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Dáil Éireann díospóireacht -
Thursday, 5 Dec 1957

Vol. 164 No. 10

Committee on Finance. - Supplementary Estimate. Vote 51—Transport and Marine Services.

Debate resumed on the following motion:—
That a supplementary sum not exceeding £1,800,000 be granted to defray the Charge which will come in course of payment during the year ending on the 31st day of March, 1958, 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 Protective Equipment for Ships; for certain payments in respect of Compensation, including the cost of medical treatment (No. 19 of 1946); and for the Coast Life Saving Service.—(Minister for Industry and Commerce.)

When the debate on this Supplementary Estimate was adjourned last night, I was referring to some aspects of the unfair competition which C.I.E. has to meet in the operation of its road freight services —this unfair competition which has bedevilled the success of C.I.E. in that sphere of its operations down through the years. I was referring in particular to the fact that, in the main, the people against whom the C.I.E. road freight department have to compete are people whose vehicles are manned by crews who are paid very low rates of wages; are compelled to work extra hours on duty without any overtime pay and whose conditions of employment generally are not at all comparable with those payable by C.I.E. to the people manning their lorries.

One way of giving C.I.E. a fair crack of the whip to enable them to compete on equal terms with their competitors would be for the Minister to establish a joint labour committee for road freight transport under the Industrial Relations Act. The establishment of such a committee would result in the prescribing of set rates of wages, conditions of service and all people, whether C.I.E. or other concerns, would then have to compete for the available traffic on the road on equal terms.

The Minister referred to the illegal haulage which, of course, is one of the chief difficulties confronting C.I.E. There is no need for me to outline at any great length the extent to which illegal haulage is being operated in every county and town in Ireland. Every Deputy with an eye in his head must be well aware of it. The Minister knows the extent of it and I know it. He indicated that he hoped, by administrative action, to combat the illegal haulage activities of the people who are engaged in it at the moment.

I am suggesting to the Minister that, in the very first instance, he will have to allocate to that duty a greater number of Gardaí. The detection of illegal haulage is a very difficult job for the ordinary Garda stationed in our country towns. The law itself is very complicated and the Gardaí are reluctant to bring people into court. Several devices are used to get away with illegal haulage. My information is—and I am open to correction—that in the whole Republic the number of Gardaí specially allocated to this duty is only two. Only two members of the Garda are allocated specifically to the detection of illegal haulage. That appears to me to be a preposterous situation. It is better to have none at all than expect such a small number of men to make any impact on this illegal practice.

I would urge the Minister, when he comes to make a decision in regard to the administrative measures he hopes to employ, to make quite sure it will be easier for the ordinary Garda in the country to detect illegal haulage. I suggest that all commercial goods carrying vehicles should be issued with trade plates by the carriage department and that each vehicle should have prominently displayed on it the name, the address and the business. In that way, you would get away from these nondescript lorries one sees at every fair and market in our Irish towns which are obviously operating illegally. These are some of the administrative measures that I feel might be helpful in combating what the Minister obviously regards as the very widespread practice of illegal haulage.

Turning to the road passenger side of the C.I.E. undertaking, I must join issue with the Minister. He stated— and quite rightly—that the kernel of the problem is the existence here of an excess of transport facilities. I agree with him, but I cannot then sort out in my own mind, if the Minister holds that view, why he made arrangements whereby foreign coaches can operate extended tours in Ireland during the tourist season. The position up to now appears to me to be that C.I.E. were handling that branch of our tourist industry in a very efficient way. In comments by people who have come here on holidays, I have heard nothing but praise for the C.I.E. tours.

These tours were operated with specially-designed coaches built at Inchicore. They provided extra employment in their building and in their operation. I felt that that was a field of our transport endeavour and of our tourist traffic endeavour that was wide open to expansion. C.I.E. appeared to be making quite a good thing of it. The revenue accruing to C.I.E. from that type of traffic was not inconsiderable. I cannot see why the Minister should then change his horses, so to speak, and allow foreign coaches to come in here, manned by foreign crews, to take over this part of our transport industry. I do not know what good will accrue to our transport industry or what good will accrue to our tourist industry by having foreign buses, manned by foreign crews, coming here and foreign couriers with, perhaps, Cockney accents describing the beauties of our countryside and its historical connections to the tourists. There must be some reason which influenced the Minister on that matter. He should make that reason known to this House and perhaps reconsider his decision in the light of further representations.

So far, I have pointed out what this House might do and what the Minister might do to help C.I.E. We all realise that there are many things which C.I.E. themselves can do, many things which they have neglected to do and many things which it behoves them to get "cracking on" as quickly as possible. In one part of their report, the Committee on Internal Transport said there was a regrettable absence of friendly co-operation between the management and the trade unions. It is obvious from that that the committee realised the importance of good relations between the employees and the management of our transport undertaking. It is obvious that the committee realised the value of having co-operation at all levels in the carrying-out of our transport industry.

The position taken up by the board of C.I.E. in that connection appears to be that they said that, in their experience, the unions are not interested in such co-operation. The board claims that the unions are interested only in rates of pay and conditions of service and that they rarely, if ever, go out of their way to take further part in co-operation with the management in running the industry. In a communication sent to the Minister by the Provisional United Trade Union Organisation, after the publication of the Transport Committee's Report, the union deals with the situation there. I think that what they conveyed to the Minister in that communication should be placed on the records of this House so that, once and for all, there will be no ambiguity as to the trade union's approach to co-operation in the transport industry.

They pointed out as follows to the Minister:—

"On the 22nd August, 1956, the secretary of the Provisional United Trade Union Organisation wrote to the then Minister for Industry and Commerce drawing his attention to the series of complaints and grievances which had been brought to its attention and which militated seriously against achieving improved efficiency in C.I.E. and harmonious relations between the board and its employees. At a meeting convened by the Minister and presided over by the Secretary of the Department of Industry and Commerce, held on the 2nd October, both sides agreed to accept ‘the principle of joint consultation between C.I.E. and the staff through the provision of regular means of consultation between the management and the staff and affording opportunities for co-operation and discussion on matters of mutual interest including efficiency in the working of the undertaking and the development of their business and the best use of manpower.' The official statement issued after the meeting stated that the management would take all possible steps to implement this principle of joint consultation and that both sides undertook to approach the concept of consultation in a spirit of harmony and co-operation.

"It was not until the 24th November that the chairman of C.I.E. requested the Provisional United Trade Union Organisation to appoint representatives to discuss with the board the way in which the question of joint consultation should be approached. A meeting for this purpose was held on the 11th December at which the chairman of C.I.E. outlined the board's view as to how joint consultation should operate and the machinery necessary to this end. On the 12th February, 1957, the Provisional United Organisation wrote to the chairman of C.I.E. requesting that discussions with the unions concerned with the setting-up of joint consultation machinery for rail operative and rail shop grades should commence as soon as possible, but it was not until the 10th April that a meeting for this purpose was convened by C.I.E. At the meeting the trade union representatives set out at some length the unions' proposals on joint consultation and a document incorporating these proposals was submitted to the chairman at that meeting."

Nothing has happened since.

Sixteen months ago, the trade unions catering for members in C.I.E. asked the board to take some steps to set up joint consultation. The board, as is obvious from the communication I have just read out, have fiddled with that matter ever since. They have accepted the principle, but it is obvious from the procrastination, the delay and the obstructive tactics which they have employed that they are not interested in joint consultation. In that respect, I may say they differ from similar transport boards in practically every country in Europe, to a large extent, and to the greatest extent in Great Britain.

The British Transport Commission have joint consultation machinery. There are regular meetings between the management and the staff not alone at top level but right down to the local stations. The employees can discuss their grievances. The management can discuss the mutual problems of themselves and their staff in a friendly and agreeable atmosphere. Ready solutions can be found to most problems and petty grievances such as very often arise in C.I.E. and fester into major disputes can very often be hammered out at local level. I hope the Minister will convey to the board of C.I.E. his desire—I feel it must be his desire— to have joint consultation between management and staff.

I feel that C.I.E. have fallen down in regard to public relations. We are all aware of the unfriendly and critical attitude of the Press towards C.I.E. That is unfair, I think, but the C.I.E. Board, themselves, appear to have done little or nothing about it. Any organisation which is unfairly attacked or unfairly criticised should have an up-to-date public relations department to let the people know exactly what is happening and what the difficulties of our transport undertaking are. The public would then be in a position to judge for themselves and much of the unfair criticism against C.I.E. would thus be nipped in the bud.

Furthermore, C.I.E. have not been as active as they might be in getting out after the traffic. Too often, they just sit back and hope the traffic will come to them. Too often, even when they know that illegal haulage is being carried on, they will not get involved. They will not go to the fairs and markets and compete for traffic. They are being given a wonderful opportunity now, as announced by the Minister, in having discretion in quoting freight rates. Amongst their own staff at the moment, there are people who have given many years' service in the transport industry and who would make excellent canvassers. I do hope that, if C.I.E. embark on a campaign of open competition and canvassing all types of traffic, they will not get the idea that some Deputies appear to have of employing experts in that field. The best people that can be employed on that type of work are the people who have served on the railways, who know the railway job, who have been engaged in transport all their lives and who know what the customer is looking for.

I do hope that an active and vigorous campaign will be undertaken by C.I.E. to win back the traffic that has been lost and to gain new traffic. I hope that they will get it out of their heads, once and for all, that the whole concern and every aspect of its activities must be managed from Kingsbridge, Broadstone or Inchicore. I hope they have learned their lesson in that regard and that there will be no small degree of decentralisation of the activities of C.I.E.

There are district superintendents and station masters in large depots who are little more than rubber stamps, as far as the business of the railways is concerned. They have certain minor powers, but, if anything arises outside them, they must get on the telephone to Kingsbridge, or wire or write Kingsbridge, and by the time that is done, the traffic is lost or, if it is a matter of some labour dispute, the dispute has got worse. I repeat what I said before, that I hope the Minister will urge the new board at least to tackle this problem and to decentralise control in these matters.

There is wide scope in the C.I.E. organisation for the introduction of up-to date business methods. From my experience of the clerical side, the system of bookkeeping and correspondence employed by C.I.E. is antediluvian. I hope somebody will be brought along to the C.I.E. organisation who will study that aspect of the matter and, to the benefit of the board, of the staff and of the people of the country generally, modernise the methods employed by C.I.E. in its offices, goods stores and depots.

