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Dáil Éireann díospóireacht -
Thursday, 19 Mar 1970

Vol. 245 No. 5

Committee on Finance. - Vote 42: Posts and Telegraphs.

I move:

That a supplementary sum not exceeding £10 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of March, 1970, for the salaries and expenses of the Office of the Minister for Posts and Telegraphs and of certain other services administered by that Office, and for payment of a grant-in-aid.

This token Estimate for £10 is being taken to enable Deputies to discuss the Estimate for my Department amounting to £25,410,000 which was passed before Christmas.

Last week the House agreed to a Supplementary Estimate for £750,000. To this should be added £1,550,000 included in the Vote for Remuneration and £70,000 in the Vote for increases in pensions to arrive at total estimated expenditure proper to the Vote in 1969-70. This amounts to £27,780,000, £3,170,000 approximately more than the 1968-69 figure.

As we are now nearing the end of the financial year and the expenditure proposed in the main and recent Supplementary Estimates has already been approved, I propose, with the permission of the House, not to enter into the usual detailed comparison of subheads with last year's provisions but to proceed immediately to report on the various services covered by the Vote for my Department.

Postal business continued to grow in 1968. The number of letters handled was approximately 450 million, representing an increase of over 2 per cent on the previous year. Air mail correspondence was up by 14 per cent. Postings of first class mails by air rose by 12 per cent and the increase in postings of second class matter was 23 per cent. Figures for 1969 are not yet available but the indications are that the growth in traffic was well maintained in that year.

The volume of letters and cards posted over the Christmas and New Year was some 2 per cent higher in 1968 than in 1967 and there was a further increase of much the same order last Christmas.

Parcel traffic handled in 1968 was up by an estimated 4 per cent as compared with 1967 but postings from Britain in 1967 were adversely affected by restrictions following the outbreak of foot and mouth disease in England.

Counter business is also growing. As Deputies are aware, this covers a wide range of services for other Government Departments apart from those required for purely Post Office purposes.

The standard of mail services given is high. Normally, over 90 per cent of internal letters posted in time for outward despatches are delivered throughout the country by the following working day. For parcels and second-class mail the standard is well above that normally given elsewhere. The bulk of letter mail for places abroad leaves the country by air on the day of posting and, with few exceptions, letters received from abroad are delivered on the following working day.

During 1968 70 motorised delivery services were introduced and in 1969 a further 63 routes were motorised. There are now over 370 motor delivery rural services in operation and about 25 per cent of the total route mileage in rural areas is being served by motorised posts.

Thirty-one new postman posts were created in 1968 to deal with increased mail work arising from housing developments in urban areas.

Following the enactment in July last of the Post Office (Amendment) Act, 1969, literature and articles specially adapted for the use of the blind may now be sent free of postage to places at home or abroad by surface post.

In 1968 special issues of postage stamps were made to mark the 800th anniversary of the founding of St. Mary's Cathedral, Limerick, the centenary of the birth of Countess Markievicz, the centenary of the birth of James Connolly and the International Year for Human Rights. We also joined with other members of the European Conference of Postal and Telecommunications Administrations in the annual issue of the Europa Stamp. The first group of the new series of definitive stamps was issued in October, 1968, and the remaining denominations in the series were issued at intervals in the early part of 1969.

A special stamp was issued on 21st January, 1969, to commemorate the 50th Anniversary of the First Assembly of Dáil Éireann. Other special issues during 1969 were on the Europa theme, the 50th anniversary of the International Labour Office, the centenary of the birth of Mahatma Gandhi, and a stamp featuring one of the works of the late Evie Hone.

Seven special stamps will be issued this year, including the Europa stamp. This stamp will be of special interest as the design is the work of an Irish artist, Mr. Louis le Brocquy. Other stamps will commemorate the 50th anniversary of the death of Terence MacSwiney, Tomás Mac Curtain and Kevin Barry, European Conservation Year and the 250th anniversary of yachting in Ireland and the founding of the Royal Cork Yacht Club. A stamp will also be issued showing the work of a contemporary Irish artist. The stamp will feature a work by Miss Mainie Jellett.

The number of telegrams handled in 1968 at 1,313,000, was little different from that for 1967 and the persistent downward trend of traffic continued in 1969. The telex service on the other hand continued its remarkable expansion. The number of telex subscribers increased by 159 during 1968 and by over 200 in 1969, a total increase of 70 per cent in the two year period. In 1969 calls to places beyond Britain exceeded a quarter of a million, 28 per cent up on 1968. More and more firms are realising the advantages of this useful form of communication. Planning for the telex service is based on maintaining an annual growth rate of about 35 per cent over the next few years. The capacity of the satellite exchanges at Cork and Shannon was doubled during 1969 and work on enlarging Dublin exchange is nearing completion. Further extensions of these exchanges are already at the planning stage. A new satellite exchange will be brought into service in Waterford early in 1971 and it has been decided to provide one later in Limerick and in at least one other centre.

