Dáil Éireann Debate, Tuesday - 19 February 2013
116. Deputy Sean Fleming asked the Minister for Transport, Tourism and Sport when he expects CIE to return to financial health; if he expects to provide any additional subvention in 2013; and if he will make a statement on the matter. [8552/13]
View answer141. Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport if he will provide a progress report on CIE’s attempts to rectify its financial situation; and if he will make a statement on the matter. [8538/13]
View answerI propose to take Questions Nos. 116 and 141 together.
Along with Minister Varadkar, I meet regularly with the Chairpersons of CIÉ and its subsidiaries in relation to the current and future financial situation of the group. My Department, supported by NewEra, have also engaged extensively with CIÉ on its financial and business planning.
In addition to the supplementary PSO funding of €36 million allocated by Government in 2012, further financing was required in 2012 in order to fund the voluntary severance schemes, particularly in Irish Rail, and to ensure adequate funding into 2013. Progress was made at the end of 2012 on the sale of non-core assets, in particular the sale of Spencer Dock properties. The resolution of CIE's financial position will involve increased borrowing facilities for non-capital purposes. Discussions are continuing to secure additional banking facilities to ensure adequate funding into 2013.
Any such funding will rely upon the delivery and implementation of a convincing business plan. CIE has undertaken an aggressive business planning process with the aim of returning to a break-even position and achieving a sustainable debt position in subsequent years. While the Group is expected to make a loss this year, it aims to achieve breakeven by mid-2014. Given the pressure on the public finances, there is no possibility of additional funding by the Exchequer in 2013. The implementation of a credible business plan will therefore be essential to CIE’s financial recovery in the period ahead.
