task and will be achieved only over quite a long period. Charges here are high because the massive investment involved in the current five-year development programme took place at a time when costs were escalating rapidly due to inflation and when interest rates were at a very high level. This put the services here at a serious disadvantage compared with other countries where investment took place more evenly over a long period of years when costs of development were only a fraction of what they were in recent years and when borrowing rates were very much less than they were here over the last few years. The services here were at the further disadvantage that because of the system of financing of the services all the capital required had to be borrowed. Finally, a prime requirement of the development programme was investment in the infrastructure of the services in terms of buildings and equipment and it will take time before all of that investment becomes fully productive. Nonetheless, telecommunications charges have not been increased this year and no increase is envisaged in the immediate future.
The major task facing Bord Telecom Éireann is to improve the cost effectiveness of the services. This will involve maximising the use made of the system by connecting the maximum number of subscribers, increasing traffic volumes, tailoring further investment as closely as possible to short-term needs and improving staff efficiency. I believe that some improvements in cost effectiveness will come readily enough as the spare capacity in the network is used up, but more than this will be needed. I know that Bord Telecom Éireann are fully conscious of the need to improve their costeffectiveness and that they are addressing this problem urgently. Here again, however, we must be realistic and accept that dramatic improvements will not come overnight. There is a long, painstaking road ahead and the financial problems facing the telecommunications services will not be readily resolved.
Deputies will probably have seen from the Book of Estimates that no provision is made in the current year for financing of telephone capital developments. The reason for this is that Bord Telecom Éireann are expected to finance these directly from internally generated revenue and by borrowing directly. The legislation establishing the board made provision for the guarantee of borrowing for telephone capital purposes by the Minister for Finance but I would hope that, in practice, the board will be able to raise the money they require without such guarantees. Provision of £180 million is made in the Public Capital Programme for the current year for continuing the telephone development programme, which Bord Telecom Éireann themselves will finance. The expectation is that after the current year, capital spending should taper off.
As my remit in relation to the services does not extend to their day-to-day operations, I propose to confine my remaining comments on the services to some aspects which may be of general interest or concern. This country's international services have been provided over the years by means of cables in which the Department leased circuits or in which the Department took shares. Since the sixties, requirements have been met in part by circuits leased in satellites. These satellite circuits were routed through an earth station in Britain. With growth in international traffic, the provision of an earth station here is now justified and it is expected that the earth station being installed at a site near Midleton, County Cork, will be ready for operation within the next two months. This station will handle traffic for much of the American Continent and, for the first time, will give this country access to some other countries without being dependent on the intervention of third countries. This is clearly a desirable step forward. With the provision of European satellites in which this country has taken a share, it will be possible to increase further over the years this country's independence in meeting its international telecommunications needs. I will refer again to this later.
I propose to refer briefly now to two aspects of the telecommunications services which have been the subject of public comment recently. The first of these is telephone billing. I was conscious for quite some time that there was a perception on the part of some users that the telephone billing system for metered calls was unreliable. I would like first to explain that every subscriber connected to an automatic exchange has an individual meter at the local exchange on which calls made by him or her are recorded. Nobody else can have calls recorded on that meter. Those meters are, I am assured, of a kind used internationally and are highly reliable. Nevertheless, because of the volume of complaints reaching me and of the perception by some users that the system was unreliable, I arranged to have an independent examination of the billing system undertaken by a reputable firm of international telecommunications consultants. Their report has now been received. Having carried out on-the-spot examinations of the equipment used, maintenance procedures and the system used for billing calls, the consultants' conclusion is that the system employed here for billing of metered telephone calls is fully up to international standards. The consultants have noted, however, that the level of queries here is many times higher than in other countries. So clearly there remains a serious problem of perception.
I should say that I can appreciate that a system whereby calls are recorded on a meter to which a user has not access on a continuing basis to check the number of units recorded may not be fully satisfactory to some subscribers, although this is the general position internationally. To meet that, meters which subscribers can have installed in their own homes have been available for renting for some time past. I understand, too, that Bord Telecom Éireann are considering the supply of details of trunk calls made over the automatic system. This will involve the installation of additional equipment which is quite costly and those seeking the details will have to pay the extra costs involved. I see both of these measures as meeting reasonably the concern of those who want to check their metered call usage.
There was some public comment recently on delay on the part of the Department in occupying buildings. It is reasonable that this should be the subject of public comment. I regret very much any discourtesy which may be felt by the Committee of Public Accounts because of recent events, and I feel sure that there will not be a repetition.
The telephone development programme involved, in all, the provision of some 500 buildings, primarily for telephone exchanges and associated transmission equipment, but also for staff. The first requirement for progress in improving the telephone service was the availability of buildings. I have referred to the fact that problems in getting buildings in the Dublin area have been the main cause of progress in Dublin being slower than elsewhere. Indeed, I understand that experience over the years was that the non-availability of sites and buildings was the greatest single impediment in bringing about improvements in service when funds for projects became available. In the light of this experience, it was decided, on the launching of the accelerated telephone development programme, that an all-out effort would be made to secure sites and buildings as a first priority.