Before going from C.I.E. to the anticipated merger with G.N.R., of which I will have something to say, there are just two more points. I hope the present transitional difficulties of C.I.E. will not be used as an excuse by the board for rejecting the wage claims that will shortly be before it from the supervisory and wages grades staffs of the company. It could well be that this would be used as an excuse. As we are all aware, the trade union organisations, with the help of the Minister, made a very wise agreement with the employers' organisations to secure increased remuneration to meet the increased cost of living. I think the trade union movement acted in a most responsible manner and I think the Minister appreciates the efforts that the trade union movement made to avoid any kind of friction and major disputes. The railway trade union were not unconnected with that effort and I do hope that the already low living standards of railways workers will not be further depressed by the use of the current difficulties as an excuse to deprive them of the increases that every other worker in the country is getting at the moment.

Lastly on C.I.E., I hope that the old board, before it goes out, will dispose of the moral obligation it has in relation to its older pensioners. In reply to a question in the House yesterday, the Minister informed me that there are over 1,000 ex-C.I.E. men drawing pensions of 6/- per week and there are another 1,000 drawing pensions of between 6/- and £1. I know, they know, and we all know that they have no legal entitlement to an increase in their pensions, that there is no legal obligation on the board of C.I.E. to increase them, but I am suggesting, and it cannot be contradicted, that there is a grave moral obligation on the board of C.I.E. to do justice to these old people who worked in the railways at a time when wages were particularly depressed, who gave 40 to 50 years' honourable service and who are now thrown on the scrap heap on pensions as low as 6/- per week.

There are one or two points that I should like to make regarding the pending amalgamation of that portion of the G.N.R. which is in our territory with C.I.E. These amalgamated lines in future, under the new legislation, will be under a new board charged with operating a new policy. Part of that policy was indicated by the Minister when he stated that they would be charged with keeping open railway lines, except under certain conditions. I want to draw to the Minister's attention developments that are taking place and that have taken place quite recently on sections of the G.N.R. which he might re-examine and he might direct them to stay their hand until they come under the new board which will be operating a new policy.

The Minister is aware that passenger services were withdrawn from the Dundalk-Clones branch as recently as October. That appears to me to be a branch that might profitably be operated by diesel car and it is a branch that quite possibly, in the ordinary course, would be kept open to passenger traffic by the new board operating a new policy. Then there is the case of the Oldcastle branch. There is an application before the Transport Tribunal to withdraw passenger services from this branch. Again, the same argument applies, that that should not be allowed until the new board takes over and investigates the position.

It appears that the G.N.R. have utilised diesel railway cars which were released through the closure of secondary lines in the North of Ireland. They have been used and concentrated solely on the Belfast-Derry route. I do not know why that should be so. They could be used on the lines I have referred to.

I do not know if there is anything in the suggestion that, on the abandonment of the existing agreement, there is some question of the division of the assets of the G.N.R. I find it hard to believe that the agreement is so loose that assets such as diesel rail cars will be distributed between the U.T.A. and C.I.E. purely on the basis of their location at that time.

I should like to know what is the Government's policy in relation to the County Donegal Railways. As we know, the Donegal Railways Joint Committee is jointly owned by British Railways and the G.N.R., which, of course, is jointly owned by the State, jointly under the control of our Minister here. What brought it to my notice was that there was in yesterday's Press an announcement of the intention of the County Donegal Railways Joint Committee to close and abandon the Donegal-Ballyshannon line. The Minister in his statement did not refer at all to the County Donegal Railways and I should like to know from him if it is intended to amalgamate these lines as well as those in the G.N.R. with C.I.E. and, if that is so, again I say the County Donegal Railways should be encouraged to desist from the procedure they are now taking to close and abandon that line, until they come under the new board operating a new policy.

The Minister mentioned the compensation to be paid to redundant employees of the G.N.R. after the merger of the two systems. I know the difficulties that the Minister is facing in this matter and I would advise him to give the option to G.N.R. employees either to come over to C.I.E. or to accept compensation. That would, to some measure at least, meet the problem of redundancy that undoubtedly is going to crop up. I have a feeling that there are many employees in the G.N.R., men approaching the 60 mark, who would readily agree, for several reasons—because of home conditions they may not be able to face transfer —to retire on adequate compensation rather than transfer to C.I.E. That would ease the problem of pushing out the fellow at the bottom and still be meeting, and justly meeting, the wishes of the man around the 60 age mark. I am not too sure that it might not be possible to extend to the C.I.E. staffs around that age the option of retiring on compensation at that particular age.

One other small group that may not have come to the Minister's notice is the staff of the Irish Railway Clearing House. It appears obvious, with the merging of the G.N.R. with C.I.E., that the work in the Irish Railway Clearing House will be considerably reduced and that there will be redundancy. To add to that I am informed that at the moment British Railways are contemplating a new approach to its clearing house system and that we may see in a very short time the position where British Railways will make bulk settlements with other railways as far as their clearing house arrangements are concerned. If that is so you will have large scale redundancy in the Irish Railway Clearing House and I would like to ask the Minister if he has given this matter thought and what he thinks regarding compensation provisions. Up to this the clearing house has been mentioned only once in this House and that was in the 1924 Act when you had a previous amalgamation between the Irish railways.

Before I sit down I should like to say that, all in all, I think the policy outlined by the Minister has much to commend it. But I am very doubtful however if the changes envisaged in his statement are radical enough to meet the problem or radical enough to enable C.I.E. to provide an unsubsidised system of public transport for passenger and freight on rail, road and water, on the basis of satisfying the public and giving a fair crack of the whip to the people engaged in the transport business and their dependents.

I think if there is anything which belies the old saying that it is easy to be wise after the event it is probably the question of transport. We are discussing C.I.E. losses and the general question of transport nearly 14 years after the introduction of the Act of 1944 which, I think I am correct in saying, foreshadowed at the time cheap and efficient transport. I think this question of transport has dashed the hopes of more than one Minister for Industry and Commerce and I do not propose to indulge in any taunting of the present occupant of that position because his hopes in the days of 1943 and 1944 have been dashed also.

Everyone seems to be agreed on the fact—and I do not think there is any gainsaying it—that the problem with regard to transport is that we have got too much transport, that the transport resources in the country are in excess, and fairly considerably in excess, of our requirements and that involves with it the question of C.I.E.'s financial losses on the railways and to a lesser extent, on the canals. When we consider the question of too much transport, and the losses entailed by operating too much transport, we are straight away up against the question of the social consequences of that, rather than the social problems involved in trying to remedy it, the big problem of the unemployment which would be created.

I think it is true, although not particularly helpful, to remark that, if there was any reality in the Fianna Fáil plan for full employment, that particular aspect of the problem is one which need not worry us. But I am talking on the assumption that the £100,000,000 plan for full employment need not be taken into account when we are discussing the transport problem and that if the question of an excess in transport is to be tackled and be remedied, we must face the logical conclusion that that is going to result in unemployment and the displacement of some of those at present employed in the transport undertaking. Some of these could presumably be adequately compensated. Others, I presume, would be absorbed into other forms of employment but there must be a residue, if the problem is to be tackled in that manner, of unemployment which to my mind would be fairly substantial.

The Minister when making his statement on this Estimate gave a figure of about 14,000 persons employed on the railway undertakings in this part of the country, that is, on C.I.E.'s railway operations and that portion of the G.N.R. railways operating in this part of the country. Coupled with that, the Minister mentioned the C.I.E. estimate of 30 per cent. redundancy in railway employment. It seems to me, consequently, that the figure for over-employment in the railway undertaking at the moment must be in the region of 3,000 or 4,000 persons.

The Minister also mentioned that the estimate for changing over to road services, of an equal carrying capacity, would involve a capital outlay of about £12,000,000; I think that was his figure. I do not think that in itself is particularly terrifying when weighed against the C.I.E. losses which, again I think I am correct in quoting the Minister as saying, since 1950 to the end of the present financial year, come to something like £12,500,000. On those figures, any capital outlay of the sort involved, if offset against losses running at that rate, would not take too long to be recouped. I think the Minister argued, and argued quite soundly, that quite apart from this question of any capital outlay involved at present the railways, their rolling stock and permanent ways are, for the most part, in very good condition. There does not seem to be any point in unnecessarily anticipating a decision to jettison those and to dispose of them probably at a very great loss.

In addition to that, the Minister pointed out that the C.I.E. estimate of the running cost of operating road services of equal carrying capacity to the railways would be £11,000.000 as against £8,000,000 on the railways. That is an addition of £3,000,000 a year if there is to be a change-over. Fourteen years after the 1944 Transport Act, the Minister comes to the House and is honest enough to say that notwithstanding the proposals he is making to the Dáil, and notwithstanding the recommendations of the Committee on Internal Transport neither he nor anyone else can say that certain proposals he has outlined will be sufficient to save the railways in this country.

If I followed the Minister correctly, a number of decisions have been taken by the Government in this matter. It is difficult to discuss these in a concrete manner at the moment, until the legislation he has foreshadowed has been introduced. However, a number of decisions have been taken, the key one being that we must try to preserve the railways as an integral part of the national transport system. That decision, in turn, involves a number of other decisions. The committee which examined on this problem also made a number of recommendations. The Minister has accepted some of those recommendations, has rejected others of them and is silent with regard to a number of others. I do not know whether the Minister's blanket endorsement of the general soundness of the views of the committee is to be taken as indicating that the particular issues on which he is silent are likely to be accepted by the Government or not.

There is, for instance, the recommendation permitting farmers to carry goods for neighbours within a radius of two miles. That was one of the recommendations of the committee and it is a matter to which the Minister did not refer. There were other recommendations of one sort or another to which the Minister, in his statement, did not advert, and I should like to know from him whether these matters are still under consideration in his Department or whether he has decided, as a matter of general policy, to adopt the various recommendations, other than those which he specifically stated are being rejected.

