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Dáil Éireann debate -
Friday, 13 Dec 1985

Vol. 362 No. 12

Supplementary Estimates, 1985. - Vote 41: Communications.

I move:

That a supplementary sum not exceeding £1,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1985, for the salaries and expenses of the Office of the Minister for Communications and certain other services administered by that Office, for a cost alleviation payment and for payment of certain grants and grants-in-aid.

During the course of 1985 the House has had opportunities for debate on the Estimate for the Department of Communications and on a number of major pieces of legislation relating to the affairs of the Department. In the circumstances I propose to be brief in my remarks on the purposes for which this Supplementary Estimate is required. As Deputies will have noted, this Estimate is a token Estimate for £1,000. It arises principally to provide additional sums under subheads E and F. 1 and to provide for a new subhead. While the total additional amount required under these subheads amounts to £4,870,000 there is an offset of £2,480,000 in savings on other subheads and increased Appropriations-in-Aid of £2,389,000.

A sum of £3 million is required under subhead E — Grants for Harbours — in respect of grant assistance to the Dublin Port and Docks Board. This arises from the Government's decision in May last to provide the board with grant assistance of £3 million in each of the years 1985, 1986 and 1987 as part of a rescue package to restore the port to financial viability. This matter has been dealt with at some length in the House recently. I would refer Deputies to the Official Report of 12 and 13 November 1985 — columns 1942-1970 volume 361 and columns 2215-2256 volume 361 respectively. Accordingly, I do not propose to go over the ground in detail at this time.

Briefly the position is that Dublin port has been in a critical financial position for some time. This has come about for a number of reasons. The port has, of course, been affected by the economic position and by a fall in certain trades such as oil. The involvement of the port board through their subsidiary, Dublin Cargo Handling Limited, in stevedoring services has seriously affected the financial position and this situation has been aggravated by industrial relations problems which have caused interruptions and closures.

Last May, the Government decided on a financial rescue package for the board comprised of grant assistance of £3 million in each of the years 1985, 1986, and 1987; a State guarantee of borrowing up to £7 million and a requirement for the board to take cost cutting and revenue increasing measures and to dispose of assets.

The State assistance was contingent on the conclusion of negotiations between Dublin Cargo Handling Limited and the dock labour force. Industrial peace at the port is vital if the port is to prosper.

I am pleased to say that the major elements of the rescue package have now fallen into place. I cannot stress too often, however, that restoration of financial stability to the port and docks board will take a little time and is a task which calls for sustained commitment on the part of all those involved.

The additional sum of £1 million provided under subhead F.1 — the grant-in-aid to RTE — equivalent to net receipts from broadcasting licence fees is a technical requirement to enable the amount equivalent to the actual net receipts collected in 1985 to be paid over to RTE. It is expected that up to £1 million more will be realised in 1985 over the original Estimate of £33 million.

An additional amount of £450,000 is likely to be required under subhead V — Payments for bulk carrier — to meet the essential care and maintenance costs of the Irish Spruce which is berthed in Marseilles pending the final disposition of the vessel which I expect to be settled very shortly.

Earlier this year I had occasion to introduce a Supplementary Estimate to enable ex-gratia payments to be made to pensioners of Irish Shipping Limited who had service abroad Irish Ships of the company during World War II and who had formerly been in receipt of such payments from the company. I am glad to say that the Government have decided to extend this concession to all pensioners who had been in receipt of ex-gratia payments from Irish Shipping Limited. An additional sum of £39,000 will be required to meet the additional expenditure.

An additional amount of £180,000 is provided under subhead B.2 which will enable the Meteorological Service to purchase a replacement communications computer system: (1) to meet international obligations for the provision/reception of data and (2) to supply essential meteorological reports and forecasts, scientific advice and so on to aviation and other interests, agriculture, marine, industry and so on. Three other excesses are foreseen on subheads A.3, B.3 and D.1. On subhead A.3 an excess of £40,000 is likely to meet: (i) the administrative costs of the Postal and Telecommunications Users Councils and (ii) the expenses of the interim Local Radio Commission. The costs of the two councils are recouped from An Post and BTE. The expenses of the commission amount to about £15,000 in 1985.