It was recognised that in so doing, buildings would become available in some cases before equipment was ready for installation or before staff could be moved into them, but going ahead with securing buildings as quickly as that could be done was an essential step if the programme was to be carried through on target. The Post Office Review Group accepted that the programme could be completed in five years only if quite exceptional action was taken. The decision by the Department, therefore, to make progress wherever it could in the provision of buildings so that they would be available when other parts of the programme fell into place was a reasonable one. If that were not done, the improvements in the telephone service that have been made could not have been secured.
It was inevitable in this approach that some buildings would not be occupied when they became available, although every effort was made to ensure that they were used as soon as they became available and the great majority of them were. Also, it was essential that where a need was foreseen for a building in a strategic area, the site or the building was acquired when it came on the market on the basis that if it were not acquired then, a suitable site or building might not be available later, when needed, resulting in delay in the provision of service for waiting applicants, including industrialists, or in the improvement of service where it was less than satisfactory.
Finally, the telephone development programme undertaken was perhaps the single biggest programme undertaken in the history of this State. That it is being carried through largely on schedule to what was recognised as a very tight deadline and at a time when the Department were also under pressure to prepare for the change-over to State-sponsored status was a remarkable achievement. I would hope that that accomplishment would not be over-shadowed by criticism, quite legitimate and understandable in itself, of the small number of buildings that were not utilised to maximum advantage.
I feel it appropriate here to say what a pity it would be if the fact that there are some grounds for criticism were allowed to diminish the magnitude of the task that has been accomplished. Embracing as it did the launching and carrying through broadly on target of the massive accelerated telecommunications development programme involving huge capital expenditure, the separation of two major services employing nearly 30,000 people from the Civil Service, the taking on board of new developments such as satellites and the restoration of the postal services to their former high standard, the astonishing thing is that it was all done so smoothly. I would like to pay tribute to my predecessors in office, the staff of the Department and the boards of the two companies for a truly remarkable achievement. So far, I do not think nearly enough credit has been given for what has been achieved.
Before I pass from telecommunications I want to refer to information technology. It is widely forecast that the explosion in information technology of which we are now witnessing the beginning, will bring about a revolution greater even than the industrial revolution of the 18th and 19th centuries. Not only will massive data banks be made easily available to business, commerce, agriculture, the universities and other institutions but the ordinary citizen will have easy access in his home to a wide range of information not readily obtainable today except by recourse to reference works or specialist advisers.
A variety of means will be used to enable the information to be made available. Apart from the computer itself, with its own data bank, information will be provided by the use of the public telecommunications network, of special networks dedicated to the exchange of data, of the cable networks provided initially for television, and over the air by the use of broadcast techniques. It is important that Ireland be well placed to take advantage of this impending revolution with all that it offers in terms of employment and export opportunities as well as in the quality of life of our citizens.
I particularly welcome in this connection the proposed inauguration by Bord Telecom Éireann later this year of a dedicated data network, and later I shall be mentioning the possibilities offered by Ireland's prospective participation in satellite broadcasting. Telecommunications will be the main carrier of most of the information technology and digital techniques offer many advantages over other types in facilitating this development. The fact that digital technology is used in most of the telephone exchanges and transmission systems installed in this country over the last few years makes this country an ideal location for industries engaged in information technology. Efforts are being directed at present to ensuring that this country will benefit to the maximum extent from this.
The earliest development, and in many ways the most exciting in broadcasting is likely to occur in local radio services. It is my intention to bring the necessary legislation for this development before the Oireachtas very shortly. Deputies will be aware that the Government published their legislative proposals last year and submitted them to the Oireachtas Joint Committee on Legislation. The proposals were the first matter to be considered by that new committee and the subject proved a very suitable one. The committee received a very wide range of submissions from individuals and interested organisations in relation to the proposals. These submissions provided a searching analysis of many aspects of the proposals, dealing both with the philosophy underlying the proposed developments and the practical nature of them. I am confident that the committee's work will provide an excellent grounding on which to base the forthcoming discussion on the Bill itself.
I think it is fair to say that there was broad agreement with the general intent of the Government proposals. There was, of course, disagreement with some particular aspects and many suggestions for improvement of the proposals. The text of the Bill is now being finalised taking the various suggestions made into consideration. I am confident that the positive approach which characterised the work of the committee will also be evident in that debate.
The basis of the Government's proposals for local radio services will be the creation of a framework for the development of those services throughout the country. It is intended that the Local Radio Authority should decide the areas which local radio services will serve and how many stations there will be, will select those most suitable to provide the services and will subsequently exercise general oversight and regulation of the services in the public interest. The legislation will not attempt to impose a uniform type of local radio service throughout the country. It is likely instead that the structure of local radio will differ from one area to another reflecting the nature of the local community. The legislation will confine itself to setting general guidelines and criteria which all stations will be expected to meet and which the authority will be expected to oversee. Reserve powers retained by the Minister or the Government will be few and will be limited to what is essential in the public interest.
There has been some debate recently on the likely number of local radio stations. I must emphasise that this will largely be a matter for the authority. However, if the population criteria used by the IBA in Britain were to be used here we would have a rather small number of stations. If IBA technical standards were to be used these would impose additional costs in setting up and running stations. The question will arise as to whether the standards of the IBA are too high or whether quality will be sacrificed to some extent for quantity. I have no doubt that this debate will go on for some time to come. In addition to the legislation to provide for local radio services the Government will be introducing about the same time legislation to deal effectively with the problems caused by illegal radio stations and others who abuse the radio spectrum, as well as increasing fines for TV licence evasion. The activities of unlicensed broadcasters have created a growing menace in recent years. Aircraft, shipping and emergency services have all been subject to interference. Some illegal broadcasters have displayed a most serious disregard for the effects of their actions or an astonishing degree of incompetence in their activities. There is an urgent responsibility to bring such activity to an early end.
