asked the Minister for Transport and Power whether it is the intention of CIE to agree to become the sole guarantors of the 3½ per cent new guarantee preference stock in the Fishguard and Rosslare Railways and Harbour Company; and, if so, how this is to the advantage of CIE.
Ceisteanna—Questions. Oral Answers. - Fishguard and Rosslare Company.
1.
CIE and British Railways, as successors to the Great Southern and Western Railway Company and the Great Western Railway Company, respectively, are joint guarantors of the interest payable on the new guaranteed 3½ per cent preference stock of the Fishguard and Rosslare Railways and Harbours Company. By virtue of an intercompany agreement, scheduled to the Fishguard and Rosslare Railways and Harbours Act, 1903, CIE are responsible to the Fishguard and Rosslare Company for the interest payable on capital issued to meet expenditure on the portion of the undertaking in Ireland. As the capital represented by the new guaranteed 3½ per cent preference stock was all raised to meet expenditure in Ireland, it should not affect CIE's financial responsibility if they were to become the sole guarantors of the interest on the stock.
The implications of this and other provisions of a Bill which the British Railways Board have applied for leave to introduce in the British Parliament in the present session are, at present, being examined by CIE and by my Department.
I take it, then, that CIE are to agree to become the sole guarantors?
If they do, it will not affect their financial position.
Since British Railways are at present legally jointly responsible, surely CIE should benefit in some way from agreeing to become the sole guarantors?
That is one of the points which will be discussed. For a long time, CIE have been responsible for the payment of the interest on the shares in respect of all the expenditure undertaken in Ireland relating to Rosslare Harbour and the portion of the railway from Rosslare to Fermoy.
I am not disputing that. If CIE are to give up their right to a position of being joint guarantor and are to become sole guarantor, then this is an advantage for British Railways and CIE should get some compensation for it.
It might not prove to be much advantage but the matter will be examined.