Extra circuits were provided on the Belfast and cross-Channel routes recently and arrangements are in hand to provide more. A direct route to Germany was brought into service in 1969 and the question of establishing direct routes to other continental countries is being examined. The number of direct circuits between Dublin and the USA was increased from two to six in 1969 and when further circuits planned for 1970 become available direct subscriber telex dialling to the USA will be introduced. Telex service is now available to 108 countries and 97.8 per cent of all outgoing traffic is dialled directly.

Data transmission has been developing rapidly in some countries. It involves high speed transmission of data over the public telephone or telex network or over privately leased telephone or telegraph circuits. Data transmission is closely linked with increased use of computers and we have already provided facilities for data transmission where required. The demand so far has been small but, as more Irish firms obtain their own computers or rent space on computers, a growing demand for data transmission facilities is likely to arise. This question is under active consideration in my Department at present.

The telephone service is also expanding rapidly. In 1968 calls numbered 291 million, 15 per cent more than in the previous year. Of these 259 million were local and 32 million were trunk calls: 84 per cent of all calls were dialled directly by the callers. Figures for 1969 are not yet available but the increase in traffic was again high.

Demand for telephones during the year 1968-69 showed a remarkable advance, being 21 per cent greater than in the previous year: 22,300 exchange lines were connected during 1968-1969, 3,000 more than in 1967-68 and 6,800 more than the year before, but not enough nevertheless to keep pace with the new rate of demand. The connection rate in the current year has been running at about the same level as in 1968-1969 but demand continued to rise and some 11,000 applicants were awaiting service at the end of December, 1969. Over half of these applications were in course of being met or were being processed. Less than 7 per cent of these had been on hand more than a year and the great majority of the older applications will be cleared shortly.

My Department is very conscious of the need to improve the position and everything possible is being done to overtake demand and reduce the waiting list. Planning at present aims at doubling the connection rate, and catering for double the present traffic, in the next four to five years. My predecessor gave particulars of the extent of this programme when he was presenting the Telephone Capital Bill for £50 million last year to the House. It entails extensive cabling in all built up areas; provision of new exchanges and extension of existing exchanges; procuring new buildings and extending existing buildings to house the additional plant; expansion of trunk and junction capacity; increasing output by way of increased productivity from existing staff; recruitment of additional staff at professional engineer level; and recruitment and training of more technicians. All possible measures are being taken to speed the programme but present indications are that it will be some considerable time before inroads can be made into the waiting list if the pace of demand for telephones continues to increase.

The basic exchange, trunk and junction networks are in constant process of expansion and improvement to keep pace with the increased demands on the service. Progress with the extension of the automatic system continues. During 1968, 28 manual exchanges were converted to automatic working and a further 26 were converted in 1969. In 1968 additional equipment to provide for future subscriber and traffic growth was installed in 47 automatic as well as in 100 manual exchanges. In 1969 78 automatic exchanges and over 120 manual exchanges were similarly extended. In addition, an automanual exchange was opened at Tralee in March last and new modern manual exchanges were put into service in Castleblayney, Castlerea, Donegal and Listowel.

Over 600 additional circuits on 180 routes were added to the trunk system in 1968, mainly in underground cable; many open wire trunk routes were replaced by trunk cables thus improving the quality and reliability of the service and 37 additional cross-Channel circuits were provided. Among the more important routes improved were many in the Counties Cavan, Cork, Laois, Monaghan, Offaly and Westmeath, as well as routes radiating from Cork, Dublin and Limerick.

The year 1969 showed even greater progress in expanding the trunk networks, over 900 trunk circuits being added to about 230 routes including 51 on the cross-Channel route. Six transatlantic circuits were added— two to Canada and four to the USA, making a total of 16 transatlantic circuits. Other items among the more important works were expansion of the capacity of the trunk cables serving Carrickmacross, Ennis and Killarney; and completion of co-axial cable schemes between Arklow-Gorey-Enniscorthy, Cahirciveen-Killorglin, Ennistymon, Ennis-Kilrush, and Letter-kenny-Dungloe. The radio links between Dublin and Portlaoise and Dublin/Belfast/cross-Channel with a potential capacity of 960 circuits each were completed in 1969 and as equipment is fitted these will be brought into service. Already 60 circuits to Portlaoise, 30 to Belfast and 30 to Britain are in use and it is expected that 212 more to Britain will be brought into service in early summer.

Work on other high capacity radio links connecting Dublin and Cork, and Portlaoise and Athlone, is well advanced and circuits are expected to be available shortly. Work is in progress also on provision of radio links between Portlaoise-Thurles and Limerick-Shannon-Ennis. The capacity of the existing trunk cables serving Listowel, Macroom and a number of other places will be expanded by fitting additional equipment.