In recent times a few pirate radio stations have claimed that their transmissions have been interfered with. I am not particularly sympathetic to these stations' claims. The fact is that they are themselves operating illegally. However, I also want to make it clear that I have not approved and do not intend to approve, of jamming of radio signals. The Government are determined that the problems of illegal radio will be resolved in a proper way through legislative action at an early date and that is my prime target.
In the past year international negotiations were concluded for additional VHF broadcasting frequencies for radio. VHF broadcasting services operate under a plan drawn up in Stockholm in 1961. Under this plan Ireland had sufficient frequency assignments to operate two national VHF networks. RTE has used one of these networks for RTE Radio 2 and the second network is shared between Raidio na Gaeltachta, for which it was originally provided, and Radio 1. This latter arrangement was unsatisfactory, particularly in areas in the south, west and north of the country where medium wave reception of Radio 1 is not entirely satisfactory. It has also been unsatisfactory that the high quality stereo signals possible on VHF have not been available for Radio 1 throughout the day. Efforts over the years to obtain additional VHF frequencies so that Radio 1 could be broadcast full time on that band were unsuccessful because of difficulties in reaching international agreements.
I am glad to announce that these difficulties have been overcome in recent months by planning efforts and negotiations conducted by my Department with the assistance of RTE. As a result, sufficient VHF frequencies are now available for a third national VHF network and these frequencies will be usable according as equipment is provided and as changes are made in some existing transmitters here and in Britain. I will be licensing RTE to proceed with the provision of transmitters for this third VHF network over the next two years or so. RTE propose to bring the third frequency into use at Mullaghanish in Cork very shortly. RTE Radio 1 will then be available on VHF throughout the day in the service area of that transmitter, parts of which suffer from poor medium wave reception of that service. RTE will be proceeding with the provision of new VHF transmitters for the third service at other sites later as their resources permit.
Nuair a thosnófar ag baint úsáide as an tríú chóras san árd-mhinicíocht, bheadh Raidio na Gaeltachta in ann, ó thaobh teicniúla de, craoladh ar feadh breis aimsire gach lá gan cur isteach ar Radio a h-aon. Ar ndóigh, is ceist le réiteach ag RTE sa chéad dul síos an leathnófar uaireanta craolachán Raidio na Gaeltachta agus is cosúil go mbraithfidh an freagra ar cad a chosnódh san. Tuigim go bhfuil beartaithe ag RTE craoladh ar feadh breis ama ó Raidio na Gaeltachta a túisce agus is féidir san a dhéanamh ó thaobh airgid de agus go bhfuil sé mar chuspóir acu craoladh i rith an lae ar fad níos déanaí nuair a bheidh dóthain airgid dó san ar fáil.
'Sé Raidio na Gaeltachta Raidio a trí i ngach rud ach amháin in ainm. Is ceart a cheistiú an mbeadh sé chun leas na Gaeilge Raidio na Gaeltachta a fhorbairt agus stáisiún fíor náisiúnta a dhéanamh de. Chuige sin, caithfí craoladh ar feadh an lae ar fad agus cláracha go mbeadh ábhair spéisiúla náisiúnta agus idirnáisiúnta á gcraoladh i dtreo go mbeadh suim ag pobal uile na tíre iontu chomh maith le muintir na Gaeltachta. B'fhéidir i dteannta leis sin go mba chóir an stáisiún a ath-ainmniú Raidio a trí, Raidio lán Ghaelach.
RTE also have made a proposal to establish a fourth radio service probably using a long wave frequency allocated to Ireland under an international plan drawn up in 1975. Such a service would be receivable over much of Britain as well as in Ireland. The RTE proposal is essentially for a commercial service of popular music for which RTE believes there is considerable advertising market particularly in Britain. The proposal gives rise to a number of questions which will need detailed consideration. Clearly any proposal which would improve RTE's financial position is to be welcomed and if the proposal for commercial radio service is soundly based financially it should obviously be supported. A detailed examination is proceeding to establish the prospects for a service on the lines suggested by RTE and, depending on the outcome of this examination, a decision on the proposal will be made by the Government in due course. I am personally attracted to the idea of an Irish Radio service receivable throughout these islands and I am positively encouraging the necessary research.
The development of satellites is another exciting area. My predecessor, Deputy John Wilson, formed a committee in November, 1982 to establish what advantages and benefits might accrue to Ireland from pending developments in satellite services. I pay tribute here to the foresight of Deputy Wilson in establishing this committee and to its members for the excellent work they did in producing a comprehensive report in a little over six months. That report enabled the Government to decide within a short space of time that proposals for the provision, on a concessionary basis, of an Irish Satellite Network and an Irish direct broadcasting by satellite service, generally referred to as DBS, should be sought. The satellite system to be provided is also to have some telecommunications capacity. Proposals on these lines were invited in November last from various groups and organisations in Ireland and internationally. The invitation documentation issued to 40 organisations who were asked to submit outline proposals by 29 February, 1984; final proposals are due by 31 July, 1984. A number of those invited have indicated that they do not intend to make proposals but the majority have a continuing interest. Various organisations combined to make nine outline proposals by the set date of 29 February last; three of these outline proposals came from Irish groups.