One of the principal decisions the Government have taken is in connection with the alteration in the approach to the closing down of branch lines. The system heretofore has been that if it was proposed to close a branch line, the approval of the Transport Tribunal had to be obtained. That involved an elaborate inquiry into the proposals. The Minister has indicated that the Government's view is that the C.I.E. Board should be empowered to close down any line or station, or to withdraw any service for which they see no future, and should be permitted to do that on their own decision, without having to seek the approval of the Transport Tribunal.

It does not end there. The Minister has indicated also that an alteration will be made so as to remove from C.I.E. the obligation to provide an alternative service in cases where they decide to discontinue a railway service and to close down a branch line. He has indicated that, in cases where C.I.E. do not provide an alternative road service for a discontinued railway service, that must be coupled with the giving of licences to private transport undertakings to deal with the situation. I certainly feel that there should be a very cautious approach to this question of enabling C.I.E. on their own decision and on their own initiative to close down branch lines.

Remember that while the Committee on Internal Transport did indicate their view that the mileage of lines could be considerably reduced, they did that, having recommended, and strongly recommended in their report, that a transport advisory council should be established. That was one of the recommendations which the Minister has specifically rejected, so that the position arising out of the proposals the Minister is taking is that, without a transport tribunal, without a transport advisory council, C.I.E. are to be empowered, on their own initiative and on their own decision, to close down branch lines and not to provide any alternative transport where they have closed down such lines. This is a matter which should be considered with a certain amount of caution.

The Minister indicated that as far as the information he had was concerned, it was not going to make any great difference to the financial problems of C.I.E. whether branch lines were closed down or continued. I assume that, in talking in that way, the Minister was referring to the losses incurred on these branch lines rather than the total savings which C.I.E. might effect by closing them. In 1949, the then Minister for Industry and Commerce spoke on this matter in the Dáil during an adjournment debate on the question of Dublin bus fares. As reported at column 1601 of the Official Report for March 23rd, 1949, the then Minister said:—

"The first proposal which was put to me was that all fares should be increased—more or less the same proposals as it is now proposed to bring into operation now. But they said then that that alone would not meet the situation. I was asked to close down branch railway lines to an extent that would enable them to dismiss 1,000 men; to cut back on general maintenance to a point that would enable them to dismiss a further 2,500 men; and further, that we should also agree to restrict private transport."

As far back as 1949, the idea of C.I.E. was that they should eliminate branch lines to an extent which would enable them to dismiss 1,000 men, and it seems to me that C.I.E., without any control by the Transport Tribunal, the Minister or anyone else, will now be allowed to make their own decisions in this matter. Unless the position has altered substantially between 1949 and the present time—perhaps it has, for all I know— C.I.E. would have in their mind something along those lines that would enable them to reduce their staff by about 1,000 people. Unemployment of 1,000 people would probably affect about three or four times that number when one has regard to the wives and families of the workers.

The Minister has also decided to accept the recommendation of the committee with regard to the freeing of C.I.E. from the common carrier obligations. Briefly, the common carrier obligations could be defined as an obligation to accept any traffic that is offered to the board and accept it at rates not exceeding their published rates for that particular business, and also the obligation not to accept in a manner which would prejudice a particular person or group of persons on the one hand, or which would favour them on the other. They also have an obligation to charge all persons equally in respect of the carriage over equal distances of goods of a similar description. My definition may not be legally perfect, but I think, generally speaking, that would sum up the common carrier obligations.

When we consider the transport undertaking as a national undertaking, a national service provided by a concern in public ownership, it seems necessary that something in the nature of, or very closely allied to, common carrier obligations should be in existence. The Minister's proposal, as I understand it, is to free C.I.E. entirely from their common carrier obligations and to put them in a position where they can quote different rates to different people with a view to attracting business. I concede straight away that, from the point of view of business efficiency and looking at it purely from the point of view of a commercial venture, the Minister is quite right. Probably C.I.E. will be put in a position, when these obligations are removed, of entering into keener competition with other commercial firms, particularly in withstanding road competition which they have to meet at the moment, but I feel that we are rather letting the people down when we consider the question of national transport as a service which has to be provided for the people.

I want to call attention to the fact that in their report the committee, when they made their recommendation regarding the freeing of C.I.E. from common carrier obligations, specifically tied that up with having in existence a transport council which would guard the public interest and see that there was some adequate machinery there to prevent anything in the nature of discrimination in changing their rates and so on. The Minister has rejected the idea of a transport council, but has accepted the idea of freeing C.I.E. from common carrier obligations. In fairness to the Minister, let me say that when he was introducing the Estimate, he did not overlook the point because he mentioned the possibility of keeping the Transport Tribunal in existence to deal with any problem of discrimination.

I do not quite understand the Minister's attitude in connection with canals. The committee, in its report, indicated that if C.I.E. were allowed to withdraw their barges from the canals, they would effect a saving of, I think, £108,000 a year, and I assumed —perhaps wrongly—from the manner in which the recommendation was worded in the committee's report, that the suggestion that they should be allowed to make that saving came in the C.I.E. submission to the committee. I may be wrong in that because the Minister stated that he did not propose to accept that recommendation without further consideration in view of the C.I.E. observations. I should like to know what were the C.I.E. observations. I should like to know if it was part of their submission to the committee that they should be allowed to withdraw their barges, and what observations they had to make on the point subsequently.

So far as I can see, having regard to the limited user of canals, it appears to be an eminently reasonable suggestion that if £108,000 per annum can be saved by allowing C.I.E. to withdraw their barges, that should be done. I would go further, and I would relieve C.I.E. from any obligation to maintain the canals. I do not think it would be too great a burden on the appropriate local authorities if that obligation were to be borne by them, so far as the stretches of canals in their counties are concerned. I am not suggesting that they should maintain them as canals, but that they should keep them clean and so on.

I also completely fail to understand either the recommendation of the committee or the Minister's decision with regard to the motor coach tours. In their report, the committee adverted to the fact that they had considered these tours from the point of view of the very considerable income which C.I.E. derived from extended coach tours. They also referred to the fact that the coaches gave employment and that they were built here from dutiable components and, nevertheless, the committee, it seemed to me, rather from the tourist point of view than the transport point of view, recommended that foreign coach tours should be allowed. In the course of his statement, the Minister mentioned that that was being implemented, I thought the position being that he had already come to a decision prior to the committee's recommendation. I do not know whether I am correct in that or not.

In either event, when it is stated by the committee, it is stated by the Minister and it is conceded by everyone who has examined the problem, that the problem is one of too much transport, I cannot understand why the Minister should admit more transport now into the country. When everyone is concerned about C.I.E. losses and when C.I.E. are able to derive a considerable income, in the words of the committee, from dealing with these coach tours, I cannot understand why the Minister should take a decision which may prejudice the income which C.I.E. derives from handling these coach tours. I certainly do not understand that and it seems to me to be quite inconsistent. I do not know quite how the matter is being dealt with by the Minister. The committee suggested that duty-free facilities should be afforded to such coach tours. They based it on their view that it would attract tourist business which C.I.E. probably would not get anyhow. I disagree with that view and I think that if coach tours are being admitted, it certainly should not be on a duty-free basis.

I want to make some suggestions. I want to make this suggestion, Sir, which may not be strictly in order at the moment; but I want to make it very briefly, for the purpose of emphasising a further suggestion which I want to make immediately afterwards. Having regard to the vital part played by transport in the economic life of the country and its impact on industry, commerce, agriculture, communications and everything else, and considering that so much of the taxpayer's money has already been spent on public transport, and when we have the Minister's proposal that for the next five years at least there will be an annual payment made by the taxpayer in respect of transport, it seems to me that we should not shirk from taking a decision to make this question of transport the special care and consideration of a Minister. The Department over which the present Minister presides is probably too large already and I think it would be a matter of relief to him and to his Department if this question of transport could be taken out completely from the Department of Industry and Commerce and dealt with separately.

The matter scarcely arises on the Estimate.

As I said, I intend to be very brief on it and I am mentioning it only because I want to make another suggestion, which I think is relevant but which might not stand up without this suggestion first.

I want to pass from that point by saying I think that could be done without the creation of a new Ministry. There is a very close and natural affinity between the questions of transport and communications and the Department of Posts and Telegraphs, and that Department is one which is not generally regarded as being overworked. I think we should create a new Department of Transport and Communications to deal with both this question of transport and posts and telegraphs.

The reason I want to mention that is that we should explore the possibility of having separate rail and road boards. That could not be done unless the question of transport were under the special care of a Department of State. It must be remembered that the Oireachtas will be voting money—I do not know the amount, but it will proably be considerable—for at least the next five years to the public transport undertaking. I think it is necessary that there should be a Minister directly responsible to the House and who can be questioned in the House regarding the expenditure of that money. It should be within the bailiwick of the Committee of Public Accounts or some such committee to go into the question of that expenditure. It seems to me, while I might be wrong in my approach to it, that it might be worth while considering the separation of the rail and road ends of C.I.E. under separate boards. As I say, I do not think that can be done unless a new department is set up.

As a minimum, the Minister should reconsider his decision to reject the idea of a transport council. There should be a transport advisory council and the committee gave their arguments in support of that. I do not want to prolong what I have to say by going into that. Their recommendations are in the report and they certainly had reasons for advancing that recommendation. Also, as I have indicated, the Minister should reconsider his attitude to the canals. He should reconsider his attitude to freeing C.I.E. completely from the common carrier obligations. He should reconsider his attitude with regard to allowing C.I.E. and nobody else the right to decide about the closing of branch lines. I know that it is a difficult problem and I know the Minister and the Dáil will proably be discussing it many years from now. At least, we are to get an opportunity annually, I take it—if there is to be a sum included in the Estimate for C.I.E.—of reviewing it.

One of the arguments which the committee put forward in favour of a transport advisory council was that there should be some body in permanent session to review these matters. I hope the Dáil will get an opportunity annually to do so. None of us would be doing a service by minimising the problem. It is a big problem.

It seems to me that there is likely to be unemployment. I do not want to go into the question of compensation, other than to say in a very general way that, if persons who have had employment in a public undertaking of this sort are put out of employment, by reason of any reorganisation or any cutting back that may take place, I do not think anyone can grudge seeing that those people are properly compensated. There must be adequate compensation for any worker who is put out of employment or whose position is disimproved. There are compensation provisions in the Acts there already. The Minister seemed to indicate that there would be doubt with regard to the position of people who became unemployed, purely and simply because C.I.E. could not get the work. I believe that if by Government policy or through the adoption of C.I.E. policy, these people find themselves unemployed because of reorganisation, the Minister and the Dáil must face up to the question of adequate compensation.

