I move:
That a sum not exceeding £8,932,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1968, for the Salaries and Expenses of the Office of the Minister for Transport and Power, including certain Services administered by that Office, and for payment of sundry Grants-in-Aid.
It has been agreed that the subject matter of a Supplementary Estimate for £100,000 will be discussed in conjunction with the main Estimate.
The principal increases in 1967-68 are in the provisions for Salaries, Wages and Allowances £80,000 (Subhead A); Equipment, Stores and Maintenance £54,300 (Subhead C); Grant-in-Aid for Tourism under Tourist Traffic Acts £779,000 (Subheads F.1, F.2 and F.3); Constructional Works at Airports £200,000 (Subhead G.2); Radio Equipment £149,000 (Subhead J); Grant-in-Aid and Housing Subsidies and Grants for Shannon Free Airport Development Company Ltd. £185,000 (Subheads K.1 and K.2); and Rural Electrification £77,800 (Subhead O). Small increases in other subheads amount to £67,935, bringing the total increases to £1,593,035.
The increase in the provision for salaries, wages and allowances is mainly due to authorised salary increases and normal incremental progression (£57,000) and partly to the inclusion for the first time of the wages, salaries and allowances of the staffs at the Coast Stations at Valentia and Malin Head (£23,000). Since the 1st April, 1967, these stations are being operated by my Department. Formerly they were operated by the Department of Posts and Telegraphs, the deficit on operation being charged to my Department under Subhead B.2—Post Office Services. The increase in the provision for radio equipment is attributable to additional major items of equipment falling to be paid for during the financial year.
The principal decreases in 1967-68 are in the provisions for Post Office Services £12,310 (Subhead B.2); Córas Iompair Éireann Redundancy Compensation £30,000 (Subhead D.2); and Grants for Harbours £26,000 (Subhead E). Small decreases in other subheads amount to £1,460 bringing the total decreases to £69,770. To this amount must be added the increase of £222,265 in Appropriations in Aid which is equivalent to a decrease in the net grant and brings the total decrease to £292,035.
The decrease in the provision for Subhead B.2—Post Office Services—is due to the removal of the provision in respect of the deficit on the operation of the coast stations at Malin Head and Valentia, £36,000 for 1966-67. This decrease is offset by an increase of £12,000 in the deficit in the operation of Shannon post office, an increase of £10,000 in the provision for recoupment of salaries and wages and other small increases amounting to £2,000 for various services.
The increase in Appropriations in Aid is due mainly to increased estimated receipts from Passenger Service Charges at Airports £60,000, an increase in the estimated surplus on the Dublin Airport Management Account £70,000 and an increase in landing fees at Shannon Airport £60,000.
On the basis of actual increases and decreases as stated above, namely, £1,593,035 increase and £292,035 decrease, the net increase as shown in the Book of Estimates, compared with the 1966-67 provision is £1,301,000. Taking the Supplementary Estimate into consideration, the net increase amounts to £1,401,000.
CIE's net deficit for the year ended 31st March, 1967, amounted to £2.398 million, which was £398,000 more than the Board's annual subsidy of £2 million.
The results for the year have been adversely affected by three main factors: (1) strikes within CIE during the year, the net cost of which to the Board was £223,000, (2) a number of causes outside the Board's control such as the British seamen's strike, the American airlines strike and strikes in the paper mills and confectionery trade, and (3) a fall-off in traffic due to credit restrictions. CIE have estimated that, in the aggregate, these three factors resulted in a net loss to the Board in 1966-67 of £613,000.
CIE increased their rates and fares on average by 7½ per cent with effect from 13th June, 1966. Total operating receipts for 1966-67 at £25.123 million show an increase of almost £1.6 million on the receipts for the previous year. The increase would have been much greater, were it not for the factors I have already mentioned.
The increased receipts were more than offset, however, by increased costs, consisting largely of increases in rates of pay and improvements in conditions of service of the Board's employees. Total additional labour costs in 1966-67 amounted to £1.3 million of which the 10th round increase in salaries and wages, which was implemented with effect from 18th May, 1966, was responsible for £1.013 million.
