Dáil Éireann díospóireacht -
Thursday, 5 Mar 1953

Vol. 136 No. 15

Vote 51—Transport and Marine Services.

Minister for Industry and Commerce (Mr. Lemass)

I move:—

That a supplementary sum not exceeding £75,000 be granted to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1953, for certain Transport Services; for Grants for Harbours; for the Salaries and Expenses of the Marine Service (Merchant Shipping Acts, 1894 to 1952, and the Foreshore Act, 1933 (No. 12 of 1933)); for certain payments in respect of Compensation, including the cost of medical treatment (No. 19 of 1946); and for the Coast Life Saving Service.

Deputies opposite will recollect that an undertaking was given in January, 1951, jointly with the Six-County authorities, to the Great Northern Railway Company, that financial assistance would be provided for the company to the extent that its resources proved insufficient to meet the liabilities incurred in maintaining its existing services and appropriate employment. In accordance with thatundertaking, provision was made in the Estimate for the Department of Industry and Commerce for the payment of £200,000 towards meeting the operating losses and revenue charges of the company in the present financial year. That sum has proved to be insufficient to meet our share of the loss and it is estimated that a further sum of £145,000 will be required before the end of this month.

Against that additional charge there are savings amounting to £70,000 on sub-head B of the Vote, savings due mainly to the fact that certain harbour works have not proceeded or have not been completed as early as possible, so that the net sum which the Dáil is now asked to vote is £75,000.

An arrangement was made with the Six-County authorities for the allocation of payments, on foot of the undertaking to the company, between the two areas for the period pending the acquisition of the concern, which provided that we here should meet 40 per cent. of the loss and the people in the North should meet 60 per cent. It was agreed also at the time that we should have full credit for any profit and full responsibility for any loss arising on the road services operated by the company, all of which are in the Twenty-Six County area.

There was also an understanding that any revenue resulting from an increase in fares authorised here would be credited to our account, but that does not affect the present situation because increases in fares have taken place in both areas.

The provision in the Estimate of £200,000 was, of course, based upon the company's estimate, prepared in January, 1951, of its operating results for the financial year. As I have said, its losses have exceeded its estimate, due mainly to the fact that increased wages for workers became payable during the year, which affected its outgoings to the extent of £136,000 in respect of rail services and £31,000 in respect of road freight and road passenger services. There were also increased charges for stores and fuel amounting to £91,000.

Against these higher outgoings there was an estimated increase in revenue of £74,000, due presumably tothe increase in the rates and fares put into operation, but receipts from both the road services and the catering services were less than was anticipated by £17,000 and £15,000 respectively. The road services of the company have shown a loss for the first time during the present year.

The method for making payments on foot of the undertaking is different in each area. The Six-County people pay fortnightly, replenishing the company's account as required, whereas we here guaranteed an overdraft to the company with its bankers and we have to make good within the financial year the extent to which that overdraft accommodation was called upon. There is no option but to make the payment in view of the losses of the company and the undertaking given to them.

The House will no doubt be anxious to know how the legislation for the joint acquisition of the undertaking stands. I think it is possible to say that all the difficulties which have delayed progress have been removed, and I hope that the Bill will be introduced here before the end of the month, the aim being to have it discussed and enacted after the Easter recess. The Bill will be published here simultaneously with publication in Belfast, and I would ask the Dáil not to press me to give an indication of its character in any detail because it would be contrary to the arrangement to publish the details here in advance of their publication in Belfast.

Mr. Morrissey

All of us are glad to learn from the Minister that the necessary legislation for the acquisition of the G.N.R. is about to make its appearance. I am aware, of course, that there were certain difficulties to be got over but, frankly, I was beginning to think that the delay was unreasonable. Therefore, I am glad to know that the Minister hopes to be in a position to introduce the legislation here at the same time as it will be introduced in Belfast.