When the Dáil rose last July, I, like every other Deputy, returned to my constituency, and one of the things I brought back with me was the Report on Transport. From the exhortations the Minister had given to the electorate and from the propaganda of Fianna Fáil as to the wonderful activity they would show if they were returned to office, I was full sure when we came back to this House that we would not have a proposition, just the mixture as before, asking us to vote another £1,800,000, but that we would have concrete proposals prepared by the Minister. It might be said there was no time. That report was produced in May of this year. We had June, July, August, September, October and November, and nothing happened. I am afraid the activity that has been shown by the Minister and by his colleagues has been reflected in the activity of the rest of the Fianna Fáil Party in relation to the business of this House since we came back here a few weeks ago. I was very disappointed that the Government Party composed of 77 members could produce only one back bencher to comment on the Agricultural Institute Bill——

That has no connection whatever with this Estimate.

——and it looks as if they intend to follow suit in this regard. The Minister said in his statement that the railway undertaking of C.I.E. continues to lose traffic. They have been doing that since the 1944 Traffic Act. One of the principal reasons why the railway undertaking is losing traffic is that road transport went into competition, and into unfair competition, with them. When that business got cracking in 1944, they sent 30 wagons to a 200-wagon fair and filled the place with matadors. They did that until they had most of the live-stock traffic on the roads and they continued sending the wagons to the fairs. Now we must ask ourselves the question: have C.I.E. priced themselves out of the traffic?

There has been a good deal of criticism of C.I.E., and much of it is aimed at the top. We might as well be realists and aim whatever criticism we have at the top and bring it down to whatever level the criticism can be aimed at. One great change has taken place in C.I.E. since 1944 and has done great damage. When the railways had the monopoly of transport, there was an esprit de corps in all railway staffs from the lowest-graded porter up to the highest-graded official. It was the passenger who counted; it was the traffic and the goods that were the important things. That has all gone by the board. I have seen extraordinary things done. I have seen thousands of people transported from my constituency up to see the All-Ireland final, which we did not win, and they had to gallop from Croke Park to Kingsbridge to get home.

That kind of thing has injured C.I.E. and driven people on to the roads. Passengers are not being considered. It is the staffs that matter. Many people would prefer to pander to the railway staffs and not say a word about that, but I think it is only right to draw attention to it. At a time when the railways had a strict regulation that goods should be loaded, say, at 6 o'clock, for a goods train leaving at 6.45, if you got there at 6.15, they would load the goods. As I say, there was this esprit de corps and whether it was the station-master with the gold braid on his hat or the lowest porter or shunter, they would get down on the line and make sure those goods got away. The sooner they get back to the idea that the customer and the traffic must be catered for the better.

I will say this much in favour of the staffs. The centralisation of authority in the railway is definitely cramping the style of the officials down the country who might try to show initiative. There should be relaxations and a delegation of power to what I will call the superintendents of areas. They should be able to stand on their own feet in their own areas and direct traffic with which they are more competent than anybody else to deal. When I speak of road transport, I mean not only the monsters that C.I.E. have on the road but the monsters other people have on the roads. I saw the coming of the one-ton truck, the three-ton, ten-ton and 15-ton lorry. Now they are 20, 25 and 40 tons. Where is it going to stop? I think there should be a restriction on the carrying capacity, or on the size, of many of the vehicles that have appeared on the roads. I know it would be a great hardship to put them off the roads right away but there should be only so many years allowed for them to run themselves out.

At the same time the Minister should see to it that C.I.E. do not have themselves priced out of the market; they should encourage heavy traffic back to the railway. We see monsters bringing petrol from Dublin to depots in Cork, Waterford and elsewhere, and they go around the small villages parcelling it out. Other Deputies know, as well as I do, that there are oil depots belonging to these companies situated alongside railway lines at various stations. All that traffic should be diverted to the railways. It would not create unemployment among people engaged on the lorries; in fact it would create employment by putting back the small tanker which would do the local deliveries.

I have heard it said by what is called an Irish merchant, a member of a chamber of commerce, an industrialist, or director of a company, that C.I.E. should be done away with just like that. That is all nonsense and the Minister knows it is. A very important thing to consider, is this: If somebody came to this House from America, Czechoslovakia or anywhere else, and said he could establish an industry in this country that could employ 14,000 men, and the operating losses were £400,000 a year, I do not think the House would have to take very long to make up its mind about what it was going to do. That is the way we must look into it. If all this slicing away of branch lines, if all this actual paying-off of men and the creation of unemployment really takes place, will that be worth the money to this country? The Minister should consider that, that we are losing £400,000 in operating costs on the railways but we are keeping 14,000 men employed.

We now come to a matter about recent railway policy that I and a great many people do not like, with the figure of unemployment right in front of us. I am referring to the ruthless and brutal letter of Mr. Reynolds to the Dundalk Urban Council. I have some experience of ruthless and brutal things done by this House. There is nothing to smile about, nothing to laugh about, in this. People's lives, hopes, futures, livelihoods, and homes are all thrown into the balance. Legislation was brought in here which resulted in people's livelihoods being taken away in my constituency without any compensation. That legislation was welcomed here. As long as I am here I shall always hold it against the Government Party. They are going to do the same in Dundalk and the comparison is nearly the same.

Most of the people working in the railway yards at Dundalk have been there for generations. They are a fine people and a hatchet man was sent up to prepare the ground to destroy their livelihood. By contrast we can see how this was dealt with when another Minister of State met a deputation of the workers in Dundalk. He proved himself to be a better diplomat there than he did in U.N.O. He had the best swerve, and sold the finest dummy ever sold in this country, in the statement made to the deputation.

The Minister has selected my constituency several times because we are evidently a simple people. He came to Waterford when he said it was whispered that Fianna Fáil would reduce railway employment and that there was no truth in it. He said if he were Minister, and they were at the wheel, they would not reduce railway employment. They were simple people. The majority of the railway men voted for the Minister's candidates. It is a frightful state of affairs to see that people can laugh in this House at a thing like that. When the Party I support, and the inter-Party Government, were in power we were sneered at. Everything we did was jeered at and sneered at by the people who are conspicuously absent during these debates now.

I say to the Minister that he should approach this matter in Dundalk as bravely as his predecessor did. When it looked likely as if the G.N.R. were going to produce the axe, the strong action taken by his predecessor promptly had it put away. Fourteen thousand people are getting their livelihood on the railway. The operational losses are £400,000 per year. Before any hatchet man is let loose on the people of Dundalk, Waterford or Cork let the Minister come bravely to this House with proposals. Let him get his Vote here to-day but let him come into the House with his proposals early next year, and keep the promise he made on thousands of posters: "Let us get cracking."

I should like to give credit to the Minister for introducing the proposals. They are not by any means perfect but I think all sides of the House will agree that the national transport system in this country has been a headache for many years past. There is no doubt that a small country with a population of less than 3,000,000 cannot carry the present load of public and private transport. The most we can hope to do is to provide the country with the most efficient and economical transport system we can, namely, a combination of both State and private enterprise. Economically, the national transport system will never pay its way and I do not think it would be fair to expect it to do so. The taxpayers, therefore, will have to face up to the unpleasant necessity of maintaining a national transport system out of the public purse. As a quid pro quo, however, the public are entitled to as efficient and economic a public transport system as can be provided.

It is obvious that the House accepts that we must have at least the nucleus of a national transport system. The reasons for it are as obvious as the House's acceptance of the principle. First of all, it is desirable that we should have such a system, in case we find ourselves in times of war or emergency, with the obligation placed upon it to carry both passengers and goods. Secondly, it is desirable from the point of view of employment content. As several speakers have pointed out, C.I.E. is a very big employer of labour.

Rather too much emphasis has been placed on C.I.E. losses. C.I.E. is in the unfortunate position of having its losses easily assessed and its cost to the public, particularly the taxpayer, easily assessable. We all know that we have a big number of industries— giving good employment, I grant you —which have what might be described as hidden subsidies through tariff or other protection. The public is prepared to bear these imposts because these industries give employment, and they are thereby afforded the opportunity of continuing and prospering. But if an assessment were made of the cost to the public in terms of pounds, shillings and pence the public might suffer quite a shock. It is not fair, therefore, to blame C.I.E. entirely for incurring very heavy losses.

The Minister has approached the problem in the right way when he asks that C.I.E. be put in a position to compete on fair terms with other forms of transport. Certainly it establishes some means by which one may arrive at the most economical and efficient method of transport ultimately.

The problem of transport is sufficiently serious, I think, to warrant the appointment of a Minister for Transport. I hesitate to suggest yet another Minister in addition to those we already have, but a Minister for Transport would be as important as a Minister in some other Departments and activities of State at the moment. A Minister for Transport should be appointed and, instead of the Minister for Industry and Commerce getting up here and stating that he has no responsibility or that he cannot interfere with certain actions and decisions taken by C.I.E., we would then have someone directly responsible to this House for the running of public transport.

I agree with the point made by Deputy T. Lynch with regard to decentralisation of control. I think every Deputy has had experience of how difficult it is to get even a minor decision at local level and, if the Minister's idea of C.I.E., competing at local level is to come to fruition, it is essential that the local district superintendents should have much more authority and much more liberty to take decisions than they have at the moment. It is farcical to come up against the minor matters which cannot be dealt with at local level.

I should like to draw the Minister's attention to the position of Limerick. I heard several references to Dundalk. Limerick cannot, of course, compare with Dundalk in the size of its engineering works, but it is the most important engineering and machine shop in the south-west and it is the logical centre for wagon building or repair work on behalf of a reorganised C.I.E. I hope when the Minister's proposals are being put into concrete form Limerick's position will be safeguarded.

There is another point in favour of holding on to our national transport system. That is the tremendous amount of capital which has been invested in it over a long number of years. If all the capital equipment in the nature of wagons, rails, stations, etc., were to be replaced to-day there is no doubt the cost would be ten times the figure that appears in the C.I.E. balance sheet. There is, too, the question of the employment content. The Minister has faced up to that problem. It is only fair that, should redundancy occur in any scheme of reorganisation, the men who lose their employment should be treated justly and generously by this House and by the country as a whole.