Apart from the cost of maintaining the canals and harbour and vessel services, the Board's deficit is attributable to railway operations. Other services are profitable. It was a difficult year for rail passenger traffic as the prolonged shipping strike from midMay to the beginning of July and other stoppages due to labour disputes had a serious effect on all services. There was, however, an improvement in long distance rail passenger business during the winter months. Overall, there was an increase of 6.7 per cent in rail passenger revenue. Despite the adverse effects of labour unrest during the year and other factors such as credit restrictions and lack of buoyancy in the economy, there was an improvement of 5.8 per cent in rail merchandise revenue which, apart from the increase in rates, was mainly contributed by increased carryings of fertilisers, cement, livestock, oil, beer and mineral traffic, partly offset by a fall in beet tonnage, due to a significant reduction in the acreage sown, and in sundry traffic, which was noticeably affected by credit restrictions.
The operating profit on the Board's road passenger services showed a very slight increase overall but, due mainly to the impact of labour unrest during the year, the operating surplus on the Dublin city services fell from £295,000 in 1965-66 to £200,000 in 1966-67. Provincial city and long distance road passenger service results were very satisfactory, however, and CIE have informed me that express bus services were very successful. The operating surplus on the Board's provincial services increased from £127,000 in 1965-66 to £224,000 in 1967.
Despite the serious effects of the shipping and airline strikes to which I have already referred, it was a record year for CIE coach tours. The Board's revenue from coach tours amounted to £284,000. Coach tourist traffic has continued to grow at an encouraging rate and there is every indication that this important sector of tourism will continue to expand. As far as foreign tour operators are concerned, last year 26 such companies operated tours in Ireland and offered 28,000 passenger seats. To date this year, I have granted licences to 42 foreign companies to provide tours limited to passengers booked abroad. About 75 per cent of CIE coach tour business comes from North America and during the year CIE opened an office in New York. It is hoped that the establishment of this new office in New York will improve selling and marketing arrangements in North America and provide for a substantial increase in this business in future years.
Road passenger mileage on CIE services, excluding tours and private hire, has fluctuated somewhat since 1960 but the 1966-67 figure, after allowing for the effect of CIE strikes in 1966, shows a reduction of 6 per cent on the 1960-61 figure. Rail passenger mileage has remained fairly constant despite the closure of branch lines. Between 1960 and 1966 the number of private cars has increased by 75 per cent to 296,000 and it is estimated that by 1975 the number will be in the region of 600,000. With this sharp increase in the number of private cars it is clear that public transport will be faced with far more severe competition than in the past.
Public transport in most other European countries is faced with the same problem but I was most interested to learn from figures recently published by the European Conference of Ministers of Transport that, despite the competition from private cars, most European countries expected that between the years 1963 and 1975 rail passenger traffic might increase but at an almost negligible rate. The figures also show that road passenger traffic would also grow between 1963 and 1975, but that the rate of increase for public transport would be slight compared with the growth rate for private transport.
There was an increase of £14,000 in the operating surplus on the Board's road freight services during the year from £173,000 in 1965-66 to £187,000 in 1966-67. While these services were affected by the adverse effect of credit restrictions, there were marked increases in the haulage of ground limestone and cement.
The operating profit on hotels and catering, which are operated by the Board's subsidiary, Óstlanna Iompair Éireann Teo., increased from £146,000 in 1965-66 to £156,000 in 1966-67, while the net costs of maintaining canals and vessels increased from £60,000 in 1965-66 to £97,000 in 1966-67.
As Deputies are aware, the Transport Act, 1964, set the amount of the annual grant payable to CIE at £2 million with the aid of which the Board are required to break even. The amount of the subsidy will be subject to review in 1969. The Board's deficits during 1964-65 and 1965-66 taken together, were contained within the limit of the annual grant, but when 1966-67 is included, the grant was insufficient to cover the deficits for the three years. I should point out, however, that were it not for losses amounting to £673,000 arising from strikes within CIE in 1965 and 1966, the Board, notwithstanding the heavy additional expenditure on increased labour costs, would have been able to achieve the break-even target for the first three years of operation of the 1964 Act.