On subhead B.3 an additional amount of £60,000 is required to meet the increased costs of postal and telecommunications services for which no provision was made in the original estimate.

On subhead D.1 an increase of £100,000 is foreseen in the CIE subvention to meet interest charges arising on borrowings by CIE to purchase buses from GAC (Ireland) Ltd. In March 1985 the Government authorised additional borrowings by CIE of £10 million, non-Exchequer funds, for the purchase of buses and also decided that any extra financial charges incurred on the additional borrowings would be recouped to CIE out of the Vote for this Department. The interest charge arising in 1985 is likely to reach £100,000.

The new subhead, subhead Y, for which £1,000 is being provided is a token subhead, required to enable the Department of Communications to meet certain residual liabilities from the vesting of the postal and telecommunications services into State companies and the abolition of the Department of Posts and Telegraphs. At this stage the bank account of the former Minister for Posts and Telegraphs is still being operated to honour cheques and warrants drawn before 31 December 1983 but not yet cashed. The total amount in respect of such outstanding cheques and warrants amounts to £181,000 approximately. It is expected that the bulk of this amount may never be claimed. The intention is to close the bank account at the end of this year and to surrender the balance to the Exchequer. Cheques outstanding when presented for payment will thereafter be met from this Department's Vote. I commend the Supplementary Estimate to the House.

I regret that the Minister has not been able to come in. The Minister for the Environment has not indicated to us why the Minister for Communications is not present at this serious time for the transport and communications sectors generally. There is a Minister of State attached to that Department but we did not get either. I will start by commenting on subhead X where a paltry sum has been made available for the former workers of Irish Shipping. That problem has been aired in the House with a certain intensity, especially from this side of the House which regards itself as the creator of the company, and from backbenchers on the Government side. In my experience in public life as a Minister and a TD I do not think I have ever had the privilege of being canvassed for support by a more dignified, humane, sophisticated and, eventually effective lobby than that of the former employees of Irish Shipping who suffered grievious wrong at the hands of the Government. I accept I cannot spend a lot of time on this but this side of the House does not regard as any way adequate what has been done for the people involved. The fact that they are behaving in such a dignified way, persistent yes, but always with dignity, is a tribute to them and to their ethos developed from the war years to the present time.

I have a desk full of representations from them all argued on the grounds of justice and humanity. For the purpose of this debate I dipped in and took out one letter at random and I will refer to it. The husband of the woman who wrote to me worked for the company for 25 years and his redundancy payment was £3,700. That woman listed parallels from the public service to point up the strength of her argument. She pointed out that the chairman of Irish Shipping, go ndeanfaidh Dia trocaire air, got £66,000 which was approved by the Minister. In the case of the workers at Verolme Dockyard which was 48 per cent State owned the corresponding figure her husband would have got under the same conditions would be £38,000. The NET workers were paid five weeks pay per year of service and the Minister, Deputy Kavanagh, was the one who extended it by three weeks. In those circumstances her husband would have received £48,250. In the case of the Dublin Port and Docks Board where, as the Minister mentioned a reorganisation job has been afoot for some time, a redundant worker with this women's husband's amount of pay and service would have got £30,000.

I should like to withdraw what I said about the Minister and the NET workers; it was the Avoca Mines that Minister Kavanagh was involved in. The corresponding figure in that case would have been £32,665. The corresponding figure as far as Irish Steel was concerned would be £23,000.

As well as that the people involved found themselves in a position that they were not able to pay continuing insurance policies where premiums were as high as £1,600 per annum. I know that in this House there is a sense of justice and a sense of fair play but there is, unfortunately, at times a tendency to listen to the person who breaks down the door.