I should like to see the principle of the maintenance of a national transport system being accepted and the burden on the taxpayer of maintaining such a system being made as light as possible. Over and above that, the merchant lorry owner and the private haulier should have an opportunity of competing on level terms. I am opposed to any restrictions on the merchant trader. He serves a very useful purpose and is a very useful unit in any transport system. His position is recognised in most countries where modern transport methods obtain.

I should like the Minister to answer one question when he comes to reply. I did not follow his statement last week that he proposes to wipe out C.I.E.'s accumulated losses of £12,000,000 by accepting liability for £11.6 millions of interest on C.I.E. stock. Perhaps he would elucidate that. Candidly, I did not follow it.

If the country, for its part, and particularly the taxpayer, is prepared to accept the principle of the necessity of maintaining a national transport system then C.I.E., for its part, has the task of ensuring that such a system will be both efficiently and economically operated and constitute as light a burden as possible on the taxpayer. This will not be the last we shall hear of C.I.E. for many years to come, but the action of the Minister now represents a step in the right direction. When the Minister comes to the actual reorganisation of the system I hope he will put on the board the best men, irrespective of who they are or what associations they may have. Equally, I trust that the new board will do its job irrespective of public criticism. I think that the present condition of C.I.E. calls for courage and consideration and if the Minister approaches the problem in that way the House will give him every support. This thing has dragged on for far too long and the time has come when the problems of C.I.E. have got to be faced up to in a realistic manner.

As the debate has dragged on longer than was expected and as most of the points have already been dealt with I shall not delay the House too long. I would scarcely have risen at all but for the fact that in the Minister's opening statement on the Estimate there was the implication that, in the new legislation, the board to be set up would have complete authority to decide on their own whether or not branch lines should be closed. I have a particular interest in this and so has my colleague on the Fianna Fáil side of the House, Deputy Mrs. Crowley. In that particular connection we have two branch lines in Kerry, one in the Iveragh peninsula and the other in the Beara peninsula.

I would suggest therefore, not only because of my own personal views but because of the views of the people in those areas, that this board should not have complete power to close branch lines and that the Minister should reserve to himself the authority to make the final decision. If there is any attempt made to close either or both of these branch lines he will have the opposition of the two Deputies for South Kerry who attend this House and also the opposition of the Sinn Féin Deputy who will, perhaps, deal with the matter in his own way.

If a clause had been inserted in the legislation of 1944 whereby the purchase of new lorries by a different set of people from those who had carriers' licences was prohibited I think that there might not now be any question of losses on C.I.E. Since that legislation was passed, and since the end of the war, something like 25,000 new lorries have been imported into this country either in their entirety or in their component parts at a cost of something like £40,000,000. If it were provided in legislation that only replacements for the lorries of those who had carriers' licences would be allowed in, we would to-day not have the trouble with the balance of payments.

It may not have been possible at the time to foresee that so many people would purchase lorries. C.I.E. itself may be responsible for part of that because they did not make proper provision for the conveyance of live stock. At various fairs throughout the country sufficient cattle trucks were not made available and the cattle had to be sent by road to their various destinations. If C.I.E. had supplied sufficient cattle trucks the people who bought the cattle would not have set out to purchase lorries for the transport of their own live stock. It was in that way that this kind of competition arose between private enterprise and the railway system. There are bound to be losses because of the method of transport where you have competition between railways, buses and C.I.E. lorries. I think that if the C.I.E. lorries were used only to feed the railways and the buses, we would not have that type of competition and the type of overlapping that we have.

Another reason why the people discontinued using the railways both for passenger and goods traffic was because of the high fares. The increasing of the fares brought in no extra revenue to C.I.E. In fact, losses were incurred. The fares are far too high. C.I.E. is now in charge of railways, buses, lorries, canals, hotels and restaurants. I wonder could the Minister tell us where the losses are occurring. Are they under all these heads or are they under one particular section? I think the major loss would be on the running of the railways.

For some years past improvements have been made in the railway system. The passenger carriages and the restaurants were improved and the railways themselves were repaired. All that cost a lot of money but travelling by rail is now very comfortable. C.I.E. have also improved their hotels and brought them up-to-date and, while the tariffs are too high, the accommodation and food are perfect. The staffs of C.I.E., from the lowest to the highest, are courteous and capable of carrying out their work.

There is one other important question, the matter of redundancy. That problem could best be solved by ensuring that employees who have long service and are nearing the retirement age would get some special inducement so that they would wish to retire now. Perhaps they could get some extra pension or gratuity. The important thing is that some arrangement will be made to ensure that there will be no dismissals from the service.

I would say in conclusion that, notwithstanding all the criticism that has been levelled at C.I.E., members of the Oireachtas and the people in the country generally were pleased to learn that the Minister did not accept the findings of the Transport Commission to close down railways with the exception of the two main lines, one running south and one running west. We require branch railway lines to serve the main lines. Railways have always been regarded as the one means of transport for passengers and goods, by the ordinary people. They never trouble those who have motor cars, lorries and various means of transport. I hope whatever Government is in power will ensure the continuance of our railway system. We cannot look too far into the future. We have already improved our railways by dieselisation. It is quite possible that in years to come—and perhaps not too far distant—we shall have some system of transport by atomisation.

One of the advantages of an advance statement of the form which the Government's legislative proposals may take is that by provoking thought and discussion among all those who are interested in public transport, as well as by securing a more widespread realisation of the magnitude of the problems we are up against, a number of useful ideas may emerge which will help the Government to complete its proposals and to produce a practical plan of action to deal with the problem. That applies not merely to Deputies—although Deputies have a primary responsibility in the matter—but also to the trade unions who cater for railway and transport workers and, of course, to merchants, manufacturers and organisations who have the allocation of substantial transport business.

And the advantage is enhanced by making the statement in the House.

I accept that. I think I should make it quite clear that I am not claiming, either on my own behalf or on behalf of the Government, that I know the answers to all the problems. It is rather a large responsibility to have to carry to produce proposals which will be regarded as workable, which will be accepted by those who have to work them and which will achieve the purpose, which Deputy Norton referred to, of keeping the issue of transport policy outside the area of Party controversy.

I will arrange to produce proposals based upon the Government decisions which I have announced but I certainly hope that in the perfection of their detail I will have full co-operation from all the interests concerned. May I say that this debate was an encouraging start to that process? We have had a number of very sensible and constructive speeches. Perhaps it was unfortunate that Deputy McGilligan started off, because he followed his usual destructive line; but I am quite certain he was not speaking the mind of the Fine Gael Party. I believe the Fine Gael Party do not often see him at their councils—any more often than we see him in the Dáil——

You would be surprised.

I will refer to that again in one respect where I think his intervention may be harmful. It has already been made clear that, from the reception it received outside the Dáil, in some respects the statement I made here last week was misinterpreted and requires clarification or amplification. I am naturally desirous of ensuring that the viewpoint of the Government will be well understood and that the process of consideration and discussion which I desire to see started should not be impeded by any misunderstanding of what we have in mind.

Reference was made here to-day to this question of redundancy among C.I.E. railway staffs. In that connection I may say that I was wrong in my statement that C.I.E.'s submissions to the Committee of Inquiry into Internal Transport contained a reference to a 30 per cent. redundancy. C.I.E. pointed out that that statement was not contained in their submissions to this committee. That arose in another connection. In any event, I am somewhat perturbed by the significance attached to that figure. I did not desire that any such significance should be given to it. There is a suggestion that the problem has been measured. That is not correct. I will refer further to what the committee said in that connection.

C.I.E. also suggested that the manner in which I made that statement in the Dáil implied that there was some reflection upon their management. I did not intend to do that although I noted the comments of the committee in paragraph 339, which I will quote:

"There is little evidence of a searching examination, either by railway managements or by labour interests, as to the real causes of the deficits and insufficient attention has been given to factors which clearly indicate that railway expenditure is at an unjustifiably high level."

I did not intend to convey that any redundancy that exists amongst the railway staff is due to managerial incompetence. What I had in mind was the existence of traditional methods of working, trade union agreements and rules, which minimise the scope available for economies to be achieved by methods of management. Perhaps I would have been wiser to have confined myself to what the committee did in fact say in that connection—in paragraph 421:—

"Redundancy exists, however, in that undertaking (C.I.E.) when compared with railways in other European countries irrespective of our recommendations, and employment of railway staffs has been maintained by artificial aids."

Later on, in the same paragraph they say:—

"No staff could reasonably expect such conditions to continue. The knowledge that for 11 years the Department in which they are employed cannot of itself meet operating expenses and is so great a drain on the rest of the undertaking that the survival of C.I.E. as a whole is threatened, cannot be conducive to staff morale."

Having commented on the fact that the railway structure had not been adjusted to suit altered circumstances, they went on to say in paragraph 422:

"While the extent of the present staff redundancy in the railway undertaking of C.I.E. might be judged to some extent by comparison with railway employment in other countries as related to mileage, volume and density of traffic and similar factors, the only accurate basis of determination is by reference to the employment provided under the conditions indicated in our recommendations. This, however, cannot be estimated at present, particularly as the volume of employment will be influenced greatly by the degree of success in obtaining additional traffic under new conditions."

The reason I referred to this matter in my opening remarks was that I think it comes very close to the heart of the whole problem. It is a matter for the trade unions catering for railway workers in the first instance. The interest of these unions, as I see it, is twofold. First, they have the desire to make employment of their members engaged in railway operations more secure, to give them the certainty of continuity and therby to enhance their status and their morale. Secondly, they have the desire, which we all share, of keeping the maximum number of workers in employment.

In a sense, it will be appreciated that these two aims are in conflict, if the views of the Committee of Inquiry are sound that there are redundant staff employed which tend to bring up the total level of operating costs and that one of the necessary measures to save the railways is to bring down these operation costs. Can these two aims be reconciled? I think they can to some extent. It was in that connection I made my reference to the possibility of extending the compensation arrangements under existing Acts.