CIE labour costs are 67 per cent of operating expenditure. Between 1963 and the end of March, 1967, CIE labour costs have increased by approximately £4 million a year or 31 per cent. Over the same period there was an increase of about 17 per cent in the consumer price index while the increase in real GNP up to the end of 1966 was 8.3 per cent. CIE has been instituting productivity schemes securing greater utilisation of stock, streamlining accountancy and administrative procedures. But inevitably freight rates and passenger fares have been increased.
Were it not for an increase of productivity of about 12 per cent secured in the last three years CIE would either have lost substantial traffic or the subsidy for the railways would have increased, thus depriving the people of other more productive budgetary outlays. The position is still extremely difficult.
During 1966-67, capital expenditure by CIE was £3.3 million approximately. Among the works carried out during the year was the construction of a short spur railway line at Silvermines to enable the total output of the mines, amounting to about 350,000 tons per annum of lead, zinc concentrates and barytes to be conveyed by rail for export through Foynes. The Board continued with projects of rehabilitation and modernisation and, where possible, are effecting improvements aimed at increasing productivity. Work was commenced on the reconstruction of Plunkett Station in Waterford, where it is proposed to erect a new station building which will contain offices for the entire area headquarters staff. Substantial additions to and renewals of the Board's road and rail rolling stock and equipment were made during the year: new vehicles put into service for the road passenger services consisted of eight 45-seater and forty 53-seater single deck buses, forty-nine 78-seater double deck buses of the Atlantean design, eight express buses and 14 luxury coaches.
The Board have been making every effort to maintain and improve efficiency on city services despite adverse traffic conditions particularly in Dublin. Schedules were recently re-designed and extended, additional capacity was provided, special control points with telephonic communication with the Central Traffic Control Offices were set up. Experiments with stand-by crews have also been made. The Board introduced a new decentralised form of organisation for Dublin city services in November, 1966. For this purpose the city has been divided into seven districts each under the control of a District Manager who also deals on-the-spot with public complaints and requests. As already announced by the Board, CIE intend to avail of television and radio techniques this winter for the purpose of seeking solutions to some of the problems involved in running Dublin city bus services. The use of one-man buses was also extended last year. Although the one way streets and clearways have been contributing to more rapid traffic flows the growth of private car transport inevitably will increase the gravity of the bunching problem during peak hours and no scientific estimates of bus routing can prevent disruption of time schedules at peak periods. This problem of bus bunching is receiving and should continue to receive priority attention.
The Origin and Destination Survey conducted by CIE in which the travel patterns of 227,000 Dublin citizens were recorded has now been analysed. The preliminary report will disappoint those people who very humanly may have believed that the CIE bus services must be outdated and distorted despite all the know how of management and even although there have been new services and rerouting in recent years.
The remorseless facts obtained by data processing the records prove that taken at large and wide the services are in the main rightly directed. One single fact will be of interest. Only 11 per cent of the Dublin bus travellers change buses to reach their destination and the figure is about 7½ per cent at the peak period of travel.
Any dramatic change will not take place. To a certain extent the pattern of services is dictated by the present road structure. Should Dublin Corporation adopt any striking proposals for circular roads, through roads and new bridges, then there might be some changes.
CIE have played an active part in the development of container services between this country and Britain. The first such service was established by the Board in 1960 in co-operation with British Ferry Trailers and Containerways. The working arrangement between the two bodies was revised recently and since January 1st, 1967 it has been operating under the trading name "Irish Ferryways". CIE also participate in the B & I unit load service between New Ross and Newport, Wales, the British and Irish Steampacket Co, Ltd. providing the ships and CIE the containers. Between imports and exports the cross-Channel container traffic of CIE amounted last year to about 100,000 tons and is increasing steadily. The Board's container services are operating profitably.
Coming to the end of a long period of reorganisation and facing the three problems of massive private car competition, containerisation and enormous increases in labour costs, I felt it right to suggest to CIE that some outside world famous organisation might examine the Headquarters management sector of CIE operation. I am glad to inform the House that the Report indicated that the executive organisation was efficient and required almost no change of significance.
