I should like to speak now about the energy situation and the natural gas situation.
Vote 42: Transport and Power (Resumed).
Debate resumed on the following motion:
That a sum not exceeding £34,849,000 be granted to defray the charge which will come in course of payment during the year ending on the 31st day of December, 1975, 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.
—(Minister for Transport and Power.)
Try the Government Whip. He is great gas.
By 1978 we may be getting 12 per cent of our needs for energy consumption by way of natural gas coming in from Kinsale Head. I wonder are we making the best use of natural gas in Nítrigin Éireann Teoranta and the ESB? We have a few years to go before we will actually have the gas and we might now be in a position to actively encourage industry into areas where our natural gas would be of greater value. Any energy we have must be used wisely and fully. If it were possible to use it as a town gas, would that be more efficient than having to build a particular type of generator? We must ask ourselves these questions. We are completely dependent on fuel and this might be an opportunity to attract the type of industry which could use natural gas and also have a reasonably high employment content.
The same could be said for oil. The statement by the Minister for Industry and Commerce last week was very informative and will ensure that we get the best value for the people. The Minister for Transport and Power will also ensure that we have the necessary ability to take in oil and refine it and maximise its effects on the economy. These assets will be of tremendous benefit to our people in the years ahead. No doubt they will increase the standard of living of our people and ensure that our economic dependence on imported energy and fuel will be minimised. To do that we must have a very effective programme. We must be quite clear in our minds as to what we will do with these assets. I do not think we can select two or three industries out of a hat and decide to use the oil or gas in those industries. Our use of the natural gas must be planned. In this regard we can learn from countries who discovered natural gas in the last few years. We all realise that initially errors can be made in the use of natural gas and it is up to the Government to ensure that we do not fall into the pitfalls those countries did.
I should now like to deal with the question of setting up a harbour board in Bantry. That is a very scenic area but the last government made a complete boob by allowing oil tankers to discharge their cargo there without any controls. The Minister should rectify the recklessness of the former government in this regard. It is in the interest of us all that we minimise pollution, but we do not have very strict penalties to combat that. The multi-national companies can promise a lot but they do not have any obligation to anybody or to any place. They are using our country for their own convenience and at ridiculous terms. It is highly desirable that we have a harbour authority in Bantry.
We all have a stake in our tourist industry and it is ridiculous that industries can be established without control over them. In a lot of cases industries spoil our countryside. What one could describe as "dirty" industries should be sited in special areas and other industries kept under strict control. We should control the Gulf Oil Company by setting up a harbour authority in Bantry.
In the course of my contribution I will deal with the areas of this Department that affect rural Ireland. Since this Estimate was introduced CIE have imposed a major increase in fares and freight charges. I believe the increase is of the order of 33? per cent. This will mean a heavy strain on many industries. Those factories depending on CIE to convey their goods will be adversely affected. It was wrong to impose such increases at a time when many companies are finding it hard to keep going. Many companies are finding it difficult to borrow money and those who are successful must pay a high price for it.
Two weeks ago I submitted a question concerning the conditions of vehicles used by CIE but it was ruled out of order on the basis that CIE, being a semi-State body, was outside the control of the Minister. I was informed that the condition of the vehicles was the responsibility of the board. We will have to change the system in regard to semi-State bodies. They will have to come under the scrutiny of a Select Committee of this House. I am not casting any reflection on CIE or any of the other semi-State bodies, but when additional capital is needed the Minister responsible must introduce a Supplementary Estimate in this House to obtain it. Apparently, we are in order in providing money but we are not entitled to question how this money is spent. In my area recently a bus broke down with the result that school children were unable to get to school. Some of the CIE vehicles on our roads are not roadworthy. In many cases they have bad lights, bad tyres and broken reflectors. How can we prosecute other individuals who drive defective vehicles when we do not prosecute CIE for allowing vehicles that are not roadworthy to be driven on our roads?
It appears that CIE are running into more financial difficulty because the State subsidisation is heavier each year. It is now running at £17 million and next year it will be in the region of £24 million. How long will the State be able to subsidise CIE? We will have to look at that aspect. It may be said that CIE are giving good employment. They certainly are but at what price to the taxpayer? Recently CIE changed the times at which trains leave the midlands in the morning for Dublin. The Tullamore train left at 9.30 a.m. which was a very convenient time for workers and shoppers and anybody who wished to travel to Dublin. Now there is a new arrangement and that train does not leave until some time after 11 a.m. This is also happening in other parts of the country. That is bad. I brought this to the notice of the General Manager of CIE and he said it was under review. CIE are not with it in regard to what is most suitable for the people.
I was talking about the vast amount of money which we are pumping into CIE to keep it in operation—£17 million. Next year it will be £24 million and at the rate inflation is going I may be giving a very conservative estimate. Can we continue doing it? Are we doing it as a social policy or as charity and can we continue doing it in that line? Perhaps a select committee of this House could go into the working of every section of CIE and see where economies or a tightening up could be effected. Admittedly there are some bus routes in rural Ireland that are not paying at all. We must be fair and say that. Some of them, as far as I know, for the most part of the week just carry the morning and evening papers, with perhaps a couple of passengers. That situation could not pay.
Finally I would hope the Government would bring in legislation which would enable semi-State bodies to be controlled by the Oireachtas, because all of us find it impossible to ask a question here about a semi-State body. If we do get a question in we are told it is the function of the board concerned.