Deputies are aware that there are provisions for the payment of compensation to workers who lose their employment when a railway line is closed down or a railway service is withdrawn but that it is not the problem we are facing here. What I had in mind was that the trade unions and the management might get together for the purpose of working out what the minimum staff needs of an efficient railway organisation are and to consider what alterations in rules might be made or what measures might be adopted to bring the staffs down to the minimum number required for efficient operation and thus make more secure the employment of those who will continue to be engaged in railway work.

If that proved to be practicable I indicated I was prepared to consider what I call a package deal under which, in consideration of the prospect of improving the costs of rail operation and in order to facilitate the implementation of any agreement that might be made, the extension of the existing compensation arrangements or the institution of a new compensation arrangement which would ensure that the reduction of the number employed in railway work would not cause hardship, would be facilitated on the lines which were indeed suggested in the Milne Report of 1949, where the possibility of inducing workers to surrender their employment in consideration of such compensation payments was referred to.

The Minister now says that his estimate of the 30 per cent. redundancy is not correct?

No. I had said here that C.I.E. had referred to that in their submission to the committee. They made it clear that they did not refer to it in their submission to the committee.

What now is the estimate of redundancy?

I am now accepting the view of the committee which I quoted that it cannot be estimated, particularly as the volume of employment would be influenced greatly by the degree of success in obtaining additional traffic in the new conditions. There is no figure of redundancy. As I said, I did not intend the figure I mentioned to get the significance that has been given to it. There has been no precise estimation or calculation but the existence of the problem was undoubtedly adverted to by the committee as one of the main factors to be taken into consideration.

Am I right in saying that nobody at present knows what is the extent of the redundancy, if any?

That is what I say. It has not been measured and it would not be practicable to measure it now in view of the prospect that through the other changes I have indicated some increase in traffic may be accomplished.

In that connection, I should refer to Deputy Casey's remarks regarding the wage demands which are at present with the C.I.E. Board. I think Deputy Casey may have misunderstood to some extent the provisions of the national wage agreement which he quoted. That agreement, as I understand it, was not intended to provide for the granting automatically of any specific increase to workers generally. The real important part of it was the recommendation that at the present time the preservation of employment and the prevention of price increases were considerations of outstanding importance and there was, therefore, by both sides, acceptance of the idea that in relation to any particular occupation there should be an investigation of the extent to which it was possible to concede wage increases and particularly of the methods that might be applied in order to offset the effect of wage increases upon prices or employment.

I am not going to attempt to prejudice any negotiations that may take place in that regard but it is, I think, unrealistic to think of C.I.E. as an organisation in a position to grant automatically wage increases without giving a great deal of thought to how the effect of these on higher costs can be offset. I have stated already that if there is any further increase in the costs of railway operation the only conclusion to be arrived at is that some curtailment of the scope of the railway operations may be necessary.

Some uncertainty was also created, I gather, by my reference to the existing "last in, first out" rule in determining the order in which workers are released from employment when redundancy occurs. Deputy Faulkner of Louth had some discussions with the workers employed on railway work in his area and found that uncertainty as to what I meant. Others have also commented upon it. At paragraph 424 of their report the committee says this:—

"We consider that, while the final decision as to the particular workers to be released would be a matter for C.I.E. after consultation with the trade unions concerned, a suitable balance should be preserved between younger and older men in determining the staff necessary for the efficient operation of the undertaking."

It seems to me that the management of C.I.E., in endeavouring to establish a suitable balance between younger and older men, would find themselves up against that particular rule and, indeed, I think that, in the context of a reorganisation scheme, the trade unions might wish themselves to modify the application of that rule. The purpose of my remarks was merely to make it clear that, even though it would involve a higher bill for compensation, the Government would not object if the rule were modified in order to facilitate the whole operation and bring about what the committee regard to be desirable, namely, a suitable balance between younger and older men within the company's organisation.

The third matter concerning which Deputies know some misunderstanding has arisen relates to the problems that will result from the amalgamation of the G.N.R. undertaking within the Twenty-Six Counties with C.I.E. First of all, I want to say definitely that the circumstances which are forcing a change in regard to the G.N.R. did not arise by our decision. It is not by our wish that the agreement which was negotiated in 1935 for the setting-up of a joint board to operate that undertaking is coming to an end. We have not yet received formal notification, under the agreement, for its termination but we have been informed that it is the intention of the Minister of Commerce in Belfast to give that notification. I sincerely hope he will change his mind.

Apart from any other reasons which we may have, most of us would regard it as undesirable that the G.N.R. undertaking should cease to exist. Indeed, we would hold that view even if the Belfast authorities confirm their decision to go ahead with the programme of closing-down a number of the lines within the Six-County area. The position regarding the line from Portadown to Derry is uncertain. A statement issued in the last few days indicated that the result of efforts to attract traffic to that line and to reduce the costs of operating it will determine the decision. I would say, however, that even if the outcome of all these changes in the Six-County area were to reduce the G.N.R. system to a single line from Belfast to Dublin it would still be preferable to keep that joint board in existence for its operation. That is what we desire but it is not what we desire that will determine the course of events.

Taking facts as they appear likely to develop, we must recognise that the agreement for the joint operation of the G.N.R. undertaking may come to an end in October of next year and, if that happens, it will obviously be common sense to amalgamate what is left of the undertaking in the Twenty-Six Counties with the existing C.I.E. undertaking. That decision brought into a very prominent position the question of the future of the Dundalk Works. These works are not our property. They are in an entirely different position from any other part of the G.N.R. undertaking. They are the property of the G.N.R. Board which, as I have said, is a joint board. We could have left that position to develop when notice to terminate the agreement was received and tried then to consider what part the G.N.R. works, when taken over from the G.N.R. undertaking, could play in the transport organisation of the Twenty-Six Counties.

It was obvious that the acquisition of the G.N.R. works by C.I.E. would give C.I.E. a surplus of railway engineering shop capacity and that, in any event, the future course of transport development here was such that in these circumstances a substantial diminution in the work available for the Dundalk shops was very likely. They were built up to service the whole of the G.N.R. system, a large part of which has already been dismantled. We decided, in the interest of maintaining employment at Dundalk, not to wait until the problem was upon us but to try to take time by the forelock and plan now for the development at Dundalk of new activities which would supplement the railway work it will lose if the agreement is terminated. That involved, as I explained to the Dáil, the negotiation of an arrangement with the governmental and transport authorities in the Six Counties for handing over these works to a new company. These negotiations were rather difficult. A number of legal points arose but, ultimately, an agreement was made for the leasing of the Dundalk Railway Works to a new company.

The reason we pressed to get that done now was because we recognised that time would be needed if commercial engineering activities were to be organised for Dundalk. Nobody, I am sure, believes that an undertaking of that kind can be accomplished in a very short time. I said, indeed, when introducing this Estimate that the time available was already, in my view, very limited and that I had hoped that the actual transfer of the works would be completed before this. I do not think that has really impeded the progress of investigating or planning for new activities at Dundalk. That company has tendered for certain contracts which are available around the world. I cannot say whether or not they will get the contracts. We hope they will. Discussions have been going on with a number of firms engaged in the production of commodities for which the equipment at Dundalk Works would be suitable and a very large number of contacts have been made, all designed to open up the possibility of attracting to Dundalk work of an engineering kind which will maintain the volume of employment there.

I can understand the anxiety of workers in Dundalk to have some guarantee that these efforts will succeed. They cannot be given such a guarantee. They can be assured that people are working vigorously and continuously in order to bring about success. We can hope they will succeed but no guarantee can be given.

The only guarantee they want is that the railway work will be left in Dundalk.

Deputy McGilligan made a speech which, I think, was intended to be mischievous. Obviously, the success of this effort will depend on the existence of complete co-operation and harmony between those who are trying to organise the extension of activities at Dundalk and the workers in the shops. I think Deputy McGilligan was trying to build up a barrier of suspicion and hostility between them. Deputy T. Lynch, who spoke this morning, followed Deputy McGilligan on that line. I do not think he is likely to receive much attention in Dundalk whereas Deputy McGilligan may.

Reference was made to a letter sent by Mr. Reynolds, chairman of the company, to the Clerk of the Dundalk Urban Council. Mr. Reynolds explained to me that he received a letter from the Clerk of the Dundalk Urban Council which did not, on its face, suggest it was written by him in his own official capacity as clerk. It was a letter conveying a number of suggestions as to possibilities that might be investigated in connection with the extension of activities in Dundalk and later it appeared that these suggestions were submitted on behalf of the Dundalk Chamber of Commerce and the Dundalk Branch, Congress of Irish Unions.

Mr. Reynolds replied to the letter on a personal basis and expressed a personal view on the possibilities, without consulting his board, without consulting me. The purport of his letter was, first of all, to make it clear that the volume of railway work available for Dundalk was going to be reduced anyhow; that it was obvious that, when this agreement terminates, when the G.N.R. is cut at the Border, all the work they normally got from across the Border will be done in the U.T.A. works in Belfast and he thought it likely that C.I.E. would be able to do the balance of the work in their own workshops. He went on to say that it was obvious, also, if they were going to develop these new activities which they were trying to develop or which the letter suggested, they would have to buy new equipment which would take some time to deliver and install. In the meantime, he pointed out, a contract was being made with the G.N.R. Board to get the Dundalk Engineering Works to do all the work of the G.N.R. Board so long as that board remained in existence.

In connection with the doubt as to what the attitude of C.I.E. might be, as he has no connection with the management of C.I.E., it should have been clear that he was expressing only a personal view.

I was very much perturbed at some of the statements made in Dundalk which purported to be made on behalf of the trade unions representing the workers. I met the representatives of all the unions concerned and, when I say that, I do not want the House to think of three or four people sitting around a table. There were 25 representatives present at the meeting I held. It is quite clear that if meetings of that kind are to be repeated—and I think they can be exceedingly useful—there must be some assurance that statements made at them will be accurately reported outside. I do not want to suggest that any of those who attended that conference have in any way misrepresented what I said or failed to report accurately everything that occurred there, but it is clear that, at second- or third-hand from them, some very garbled and inaccurate accounts reached the workers of Dundalk.