Apart from long term studies of transport, to which I will refer shortly, stated policy, that is policy as defined by me as Minister, in respect of CIE follows quite clearly the pattern emerging in Europe where no railway system is now paying its way although in some cases because of favourable conditions the deficits are not considerable.
CIE should continue to apply modern survey techniques in order to provide the best bus services possible at the lowest cost and to improve regular rail passenger services as far as this is possible. Administrative and accounting techniques should be continuously modernised to stabilise the cost of processing freight and passenger traffic. Containerisation and other unit loads moved by mechanical handling equipment must as in every other distributive service play an increasing part in stabilising transport costs as far as practicable. It is evident from comparative studies abroad that the conductorless bus will become an even more important part in keeping bus fares from leaping ahead of the general purchasing power of the public even though this should increase through greater national productivity. Government legislation in relation to industrial working conditions makes all these policies practicable and capable of negotiation.
Finally I am glad to note the improvement in amenities for the CIE staffs which continues yearly.
A comprehensive review of the existing road freight transport policy is being undertaken in my Department.
This must necessarily take account of long term trends and must be based on the best information we can get to guide the formation of policy. The results of the Sample Survey of Road Freight Transport recently published by the CSO are a valuable aid in this respect. The Survey showed that about 54½ million tons of goods were transported by road in 1964. Over 1,000 million ton-miles were performed in transporting that quantity of freight. In the same year 2½ million tons were moved by rail. The ton-mileage figure for rail was 214 million or 17 per cent of the total. The Survey also shows that more than 80 per cent of goods carried by road are carried on own account, the remaining 20 per cent being shared by CIE and the licensed hauliers.
These figures illustrate the large proportion of road freight carried otherwise than for reward and also the relatively small proportion carried by the railway. Information on these lines is essential in framing policy.
A further study is in progress under the aegis of the Economic and Social Research Institute. One of the aims of that particular study is to evaluate how transport requirements are likely to evolve in the period up to 1985 and how these requirements can best be met.
In addition, the Regional Studies being undertaken by Professor Buchanan on behalf of An Foras Forbartha will include detailed consideration of the transportation requirements of the regions.
A review of transport policy must of course take account of EEC policy in this regard and this aspect of the matter is also under study in my Department. The Federation of Irish Industries have also set up a working group to examine from the standpoint of users the transport implications of this country's accession to EEC.
Some considerable time must elapse before any far reaching changes in policy can be put forward with confidence but in the meantime the statutory provisions relating to the licensing of road transport are being administered in as liberal a manner as possible. I decided to modify the restrictions on movement of licences on transfers and have advised the Associations catering for licensees accordingly. I arranged for co-operative measures between CIE and the licensed hauliers to deal effectively with the requirements for short distance haulage of livestock to and from fairs and marts. Following an examination which I had undertaken of the facilities available for the long distance haulage of livestock from the West and North-West, I agreed to extend the scope of the licences held by certain hauliers in those areas to enable them to transport livestock to any place in the State. That particular concession is now under review in the light of a recent complaint to the effect that it does not fully meet the situation.
As regards cross-Border haulage, Deputies will recall that under reciprocal arrangements made last year with the Minister of Development, Northern Ireland, cross-Border haulage for reward has been greatly liberalised. Under the reciprocal arrangements I refer to, licensed hauliers in the State whose licensed areas are contiguous to the Border and licensees in the North may engage in cross-Border haulage for reward. As Deputies will recall, the arrangements were introduced on an experimental basis and are subject to review. I am keeping the position under examination with a view to seeking a review in the light of any tendencies in the traffic which would be significantly inimical to our interests.
In the interests of this country's export trade, it was decided that Ireland should adhere to a number of international Conventions which facilitate the international transport of freight. Difficulties experienced by Irish exporters to Europe, indicated the need for exporters and transport undertakings to be in a position to avail of the facilities provided for under the Conventions in question. One of the Conventions relating to the customs aspect of international transport is that known as the TIR Convention. Under that Convention, goods carried in road vehicles or in trailers or in containers carried on such vehicles are not liable to customs examination at points en route.
