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Dáil Éireann díospóireacht -
Wednesday, 27 Feb 1924

Vol. 6 No. 19

THE DÁIL RESUMES. - ELECTRICITY UNDERTAKINGS (CONTINUANCE OF CHARGES) BILL, 1924.—SECOND STAGE.

MINISTER FOR INDUSTRY AND COMMERCE (Mr. McGrath)

I beg to move that this Bill be now read a second time. The Bill is introduced for the purpose of relieving the electricity undertakings specified in the schedule from a difficulty created by the fact that an Act which gave relief to English undertakings did not apply to Ireland. Statutory undertakings such as those for the supply of gas and electricity are usually limited in their powers of charge—a maximum price being fixed by statute. Those maximum charges which were fixed previous to 1914 were rendered wholly inadequate by the great increase of costs during and subsequent to the European War; and temporary relief was given by the passing of the Statutory Undertakings (Temporary Increase of Charges) Act, 1918, which provided that the responsible Government Department could issue an order authorising an increase of charge. The Continuance Act recently passed by the Oireachtas maintained the position as regards certain tramway companies and harbour boards which had obtained authority to increase their charges temporarily. The seven electricity undertakings set out in the schedule to this Bill could not be so provided for, however, and the power of charging beyond pre-war maximum rates in those cases lapsed in August last. Owing to the continuance of high costs of production, outside the control of the undertakings, it is still difficult, if not impossible, for these undertakings to revert to pre-war rates of charge, without creating serious deficits, and thus in the case of local authorities, throwing additional burden upon the rates, which I think it is generally understood are already overburdened. Powers to obtain revision were secured originally by statute in one case—that of the Dublin Corporation, but the procedure is complicated, and it was considered advisable to include the Dublin Electricity Undertaking in the present Bill.

The general position as regards gas undertakings was relieved by the passing of the Gas Regulation Act, 1920, which gives power to revise the system and rates of charge; and as regards electricity undertakings, powers of revision of charges in England and Scotland were provided for in the Electricity Supply Act, 1922. The latter Act, however, did not apply to Ireland; and it has become necessary, therefore, that temporary relief should be given by legislation such as this Bill to the electricity undertakings which require to be thus provided for; and also that their position since August last should be legalised. It is right that I should point out that the financial positions of the electricity undertakings of the Saorstát were seriously affected by the recent troubles, and that in some cases actual danger to plant and mains put a heavy loss upon the concerns.

While it is considered reasonable that these electricity undertakings should not be forced immediately back to the pre-war rates of charge, it is also desirable that by any legislative relief given to them, they should not be placed in a position to impose unreasonable charges upon the public. It is accordingly sought by the Bill to confer powers on the Minister for Industry and Commerce to enforce revision of charges in cases where the undertakers themselves do not make reasonable reductions such as would correspond with reduced cost of production.

It is proposed that the Act, if passed, shall continue in force only to the 31st December next. It is hoped that before that date, the Oireachtas will by its sanction have enabled fresh electricity legislation to be put in operation; and simple procedure for revision of charges is provided for in the new Electricity Bill which is at present in course of preparation. It is expected, within the next month or so, that a Bill will be introduced. It is generally recognised, at least the Ministry recognise it, that some of the undertakings mentioned in the Schedule are charging a good deal more than they should charge, and it is proposed to take immediate steps to bring about a revision in these cases.

I beg to second the motion.

Question put and agreed to.
Third Stage ordered for (Wednesday) March 5th.
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