Dáil Éireann díospóireacht -
Thursday, 30 Apr 1953

Vol. 138 No. 8

Committee on Finance. - Great Northern Railway Bill, 1953—Money Resolution.

Minister for Industry and Commerce (Mr. Lemass)

I move:—

That for the purpose of any Act of the present session to give effect to arrangements for the future operation of the undertaking of the G.N.R. Company (Ireland) and to provide for matters connected therewith, it is expedient to authorise:—

(a) the payment to the G.N.R. Company (Ireland) out of theCentral Fund or the growing produce thereof of the sum of £2,250,000 as compensation in respect of the transfer of the undertaking of the company under such Act;

(b) the charge on and payment out of the Central Fund or the growing produce thereof of the principal and interest on any securities issued by the Minister for Finance for the purpose of borrowing under such Act and of the expenses incurred in connection with the issue of such securities;

(c) the payment out of moneys provided by the Oireachtas of such other expenses as may arise in carrying such Act into execution.

Mr. Morrissey

On this Money Resolution, I want to ask the Minister if he will make the position clear. Representations have been made, in the first place, I think, by the directors of the G.N.R., and by quite a number of shareholders and others interested that they are entitled in equity to interest on the agreed purchase price from the time of the agreement as the payment of the purchase price has been held up, not due to any fault of theirs, but to the length of time which it has taken the two Governments to get their legislation in trim. I am not making a case for this, but it would be desirable if the Minister would state his point of view on it, so that we can see what the position is.

Mr. Lemass

I am aware that a letter has been circulated to Deputies from the Shareholders' Protection Association dealing with that point. I think the reasonable view is that Government intervention in the affairs of the company has not worsened the position of the shareholders in any way. As the Deputy knows, the company has not been in a financial position to pay dividends for a long time. It is true that the preparation of the legislation took somewhat longer than was originally hoped, but I do not think that is a ground on which a claim can be advanced for the payment of interest on the purchase price.

As the House is aware, the Governments here and in Belfast, were prepared to proceed with legislation for the compulsory acquisition of the undertaking for £3.9 million. It was solely for the purpose of avoiding the necessity for compulsory acquisition and in the hope that agreement would be reached that further discussions took place with the representatives of the company leading to the offer to sell for £4.5 million which the Governments accepted. It cannot therefore be argued that the shareholders of the company have lost by reason of that situation. On the contrary, it seems to me that, in so far as delay was occasioned by the desire to reach agreement, they gained by it. In any event, it is not possible to provide at this stage for the payment of interest on the purchase price. Interest, of course, is payable to the debenture holders and will be paid to them for a period of two months after the acquisition.

Resolution put and agreed to.

Resolution reported and agreed to.