It is on the basis that this is altogether a different kettle of fish that I am appealing to the Government, through the Minister present, and to the House, to see to it that some attempt is made to remedy the injustice under which these people have suffered. This is a well argued letter and an individual is mentioned whose name I shall not give to the House to whom a gratuity and pension have been paid, who was in the public service and was asked to retire. The writer makes a very strong point about the taxpayers' money with regard to the AIB-ICI payment, one of our large financial institutions. If this House does not decide, in all justice and equity, to do something about those workers it will be a sad day. I shall not go into the history of the company because the House knows it very well. It has been repeatedly debated and discussed. If the House does not do that, this House is not worthy of those who manned our ships during the war and provided us at times with a meagre ration of goods at risk to their own lives and many of their comrades did die.

I come to subhead V — the Irish Spruce, simply because it is linked into the same situation. I asked a series of supplementary questions on 14 November in the House. The Minister of State at the Department of Communications was present instead of the Minister. I am not criticising the Minister of State but he did not have the details to allow him to reply on that date. This morning I received a letter from the Minister for Communications referring to those supplementary questions and supplying me with answers. The first question was: did the Irish Spruce become the property of the Japanese company on 11 January 1983? The Minister's answer was: Yes. The second question was: was this for a consideration from the Japanese of £26.5 million sterling? The answer to that was: Yes.

The third question was: who got the money? I asked did the ISL or the liquidator get it, or did it leave the Japanese pocket at all. The answer was that none of these got it, that the money was paid to Verolme Cork Dockyard. The fourth question was: did Irish Shipping Limited lease the Irish Spruce back at £4.9 million per annum over 15 years? The answer to that was: Yes, under the lease annual payments were set at the yen equivalent of £4.9 million per annum for 15 years. The fifth question was: when the 15 year lease period is over, who will own the Irish Spruce? This is a very important question. The answer given was as follows: if the lease had run its full course the ownership of the vessel would have passed to Merrion Ferry Tours Limited, a wholly owned subsidiary of Irish Shipping Limited. The lease has, however, been repudiated by the Irish Shipping Limited liquidator and the final disposition of the vessel remains to be settled.

One very important question arises from that. The division of responsibility with regard to the financing arrangements was as follows: Irish Shipping Limited were to be responsible for 25 per cent; on the Vote for the Department for Communications there was another 25 per cent; on the Vote for the Department of Industry, Trade, Commerce and Tourism there was 50 per cent. If Mr. Tempany repudiated the lease as far as Irish Shipping Limited are concerned, who is responsible for the Irish Shipping Limited pay back? I know there may be a difficulty about replying today and I should be pleased to get a reply in the form of a letter, as I did to my previous supplementary questions, but I should like to get it more quickly than that. If Mr. Tempany as liquidator has repudiated the lease, upon whom has fallen the responsibility for the 25 per cent payment for which Irish Shipping Limited were responsible? While I am at it, I may as well ask what about the Department of Communications. We have before us a figure which is why I am talking about the Department here. Is the responsibility still at 25 per cent, or have they to take on the greater share? I ask the same question about the responsibility of the Department for Industry, Trade, Commerce and Tourism who were responsible for 50 per cent.

Basic to our approach to this matter has been the desire to have a deep sea fleet, Irish owned. I said I was not particularly hung up on having it State owned, although in the circumstances it appears now that that is the most likely way of having one at all. Incidentally, it is not a bad time to be in the market for buying ships because there are good bargains going. There should be a deep sea fleet, State owned or privately owned, or a combination of these. I am already on record in the House on that point. I know a study was conducted in the Department on the desirability and feasibility of a deep sea fleet and I gather they came down positively on the side of having one. One point made was that they rather favoured the handy size rather than the larger vessel for a deep sea fleet. If it is intended, as it was originally, to carry coal across the Atlantic to Moneypoint, then the recommendation on the handy size would not be at all economical, practical or feasible. I would appreciate some elucidation of the position of the Minister and the Government on that.

I had consultation with some people in this area of business. If we had a positive decision to start developing again a deep sea fleet, then we would be in a position to have a forward look at it and would be able to contribute by a debate in this House. The tonnage recommended, of 150,000, was somewhat lower than what we had been talking about — 200,000 tonnes. The point is that as of now we do not know where we are and we do not know what the future holds. I have been asking when the liquidation proceedings will be finalised. It is important to know. The legal implications of the establishment of another State owned company are important. The quicker the liquidation proceedings are brought to an end the clearer the air will be and the better will be the opportunity to make decisions on the development of a deep sea fleet.