An aerial cable between Ballina and Belmullet, an underground co-axial cable between Waterford and Dungarvan, and an underground co-axial cable scheme Athlone - Castlerea - Claremorris - Castlebar - Ballina are expected to be completed this year. Aerial cables, and aerial and underground co-axial cables between Galway - Clifden, Killarney - Kenmare - Sneem and Portlaoise-Birr will be ready for service at the end of this year or early 1971. In addition an underground co-axial cable scheme Athlone-Ballinasloe - Loughrea - Galway is expected to be completed in 1972.

The first issue of the classified directory was distributed in June, 1969, and met with generally favourable comment. The 1970 edition is at present being distributed.

Quite a number of changes have been made in the 1970 issue of the telephone directory. It is printed in a different typeface with more space between the entries which makes for easier reading. All the telephone numbers are listed in bold type and there is additional spacing between digits in four, five and six digit numbers.

The preface too has been re-designed with the object of presenting useful information as clearly as possible. Part I of the directory has been extended to cover a wider area. In addition to all subscribers in Dublin city and county it now includes those subscribers in parts of Kildare, Meath and Wicklow who are in the Dublin local call fee area now known as the "O1" area. The purpose of the change was to simplify the position regarding subscriber trunk dialling, emphasising that "O1" is the access code for making a call from outside the area to any telephone in the "O1" area. In addition a new code for reporting faults was introduced in the "O1" area to coincide with the issue of the directory and new facilities for coinbox users in this area were also introduced. They now have direct access to the fault report, directory inquiry and service difficulty services where previously they had to dial "1O" to be connected by the operator to the appropriate service. These changes involved changing the dialling codes for all of these services. One further point about the directory: despite the fact that all of the 200,000 odd entries in the volume had to be reset and that it contains 60,000 new or amended entries, it is the most up-to-date directory published by the Department for many years. The weather service, which was introduced in 1967, continues to be very successful. Over half a million calls were made to the service in 1969.

It had been expected that an automatic time service would be introduced in 1969. Regrettably the manufacturer was unable to deliver the equipment as scheduled and the service will not be available until later this year.

In mid-1969 a revised policy regarding provision of telephone kiosks in rural areas was announced. Previously kiosks were provided only where they would pay their way. It was decided to allow a modest subsidy in the case of kiosks in rural areas and to accelerate the extension of kiosk facilities to these areas. It was also decided that this extension could best be achieved by replacing by kiosks these call offices in rural sub-post offices which are used fairly extensively. As a first step the rural kiosk programme for the current financial year was increased substantially. The intention is to increase the annual provision of kiosks from 100 to about 200 for the next few years. This will represent a three-fold increase in rural kiosk provision from about 50 to 150 a year.

A five-year extended kiosk programme is being drawn up commencing in the financial year 1970-71 and centres are being selected for inclusion on the basis of the extent to which the call office in the local post office is used. This will have the advantage that kiosks will be provided in the order in which they are likely to be of most benefit.

Deposits in the Post Office Savings Bank, excluding surplus funds invested by trustee savings banks to which I will refer later, amounted to £23.9 million during 1968 and withdrawals to £25.8 million. At 31 December, 1968, the total balance due to depositors, including interest amounting to £3.9 million, was approximately £118.3 million, an increase of £2 million on the figure for 31 December, 1967.

During 1969 deposits and withdrawals amounted to £25.1 million and £27.1 million respectively.

Net deposits in the Post Office Savings Bank by the trustee savings banks amounted to £0.4 million in 1968. The total amount to the credit of the trustee savings banks at the end of that year including interest and deposits amounting to £1.7 million in the new investment account service was £22.5 million, an increase of £1.3 million over the previous year.

During 1969 withdrawals by the trustee savings banks on ordinary account amounted to £1.7 million as compared with a net deposit of £0.4 million for 1968 but this was more than counterbalanced by deposits totalling £4.9 million on investment account.

The 6½ per cent investment bonds were introduced, under the management of my Department, in January, 1969. In the first 12 months net sales totalled £5.2 million. Interest on the bonds is paid twice yearly; the first payment, of some £78,000, was made on 31st July last and the second payment of about £173,000 on 31st January this year.

Sales of savings certificates during 1968 amounted to £6.7 million and repayments, including interest, came to £6.2 million. The principal remaining invested at the end of the year was £47 million as compared with £45.1 million at the close of 1967, an increase of £1.9 million. During 1969 sales of savings certificates amounted to about £5.5 million and repayments, including interest, to £7.1 million. The net outflow (£1.6 million) compared with a net inflow of £0.5 million in 1968.

The aggregate result for 1968 for the savings media with which my Department is directly concerned was a net dissaving of about £1 million.

That is a new one.

The position improved during 1969, which produced a net inflow of savings of £4.8 million. The improvement is attributable to the success of the 6½ per cent investment bonds and of the trustee savings banks' investment accounts which together yielded £10.1 million, against which must be offset a loss of £5.3 million out of the older media.