So that exporters and transport undertakings may be in a position to avail of the facilities provided by the TIR Convention, a carnet issuing association, Lastas Éireann Teo., was set up. It is encouraging to find that many existing associations and companies concerned with the international surface transport of goods, are giving their support to the new association.
The British and Irish Steampacket Company made a net profit, after all charges, of £86,019 in 1966 as compared with a net loss of £87,752 in 1965, despite an increase of £302,800 in operating costs—wages, trade expenses etc. This increase in operating costs was more than outweighed by an increase in operating revenue mainly due to a revival in livestock and passenger carryings, a further increase in unit load tonnage, and an increase in freight rates effected in March, 1966.
As I have indicated on previous occasions, the company before the takeover by the State in March, 1965, had been a subsidiary of a large group and had been largely controlled by the parent company. When the new Board was appointed, I gave them various directions as to the analysis and overhaul of their operations with a view to greater efficiency and productivity. It was also necessary to ensure that the company be placed in a sound position for the future by relating their methods to modern needs in the cross-Channel trade.
It is a tribute to the new Board and management that in the space of two years these examinations and analyses have now not only been carried out but that action to implement the Board's conclusions has been initiated as witnessed by the rapidity of the change-over from conventional to unit load services which the Board expect to be finally completed by the end of 1968 and by the steps taken to acquire car ferry vessels to initiate ferry services between Dublin and Liverpool in 1968 and between Cork and South Wales in 1969.
The company will also introduce a second car ferry vessel on the Dublin Liverpool route in 1969. One of these vessels will be built in Verolme Cork Dockyard. The Board are confident that these services will be profitable and self-financing. Car ferry services should of course have a most favourable effect on the tourist trade. The Board also have under examination the possibility of designing a more efficient livestock carrying vessel which would cater for other traffics in addition to livestock and also the possibility of greater rationalisation of their existing livestock services. They are evaluating the design of unit load container vessels.
Whilst the company have not yet completed their long term capital development projection, they expect that the cost over the next five years will be in the region of £9 million.
The emergence of surplus labour by reason of the transfer from conventional to unit load services continues to be one of the company's most difficult problems. The board believe that the situation can be eased if there is a mutual understanding and appreciation of the issues involved.
There have been radical and continuing changes in sea transport in recent years with an increasing use of new methods. The B & I in fact is going through the process of being converted from one kind of shipping service to a completely new service involving the replacement of most of the fleet. I feel confident that all possible steps will be taken by the Board to ensure a more efficient service and a sound basis for profitable operation.
The value to the country particularly to an exporter of the development of the most modern methods in cross-Channel transport is borne out by the fact that the average freight rate per ton of goods carried by the B & I Company was slightly less in 1966 than in 1960 and is expected to be still lower in 1967. This is a remarkable achievement in a period of rising costs and charges, and is due to the increasingly rapid change-over by the company from conventional to unit-load services. Unitisation has yielded substantial cost reductions which have been passed on to traders and consumers at large.
The stated policy for the B & I is to so develop and modernise their operations that unit loads, livestock, passengers and cars can be carried at the lowest possible cost, and on a commercially viable basis. For this I hope it will be possible to continue to replace obsolete vessels by modern specialist ships taking advantage of the 25 per cent grant now available so as to employ the maximum number of our own people at the highest rate of productivity. Any success in establishing greater productivity at the docks will ensure lower costs for the transport of goods and stimulate greater employment. In fact greater productivity at the docks is vital to our exports.
The improvement in the ocean freight rates which enabled Irish Shipping Ltd. to make a profit of £58,404 in 1965-66 went into reverse after the first few months of 1966. Rates fell to a low level in the summer of 1966 and continued at a depressed level during the rest of the company's financial year. The average voyage rate index figure for the year 1966 was 114.5 as against 126.5 for 1965, 112 for 1964 and 109 for 1963 (base, 1960=100). The index figures for the first three months of 1967 were 100.5, 103.1 and 106.2 as against 124.1, 126.1 and 122.4 in 1966. As a result of this collapse in freight rates, the company made a loss of £67,471 in 1966-67. There has been an improvement in freight rates in the meantime, the index figure for August being 113.2 as against 108.0 in August, 1966.
