I convey to the Senator the regrets of the Minister for Transport, Energy and Communications, Deputy Dukes, who is unable to be present to respond to the issue.
I wish to explain at the outset that the way Coras Iompair Eireann uses the various assets at its disposal, including its property holdings, is a matter which falls entirely within the responsibility of the CIE group itself. Under the Transport Acts, the board of Coras Iompair Eireann may dispose, whether absolutely, for a term of years or for any lesser period, of property which in its opinion is not required for the discharge of its duties. The Minister for Transport, Energy and Communications has no function in individual property disposals by the CIE board.
As regards the Horgan's Quay property, the Department understands that the site is still used on an operational basis. Comprising approximately three acres with a possible option on a further two acres, the site is part of the group's total property at Kent railway station amounting to about 30 acres. The question of its future is currently under review as part of a comprehensive examination by the group of its operations and other commercial requirements at Kent Station. CIE expects that this review will be completed in early 1997. As part of the review, it may be necessary to move some operational elements of the freight business to another location.
The general aim is to put in place a development plan for the station which will substantially improve the integration of public transport in Cork city. This is in line with the group's efforts to improve and develop the services it delivers to its customers in its core business as a public transport operator. Options are also being examined for other on-site developments which would be specifically suited to this major transport node with a view to using the group's overall property holdings at the station in such a way as to maximise business development opportunities for the group.
The Minister has been advised that, over the past year, a number of inquiries have been received by CIE about the development of the Horgan's Quay site. The parties concerned have been advised that, on completion of the comprehensive review to which I have already referred, CIE will be in a position to deal with these inquiries.
The overall policy now pursued for CIE property places emphasis on an aggressive and fully commercial strategy. The aim of this is to develop the group's property portfolio in such a way as to maximise rental income and other direct revenue from the properties themselves while generating additional core transport business and improving facilities for passengers on a commercial basis. Specific opportunities are pursued through joint venture arrangements, leases and conditional or full disposals as appropriate in individual cases. Where it is decided to dispose of property which is surplus to operational requirements, the group's policy is to proceed as far as possible by way of an open public tender procedure in the interests of maximising the realisable value of the assets in question. Under this policy, CIE's income from its property portfolio has increased from £0.67 million in 1987 to £1.2 million in 1995. Specific initiatives undertaken in line with the group's commercial approach to its property assets include the major development schemes for Heuston and Connolly Stations recently announced, the development of restaurant, bar, retail and service facilities at various locations throughout the mainline rail network, together with the installation of facilities such as vending machines and public telephones on station platforms.
There have been two further positive developments in CIE's arrangements for handling its property portfolio. In the first place, the CIE board's property sub-committee has been reinstated, in line with the recommendations of the Oireachtas Joint Committee on Commercial State-sponsored Bodies, to assist the board in the commercial development of its property portfolio. Second, CIE has introduced new procedures whereby all substantial property disposals must be cleared by the board on the recommendation of the group chief executive following an open public tendering process.
I want to emphasise that the statutory position remains unchanged. Responsibility for property disposals is a matter for the CIE board. While the Minister has no function in this area, he considers that there exists within the CIE group the professionalism, commercial approach and institutional arrangements necessary to ensure that proposals for the future use of the Horgan's Quay site can be developed and processed in a manner which would have his confidence and that of the House.