I should like to record my appreciation of the excellent work done by the National Savings Committee in promoting small savings.

The value of money orders issued in 1968 was £34.2 million as compared with £35.4 million in the previous year. Postal order business in 1968 was slightly higher, the value of orders issued being £8.74 million as compared with £8.64 million in 1967.

Agency service payments made by the Post Office, mainly on behalf of the Department of Social Welfare, increased from £50 million in 1967 to £55 million in 1968. Post offices took part as usual in the half-yearly sales of prize bonds, handling about 30 per cent of the total collected.

During 1968 new automatic telephone exchange buildings were completed at 58 centres including Cahirciveen, Castlerea, Dungarvan, Gort, Killarney and Muine Bheag. New manual exchange accommodation was provided at Castleblayney, Donegal and Westport. Improvement schemes were carried out at Kinsale and Tipperary post offices.

Works completed in 1969 included a new post office at Macroom, extension to Merrion and Wicklow telephone exchanges, and new automatic telephone exchange buildings at Ballina, Macroom, Tullow and 33 other centres. Improved manual telephone exchange accommodation was provided at Castlerea, Clones, Cork and Listowel.

Works in progress include new warehouses at St. John's Road stores depot; new post office, telephone exchange and area engineering depot at Claremorris; new post office and telephone exchange at Cavan; new district sorting office at Ballyfermot; new automatic telephone exchange buildings at Birr, Clonmel, Cobh, Loughrea, Newcastlewest, Tramore and ten other centres; extensions to the exchange buildings at Balbriggan, Rathmines (Dublin), Drogheda and Dundalk.

Additional accommodation has been provided in Dublin for offices, training and exchange extension purposes.

The first general issue of the new postmen's uniform of improved quality and design was made in December, 1969.

A new colour scheme and official symbol for Post Office vehicles have been approved and are now being used on new vehicles. The scheme and symbol are the work of the Kilkenny Design Centre.

The number of additional staff provided for in the Estimates is 922. Most of the new posts are in the expanding telecommunications services.

The expansion of the telecommunications services requires a steady intake of professional engineers, and I am glad to say that our recruitment efforts continue to meet with reasonable success. Twenty-seven professional engineers were recruited from competitions held during 1968, and 11 from competitions held in 1969. The Department's scholarship schemes— designed to supplement the intake of professional engineers—have been extended in scope; and scholarships are now available to students who have successfully completed two or more years of a university course leading to an appropriate degree. This is in addition to the schemes under which scholarships leading to full engineering qualifications are available for school leavers and members of the Department's staff with suitable experience. Twenty students are at present studying under scholarships awarded under these schemes. The benefits of these efforts are already emerging : during 1969 two young men who had obtained their qualifications through these schemes were appointed engineers in the Department.

The technician trainee scheme continues to be successful. At present we have over 350 young men in training. The scheme has been in operation in its present form since 1963, and has been invaluable in providing the Department with skilled personnel. Nonetheless, it has been felt appropriate to review generally the recruitment and training of our technician force in the light of our experience to date and of the far-reaching technical developments of recent years. This review is now proceeding. During 1968-69 the Department undertook the recruitment and training of over 800 male and female full-time telephonists. Thanks to the co-operation of the Civil Service Commission this big programme was successfully carried out. Recruitment of telephonists to meet needs for 1970 is well advanced.

Attention continues to be given to the welfare facilities available to the staff, and there are now eight welfare officers functioning in the Department. Six are in the Dublin area, and one each in the Cork and Limerick areas.

The status and organisation of my Department have been referred to on a number of occasions during the Estimate debates in previous years. The recommendations of the Devlin review group in this regard are now being carefully studied. The report recommends that the operation of the postal and telecommunications services should not, for the present at least, be transferred to a commercial State-sponsored body but should remain within the Civil Service. The report also contains some far-reaching recommendations regarding the establishment of a new Department of Transport and Communications of which the postal and telecommunications services would form part. The recommendations raised many complex issues and it is too early yet to come to conclusions on them.

The changeover to decimal currency will take place on 15th February, 1971. A committee within my Department is dealing with the many practical problems which arise for the Post Office. My Department is also represented on an inter-departmental committee to co-ordinate arrangements for the changeover for the public service as a whole.

In dealing with staffing matters last year my predecessor mentioned that improvements in pay and other conditions of service had in the previous two financial years cost a total of £1.34 million. Since then, further pay increases have added to those costs. Post Office staffs have benefited from eleventh round pay increases in 1968 and 1969 and in addition have secured improvements in other conditions such as working hours and holidays. The net effect of these improvements in the last 18 months or so has been to add a total of approximately £3½ million to the Department's wage bill which, at 1st April, 1968, stood at about £15.2 million. This increase in operating costs will clearly pose problems for the Department in the not too distant future.