The interest expressed in the satellite project indicates the potential which satellite broadcasting represents for the development of new forms of broadcasting service. It is now recognised that these developments will supersede the limitations in broadcasting imposed by national boundaries up to now. Although DBS services are still primarily designed for reception in the country of origin, technical overspill will inevitably extend the area of coverage beyond national boundaries. Thus an Irish DBS service could have a potential audience of up to one hundred million people.
A number of European countries have announced decisions on DBS services in recent years. Britain, France, Germany and Sweden are among the countries that have plans to establish such services. There have recently been indications that the time scale for introduction of the services may have slipped in some cases but there is no doubt about the continuing interest throughout Europe in the potential which DBS offers. Satellite broadcasting is of course very costly and there is an element of risk associated with the development because new receiving equipment will be needed by those who wish to view DBS services. At this stage therefore the Government have taken the view that the potential and opportunities offered by satellite broadcasting should be assessed by means of the invitation of proposals as I have outlined.
The aim of the Government's actions in this area is to derive the maximum national benefit from the valuable resource which the satellite broadcasting frequencies available to this country represent. Proposers have been asked to say what financial contributions they would make in return for the use of these valuable assets and what other benefits they would offer, for example, in the creation of employment in this country, the transfer of technology and so on. Beyond specifying that any service must operate in accordance with the Geneva 1977 Plan for DBS services, the Government have not set down any regulatory framework at this stage for DBS services. It is open to proposers to make any suggestions they wish in relation to this but it can be taken that, if a DBS service is to proceed, the Government would intend to exercise oversight of it to the degree that is practicable. These and other questions will be addressed according as the project develops. The Government consideration of satellites is not confined to this project alone. The whole area of satellites abounds with exciting possibilities and this country is well placed to participate fully in these. We are particularly well placed geographically and what is often seen by many as a problem — the large number of young people in our population — could be a very exciting advantage.
Cable television services are frequently referred to in the context of satellite developments. There is likely to be a growing inter-relationship between these two means of communications which are sometimes thought to be competitive rather than complementary. A review of developments internationally suggests that satellite television services will provide a range of new programming for relay on cable systems and also that cable systems will give a more ready access for satellite television operators to larger numbers of television viewers than would otherwise be available in the next few years. Thus the development of each service could benefit the other.
Cable television services in Ireland have achieved a relatively high penetration through relaying foreign broadcast services to urban areas. The newer cable systems which have been installed in the past few years in cities such as Cork, Limerick and Galway, have the capacity to relay many additional channels. The somewhat older systems in Dublin and elsewhere may require investment to upgrade them to cater for new services which will become available for relaying in coming years. The question arises as to what arrangements should be made to achieve the best return in the national interest from this new investment. It is also appropriate to review at this stage the regulatory regime which applies to cable systems to see if it can be improved on. For this reason, I recently appointed a cable systems committee consisting of suitable people drawn from the public and private sectors, under the chairmanship of Mrs. Margaret Downes, to examine these problems. The committee's task is to consider and recommend a national strategy for the development of cable systems. I understand that the committee have already advanced their work and that they hope to submit their report before the end of the year. I am confident that this will be a valuable contribution to the management of the communications revolution which has now enveloped us.
The 1984 Estimates for my Department also include a number of provisions for traffic management activities in the Dublin area, all of which are geared towards improving traffic conditions in general and bus operations in particular. The Dublin Transportation Task Force who operate under the aegis of my Department have brought in bus priority schemes on a wide scale throughout Dublin in recent years and a capital provision of £400,000 in my Department's Estimates will enable further bus priorities to be implemented this year.
To date, the most visible result of the work of the task force has been the bus lanes. These, together with the new Bombardier buses have gone a long way towards improving the quality and reliability of Dubin city bus services. However, the scope for further bus lanes is diminishing and, while there will be some additional bus lanes later this year, the main emphasis will be directed towards more sophisticated measures. In the current year, for example, the task force plan to commence implementation of a system known as selective bus detection which, by using advanced electronic techniques, will enable buses to be given special priority at signalised junctions.
The current year will also see the virtual completion of a system known as urban traffic control, or UTC which involves the computerised co-ordination of traffic signals in the city centre, the objective of which is to improve traffic conditions by reducing vehicle stop/starts. The UTC system is being financed from the £400,000 capital allocation mentioned earlier. There is also provision in my Department's Estimates for the development of a computer based traffic management model for the Dublin area. The model will be completed this year and will be used by traffic engineers in the design and analysis of traffic management schemes.
Given the general budgetary situation and its implications for major roads and public transport investment, it is likely that for the present we will be relying heavily on traffic management to make the optimum use of our existing road infrastructure. One major public transport scheme, on which I have spoken at some length on a number of occasions recently, will be coming on stream in the current year, that is, the Howth-Bray electrification project. Work on the project is now virtually complete and I expect some electric services to commence in the near future.