It was decided some time ago, to dispose of the older uneconomic ships as occasion offered and to acquire a dry cargo bulk carrier of 34,000 tons dead weight. Two further vessels were accordingly sold recently—the "Holly", a small tanker of 3,350 tons dead weight and the "Oak", a dry cargo vessel of 7,575 tons dead weight both of which had become uneconomic. The new bulk carrier recently launched at Cork Dockyard will be delivered to the company in the new year. The fleet will then be approximately 160,000 tons dead weight.
I have been anxious to see the introduction of a direct passenger and car ferry between Ireland and the Continent and I therefore welcome the arrangement which Irish Shipping have made with Normandy Ferries for the commencement of such a service in 1968. The success of the cross-channel ferry services indicates the great value of the services to our tourist trade and I hope that the Continental service, which will open next June between Rosslare and Le Havre on a once-weekly basis, will attract large numbers of European visitors and will expand in future years.
The Board have continued their efforts towards greater efficiency. As a result of work study on the ships and improved working methods, it has been possible to secure with the agreement of the unions concerned greater productivity on most of the ships. The new and improved methods of budget control, stores management and working procedures have in general proved satisfactory and have contributed to more economic operation.
During the past year the company made a detailed comparison of their operating costs with those of other owners. It was found that whilst in most areas the company were operating relatively economically and efficiently, there were some activities in which there was considerable room for improvement. Reductions both in the cost of shipboard and administrative operations have been effected.
Stated policy for Irish Shipping Ltd. dictates that the primary aim of the company is strategic—to have enough suitable ships to service our essential needs in an emergency. Nevertheless, I regard economic viability as also essential and our aim must be to have a fleet adequate to meet our essential requirements but constituted so as to operate profitably if the level of freight rates so allows.
The Irish shipping industry has been experiencing difficulties in recent years because shipowners have not been earning sufficient pre-tax profits to gain relief from existing taxation allowances. This has led to non-replacement of old vessels, to a reduction in the volume of Irish registered tonnage and has adversely affected the interests of the industry which has to operate in a highly competitive market. I am glad therefore to say that I recently secured the agreement in principle of the Government to the giving of investment grants of 25 per cent to Irish shipowners for the purchase of new ships and the conversion of existing ships. Details of this scheme are being worked out in my Department and I will make a further announcement in the matter at a later date. The Government have also agreed that the reduced interest rates hitherto available in respect of ships built in Ireland for foreign shipowners will in future be available also to Irish shipowners.
Among the other events of significance in maritime affairs during the past year was the coming into force in Ireland of the International Convention for the Safety of Life at Sea, 1960, which took place on 14th May, 1967. This Convention deals with such matters as the construction of ships, life-saving and fire-fighting equipment on ships, radio and direction-finding equipment, carriage of grain and dangerous goods. The 1960 Convention replaces an earlier Convention of 1948, which Ireland had also implemented.
On 18th May, 1967, the 1962 amendments to the International Convention for the Prevention of Pollution of the Sea by Oil, 1954, came into force internationally. These amendments should be of considerable assistance to Ireland in averting the risk of oil pollution, since they push out to 1,100 miles west of Ireland the zone in the North Atlantic in which ships are prohibited from discharging oil. They also prohibit new vessels of 20,000 tons gross or over from discharging oil anywhere at sea.
The wreck of the "Torrey Canyon" last March has underlined the very serious consequences which large-scale oil pollution could have for our tourist industry and marine life. Ireland's concern is all the greater because much larger tankers, the largest in the world in fact, will commence operating to the Gulf Oil transhipment terminal at Whiddy Island in Bantry Bay next autumn. Consequently I have once more gone most carefully into all aspects of the question of anti-pollution measures at Whiddy, in consultation with all interested parties, and in the light of the lessons to be learned from the "Torrey Canyon" case. As a result I am satisfied that every possible step is being taken to eliminate, in so far as is humanly possible, the risk of pollution at Bantry and to ensure that facilities are available to deal speedily and effectively with any accidental spillages that might nevertheless take place.