During the year, the great majority of the staff of nearly 20,000 continued to give the traditionally high standard of service which we have all come to expect and I would like to take this opportunity of thanking them. The year did, regrettably, have its upsets, with a series of work stoppages organised by a minority breakaway staff organisation. Although these affected the Department's activities to a very limited degree, they caused much unnecessary inconvenience and irritation to some users of Post Office services.

There was also a regrettable unofficial stoppage of work at Ennis which lasted for four weeks and there was a similar stoppage by delivery postmen in Dublin and suburbs for one day in support of a demand for cessation of delivery of post on Saturdays.

My Department has been conscious of the constant need to attune its staff relations policy and machinery to changing times and attitudes. For example, a subcommittee consisting of both management and the staff organisations is at present examining staff communications within the Department. One of the objects of the examination is to see how the staff can be given a greater involvement in the affairs of their offices. Recently, joint consultation councils have been set up in the Dublin postal and Dublin engineering districts which are two of the biggest staff units in the Department. The councils consist of local management and staff representatives who will meet regularly to discuss all matters of local interest. The possibility of setting up similar councils in other areas is being examined and I am hopeful that, in this way, the staff will get a greater sense of satisfaction from their work and that they will be encouraged to take a greater interest in it. The question of having psychological surveys of staff attitudes et cetera carried out is also under examination and it is expected that some surveys of this kind will be undertaken during the coming year. Their object will be to assess what factors, physical an environmental, may be causing dissatisfaction and tension, and to determine how job satisfaction can be increased.

My predecessor, when speaking on last year's Estimate, mentioned that the Post Office departmental council was considering whether any changes were desirable in the Department's staff regulations. A subcommittee of the departmental council, consisting of both management and staff representatives, was set up to carry out a thorough review of these. The subcommittee has reported on certain aspects of the matter and its recommendations have been accepted. Other aspects are being examined at present, and as the examination will be a very detailed and thorough one, the deliberations of the committee are not likely to be completed for some time. A committee on similar lines examined the regulations applying to sub-postmasters. That committee reported some time ago and its recommendations are being implemented.

The training function within the Department is receiving increasing attention. The resources, both in personnel and accommodation, are being expanded steadily to meet the ever-increasing demands for training, both in the technical and management fields. During the year, additional premises were acquired for training, one for engineering staffs, another for refresher courses for telephone operators and their supervisors, and another for postal and general service staff and supervisors. The training in these departmental schools is provided largely by departmental staff but outside personnel experienced in the training field are called in to help in areas where their expertise is considered of value. In addition, the Department sends supervisors and other staff to courses conducted by the Civil Service training centre, the Institute of Public Administration, the Irish Management Institute and the School of Management Studies wherever it is considered they are likely to benefit from such courses. Staff are also given facilities to attend university courses where the subject matter is likely to be of direct benefit to them in their jobs in the Department. The Department is fully conscious of the need for increased training and what can be accomplished by it, and it is an aspect that will continue to receive very close attention.

It was mentioned last year that the Department had employed industrial consultants to examine the organisation, grading and methods of work in the Department's engineering branch. The consultant's reports have now been studied, and largely implemented in so far as maintenance of the telephone system is concerned. In regard to construction or new work, the consultants have pointed to the directions in which they considered efficiency could be improved, and a programme of work study has been undertaken with a view to determining the best organisation and work practices and setting standards of performance. This will take some time but will be pushed forward with all speed, in consultation with the various staff interests involved.

The Department's organisation and methods staff was expanded considerably over the last year or so, and they are making good progress. As time goes by, more and more areas within the Department will come under their scrutiny and I am confident that in this way productivity will be raised considerably. There are special difficulties in measuring work and improving methods in the clerical field.

The Department have a big number of staff engaged on clerical work and any economies that can be achieved from the introduction of improved working methods and the setting of time standards should clearly be sought after. With this object in mind, the Department is sharing in a pilot exercise in the Civil Service which is being undertaken by consultants in clerical work measurement and improvement. The consultants began their assignment in August last and it will extend until next June. If the results prove encouraging the question of extending the operation to other areas will be considered. I am happy to say that we are receiving full co-operation from the staffs involved in the pilot exercise.

My Department expects to order shortly a computer which will process work such as telephone accounts, savings bank, wages and stores accounting. A considerable proportion of this work is already done by data processing machines. In order to secure as soon as possible some of the economies of computerisation and to gain experience of computer working in advance of delivery of our own installation, my Department has arranged to avail temporarily from 1st April next of spare capacity in an Aer Lingus computer for the processing of certain work on the telephone side.

The commercial accounts for 1967-68 and 1968-69 have been laid before the House.

The commercial accounts present the position of the Department as a trading concern. They are compiled in accordance with commercial practice to show the expenditure incurred and the income earned during the year of account, such charges as interest and depreciation being included in the expenditure. A balance sheet and statement of assets gives details of the Department's very large capital investments, mainly in telephone plant. The accounts are audited by the Comptroller and Auditor General.