On subhead D.1 the Minister has put down £115 million plus £100,000 for the grant to CIE. I would have welcomed a more explicit statement on CIE. One of the difficulties is that when questions are put down about the activities of CIE the chances are 100 to 1 against their being accepted. On 12 November I got a letter from the Chair — I am not criticising the Chair but simply stating a fact — saying he regretted tht he had to disallow part of the question addressed by me to the Minister for Communications asking for the timetable for the appointment of executives for the new CIE structures and saying that this was a matter for CIE themselves and that the Minister had no official responsibility to the Dáil in relation to it.

We have got into a rut with regard to semi-State companies. When the subsidy from the House was a small proportion of the total finances of semi-State companies, that kind of answer was acceptable. That is no longer the case. In the case of CIE where £115 million plus £100,000 are being voted by this House, there should be available to the House and to the public the fullest possible account of the activities of CIE. I could mention half a dozen more questions which were disallowed. In one question I wanted to know how the new bus company was structured. The Bombardier company had pulled out and the GAC had come in and I asked a question about it and I could not be answered. If there was a sound commercial or financial reason, if this company was in international competition and if giving too much information about it and its workings could damage its activities, then I could see a reason for the refusal. That is not so. CIE borrowed £10 million with the permission of the Minister who is agreeing to pay £100,000 interest on it. All those operations should be opened to scrutiny in the House. The Committee on Public Expenditure were established by this House and may be able to probe all those areas, but that is not enough. The fullest information about the activities of the company should be available to the House and to the media.

In the early days when many of the State companies and bodies were established by the late Seán Lemass his reasons for keeping this House out of them for the most part were to give them a chance to operate without interference which would have harmed them financially. It is still important that they should be allowed to develop themselves fully commercially but if their operations need heavy subsidisation the whole area should be probed and fully open to the House and the media.

In relation to the problem with the one person buses, if there is a big loss in the Dublin city services the Minister will have to come back to this House to vote the money. That is a very serious problem. Yesterday the Minister for Labour displayed an open-mindedness and commitment to try to solve the problem and I said in the House that I detected a certain machismo on both sides in relation to this dispute. It is an Irish characteristic. There was a strike in Dún Laoghaire that went on for 35 or 40 years in Downeys public house. The ownership of the pub changed several times in the meantime but the man picketed officially outside for all those years and they used to bring him out a pint on each anniversary. There is a certain amount of that in all of us; we do not want to be downfaced. If somebody is trying to best us we get tough and rigid.

For that reason if the concessions recommended by the Labour Court are not acceptable to the management and the unions there might be a possibility of bringing in the strong and efficient industrial relations departments in UCD under Professor Brian Hillery and in Trinity College under Professor McCarthy, both of whom have considerable sophistication in this area. I am not criticising the Labour Court but we should all try desperately to find a way out of this difficulty particularly in the run up to Christmas. Deputy Ahern mentioned that business in the centre city is suffering badly because people who traditionally come to the centre city are not able to get in. That will get worse if there is not a resolution before 25 December. I ask the Minister once more to make one final strong pitch to see if he can resolve the problem before it gets worse. I know the Minister is circumscribed but at all times of one follows the rules too closely one will not get anywhere.

With regard to the harbours, I gather that next week the Minister will be bringing an order before the House under the State Guarantees Act and we will have an opportunity to have a further discussion on Dublin port and docks. The Minister rightly says that we had a very wide-ranging discussion on this recently and he gives quotations in his speech. I wish to comment on the grant in respect of harbours. The management — something to which I have already referred — criticised the Fianna Fáil Government with regard to the Dublin Port and Docks area and the proposition which the Fianna Fáil Government made in regard to it in 1982. I repudiate that criticism as there was never any question of Fianna Fáil acquiring that site for less than its market value. The management of the port and docks board and Dublin Cargo Handling Limited should not try to find a scapegoat for bad decisions. The Dublin Cargo Handling Limited venture was a disaster. There has been a considerable improvement and I got a letter from the Minister the other day giving a list of the people now employed there. I received a letter from him earlier purporting to give the list of those employed but in fact it was a list of those who had opted for redundancy.

