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Dáil Éireann díospóireacht -
Thursday, 5 Jul 1962

Vol. 196 No. 10

Written Answers. - Air Navigation and Transport Expenditure.

34.

asked the Minister for Transport and Power if he will state in respect of air navigation and transport for the period from inception to 31st March, 1962, (1) total expenditure (a) gross and (b) net after crediting receipts of a capital nature, (2) the amount of interest that would have accrued on such expenditure if charged at five per cent., (3) the amount of income received which should be offset against such interest and the deficit that remained, (4) the part of such expenditure at (1) that was attributable to advances and/or capital on 1st April, 1962, provided for (a) Aer Rianta, (b) Aer Lingus, (c) Aerlínte, (d) other State boards or companies (specifying the same) and (e) other expenditure, and the amount estimated to be received under each such heading for the servicing of such expenditure during 1962-63 and the deficit or profit arising if interest were charged on an economic basis in each case and the total thereof.

Up to the 31st March, 1962, expenditure from public moneys on airports construction and on share capital in Aer Rianta subscribed by the Minister for Finance amounted to £19.2m. Receipts of a capital nature were negligible. The expenditure on airport construction amounted to £8.8m. The financial outcome of the operation of the airports is given each year in a statement which appears in the Appropriation Accounts. The latest year covered is that ended the 31st March, 1961. For the purposes of the statement, interest and depreciation are shown as a combined figure. Depreciation on airport buildings and equipment (excluding land) has been charged at 4 per cent. Interest has been charged on the total accrued capital expenditure at the rate of 4 per cent. up to 1948 and thereafter at the rate of 5 per cent., no deduction being made from the capital in respect of depreciation. The following is a summary up to the 31st March, 1962, of the financial outcome of the operation of the airports on the basis of the charges raised in the statement referred to above.

£

Receipts:

9.1 million

Expenditure (air navigation services and airports management including pension liability)

10.9 ,,

——

Operating deficit

1.8 ,,

Interest and depreciation charge

6.7 ,,

——

Gross deficit

8.5 ,,

Estimated receipts from the operation of the airports in the financial year 1962-63 are set out in Subhead S of Vote 45 in the published Estimates for that year. An estimate on the basis of the statement referred to in the preceding paragraph has not been prepared in respect of the financial year 1962/63.

The total amount subscribed by the Minister for Finance to the share capital of Aer Rianta up to the 31st March, 1962 was £10.4m. Aer Rianta, in turn subscribed £3.3m. to Aer Lingus and £6.9m. to Aerlínte retaining £.2m. for its own capital purposes including £.1m. for investment in Irish and Intercontinental Hotels Ltd. No capital was invested in any other company in respect of air navigation and transport. Payments to Aer Lingus by way of subsidy amounted to £1.3m. Payment of subsidy ceased in 1952/53 and there is now no statutory authority for such payments. No dividends on capital investment in the Air Companies have been paid. If a dividend at the rate of 5 per cent. had been paid, receipts by the Minister for Finance would have amounted to £1.7m. The Accounts of the three Air Companies for the year ended 31st March, 1962 will be presented to Dáil Éireann shortly.

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