It is on the basis of these accounts that we determine financial policy, including the fixing of charges. The policy of successive Governments has been that the Post Office should pay its way, taking one year with another. That means that the Department must earn a surplus in good years to meet the losses in bad years and to provide a reserve against contingencies. If the Post Office did not pay its way, the loss would have to be made good out of general taxation.

In 1967-68 and 1968-69 there were overall losses on the Department's services of £467,000 and £825,000 respectively. In both years there were deficits on the postal and telegraph services and a surplus on the telephone service. The deficit in 1968-69 would have been greater but for the increased charges which were introduced from 1st January, 1969.

In the current financial year these increases plus growth of business were expected to yield a modest surplus of income over expenditure of the order of four per cent. However, the latest pay increases effective from 1st June last costing £1.5 million approximately and other cost increases are expected to reduce that margin to about half per cent. The present pay agreements expire on 31st March next and some claims are already in the pipeline. It is apparent that in the labour-intensive postal service at least the question of further rate adjustment must arise. My predecessor gave a clear warning to this effect in his statement on the Supplementary Estimate in March last. He pointed out that to cover the then existing deficit on postal working and provide a margin for contingencies would require a 7d. letter rate; and that if postal pay rates continued to rise— as they had been doing—much faster than postal traffic, further adjustment of postage rates would be unavoidable.

In the meantime there has been the further pay increase to which I have referred above and the present position is that the postal service is running at a loss of the order of £1 million a year. This, I must emphasise, is the situation now before the twelfth round which will inevitably raise postal and other Post Office costs substantially. A very high percentage—no less than 77 per cent—of postal costs consist of staff charges and the scope for mechanisation and for increasing the productivity of the large labour force employed is extremely limited. Each 1 per cent pay rise costs the service roughly £100,000 a year but there is no ready means of securing savings even of this amount without adversely affecting the quality of services. As I have mentioned earlier, we have to provide extra postmen, delivery offices, etc. in expanding urban areas and to provide extra force to cover such improvements in working conditions as reduction in working hours.

On the other hand, it is not possible to effect more than marginal savings in rural areas where the population is declining. We could undoubtedly reduce our costs by reducing the general standards of service which are high by international standards. But the kind of economies required to produce worthwhile savings, for example, less frequent deliveries or restriction of house-to-house deliveries would certainly not be welcomed and it is doubtful whether they would be acceptable to the public as an alternative to higher charges. Moreover, substantial savings could not be secured quickly particularly in rural areas without considerable disemployment. We have a problem here on which I would be glad to have the views of the House. Although losses on the telegraph service have for long been regarded as unavoidable or at least as a fair charge against surpluses on the telephone service, it is clear that continuing deficits on the postal service as well cannot be accepted.

In referring to improved pay and conditions as the predominant factor affecting the financial position of the service, I should like to make it clear that I am not opposed to such awards and improvements. Quite the contrary. In so far as they are secured through the operation of conciliation and arbitration machinery, which operates largely by reference to comparisons with outside employment, I am glad to accept and implement them.

Is it agreed that the Minister should be given five minutes in order to conclude his speech so that it may be on the record for the information of Deputies?

Is there no discussion then?

Can we take it that the Minister has concluded his speech? Can it not go on the record?

It cannot go on the record unless I read it.

The Minister will be finished in five minutes at the rate he is going.

Agreed.

As has been the practice I shall confine my remarks on broadcasting mainly to important issues and developments affecting the television and radio services and to matters in which, as Minister, I have a statutory responsibility.

The total amount to be paid to the Broadcasting Authority under subhead K in respect of net revenue collected in the form of licence fees is estimated at £2,000,000. This takes account of a net overpayment of £140,000 to the authority last year which was caused by a short-fall in actual net receipts as compared with the amount of grant-in-aid that was paid.

The authority's annual report for 1969 shows that in 1968-1969 the television service produced a profit of £566,384 which was offset by a deficit of £422,072 on radio. The overall surplus was £144,312 as compared with £370,824 for the previous year.

On the basis that £1 5s Od of each £5 licence fee is intended for the sound broadcasting service, a sum of £657,000 is being provided in the current financial year for radio and £1,343,000 for television. The amount thus allocated to sound broadcasting, together with radio advertising revenue, will fall short of expenditure on that service in 1969-1970 and the deficit will be a charge against RTE's general revenue. I understand that the authority will have difficulty in meeting expenditure on current account in the current financial year. A small surplus was originally forecast but calculations were upset by a number of unforeseeable factors. One such factor was the happenings in the Six Counties last autumn and the continuing unrest there which necessitated increased expenditure on northern news coverage without, of course, any corresponding increase in revenue. Another upsetting development was the strike at RTE from 23rd January to 22nd February, 1970, and the pay settlement, retrospective to 1st July, 1969, which ended it.