I am fully committed to reforming transport administration in Dublin but I am also conscious of the need to ensure that any such reform does not conflict with reforms in local authority structures in Dublin city and county which may emerge from the review of local government currently being undertaken by the Minister for the Environment. I am, therefore, currently reviewing proposals in relation to the Dublin Transport Authority. The Estimate includes provision for a £100,000 grant-in-aid for the authority in 1984.
A subject which has been raised at the Dublin Transportation Task Force by CIE is the question of access to the Phoenix Park for peak period buses from the greater Blanchardstown area. As this is in my own constituency I have a particular interest in the matter and indeed I have communicated with my constituents on the question. Clearly, apart from transport needs environmental considerations must be taken into account by the Office of Public Works who are responsible for the park. As the Phoenix Park is a national amenity wider views will have to be taken into account. Whether we can continue to discriminate against the public transport user in this area compared to the private motorist is an awkward question which some might like to avoid but which I am glad to pose.
The most recent development in relation to the road freight industry is the acceptance by the Government earlier this year of the main recommendations of the Report of the Transport Consultative Commission. I am having the necessary legislation prepared and hope to have it introduced later this year. This legislation will provide for the grant of general haulage licences initially to all existing licensed hauliers, including those holding limited licences, and to all qualified operators in the present exempted areas, that is to say, areas within a specified radius of Dublin, Cork, Waterford, Limerick and Galway. These licences will be unrestricted as to type of goods carried or number of vehicles used and the exempted areas will be abolished. Two years later licences will be granted to all applicants, including own account operators, who satisfy the EEC requirements of good repute, sound financial standing and professional competence for access to the profession of road haulier.
Liberalisation of the road freight industry has been long overdue and I think there will be general satisfaction that the process which was started in 1971 is now being completed. I am confident that the removal of quantitative restrictions will have beneficial effects for both the industry and the economy as a whole. I will come back to surface transport matters when dealing with the finances of CIE.
As Minister for Communications I am also responsible for our external transport links, the efficient operation of which is very important to this country; all the more so because of our island location on the periphery of Europe and our higher than average dependence on international trade and tourism. Access transport requires both the physical infrastructure of harbours and airports, together with the mobile assets — ships and aircraft — of the companies which use the physical infrastructure. There is no doubt that improvements in access transport can only increase the attractiveness of Ireland as a location for industry, commerce and tourism. Accordingly, the necessity for adequate and efficient transport facilities is an important consideration in the policies pursued by my Department and in the formulation of the Communications Vote.
The B & I have been in a loss-making situation since 1979. The company's losses amounted to £8.2 million in 1981 and £8.6 million in 1982. The B & I accounts for 1983 have not yet been published but I understand that substantial losses were incurred in that year also. The company received over £20 million equity for working capital since the beginning of 1981. The Government are seriously concerned at the level of losses being incurred and the increasing support which the Exchequer has been obliged to provide. The company's difficulties can, to a considerable extent, be traced to the effects of the recession and the downturn in the tourist trade. The financial position of the company and the means available to enable a return to commercial viability as soon as possible are under examination. I will be making a submission in the matter to the Government at an early date.
Irish Shipping Limited have also been experiencing serious financial difficulties stemming from the collapse of the deep sea freight market. The deep sea sector of the company's operations has been in very serious difficulties for some time. Up to 31 March 1982 it had been possible to offset losses in the deep sea sector from the company's ancillary activities. The decline in world freight rates has, however, reached such depths that the company are now in an overall serious loss situation. Irish Shipping Limited incurred a loss of £14 million in the year ended 31 March 1983 and even more substantial losses are forecast for the current financial year.
The company have, however, succeeded in negotiating a restructuring of their financial commitments which will substantially reduce their cash problems for the period ending December 1985. They will require support from the Exchequer by way of guaranteed borrowings during that period. I will be introducing amending legislation shortly to enable the Minister for Finance to give the necessary guarantees and Deputies will have a further opportunity of discussing the company's financial position in greater detail.
On a brighter note, the car ferry services of Irish Continental Line and Belfast Car Ferries continue to operate successfully. As Deputies are aware, Irish Continental Line had hoped to participate in the establishment of a Cork-Swansea car ferry service in summer 1984. Unfortunately, time constraints which were an obstacle to effective marketing of the service and difficulties in obtaining a suitable vessel forced the company to decide against a service for the coming season. It is their intention, however, to take the necessary steps, in association with the other interested parties, to provide a Cork-Swansea service in 1985.
From maritime matters I would now like to turn to aviation. In the recent past airlines worldwide have encountered serious problems. The severe economic recession, which in recent years has affected the entire western economy and caused a slump in travel generally, the effect on airline costs of inflation, fuel cost escalation and high interest rates are some of the factors which have caused all the major airlines to take necessary retrenchment measures. Aer Lingus have not escaped the general trend and the company have found it necessary to secure economies in many areas in order to reduce costs and improve operational and financial efficiency. Certain routes have had to be dropped from the company's scheduled passenger network and operating patterns have had to be modified to realise savings. Substantial economies in fuel consumption are being achieved and new technology is being introduced. Staff numbers have had to be reduced and work practices simplified. These are all necessary economies and I fully support the initiatives taken by Aer Lingus in this area.