I have, of course, no intention whatever of asking the Minister to give any detailed information about the proposed legislation at present. There isnot very much one can say regarding the Supplementary Estimate itself except that the margin of difference between the estimate given to the Department by the G.N.R. and the actual amount required is, in my opinion, too great. I understand that the greater part of the additional sum required is made up of an additional sum of £136,000 to meet increased wages. Am I to take it that in the original estimate submitted by the company there was not a provision for increased wages or am I to take it that the provision for increased wages made in the original estimate was so far wide of the mark as to require an additional sum of £136,000? It seems to me that the difference between the estimated figure and the actual figure with which we now have to deal, a jump of from £200,000 to £345,000, is far too much.

I had intended to mention a few other points but, in view of the fact that the Minister has announced the early introduction of the legislation, it would perhaps be more fitting to leave them over until we have the legislation before us. I am sure the House is glad to get that information from the Minister. I am quite certain that those who are directly interested in this matter, the shareholders and those who depend for their livelihood on the G.N.R., will also be glad that the legislation is at long last to make its appearance.

It is, of course, only fair to say that the difficulties which had to be met and overcome in connection with the preparation of legislation for this acquisition were not confined to ourselves; that there were also difficulties in the Six-County area and that they had to be met. Then there had to be, I presume, a reconciling of the points of view both in the Six Counties and in our own State here. I do not propose to ask the Minister any question about legislation at the moment, as I would prefer to wait until I see it.

Mr. Cosgrave

I should like to endorse the remarks of Deputy Morrissey in connection with the statement of the Minister that the legislation is to be introduced beforethe end of the month. I hope that nothing will occur either here or in Belfast which will prevent that promised legislation being introduced this month. The Minister did mention, however, one matter in connection with the losses which the Great Northern have had to meet, that in the current year a loss for the first time was experienced on the road services section. That is a rather alarming development, and I would be glad if the Minister could indicate to the House the causes of that development or the circumstances in which it occurred. It would indicate that the position which had obtained no longer exists and that some change in circumstances has caused that development.

Mr. Lemass

The estimate prepared by the company in January, 1951, upon which the Vote for the financial year was based, took into account all increases in wages which had then been agreed to or which were in sight, but the increase which was granted later in the financial year was, of course, not foreseen at that time and not taken into account, and the higher loss upon the railway operation was attributable mainly to it. There was, of course, some hope that the increases in fares which were introduced simultaneously with the increase in wages would offset it, but, in fact, whereas the increases in wages amounted to £135,000——

Mr. Morrissey

It only went about half way to meet it.

Mr. Lemass

Yes, the increases in receipts were equal to about half. The additional loss on the railway operation was higher than estimated by £201,000. I am afraid that the emergence of the loss on the road services is also due to increased wages which became payable during the year. The road services, which were originally estimated to produce a profit, produced a loss. That, of course, affects our payment under the undertaking directly because we are responsible for the whole of that loss, as we should have taken the credit for the whole of any profits.

Mr. Cosgrave

Was the loss on the road passengers or on the freights?

Mr. Lemass

The loss was on the road passenger service, a loss of £29,900. There was a profit on the road freight service, but on the road service as a whole there was this loss of £11,000.

Mr. Cosgrave

Is it not a fact that the road passenger service in the area in which it operates has a monopoly?

Mr. Lemass

That is so. Previously it was a profitable part of the undertaking. So much so that when making this arrangement to meet the losses on the basis of 60 to 40 per cent. We included in the arrangement an undertaking that we could deduct from our 40 per cent. any profits made on the road services, and profits were being made at the time. We also had to undertake the corresponding obligation of making good any losses.

Mr. Cosgrave

It seems significant that there is a loss on the road passenger service with which there is no competing service of any kind.

Mr. Lemass

The loss was due entirely to the increased prices of fuel and increased wages.

Question put and agreed to.

Votes 48 and 51 reported and agreed to.

Progress reported; Committee to sit again.