In their annual reports for 1968 and 1969 the authority have referred to their worsening financial situation. Last year my predecessor informed the House that the authority had formally sought an increase in broadcasting licence fees and that their application was being considered. The application has not to date been acceded to. The matter is, however, being kept under review in the light of the authority's costs/revenue position.

The number of licences current at 31st December last was approximately 593,500 made up of 433,000 combined and 160,500 sound only licences. These figures include the free licences issued to certain old age pensioners, veterans of the War of Independence and British and Northern Ireland retirement pensioners over 70. The fact that these licences are free does not affect RTE, as the fees are paid by the Departments of Social Welfare and Defence. I should merely like to say in passing that between 1st July, 1968, when the scheme was introduced, and the end of December last a total of 47,000 licences, 28,000 combined and 19,000 sound, were issued free to eligible pensioners.

A special drive against holders of unlicensed receiving sets mounted in October-November last resulted in the detection of 18,600 defaulters and it is estimated that approximately 70 per cent of 27,500 original combined and radio licences taken out during those two months were purchased as a result of the campaign. There is little doubt that evasion on a fairly substantial scale still continues, and I have some special measures in mind to deal with these people who persist in refusing to pay their due share for the service. I had hoped that the latest in detection methods would be available to supplement the house-to-house calls made during the recent campaign. A new TV detection van has recently been delivered and will soon be ready for service. Full use of it will be made in town and country districts, with special reference to areas which were not fully covered during the October/ November drive.

I wish to see the number of unlicensed sets reduced further. My predecessor indicated that proposals for new legislation to help towards this end were being prepared. The scheme has now reached an advanced stage and I hope before too long to have the Bill before the House. It will contain provision for increased fines for defaulters and will require the maintenance of records by radio and television dealers and rental companies.

Coming now to capital development schemes, expenditure by RTE during the year ended 31st March, 1969, amounted to £612,300 and was financed without recourse to borrowing. The programme included acquisition of a site adjacent to the Montrose premises, purchase of additional mobile television broadcasting equipment and provision of further transmitters and transposers to improve the national transmission network. Because of their less favourable financial position in the current year, the authority have had to cut back on capital expenditure to about £500,000. Some £200,000 of this is being borrowed from the superannuation fund.

My predecessor mentioned in February last that when four subsidiary VHF transmitters at Moville, Fanad, Castletown-Berehaven and Cahirciveen were operational, VHF reception would then be available over 99 per cent of the country. I now understand that the Moville and Cahirciveen satellites will be functioning in the latter part of this year—somewhat later than was hoped for. Before establishing the remaining two satellites I understand that the authority is undertaking further experimentation in the matter of reception and sites.

I receive complaints from time to time about unsatisfactory television reception in certain areas, mostly small areas individually which are not being satisfactorily covered either by the main transmitters or by existing transposers. The poor quality of reception in these areas has been the subject of Dáil questions from time to time. The authority is very much alive to the problem of covering satisfactorily these "pockets" of difficulty which comprise about 2 per cent approximately of the area of the State.

Following a survey carried out for the purpose of determining priorities, three main areas have been named for early attention. The first of these is the Mayo/Galway region for which three transposer stations are planned. Two of these have been established— one near Castlebar and the second near Clifden—and they have been broadcasting on limited power since shortly before Christmas. A full service should be available from these stations in I understand, a matter of months. I am told that the third transposer which is intended to serve Achill should also be ready in a few months. The Castlebar transposer will cover an area stretching from Ballina in the north to Ballinrobe in the south and will cover the towns of Foxford, Swinford, Claremorris, Westport, Louisburg and Newport. The Clifden transposer will take in the west coast of Connemara as far north as the southern tip of Achill Island and as far south as Lettermullen. The Achill Island transposer will cover the island and the northern area, including Belmullet and Bangor.

The second area which is in the planning stage at present is West Cork. It is intended to provide additional transposer stations next year at Glandore and Ballydehob. The question of improving reception in other parts of west Cork is being examined.

The Longford area is also on the short list for early attention and it is hoped to provide a transposer in about a year to serve it.

Work is also being done or is proposed on the consolidation of the existing thirteen transposers. This is aimed at improving existing installations and involves modifications to aerial patterns, et cetera, which will result in better coverage. The Cork transposer station has been extensively modified. Investigation has shown that a better service can be provided in certain parts of Waterford by modifying the radiation power of the Suir Valley transposer. The work will be carried out this year. This consolidation programme also includes the installation of duplicate equipment which will reduce the incidence of failures due to fault conditions.

The provision of transposers must, of course, be kept within the authority's capacity to pay for them, and I understand that it has been found necessary to put back until next year some installations originally planned for 1970. Coming to the very small "pockets", particularly those surrounded by mountains, it will be difficult, if not impossible, to give completely satisfactory coverage. The authority will decide the order in which additional transposers are to be provided and obviously one of the most important considerations to be taken into account will be the numbers of population to be served.