The net result is that for the first time since 1979-80 Aer Lingus have returned to profitability. The company are hopeful of making a net profit of £3 million in the year ending 31 March 1984 after taking into account an Exchequer cost alleviation payment of £4 million to help the airline during a period of particular difficulty on the North Atlantic. Compared with net losses of £13.6 million in 1980-81, £9.2 million in 1981-82 and £2.5 million in 1982-83 (the latter figure took account of an Exchequer cost alleviation payment of £5 million), the company's expected results for 1983-84 represent a significant improvement, particularly against the background of the very difficult trading conditions which continue to prevail.
Apart from the cost alleviation payments to which I have already referred, State investment in the air companies was increased by way of a £15 million equity injection in March 1983 and I am glad to be able to tell the House that, in accordance with the Government commitment outlined during the passage through this House 12 months ago of the Air Companies (Amendment) Bill, 1983 the Minister for Finance will take up additional equity of £15 million before the end of the current month.
Even allowing for the contribution made by the Government both by way of additional equity and cost alleviation payments, I readily acknowledge that the improvement in the Aer Lingus performance would not have been possible without the help and co-operation of Aer Lingus staff and unions and I would like to pay a special tribute to them for the way in which they have joined with the management of the airline in seeking necessary savings.
In so far as 1984-85 is concerned, the preliminary indications are that this will be another difficult year, with Aer Lingus predicting a slight decline in traffic overall, intensified competition in the European charter market and increased pressure from both scheduled and charter operators on the North Atlantic routes. With the continuing co-operation of staff and trade unions, Aer Lingus are responding to these pressures by a determined effort to improve the quality of their services and to compress still further the level of their costs. It is virtually impossible at this stage to forecast with any degree of accuracy the outturn for 1984-85 but I trust that the company will intensify their efforts to continue to trade profitably. Given the substantial finance required for fleet replacement over the next decade, it is absolutely essential that the company should be able to build up their resources for that purpose.
I must myself claim a small share in the credit for the turnaround in the financial fortunes of Aer Lingus in 1983. The year 1982 was disastrous for Aer Lingus and the other scheduled carriers on the North Atlantic, because of a price war which resulted in heavy losses for the carriers concerned. These losses were such as to threaten the continued operation of an Irish transatlantic service. The suspension of the Aer Lingus service would have had incalculable consequences for trade and tourism and the economy as a whole, particularly since the US airlines serving Ireland do not find it possible to maintain services during the winter period. One of the main factors which gave rise to the 1982 situation was the disruptive effect of certain low-priced charter programmes introduced to the US-Ireland market.
Despite two rounds of talks with the US authorities, it was not possible to reach agreement on the need for action in 1983 to avert a recurrence of the 1982 situation. In those circumstances, I applied on a unilateral basis a charter quota of 47,000 one-way seats for traffic into Ireland in respect of the New York and Boston gateways during the peak June to September period. While this figure provided adequate scope for expansion of US charters, in that it provided for growth of 50 per cent over 1982 it nevertheless had the beneficial effect of alleviating concern among the scheduled carriers about the potential growth of disruptive low-cost charters. This permitted the scheduled carriers to sell at less uneconomic fare levels during 1983 and contributed to the substantial improvement in the Aer Lingus financial performance in 1983-84.
In the light of last year's experience, I have taken similar regulatory action for 1984 but have approved programmes totalling about 60,000 seats in the June to September period from the New York and Boston gateways. This represents an increase of almost 30 per cent on the charter capacity approved last year.
To stimulate a growth in North Atlantic traffic, I was happy to approve in the past few days competitive scheduled fares for Aer Lingus, Northwest Orient and Transamerica in respect of the US-Ireland routes. In many cases, these are at or below the 1983 levels and are significantly below US-London levels.
I am optimistic that my approval of the substantial programmes of charter series, coupled with the keenly priced air fares in the US-Ireland market for this summer, will go a long way towards helping Bord Fáilte to achieve their 6 per cent to 10 per cent growth target in US visitors this year.
I should like to say a few words about the recent collapse of Avair. When I came into office 15 months ago, applications were on my table from both Avair and Aer Arran, both of whom were interested in becoming involved in servicing cross-Channel routes. At the same time Aer Lingus expressed interest in commencing similar commuter-type operations. In examining the UK-Ireland market scene, I found that a large number of routes were being operated on a monopoly basis by UK carriers. The general thrust of my decision last March to authorise all three carriers on certain UK-Ireland routes was designed to expand the volume of business of Irish carriers vis-à-vis their UK competitors. I felt that it would be most unfair of me to deny Irish carriers these opportunities when, under the UK-Ireland Bilateral Agreement, I could not deny UK carriers the same opportunities. At the same time, I fully understood the strong opposition of both Aer Lingus and the Irish Congress of Trade Unions to the grant of rights on cross-Channel routes to independent carriers. I was conscious that my decision would entail some extra competition for Aer Lingus but it was necessary in my view to deal with the applications of the Irish independent carriers in a fair and objective way and I proceeded on that basis.
In allocating routes between competing Irish carriers, I sought to strike an equitable balance between the desire to encourage more services, the applicant's capacity to service the routes granted and my overall responsibility to ensure the orderly development of aviation in Ireland. Having made my decision, I felt that carriers should seek to consolidate their position on their new routes before any major expansion of activity was contemplated. Indeed, I considered that a prerequisite for the grant of additional rights would be the successful operation of traffic rights on their existing routes.