There is an opportunity for development in the port. I will not repeat the substance of the debate here but it is not so long since everybody was delighted with the way the Dublin Port and Docks Board handled their business. There was no question of coming to this House looking for money, they paid their own way. I remember a former Deputy, Seán Moore, who was a member of that board for a long time. The management of Dublin Cargo Handling Limited and the workers seriously damaged Dublin port. Of course there was a spin-off for other ports but the port in the capital city should be something special and now it has another chance. I recall the criticism occasionally launched at this side of the House by the Government side in regard to investment and if we wished to invest a sum of £9 million we would be told that Fianna Fáil were too flush with funds, etc. However, we will be debating that next week and I will not make any further comment on it because we now have to decide whether they are entitled to borrow a sum of £7 million.

The whole thrust of the arguments from the Government side — and from the Opposition — is that it is an area capable of development along the lines which I mentioned in a Private Members' motion which was discussed earlier.

The Minister also said:

An additional amount of £450,000 is likely to be required under subhead V — Payments for bulk carrier to meet the essential care and maintenance costs of the Irish Spurce which is berthed in Marseilles pending the final disposition of the vessel which I expect to be settled very shortly.

What does that mean? Is the Irish Spruce for sale and, if so, who is selling it? Is it being adopted as a base unit for a new Irish deep sea fleet? Must disposal await finalisation of liquidation proceedings? The Minister has not given sufficient information. I have already asked a number of questions about responsibility for the yearly payments, a quarter of which have been repudiated by the official liquidator. I am not saying this aggressively but I should like the Minister to expand on that sentence because at the moment it is tantalising.

I am glad that the Minister is giving extra money to the meteorological service because, although their work is taken for granted, sailors, farmers and so on rely very heavily on them. They are in the news at present of course because of Halley's Comet.

Deputy Leyden, unfortunately, could not be here to deal with the postal and telecommunications part of the Estimate. I am a little dissatisfied with the paragraph which reads as follows:

On subhead B.3 an additional amount of £60,000 is required to meet the increased costs of postal and telecommunications services, for which no provision was made in the original Estimate.

Does that mean that more services will be provided or that there will be more money for the same service? It is very interesting to note that the old account of the Department of Posts and Telegraphs is still in operation to honour cheques and warrants drawn before 31 December 1983 but not yet cashed. I note that the Minister will put an end to this account very shortly but these people who are holding cheques are very trusting——

They are unlikely to be absentminded about something like that but Irish Shipping would have got a land if they had been as trusting. I hope the Minister will address himself to the questions I asked about Irish Shipping as the workers in that company have been very badly treated. They are not whining but they have good reasons for thinking that they were badly treated. I should also like information on the Irish Spruce and I particularly want the Minister to expand on its disposal. What kind of money is involved and what are the ramifications vis-à-vis the liquidator and the various guarantors?

Without damaging himself or the Department, I hope that the Minister will make one autonomous, spontaneous gesture in regard to CIE and their obligations to the community.

I mentioned how muzzled we are at times and, because of the changed circumstances I mentioned, I think we should bring this to the Committee on Procedure and Privileges in order to ensure that more information is made available to this House. I would like the six months repeat question to be done away with, now that we have a different system for Question Time. We are in the old rut and have not thought this through. Three months would be sufficient from now on.

The Minister referred mainly to Dublin port and I will confine my remarks to that, but there is a much wider area we could discuss. I know some kind of study about the harbours is being carried out, the development of Ringaskiddy and its importance for a benighted Cork city where the economy has almost ground to a standstill.

Mainly because of the inadequacy of the money provided for Irish Shipping Limited staff and because of the lack of substantive information about the Irish Spruce and the deep sea fleet, I am inclined to oppose the Supplementary Estimate.

I apologise that I was not here to move the Estimate because of other business but I am very happy to be here to reply to Deputy Wilson's constructive contribution. I will try to reply to the points he raised as fully as circumstances permit.

