I think No. 3 on the Order Paper might be discussed in conjunction with this Estimate, because the Estimate provides the amount required under the order specified in No. 3. Accordingly, I move:—
That Dáil Eireann hereby approves of the Subsidy (Aer-Rianta, Teoranta) Order, 1939, made under Section 79 of the Air Navigation and Transport Act, 1936 (No. 40 of 1936) by the Minister for Finance on the 11th day of February, 1939, and laid before Dáil Eireann on the 14th day of February, 1939.
Go ndeontar suim Bhreise ná raghaidh thar £37,500 chun íoctha an Mhuirir a thiocfaidh chun bheith iníoctha i rith na bliana dar críoch an 31adh lá de Mhárta, 1939, chun Seirbhísí Iompair agus Meteoraíochta.
That a Supplementary sum not exceeding £37,500 be granted to defray the Charge which will come in course of payment during the year ending 31st March, 1939, for Transport and Meteorological Services.
The Air Navigation and Transport Act provides that every order made under Section 69 shall be laid before Dáil Eireann as soon as may be after it is made and it shall not come into force unless confirmed by a resolution of Dáil Eireann. Hence the reason for the motion. The order to which the motion relates was made to authorise the Minister for Industry and Commerce to pay a total subsidy not exceeding £33,000 during the current year to Aer-Rianta, Teoranta, out of moneys to be provided by the Oireachtas, and in order to make that money available, the Supplementary Estimate which I have moved is being submitted to the Dáil.
This is the first order of its kind. I think some words in justification of the principle of subsidy may be considered appropriate. The importance which has been attached to the development of air transport by all the countries of the world is, I think, in itself a sufficient indication of their belief in its very great possibilities. In the Air Navigation and Transport Act the Dáil approved of the steps which the Government propose to take by promoting civil aviation in this country and establishing air connections between Ireland and other countries to ensure that Ireland would participate in the economic and other benefits which should follow from the development of this new form of transport. As was stated during the debate upon that Act, when it was before the Dáil as a Bill, the Government believed that the advantages were on the side of a national transport company in which would be centralised all the commercial air transport activities with which Ireland would be concerned.
In that respect, the tendency in other countries towards the formation of large scale companies operating internal and international air services under close governmental supervision was followed. The Irish National Company, or Aer-Rianta Teoranta, was set up by the Minister for Finance in April, 1937. Aer Lingus, which had been established earlier and was engaged in the operation of cross-Channel air services, is now a subsidiary of Aer-Rianta. It is the Government's aim to encourage air transport development, organised on sound lines with proper equipment, on a large scale and under Irish control. The services between this country and various points in Great Britain have been operated in accordance with that policy since May, 1936. These services have had a successful operations record and the companies concerned have recognised the necessity for the maintenance of high standards in speed and comfort, high standards comparable with the highest possible degree of safety. Provision was made in the Act of 1936 for the payment of subsidies in connection with air transport services. While it was the intention that such services in this country should be operated on a commercial basis, it was recognised at the same time that the experience of other countries had shown that in the proper development of air lines, particularly in the earlier stages, financial assistance by way of subsidy was necessary.
From the experience of Irish companies to date, it is clear that there is no prospect of securing rapid development in the sphere of commercial aviation without financial assistance from the Government on a substantial scale. In this respect, as I have already stated, the position of Ireland appears to be the same as in practically every country in the world. In view of the Irish companies' comparatively short experience in the field of commercial aviation, and the necessity of ensuring the maximum degree of development in connection with Transatlantic air services, considerable importance is attached to the companies' building up a reputation for a high standard of safety, as well as regularity and efficiency in operation. For that reason, expenditure by the companies, and consequently the subsidies considered necessary, are somewhat higher than they would be if operation precautions were less. It is considered that it would be a mistaken policy to accept lower standards than the companies have observed and propose to continue.
There are some figures here that may interest Deputies in this connection. Since the commencement of the services in May, 1936, the activities of Irish Sea Airways, that is to say a combination of Aer Lingus and the British company—West Coast Air Services, Ltd.—have shown satisfactory progress. For example, the number of aircraft miles flown increased from 151,600 in 1936 to 385,533 in 1938. The number of passengers carried increased from 1,330 in 1936 to 4,987 in 1938. The weight of goods carried increased from 6,472 lbs. in 1936 to 35,264 lbs. in 1938. The percentage regularity of services on the Dublin-London route increased from 90.96 in 1936 to 94.02 in 1938. While these figures are just cause for optimism as to the traffic in future. the accounts of the company show that the existing services are being operated at a loss. To ensure the observance of the highest standard of safety in operation and, at the same time, the use of modern equipment, the payment of a subsidy is essential.
The order provides for the payment of a total subsidy not exceeding £33,000 during the current financial year. This is the sum of the actual losses sustained by Aer Rianta Teoranta and Aer Lingus Teoranta up to 31st March, 1938, and the estimated losses in the year ending 31st March, 1939. The actual losses were Aer Rianta, 1937-38, £3,334; Aer Lingus, 1936-37, £4,824; 1937-38, £7,330. The estimated losses for the year ending 31st March, 1939, are Aer Rianta, £3,100; Aer Lingus, £14,235. The losses arose out of the operation of services—Dublin-Bristol. Dublin-Bristol-London and Dublin-Isle of Man. The terms of the order itself are self-explanatory. It will be noted that provision is made for the repayment of any amount by which the Estimates for the current year exceed the actual losses. I do not know whether there is any other point in connection with this matter which Deputies would like to discuss, but should they desire any other information, I shall be quite willing to supply it to them.
The Supplementary Estimate also contains another sub-head for a civil airport. Some explanation will be necessary in regard to that matter also. That additional provision is required in connection with the acquisition of land for aerodromes, for which service £58,050 was provided by the Vote of 1937-38. Owing to delays in completing the investigation of title, a sum of only £30,528 was expended. Accordingly, the payments have to be carried forward in this year and the increased provision in the Vote is necessary. The Vote for 1938-9 provided for an estimated expenditure of £10,100. The total payments expected to be made before the 31st March amount to £24,600. A Supplementary Estimate for £14,600 is, therefore, submitted.