I have gone into this question of poor reception in some detail as, like every Member of the House, I want to see maximum coverage available to our viewers at the earliest possible date. Before leaving it I propose to refer briefly to the question of reception of RTE's programmes in the Six Counties and in Britain. It is often pointed out to me that external programmes are received here, and that it should be a simple matter to arrange satisfactory reception of our signals by viewers and listeners—especially our own exiles—outside the State. The first answer that must be given is that the reason that we can get tolerable reception of external television programmes along our northern and eastern boundaries is our practice of erecting high roof-top aerials which can take such programmes directly off the air. If such aerials, to acceptance of which we had become conditioned some years before Irish television commenced, were erected by viewers outside our borders, the penetration of RTE's programmes would be substantially extended.

Another major factor affecting the issue is that we are bound by international agreements governing the wavelengths and transmission power that we use. This is rather too complex a question to deal with here, but I should like Deputies to know that I am especially interested in this matter and I have had a special study of it put in train. It is already clear to me, however, that, international agreements apart, there are serious technical and financial obstacles to any significant improvement.

I am often asked how soon we will have colour television and I can only reiterate that no firm plans are at present under consideration for its introduction. The authority is continuing to conduct experimental test transmissions. The existing transmitters are readily adaptable for colour television when this becomes practicable, but colour is not high on the authority's priority list. Radio Telefís Éireann has already said that it should be able to receive and rebroadcast the 1972 Olympic Games in colour and there are also prospects that the network will also transmit the World Cup series in colour this year.

In February, 1969, my predecessor referred to the very marked development which had taken place in the realm of programmes of the public service type. He made special reference to the Telefís Scoile series which I am glad to say have been extended. Programmes for schools are now being transmitted up to 6½ hours per week over the school year. The total number planned is 306 representing about 153 hours of transmission as compared with 246 programmes of 123 hours of transmission last year. The programmes have been arranged in consultation with the Department of Education and cover courses in Irish, English, Physics, Biology, Chemistry, Geography and modern mathematics. I understand that the courses are being widely availed of.

About six months ago I approved the authority's proposal to extend Sunday afternoon television transmission by three hours over eight months of the year—broadly from October to May. RTE proposes to devote this extra time to re-runs of home-produced programmes—for example, the Dairying and Co-operation series shown in Telefís Feirme—to foreign language series and to such matters as business management and development and art appreciation programmes. The authority feels that there is an unsatisfied demand for programmes of this specialised type, programmes which cannot easily be fitted into the regular daily programme schedule or which should be "repeated" to catch a wider audience. These new programmes which probably have only a minority following at present will, I expect attract an increasing number of discerning viewers before long. RTE sees this as broadening the range of television output and giving a greater emphasis to instructional programmes.

The question of providing sound broadcasting stations to cater for the Gaeltacht areas in particular and Irish speakers in general is being examined in Radio Telefís Éireann. I do not know at this stage when a report on the study with cost and other data will be available.

On programming, although I have no responsibility for particular programmes and it would, therefore, be inappropriate for me to express my personal comments, I have in the course of informal meetings with members of the authority taken the opportunity of exchanging views with them. What I think is not sufficiently appreciated by the general public is the difficulties the authority have in carrying out the tasks entrusted to them. The resources available to them are tiny compared with those available to the wealthy organisations which operate the broadcasting services which compete with ours to a greater or lesser degree. This is a problem the RTE Authority will always have with them because unfortunately little can be done to alter the position to any substantial extent.

Current affairs programmes have— inevitably in a small country—been very much in the news during the year. The authority have a particularly difficult obligation laid on them to ensure objectivity and impartiality in this field. Herein, of course, lies one of the major problems facing all broadcasting organisations because opinions differ as to what constitute impartiality and objectivity. It is clearly too much to expect that RTE should be able to avoid criticism in its treatment of current affairs programmes. What is important, particularly for a national service like ours, is that the efforts to achieve and maintain satisfactory standards of balance and objectivity should be continued unremittingly.

Deputies will no doubt have read with interest my recent announcement that the regulations governing communal television aerials have been relaxed. The principal decision taken was to extend the number of outlets per multi-channel communal aerial to a maximum of 500. A licence will be required for each such system and it will be necessary for the equipment to conform to technical requirements fixed by my Department. The intention is that licences will be issued to local authorities, owners or lessors of estates, residents' associations and other groups of a distinctively local character, and of course to Radio Telefís Éireann. The general intention is to meet the needs of people particularly in new building schemes, who are not permitted or are not able to erect individual rooftop aerials. The relaxation of the restriction in this regard does not however mean that the way is now clear for the piping or relay of outside programmes throughout the country.

Progress reported; Committee to sit again.
Votes 20, 3, 26, 43, 47 and 47 reported and agreed to.
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