First, I will deal with CIE. As a previous Minister, clearly Deputy Wilson understands the relative role of Ministers on the one hand and boards and management on the other, and the fact that a Minister is circumscribed, but that in itself is not a bad thing. Too often in the past the rules were broken and almost always with adverse consequences for the company concerned. By that I mean not just the financial performance of the company, but the interests of the employees. It is easy to have rules and to take policy stands during the good times, but it is not easy to stand by those policy decisions which have served well when the pressure is on. Once there is a strike there is a lot of pressure on Ministers to have the strike settled, almost regardless of the consequences. People do not say, "regardless of the consequences" but it is implicit in what they say.

I want to reiterate my position. I very much regret that there is a dispute in CIE and that it has not been found possible by the management and unions to come to an acceptable agreement. I am also very sorry that the unions have not found it possible to accept the Labour Court recommendations. I am very sorry that the Labour Court have given the impression that they can make recommendations and if they are not liked that they are prepared to change them. That undermines the Labour Court itself. I hope the dispute in CIE can be brought to a speedy and satisfactory conclusion for both sides. The Minister for Labour who is responsible for industrial relations, said yesterday that he will keep under review how best the industrial relations machinery of the State can be used to bring about a satisfactory solution. It is particularly regrettable that there is a dispute in the days up to Christmas because of the adverse consequences this can have for many people who want to do their Christmas shopping. For that reason alone I want to reiterate the unanimous wish of this House that both sides will make a strenuous effort to bring this dispute to a satisfactory conclusion.

It would be wrong for this House to push either side into a settlement which was not satisfactory or which did not bring the benefits which the overall package was designed to achieve. For instance, if as a result of changes in the package there were no reductions in bus fares, that would be wrong. If as a result of a change in the package there was no saving to CIE, that would be wrong. If as a result of a change in the package there were no benefits for the workforce, that too would be wrong. Of the £11.6 million per year reckoned to be saveable after the fourth year, more than £6 million will go to the workers and the rest will be shared by the fare paying public and CIE, and in due course the taxpayer. There is no room left for change. It is important that under pressure of immediate events we do not force a settlement which is not satisfactory but that does not diminish the desire, clearly expressed on all sides of this House, for a speedy settlement of the dispute on a satisfactory basis.

There have been very significant achievements in CIE in the past few years. Tomorrow is my third anniversary as Minister, first of Transport and now of Communications. In my view I should not tire of highlighting what went on in CIE during the 15 years before I became Minister. In 1969 the deficit rose from about £3.5 million to £109.2 million in 1982. In nominal terms that was a rise approximately 30 times and in real terms the increase amounted to seven times the rate of inflation. Should we not be asking how this happened? Should there not be inquiries as to why that happened? Should there not be widespread appreciation of the fact that since 1982 that position has been changed and the deficit has fallen by about 25 per cent in real terms? Instead of increasing by one and one-half or one and three-quarter times the rate of inflation, in the past three years the deficit has come down in real terms, each year, including this year up to the end of November. We do not know what effect this dispute will have on the final figure. The deficit this year will be of the order of £104 million which is more than £5 million less than in 1982 and if you allow for inflation in the years 1983, 1984 and 1985, you will see the reduction in real terms. If you compare this figure with the trend which had been there before I became Minister you will see that improvement is even more astounding. I do not say that in boastful way, but because we need to be reminded of this fact. Deputies, the management of CIE and the general public who use and pay for CIE, either through fares or taxes, must realise that there has been a big turn round in the position but there is still a long distance to go. There is no room for complacency. What has been done has been achieved without any massive disruption or cuts in services and without any loss of jobs and everyone in CIE should be encouraged by that.

When people call the Minister hard line because he will not intervene, they misunderstand the situation. I was a shop steward and a branch officer of a union for many years and I was shadow spokesman for Labour in this House for four years. I understand very well the processes of industrial relations; I know how they work and do not work and how to mess them up. If a Minister constantly intervenes, thus undermining the procedures laid down, that is a recipe for disaster. That is one of the reasons CIE got into such a mess up to 1982. Any time there was a strike Ministers rushed in to be popular and to be seen to act, regardless of the cost. That was not the only way Ministers intervened.