I have also arranged for the setting up of an expert working group to report on the practical measures which should be taken in the even of an oil spillage threatening serious pollution of the Irish coast. In this work the group will have the benefit of the experience of the team which I sent to Britain last April to observe the British anti-pollution campaign in operation. Deputies will appreciate that the "Torrey Canyon" case has stimulated a lot of research and development in the field of anti-pollution measures and my concern is to ensure that we in Ireland have available to us the most up-to-date techniques for tackling the problem should we ever be faced with it.
In view of the world-wide repercussions of the "Torrey Canyon" case, the Inter-Governmental Maritime Consultative Organisation (IMCO) has undertaken an urgent study of all questions arising from the occurrence. Ireland, as a member of this body, is participating in the study and it will be one of our objectives to ensure that full account is taken of the interests of nations with exposed coast lines. Apart from purely technical points about safety of navigation and anti-pollution measures, IMCO is considering a number of legal questions, including in particular the highly important issue of the liability of the shipowner to meet the cost of oil pollution damage.
There is a provision of £212,000 in respect of grants for harbours. Of this amount, £100,000 is intended for Foynes Harbour where a major improvement scheme comprising the construction of a jetty and ancillary facilities for the export of ore concentrates is nearing completion. The State grant represents 25 per cent of the estimated cost—£400,000. This port has an industrial future as it is one of the few portal centres in the entire country where ships of up to 12,000 tons can berth. Provision is also made for improvements at Ballina, Drogheda and New Ross and the acquisition of equipment at Sligo.
I am glad to announce that the Government have recently approved a State grant of £260,000, together with a loan from the Local Loans Fund of £370,000, towards the provision of improved accommodation for the container and deep sea traffic at Waterford, the total cost of which is estimated at £730,000.
I hope that the employer-union negotiations for the decasualisation of dock labour and for increased productivity in the deep sea section of Dublin Port will soon be brought to a successful conclusion. The cross-Channel shipping companies are also engaged in studies to improve productivity and at the same time achieve better conditions for dockers.
It will be recalled that I appointed a working group in 1964 to investigate the possibility of accelerating the movement of goods through the ports and that the group made a number of recommendations to eliminate excessive delays which were found to occur in the clearance of goods particularly at Dublin Port and produced a Guidance Manual for Importers on Customs Procedures. I am glad to say that there has been a distinct improvement in the movement of goods through the ports and that the measures taken by the Dublin Port and Docks Board to relieve congestion in the transit shed have been successful and that the position is now satisfactory.
The policy in regard to harbours will continue as before. Capital grants will be available in cases where it is known that increased trade is certain and not trade diverted from another port so that financial assistance will be truly productive.
The operating surplus of Aer Lingus for 1966-67 was £315,885 compared with an operating loss of £63,539 in the previous year. Revenue increased by 20 per cent and expenditure increased by 16 per cent. In the year ended 31st March, 1967, Aer Lingus carried 1,215,863 passengers, an increase of 15 per cent over the previous year. Freight carried by the Company during the year amounted to 23,300 metric tons, an increase of 26 per cent. The Company maintained its services on all routes during the year.
This summer it inaugurated new services from Dublin via Brussels to Munich; from Dublin to Madrid and from Shannon Airport to Belfast. The cross-Channel car ferry services operated with Carvair aircraft were discontinued in the summer of 1966. These services were introduced initially to stimulate tourism but sea ferry services have been introduced on cross-Channel routes and have proved to be too competitive for air ferries. Aer Lingus opened a new office in Belfast early this year to cater for increasing business in this region including the new Shannon/Belfast service. These developments provide further evidence of the improving links between the two parts of the country.
During the year, Aer Lingus with my approval acquired Shannon Repair Services Limited, a company based at Shannon and set up a few years ago for the handling and maintenance of non-scheduled aircraft. The company had not been doing well and Aer Lingus is in process of rationalising its activities while at the same time keeping staff dislocation to a minimum.
Aer Lingus is at present operating on a mixed fleet of Viscount and BAC one-eleven aircraft and it has on order two Boeing 737 aircraft for the London route. It is satisfied that it will eventually be obliged to go over to jets on all its European routes to maintain its competitive position.