One of the questions raised at this conference was the danger, as the workers saw it, of work now being done, particularly in connection with the road services operated by the G.N.R. at Dundalk, being transferred to the C.I.E. workshops in Dublin. So far as railway work is concerned, it is reasonable to anticipate that there is going to be, if anything, a surplus of railway equipment for a time, so that, apart from normal running repairs, no new work is likely to be necessary.

I have here a typescript of a report of the discussion I had with these 25 trade union representatives on the 5th November last. It was the report that was made at the time and, in the paragraph dealing with this question of the relationship between the Dundalk Engineering Works and C.I.E., this is what I am reported to have said:—

"He (that is, the Minister) had not yet discussed with C.I.E. the question of continuing the building of road passenger and road freight vehicles at the Dundalk Works. He would have no objection to C.I.E. having such work done at Dundalk on a contract basis. He expected that the position would be clarified in about six months. He would be prepared to meet the unions again after the position was clarified. In broad principle it would be contrary to Government policy to transfer to Dublin work which could be done at Dundalk."

In view of that, the suggestion which appears to have been made to the workers employed at Dundalk that a decision had already been taken to transfer to Dublin work which could de done at Dundalk was without any foundation. Indeed, I tried to indicate here in the Dáil, when the motion for the £500,000 guarantee was under discussion, that it was not merely in my own case but in the case of everybody concerned that it was reasonable to expect that there would be goodwill and co-operation in bringing the Dundalk Engineering Company over what was likely to be a rather difficult transitional period during the next year or so.

Deputy Coburn, who spoke on this matter with far more knowledge of what is involved than Deputy McGilligan, referred to what I had said regarding my desire to effect these changes with the minimum of hardship and queried in that connection our intentions regarding the transfer of G.N.R. staffs to C.I.E. I do not anticipate any insuperable difficulty in that regard. There is a multitude of details which I do not even pretend to have fully considered or even to comprehend at the moment and for which joint working parties have been set up, the reports of which will, no doubt, be available in good time. I think, however, I can say in a broad general way that the transfer of G.N.R. workers to C.I.E. employment, when the amalgamation takes place, will not in any way worsen their position—in some way it must, clearly, improve their position— but there is no real solution for the problem of the Dundalk workshops on that basis. The problem in Dundalk is to maintain employment and the whole purpose of the decision we have taken, the whole aim of all that is being done by the managing board of this company is to build up activities at Dundalk that will keep the workers there in employment.

Does the Minister not agree that it would help them to do so if the existing railway repair work was left there until the new company was established on a sound basis?

In a sense that is what I set out to do. If I had let this thing slide until next October, when the agreement terminates, then there could be no other work available for Dundalk except railway work of the type they have been doing already. What I tried to do was to get the two processes to overlap, to get the new company working now examining the possibility of developing these new activities during a period when there is certain to be railway work available for Dundalk under their contract with the G.N.R.

Has the Six-County Government any interest in the new company?

Oh no—no interest at all.

Even though they have a fifty-fifty interest in the works, as such?

No. They have agreed to this system under which the works will be leased to the new company and I hope that eventually it will be possible to transfer the ownership of the works to the new company without capital liability.

Will the Minister say at this stage who will decide in October next whether the railway work will be left to Dundalk or whether it will go to Inchicore? Who will decide that?

I said to the union representatives that I have no objection to C.I.E. having such work done at Dundalk on a contract basis. What I contemplate is that the new Dundalk Engineering Works will go to C.I.E. and say: "Here is work that we can do for you. We can quote you this price for it" and, on that basis, get a contract from C.I.E. to do this work, a contract which will be similar in character to the contract they have now made with the G.N.R. to do all their work during the period that the G.N.R. are in existence.

If C.I.E. feel they have machine room and tools to spare and can do the job themselves, there will be nothing to prevent them taking the work now done in Dundalk to Inchicore.

That is why I thought it was necessary to tell the trade union deputation that I met that it would be contrary to Government policy to transfer to Dublin work which could be done at Dundalk.

Deputy Coburn referred again to this question of compensation and I think there must be some misunderstanding in this regard. I said that the G.N.R. workers are not entitled under any statute to compensation when disemployed through redundancy. How anybody could give what purports to be legal advice to the contrary, I cannot understand. The terms of the Act are clear and beyond all possibility of misunderstanding; therefore it is my view that nobody purporting to be a lawyer could have given advice of that sort. I can only conclude we are talking about different things altogether. The position so far as C.I.E. workshops is concerned is that up to 1953 they had no entitlement to compensation and indeed it was not an unusual experience in railway workshops for the volume of employment to fluctuate from time to time. In 1953 C.I.E. workshop employees got a right to compensation only when they were permanently deprived of their employment by reason of the dieselisation programme. When I say that I feel there must be some misunderstanding, that arises from the knowledge that there is in existence a pension fund to which these workshop employees have contributed. That fund is in substantial deficit but the payment of the pensions in guaranteed by the G.N.R.

Under the scheme a worker leaving the G.N.R. employment would be entitled to a refund of his contributions, so, theoretically, when he goes from the G.N.R. to the Dundalk workshops there would be that entitlement to a refund of contributions but also a wiping out of the pension right. I have indicated that my idea is to deal with that by legislation, transferring with the worker the pension right that he has, so that there will be no interruption in that regard. I told the trade union delegation that in substitution for the guarantee that the G.N.R. Board have given, notwithstanding the deficit, pension payments will be backed by some other guarantor at least equally solvent.

In view of the fact that C.I.E. and the G.N.R. are two State services why is it that compensation pensions which are payable to C.I.E. employees are not paid to G.N.R. employees?

The Act which we passed setting up the G.N.R. Board is an Act which was negotiated with the Minister in Belfast. It was an agreed measure, enacted simultaneously in both Dublin and Belfast in corresponding terms. Indeed, if my recollection is not wrong, I pointed out to the Dáil, when introducing that Act here, that there were these differences between the provision in the C.I.E. Act and that Act and urged the Dáil not to seek to amend it as it was an agreed measure which had to be enacted without alteration.

G.N.R. employees in Belfast will not be entitled to compensation either?

I think I am correct in saying that up to quite recently even the railway operative grades affected by the closing of railway lines were not entitled to any compensation in that area. Within the past month or so there was an announcement of the intention to provide for some compensation although, from what I saw of the announcement, it would seem that their compensation payments will be on a much more restrictive basis than ours.

I do not wish to interrupt the Minister but can he give me any indication how long he will take? Another half hour?

About 20 minutes, I am nearly finished. There are a few matters to which I want to refer to clarify what I said already. Deputy Norton dealt in a general way with the main questions of policy that arise in this connection and I think he approached them in a fair and reasonable manner. He told us what his views were on the aspects of the question on which he has reached conclusions and indicated the additional information he would require on some other matters before making up his mind. He expressed doubts as to the possibility of attracting business back to the railway. I have these doubts also but I do not think they are quite so pronounced as are those of Deputy Norton.

A number of Deputies referred to statements I was supposed to have made when introducing the 1944 Transport Act and Deputy McGilligan referred to a statement made in 1951. I do not want to go over the past at all and would not ordinarily do so except where it has a bearing on the problems of the present. When I introduced the 1944 Act, the war was on and it is quite preposterous to say that I was holding out the hope of an immediate improvement in the efficiency and cost of the transport services. What we did was set up the organisation which would be able to improve the public transport services as opportunity presented itself after the war. We contemplated then a situation gradually developing when the war was over in which it was important that the public transport organisations should be ahead of private enterprise in the efficiency of their operations, in their ability to procure new equipment and in their ability to extend the scale of their services.

We contemplated that in so far as we would continue to control the supply of materials and particularly of petrol we would deliberately use that control so as to facilitate the growth and extension of the public transport services after the war rather than the growth of private transport operations, believing that it was justifiable as a long term policy and indeed as a short term measure also in so far as all the public could get the benefit rather than the owners of private transport alone.

By 1947 that possibility of improving the equipment in use in the railways, getting rid of some of the decrepit rolling stock used through the war years, and extending the scale of other operations, presented itself. As some Deputies know, by 1947 orders were placed for the diesel locomotives which were to provide faster, cheaper and more efficient services, but in 1948 there was a change of Government. A new Minister came in who felt that he could not take a decision without an investigation and there was a direction given to C.I.E., inspired, I think, by Deputy McGilligan, to stop all capital development on the improvement of the railway services and even to cancel the order for diesel locomotives.

As mentioned here to-day by Deputy O'Higgins a further order went out not to increase fares or reduce costs but to stand still in every respect until a commission of inquiry was set up. The Milne Commission was set up and their report was issued about one year later. It was not until 1950 that legislation arising out of that report was submitted to the Dáil. The legislation did not, in fact, mean the adoption of any of the recommendations of the Milne Commission but it indicated the end of that standstill period and the beginning of a new period when C.I.E. were directed to go ahead and try to improve their services again.

During the whole period contemplated when the 1944 Act was being framed as the time when the transport services would develop their efficiency and improve their business enterprise, they were doing nothing, while private transport was rushing ahead. Lorries were being purchased by the thousand and the general impression was being created that the enterprising businessman went in for private transport and that only the stick-in-the-muds kept to the public transport services. That process was further accentuated by what was in my view the most colossal mistake ever made by a trade union. There was a strike.

I am not criticising the trade unions concerned for having a strike; there will always be strikes, I suppose, and the workers are perfectly entitled to have them. But during the strike the trade unions concerned decided to black list the goods of the firms that normally used the railways while they placed no impediment on the movement of the goods of firms who had not, up to then, been using the railways. That penalised the firms that were sticking to the railways and emphasised the supposed disadvantages of adhering to the public transport system. Every firm in the country that was affected by that decision, that found itself unable to send its goods from one place to another by the public transport system and was denied the opportunity of sending them by an alternative method, immediately took a decision not to be caught that way again but to buy lorries and to establish their own private means of transport.

These events created an attitude of mind among business people which was prejudicial to the railways. They have, however, changed since then and it is my belief that if the management of the railways pursue an aggressive sales policy they can get back trade from some of the business people again. One Deputy said that the trader who owns his own lorry appreciates the advantages of that lorry to such an extent that he will never be persuaded to abandon it and go back to the public transport system. I think a very great number of them have never tried properly to assess the advantages and disadvantages of acquiring and possessing their own transport, and if the railways can offer an equivalent service at reasonable rates I firmly believe they will be able to show a number of these traders that it would pay them to go back to the public transport services rather than to retain their own form of private transport.