The recent collapse of Avair has been most disappointing. I regret very much that the company's future and 86 jobs should now be in jeopardy. In developing their internal air service network in recent years, Avair made strenuous efforts to build up a highly professional airline and in the process established a good image not only for themselves but for independent carrier operations in the country. Much as I regretted the financial problems of Avair, I could not accede to their last-minute request to provide the airline with financial assistance of the order of £400,000. Apart from the very difficult financial position of the Exchequer, it would be totally contrary to established policy to subsidise a private airline.
Since the Receiver's appointment to Avair last month, I have been keeping in close touch with the progress being made by him in his efforts to dispose of the business. I am not yet in a position to report any positive news to the House since approaches by interested parties to the Receiver must of necessity, be dealt with on a highly confidential basis but I would hope to be in a position to make some statement in the matter in the very near future. Some airlines have already expressed interest in operating scheduled services on Avair's existing routes but I have been reluctant to take any decision which might hinder the work of the Receiver. All of the applications will, however, be considered in conjunction with any proposal which may be made by the Receiver.
Deputies may be assured that I am acutely conscious that a number of areas within the country have been left without a service or with limited service and my particular priority is the restoration as soon as possible of adequate scheduled air services on the Dublin-Cork and Dublin-Derry routes. The suspension by Aer Arann of their Dublin-Shannon service within the past week had added to an already difficult situation.
In terms of traffic passing through the three State airports of Shannon, Cork and Dublin, 1983 has been another difficult year. Total numbers dropped from 4.06 million in 1982 to 3.8 million in 1983. Traffic figures at both Shannon and Dublin Airports declined, in each case by 5 per cent, but against the trend traffic figures at Cork Airport increased from 316,000 to 324,000. Despite the overall fall in total numbers, Aer Rianta, who manage the three airports on my behalf, have produced an estimated trading surplus of £6 million in 1983, a substantial increase on the comparable figure of £4.86 million for 1982. Judged against the background of the very difficult trading conditions which prevailed during 1983, Aer Rianta's results for 1983 represent a considerable achievement which reflects credit on the board, management and staff of the company. This is one of the State companies we do not hear much about. It goes to show that State companies are not necessarily loss makers.
In looking at the Aer Rianta results, it is of course important to bear in mind that, since capital expenditure at the airports is funded directly from my Department's Vote, the Aer Rianta accounts do not make provision for interest or depreciation. Instead, Aer Rianta make annual surrenders of their surplus to the Department. The surplus figure included in the current year's Estimates is £6 million, a figure which Aer Rianta are confident of achieving. The substantial improvement in Aer Rianta's financial performance was achieved mainly through improved cost control throughout the company and by securing an increase in the profitability of their commercial activities.
Shannon Airport continued to recover during 1983. Aer Rianta estimate that Shannon's financial surplus for 1983 was over £1.25 million. This compares with a surplus of £600,000 in 1982 and a loss of £750,000 in 1981. This continuing success at Shannon is a source of great pleasure to me and Deputies can be assured I will continue to do everything I can to help maintain this success story. The financial surplus on Dublin Airport is expected to be well over £5 million with solid improvement in the results on both aviation and commercial activities. Notwithstanding, however, the increase in their traffic figures, Cork Airport's results showed a disimprovement over 1982. Aer Rianta expect that final figures for 1983 will show Cork's net deficit at over £750,000 compared with a deficit of £635,000 in 1982. The company are, however, forecasting an improvement on Cork Airport's performance in the current year as various recovery measures begin to take effect. In the latter connection, I was pleased to note that Aer Rianta recently announced a major marketing enterprise aimed at increasing passenger numbers at Cork Airport by 33 per cent over the next five years. I must compliment Aer Rianta on their initiative in this respect. They can be assured of my active encouragement in this and I hope that their efforts will be reflected in a turnaround in Cork Airport's financial performance.
I am making an allocation of £1.05 million for regional and local airports this year as compared with expenditure of £2.8 million in 1983. The bulk of the allocation will be spent on meeting contractual obligations for works at the Connacht Regional Airport, for which £650,000 is being provided. In this connection I should say that when drawing up the 1984 Estimate for grants towards the cost of regional and local airport development, the Government gave particular attention to the provision for Connacht Airport. They had before them a request from the promoters seeking what was in effect a commitment that the project would continue to be financed by the Exchequer and that work would proceed at a sufficient pace to enable the airport to be completed by April 1985.
The Government gave careful consideration to this matter but in view of the magnitude of the budgetary problems facing them the Government decided that the most they could do was to allocate a sum not exceeding £650,000 to the airport company in 1984 to meet the existing contractual commitments of the company on the project.
This will bring total Exchequer assistance to Connacht Airport to almost £10 million and will have placed in situ a 6,000 ft. runway, a taxiway and an aircraft parking apron. The Government also decided that when this year's allocation is expended no further Exchequer contribution will be forthcoming thereafter and that no Exchequer commitment will be forthcoming to subsidise running costs.
The Estimate also provides a sum of £300,000 for the development of Carnmore Airport, Galway, and the remainder of the subhead will be used to meet the cost of minor developments at other local airports. There has been a growing demand for Exchequer assistance in recent years for the development of regional and local airports and the State has responded generously, indeed some might say foolishly, in terms of grants towards the capital cost of various projects. Regional airports have been built at Waterford and Sligo; improvements have been carried out at Farranfore and Abbeyshrule; and substantial sums have been provided towards the cost of the Connacht Regional Airport. In the 1981 to 1983 period Exchequer grants from my Department totalling approximately £10 million have been provided. The level of local contributions towards the capital cost has been minimal and there were no contributions in some cases.
