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Dáil Éireann debate -
Tuesday, 28 Jan 1986

Vol. 363 No. 4

Written Answers. - Subvention to CIE.

90.

asked the Minister for Communications the subvention to CIE paid in each year 1983, 1984, 1985 and the estimate for 1986 under each of the following headings: (1) railways; (2) Dublin suburban rail; (3) Dublin city bus services; (4) provincial bus services; (5) any other subvention; and the manner in which subvention relates to the overall costs of the respective operations.

The subvention allocations to CIE have been as follows:

1982 — Subvention £96 million (Estimates provision), Actual outturn £109.4 million;

1983 — Subvention £86 million (Estimates provision), Actual outturn £102.1 million;

1984—Subvention £104 million (Estimates provision), Actual outturn £104.9 million;

1985—Subvention £104 million (Estimates provision), Actual outturn £104 million.

Since 1984 the Exchequer has taken on responsibility for interest payments on DART. This involves payments of £8 million in each year 1984, 1985 and 1986. In addition, since, 1985 the Exchequer is committed to an annual payment of £3 million for ten years for short term borrowing incurred by CIE.

Since 1984 the subvention has been calculated on the basis of the formula which determines the subvention as either one third of the board's expenditure or one half of its revenue, whichever is the lesser, with the expenditure for 1983 as the base year and taking into account the expenditure limits imposed on the main CIE sectors by the Government. The allocation of the subvention to the various activities of CIE is a matter for the board subject to the EC restrictions on the scope of subventible activities.

A breakdown of the subvention payment over the full range of CIE activities is included in the board's annual report. The reports for 1983 and 1984 have been published and that for 1985 will be published in the course of the next few months.

The subvention formula is being applied in 1986 and the projected subvention is £104.5 million. A special payment of £1.25 million interest subsidy on advance purchase of buses in 1985 is also reckonable for payment in respect of 1986 will be made before end January 1987.

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