I hope that belief will prove to be correct. It will, of course, depend entirely upon the vigour with which the C.I.E. management try to avail of the new situation which will arise following the legislation I have foreshadowed and upon the outcome of the efforts made to increase the efficiency of the undertaking, to reduce its cost and to put it into a position to quote competitive charges.

There are some other matters to which I think I should refer before I conclude because I think all Deputies should be clear in their ideas about them before they come to the House again in connection with the draft legislation. Some Deputies approved and others disapproved of the intention to release C.I.E. from common carrier obligations arising from old enactments. This is a matter to which I have given considerable thought. I suggested the possibility that with the withdrawal of these statutory obligations there might be instead some form of an appeal tribunal set up to which citizens alleging undue discrimination could take their complaints.

The management of C.I.E. and other people have said that is not logical, that if you strip C.I.E. of these obligations there is no sense in putting on other obligations which might prove even more onerous to them. There is a great deal to be said for the argument that this is not the same situation that existed 50 or 75 years ago, that now there is a public transport concern which is State property and in which there is no element of private interest, no question of profits arising from its operations, that we appoint a board to run it in the public interest and that that board does not need watch-dogs in the form of a tribunal to see that it does not act unfairly towards individual citizens.

I have considerable sympathy with that point of view and I think that, relying on it, we could also deal with the point to which Deputy M.J. O'Higgins referred regarding the closing down of branch railway lines. Any tribunal we will set up will consist of people of the same kind as those we have chosen to run the undertaking anyway. Their decisions are not any more likely to be wiser than those taken by the people who are directing the day-to-day operations of the concern. There is, as I said, no comparison between the situation that exists now and that which obtained when these obligations were first put on the public transport undertaking.

Then the undertaking had a complete monopoly. In fact nobody could move freight over any distance except on the railways privately owned and working for profit and there was need for the Legislature to impose obligations on these undertakings to check and control their operations. It did it to prevent damage to the public interest and to prevent the exercise of undue discrimination. In the new situation we can, without fear, strip C.I.E. of these obligations and direct them merely to run their undertaking fairly and in the general interest.

As far as the railways go is not the monopoly to be more complete?

Mr. Lemass

There is not a transport monopoly.

I am talking of the railways.

The Deputy is saying that nobody else can run a railway? If anybody else wants to run a railway service we have several railways to give them, and we could easily be talked into parting with some of them.

Deputy Norton referred to the removal of part of C.I.E.'s capital liability as a tidying-up operation. I should like to emphasise that it is more than that. My objective is to give to the C.I.E. management a realisable target to aim at. So long as there was this burden of capital liability the tendency was to give up the idea of ever trying to make their accounts balance, but by taking away these capital liability burdens and by giving them a fixed subsidy by way of Grant-in-aid for a period of years, we give them for the first time in recent years the possibility of achieving that balance by their own efforts.

I think it is a tremendous advantage to the morale of the organisation to be able to achieve the position where they can justify their operations by achieving results which the public will appreciate, particularly when they now understand that any economy they may introduce by the overhauling of their accountancy system, such as Deputy Casey suggested, or in any other way will redound to the benefit of the undertaking and not merely mean that the amount they have to ask from the Minister for Finance will be reduced correspondingly. So long as there was no benefit to the undertaking by the introduction of economies the urge to find economies was reduced, but in the new circumstances I think a different atmosphere should prevail.

A number of Deputies referred to the need for employment of expert consultants to overhaul the accountancy section and other parts of the C.I.E. organisation. That was dealt with in the committee's report, and it is undoubtedly something which is very desirable, but it is clearly a job of management. It is not a question of legislating for it. I think we can be certain to find a board that will be anxious to avail of all these techniques to improve their efficiency.

Deputy Casey asked me to give him some indication of the size of the Grant-in-Aid which is in contemplation. I could not do that at this stage. A number of factors have to be taken into account and I think it would be wrong for me to reach a decision without giving the C.I.E. Board a full opportunity of expressing their views in that regard. With regard to external coaching tours I am in complete agreement with the views of the committee that it is desirable that these tours should be allowed in here. I am very conscious of the fact that C.I.E. tours are excellent and indeed the evidence which we have had from a multitude of sources of the quality, standard and efficiency of C.I.E. tours is unquestionable. They are first-class tours. I think Deputy Casey may have misunderstood this. C.I.E. for their own purposes have decided to limit their operations to what are known as first-class tours, visiting first-class hotels, the expensive type of tour. There is a whole volume of business they do not touch because they do not want it, tours organised by workers' organisations, trade unions, and by various committees of one kind or another in other countries. The C.I.E. tour is too expensive for such people but they can be accommodated in this country to our advantage on tours of a different kind.

Could C.I.E. not cater for third-class tours?

No, not merely were they not prepared to do so but there were several reasons why C.I.E. did not want to do it.

There were several things that C.I.E. did not want to do but which they should be made do.

From their point of view there were substantial objections to carrying on both types of operations and consequently there was this decision to allow these tours to be organised outside C.I.E., but in order to ensure that there would be no disadvantage to C.I.E. and no prejudicial results for our tourist trade, the arrangement is that licences to operate these tours are given only after the application has been considered by a committee which includes representatives of Bord Fáilte and C.I.E. Each of them will check the application from their own points of view, C.I.E. to make sure it is not cutting across their line of operations and Bord Fáilte to ensure that it is in any event the type of operation likely to expand and protect the future of the tourist business.

I think, in time, when the operation of these tours has demonstrated the advantage they can be to the country we can still further modify the restrictions regarding them.

I do not think I have to deal with the Donegal position at present. That is no doubt a complicated position but I think it would be inappropriate to attempt to deal with it until we have the G.N.R. position clarified. As we know, part of the Donegal system is operated by G.N.R., part by the County Donegal Joint Committee of which the G.N.R. is half owner and part by the Londonderry and Lough Swilly Company. The whole future of railway operation in Donegal must obviously rest to a very considerable degree on the retention of the G.N.R. line to Derry from Portadown. If that line should cease to operate there will, of course, be a completely different situation there. But I must confess I do not feel there exists in Donegal at the moment a transport situation which requires such urgent action that we cannot afford to leave it stand over until this more general situation has been clarified.

There is the intention to close and abandon some of the lines in Donegal.

That is true. Of course under existing legislation the tribunal procedure operates. Indeed, there has been for some time past a desire on the part of the joint committee to close a number of sections of lines and some have been closed. I think people who are interested in transport should take note of the operation of the Londonderry and Lough Swilly Company which has completely got rid of its railways and is providing a very efficient and, as far as I know, adequate transport service. At the same time it is paying a dividend of 5 or 6 per cent. upon its capital.

Deputy O'Higgins asked me if all the other matters mentioned in the committee's report, to which I have not referred, are still under consideration. That is so. He must not take it, because I did not refer to it, I am accepting a committee recommendation. Some require examination and some, such as the recommendation regarding farmers carrying goods by tractors, have no direct bearing on transport policy at all but in any event these are matters which will be considered and we may have proposals to make in the legislation. The fact that I did not refer to them is not to be taken to mean that they have been either accepted or rejected.

Before the Minister concludes may I ask him to clarify one portion of his remarks? I understood the Minister to say that the workers employed at Dundalk have a superannuation scheme but if they lose their employment they may get back their own contributions?

No, not lose employment. The problem is this: theoretically the transfer of these workers from employment by the G.N.R. to employment by the Dundalk Engineering Works would mean the termination of employment with the G.N.R. and bring into operation all the provisions of the scheme which apply when the worker's employment is terminated——

What are those provisions, broadly?

They get back their own contributions and lose their right to pensions. They get their own contributions only. I want to carry on to the new employment the rights they have at the moment which include the right to pensions and would include, for workers in the Dundalk Engineering Works, the obligation on the management to make the contributions to the fund which the G.N.R. would have to make anyway.

Do I understand from what the Minister has now said that if the Dundalk Engineering Works is unable to absorb any workmen now employed in Dundalk, the only thing which the non-absorbed worker will get is his own contributions back?

What else would he get?

Their present position will not be altered.

I just want to get clarification. If a worker now employed in Dundalk G.N.R. workshops cannot be taken over by the Dundalk workshops——

All of them will be taken over.

All right. I take it that is to be a nominal transfer?

No, I do not think there is any likelihood of any general redundancy there in the early future.

If all the men in Dundalk are taken over by the Dundalk Engineering Works the Dundalk Engineering Works will have the obligation to do whatever is at present being done by the G.N.R. Company in respect of pension rights but if the Dundalk Engineering Company subsequently finds that it has no work for one, or for 100 men, the only thing that will happen the workman in that case is that he will lose his employment and get back his contributions? Is that correct? Is that the position?

I do not want to give a yes or no answer to that. There is a number of provisions which are being examined. The worker employed in the Dundalk works will be in the same position in every respect as he was when he was employed by the G.N.R. or would be if he were continued to be employed by the G.N.R.

Quite frankly, I think he has a much more risky employer in the Dundalk Engineering Works than he had in the G.N.R.

All this will be known in the future. The Minister may be right and I wrong, or I may be right and he wrong. I think we are giving hostages to fortune to a considerable extent, in putting people into the Dundalk Engineering Works, in world economic circumstances. What I want to ascertain is whether there is any protection for the man if, having been taken over, he is subsequently rendered redundant. I gather from what the Minister says that the man will get nothing but the return of contributions which he himself has already paid.

His position will be the same as it has been up to the present.

Except that he has a different employer.

Except that he has a different employer.

And, in my view, a more risky one.

In view of the initial difficulty attaching to the company's efforts to attract trade, will the Minister instruct C.I.E. to be favourably disposed to the retention of the railway business in the Dundalk works?

I have no power to instruct C.I.E. They are set up by statute as an independent organisation and the only thing I can do is give to them an indication of Government policy; and I have already stated what that is.

The Minister himself has expressed the wish that the work be retained in Dundalk.

I said I could convey to them what the policy is, as I did when I told the trade unions it would be contrary to Government policy to transfer to Dublin work which could be done in Dundalk.

Question put and agreed to.
Vote reported and agreed to.
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