asked the Minister for Transport and Power if he is prepared to take the necessary steps to have CIE transport charges subsidised so as to provide cheaper transportation of goods to and from the West of Ireland, thereby assisting farmers and industrialists to expand their business and generally helping an area that is fighting for survival.
Ceisteanna—Questions. Oral Answers. - CIE Transport Charges.
25.
I would point out to the Deputy that CIE are in receipt of an annual grant of £2.65 million under section 6 of the Transport Act, 1964, as varied by the Transport Act, 1964 (Section 6) Order, 1969. In addition, the Transport Act, 1970, provides that additional grants not exceeding £2.98 million in the aggregate may be paid to CIE in the financial year ending 31st March, 1971. There is a total provision, therefore, of £5.63 million for the subsidisation of CIE's transport charges by the Exchequer in the current financial year.
The question of special additional subsidies for transport of industrial and agricultural produce to or from the west is one of a number of matters in relation to CIE which are under review at present.
Mr. O'Donnell
Could the Minister say whether or not the investigation into the affairs of CIE which is at present being undertaken by a firm of consultants will include an examination of the question of transport vis-à-vis western development?
The Deputy will have to ask the Minister whether that matter is being examined in relation to the inquiry into the general position of CIE. A special committee have been examining this matter, and as the Deputy knows, in relation to the subsidy paid to CIE, the subsidy in its impact on the total deficits of CIE has a very large measure of application in the western areas where the traffic is relatively lighter than it is along the main routes and so, to some extent there is a considerable degree of trans-subsidisation between one part of CIE and another. In any event, the committee are examining this and I hope they will report as soon as possible. However, I could not tell the Deputy whether the main inquiry into CIE includes this element. He should ask the Minister.
Has the Minister any comment to make on the £1.8 million of that £2.65 million which is paid by CIE by way of interest on transport stock and also a loan from the Government?
That is provided for in the Act.
This £2.65 million?
That is provided for in the Act.
Yes, but is there any way of wiping out this debt so that CIE do not have to pay back each year £1.8 million by way of interest?
That, of course, would simply result in further subsidisation by the taxpayer to pay the interest and principal on the loans.
May I ask who owns the transport stock?
That is a separate question.
It is all related to CIE.
The people of the country own the transport stock.