Constant deputations in respect of proposed cuts in bus services and constant interference in the day-to-day operations of CIE not only had the effect of stopping CIE from making the economies they considered prudent, but also gave them a complete excuse for not reaching other targets. The deficit in the 13 years up to 1982 was one and three-quarter times the rate of inflation each year and when that is compounded it works out at seven times the rate of inflation in those 13 years. It was a scandal. The situation is now under control. We will not go back to the bad old days because the policies we are pursuing are working with signal success. I am not trying to hog all the credit for that. Management, workforce and the board of CIE deserve credit and they deserve to know that their achievement is appreciated.

In the context of the above I hope my position will be understood. From the point of view of the financial targets set, of industrial relations and in the interest of the company and the workforce, it would be wrong of me to intervene or to get involved. That is not the right thing to do. It is the correct policy for CIE so far as the workforce, the taxpayers and the users of the service are concerned. I hope a settlement, satisfactory to the taxpayers, the travelling public and to management and workforce is arrived at quickly. The Labour Court have made a recommendation and I hope that sense will prevail so that the considerable improvements in the past three years will be continued in the future.

With regard to Irish Shipping, I do not have much more to say on that subject other than what I have said in this House and elsewhere in the past year. The Government decided originally to take on the burden of the ex gratia element of the pensions of those who worked in Irish Shipping or their spouses during the 1939-45 period. After further examination we found a way to meet the ex gratia element of the pensions of the remainder of the people in Irish Shipping. Assuming approval by the House of this Supplementary Estimate today, not only will we restore the ex gratia payments but we will pay the sum from the day it was discontinued one year ago. It will be a nice nest egg and the pensioners concerned will receive the money before Christmas. I know that everyone in the House will be glad we were able to do that.

Unfortunately, when it comes to claims for extra statutory redundancy we find ourselves in a quagmire. Many implications, including legal considerations, have to be considered. The Government have examined this matter thoroughly to find a way to ameliorate the problems of those who have been made redundant.

If the Minister brings in a Bill his own side and this side of the House will support him.

Deputy Wilson is a classical scholar but he is not a legal scholar.

I agree, but we make the law in this House.

We make the law for this country but not for other countries.

I am talking about Irish Shipping, an Irish State-owned company.

We are also dealing with laws relating to bankruptcy. It is not just a question of waving our hands or wishing the problem away. If that were the case the problem could have been solved long ago. There are very serious difficulties and we have not found a way of overcoming them. I regret I cannot see any way out of the difficulty. I have had to face hostile picketing from ex-employees of Irish Shipping and their families. They circulate in my constituency and they hand out leaflets outside Churches on Sundays. Unfortunately Ministers have to take the rap regardless of who is to blame. The picketing does not diminish my sympathy for those people and their plight. They are innocent victims but that does not enable me——

If the liquidation proceedings were over, would these legal difficulties the Minister spoke about prevent this House from bringing in a Bill?

I would have to get legal advice on that question because it is a sensitive area. Therefore, I should prefer not to answer it. I do not see a way out of the problem even in the long term. The Government are very unhappy about what has happened. However, I am delighted we are able to meet the ex gratia part of the pensions, and those who have not had the ex gratia element paid for the past year will receive that part of the pension next week.

As Deputy Wilson knows, the Irish Spruce was never owned by Irish Shipping. It was leased by the company from the owners, Jura Shipping Limited, and the lease payments were guaranteed by the Minister for Finance. A complicated deal was worked out at the time which was motivated by the need to keep employment in the Verolme dockyard. As a result of that, Irish Shipping were asked to take a ship there when they could have got a ship elsewhere for a lesser amount. We decided as part of the package that the Department of Industry, Trade, Commerce and Tourism would carry half of the cost, that the Irish Spruce would bear one-quarter and that one-quarter would be carried by the Department of Transport, now the Department of Communications. Any remaining cost would be borne by Irish Shipping, the owners of the vessel.