Quite frankly few areas of national expenditure have been so lacking in cost-benefit analysis as expenditure on some regional airports. Many decisions were purely political decisions taken against all available advice. The joke of unjustified regional airports has come to an end.
I am satisfied that the time is now opportune to review the arrangements for grant-aiding regional-local airport development. In these difficult budgetary times, value for money has to be the main criterion and capital projects have to be critically analysed to ensure that an adequate rate of return is earned on the investment. I have arranged, therefore, that my Department will carry out a review of policy in this area with special emphasis on the level of State funding.
The £104 million provision for CIE subvention, accounting for nearly 60 per cent of my Department's total current expenditure, underlines the continuing extent of CIE dependence on the Exchequer and the seriousness of the board's financial position. Last December, in the debate which we had on the Transport Bill, 1983, I dealt with CIE's financial position in considerable detail. The subject is so important that I decided to revert to it again today, even if in a less intensive way.
Deputies will recall that during the December debate I referred to the additional financial problem represented by the cost of providing the electrified rail service between Howth and Bray. I am having this problem examined urgently.
The new subvention policy which I announced last June and which became operational on 1 January 1984 and on which the £104 million is based, now provides the framework within which CIE's financial performance should and can be steadily and substantially improved. The new policy, as the House will recall, provides that: firstly, CIE subvention will be determined as the lesser of 50 per cent of the board's revenue or 33? per cent of expenditure; secondly, over the next five years CIE expenditure will be reduced by 12 per cent in real terms with the outturn for 1983 as the base; and thirdly, subvention will be paid "above the line".
To deal with the capital expenditure of CIE a special committee will appraise and monitor all significant capital investments. The new subvention policy recognised that with CIE subvention now calculated on a more rational basis the company could concentrate on cutting costs and improving revenues. The new arrangement provides a better basis for CIE financial planning and a motivation for the whole organisation to make a greater effort.
The CIE allocation for capital investment in 1984 is £57 million. This provision has been made to enable CIE to complete the Howth-Bray rail electrification programme, continue the production programme of railway carriages at Inchicore and improve the bus fleet by providing for a further 120 buses manufactured at Shannon.
The first substantial development indicating that we are on the right path can be seen in the board's preliminary results for 1983. I hope that it is the first of many indicators of substantial improvements. CIE's deficit for 1983 amounted to £103.38 million, an improvement of some 15 per cent in real terms on the 1982 deficit of £109 million. It is the first time in many years that there has been a reduction in CIE's deficit. A 1984 deficit of £104 million to match the subvention would be a further improvement amounting in real terms to an improvement of some 20 per cent on the 1982 results. 1983 has been the best year for CIE in a long time. This magnificent improvement is a matter for warm congratulations to the Board, management and workforce of CIE who most of the time are damned by the climate of criticism in which they operate. Perhaps some of the criticism is fair but it is now only fair to record the achievements of 1983 and to express the hope that this new trend can be continued in the future. Moreover, these achievements were not accompanied by massive cuts in services or by any redundancies, which makes the achievement all the more sweet.
This is the background as we approach imminent Government decisions on the future shape of CIE in the light of McKinsey and other reports. Deputies may expect further statements from me around Easter.
The fundamental changes in the transport sector cannot be ignored.
International transport affairs represent an important part of my Department's activities. At present I am President of Eurocontrol, the international body which co-ordinates air traffic control services in the upper airspace over Europe. The Secretary of my Department is President of the European Civil Aviation Conference (ECAC) which represents the civil aviation administrations of Western Europe and which is at present engaged in an important dialogue with the United States authorities in an effort to develop a co-ordinated regulatory regime for North Atlantic services.
From 1 July next, when Ireland assumes the Presidency of the EEC, I will have responsibility for guiding the development of the transport policy of the European Community. This will entail such issues as the relaxation of frontier controls, the improvement of market access for road haulage vehicles, the harmonisation of road tax structures and the question of financial aid for the transport infrastructure of the Community. In addition, we will be undertaking the initial consideration of the EEC Commission's new proposals in the air transport sphere as well as a number of marine affairs in the safety and commercial sphere.
I hope I have covered in the time available to me the principal areas of interest to Deputies. The Vote for Communications covers many aspects of our national infrastructure. In fact it would not be an exaggeration to say that its consequences reach into every house in the land.
Amidst the great communication revolution now enveloping the world and indeed the universe, my primary objectives in the area of communications are
— to maintain and develop an efficient communications system which will provide up to date facilities at minimum costs;
— to ensure that the activity of each State company in the marketplace is consistent with and supportive of its mandate;
— to set clear financial targets for the companies under my aegis which will serve both as an incentive to management and workers and as a measure against which success can be judged; and
— to expand to the full the natural advantages of Ireland in terms of geographical location, population, age structure and education in the exciting developments in infrastructure and communications technology.
Although we have not yet surmounted all the hurdles I am satisfied that we are making significant progress to date towards the achievement of these objectives.
I commend the Estimates to the House.