Is there not an Irish legal hold for 15 years on the terms of the lease?

The lease was negotiated when Deputy Wilson was Minister.

It was signed in January 1983.

The final draft arrangements remained when Deputy Wilson left office. It is an extremely complex document. The owners have the right to dispose of the vessel if they see fit, and it is a matter for the owners to decide its future disposition. They have the right to refer to the Department of Finance. It is something I have no control over. I had hoped the vessel would have been disposed of long ago, but I have no direct role. If I had been asked this question months ago I would have answered in the same way.

Deputy Wilson asked about the strategic shipping needs of Ireland. I am considering a report on that and the Government will decide in the near future how to proceed. It is hard to resist the fact that an island country must have a case for a shipping capacity, particularly in the case of Ireland which needs control over cross-Channel and continental services. It would be my objective to provide for the strategic shipping needs of the nation, but I do not think this should mean meeting our requirements by lumping the taxpayers with the cost. I have reason to believe that the taxpayers should not be saddled with these costs and I believe such an arrangement can be achieved. I cannot see any economic or social reasons for subsidising shipping but I think we can have services without calling on the taxpayer. I do not think the strategic needs of the country should be met by the Exchequer: it should not be thought that we are ready to dole out money. One of my objectives is that we would have a shipping service without need to call on the Exchequer except in a minimal way. I hope I have answered Deputy Wilson's queries in this respect.

Would the Minister say a little word on B & I? Seeing that B & I have taken such a bad turn, I had hoped the Minister might refer to this.

I was about to deal with the other problems which we are trying to cover in the subheads. Yesterday the Leader of the Opposition — he featured on page 1 of the newspapers today — said that the budget this year was fraudulent. We have submitted Estimates for supplementary sums amounting to £80 million, but Deputy Haughey's statement was a distortion of the facts. This token Estimate represents expenditure of some millions of pounds, but financed by savings in other areas of my vote. In fact, by 31 December I expect that there will still be a surrender to the Exchequer.

On social welfare, perhaps.

There will not be a penny less for the Exchequer. I do not want to go into the present position of B & I at any length because proposals are being discussed between management and the union which will be considered by me and the Department, and ultimately at Government level, and they may call for Government decisions soon. I want to bring these matters under control on behalf of the taxpayers, the customers and all those whose livelihood depend on the success of B & I. We have tried to do it in CIE and Aer Rianta. In the case of Irish Shipping there was no alternative. In regard to B & I, my decisions have been designed to make for the success of the company and the maintenance of employment for the maximum number of workers.

It does not seem to be sensible, given the state of the company, that the members of different unions would be rushing to go on strike. That sort of action will only diminish further the company's prospects. Of course, the company will discuss and negotiate the proposals. That is in the nature of our society and of industrial relations but there are some aspects which the company have said are unalterable. In keeping with my policy elsewhere, it is not my intention to interfere in those areas that are proper to the company. Our efforts are designed to try and ensure a future for the company and to secure the maximum for the workforce. I appeal to all those who work in the company to act in that light. There is no joy in confrontation or in axing jobs. Jobs will not be chopped merely for the sake of chopping. The wish of any of us here would be the ability to create more jobs but that can be done only when consistent with the viability of the company concerned. Therefore, I appeal to everyone concerned, management and unions alike, to work together in an effort to reach an agreement that will give some hope of prosperity for the company and which would protect the maximum number of jobs. Contrary to what we have read in some newspapers I am not interested in knocking one union or another. I am interested in ensuring that management do the job they are paid to do. I am interested also in ensuring that there is nothing in the affairs of the company we cannot stand over. That is the purpose of what I am doing.

In such companies as CIE, RTE, Aer Lingus and the B & I we will pursue with vigour, with consistency and determination, and I hope with some understanding, the resolution of the problems involved. Some times that attitude is represented as hard line but that is not the case. My purpose is to set sensible targets for these companies and to set about achieving those targets. So far we have had a good deal of success and I trust that will continue to be the case.

Vote put and agreed to.
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