I want now to turn to the ESB. I am very much alarmed at some of the charges that are being levied on young men who are building houses in rural Ireland and also in towns where there are groups of houses going up. I had a few cases recently where the ESB quoted a charge of £900. I had another case where £750 was quoted. I asked the ESB if they would accept it in instalments and they said that if they did accept it in instalments they would not make the connection until the final payment was made. I have now warned my constituents that if they are building a house, as well as making sure to obtain planning permission in full from the local authority, they should check out with the ESB what the charge is to be.
When a house-builder gets a letter to say the ESB charge will be £900 it comes as a shock. He sometimes does not expect that there will be any charge. He then goes to his public representative to see whether anything can be done but there is simply nothing he can do. A subsidy should be given to help such people, especially in rural areas. If that trend continues and charges of that nature are imposed on I can see rural Ireland collapsing. After building a house and buying a site the ESB charge makes the cost enormous. In the last day or two we have heard that the ESB are increasing their charges by almost 20 per cent. They are doing this because there is a dropping off in the demand with factories on two and three day weeks and others closing. The demand has gone down considerably. We talk about saving energy and the ESB saving energy. There are advertisements on television but all I see in the advertisements is the burning of the pound note.
The ESB say now that in view of the fact that there is a falling off in demand they will have no revenue to expand and I have no doubt that they have no revenue. With the drop in consumption they will find themselves in difficulty. With an increase of almost 20 per cent on householders, factory managers, company owners, what will this do? It will raise costs considerably. From an exporter's point of view it will make costs almost prohibitive. We all know the difficulties the textile and shoe industries are having at the moment. With this increase in electricity charges they are going to be in a very serious situation. Most companies are in serious difficulty today. Even the best of them want to borrow on any market in any country or anywhere they can get it. They are not asking what the interest rates are any more. If they can get it they will talk about the interest afterwards. With all the charges and costs that are put on them the next thing one sees is the receiver in.
I had the sorrowful experience the other day of seeing a receiver brought in in my own county to close down a firm which was employing almost 200 men. This comes from inflation which is running wild. Every day there is an increase in the price of some commodity. I do not know what the people think of these increases in prices. I do not know how the house wife can bear these costs.
In regard to Bord na Móna, I recently asked a question about the third development programmes. The Minister has stated that there will be many more bogs developed. How does he propose to do it in view of the fact that in an answer to a Dáil question he stated that Bord na Móna were at their limit in regard to borrowing and the managing director of Bord na Móna stated in The Irish Times that they were finding it impossible to borrow on any market now. When I questioned the Minister on it he was unable to tell me when he would bring in legislation to raise the limit in regard to Bord na Móna borrowing. For us in the midlands that is a very serious situation. Bord na Móna is the main employer in the midlands. In fact it is the largest employer in the country. We in the midlands are depending on Bord na Móna. The cost of oil has increased enormously and turf briquettes is the cheapest fuel one can buy now. How can Bord na Móna develop when they have no money, and no promise of any money and the Government are unable to state when they will give them any money? If they are not able to increase the borrowing powers of the board, would the Minister, in his reply, state if he will arrange with the Government that they would provide them with the capital to finance this third programme? If not, a serious situation will arise because Bord na Móna is also linked with the ESB in regard to fuel supplies. Between them they have been giving very good employment in the midlands. The position looks bleak now in view of the fact that the Minister was not able to state when this legislation would be brought in.
If suitable legislation was brought in by the Minister in regard to Bord na Móna, we would give it a speedy passage through this House. I do not know what the delay is because it would involve only an amendment to increase the borrowing. Why can he not do that? Is the simple answer "I have no money; I have bled everyone I can and the Government have bled everyone they can and there is no more bleeding to be done."? That might be the answer.
In conclusion on that point, I would be glad if the Parliamentary Secretary would convey my remarks to the Minister in regard to Bord na Móna; in regard to the financial position they now find themselves in and if he would ensure that development will not be held up. I was alarmed when I saw the statement of the managing director of Bord na Móna.
The increased charges imposed by the ESB and CIE will also have an adverse effect on agriculture. It will increase their costs further. Agriculture is very much dependent on electricity, especially for milking machines, cooling plants and other essential equipment. When there is an increase in any of these items the supplier thinks he has nothing to do but pass it on to the person who is buying. Under the Prices Commission one has to apply and give all the details and sometimes they are one month or two months wondering and thinking over it to see when is the best time, from the point of view of public reaction, to issue it. Motor manufacturers need not give any notice at all before increasing prices. Petrol and oil companies need give only one week's notice and, with a stroke of the pen, can increase the prices again. That is their position. They make a very handsome profit as well, as they did in the past and got away with it.
The Britain Company is going out of business?
Prices are not a matter for the Minister for Transport and Power.
The Britain Company is another day's work. The question of energy arises. In regard to the companies Deputy Collins is referring to, they are finding themselves in a very serious position which is brought about by the Government that failed utterly to control inflation. Even the Central Bank have admitted that the Government have driven inflation wild.
Regarding tourism, not all hotels are doing their share to encourage tourists to return. Sometimes the service is not as good as it should be while the charges are too high. A person who stays at such a hotel would get a bad impression and would not either return himself or encourage anyone else to come here.
I have received a number of complaints from foreigners here saying that they have been in hotels where they were charged at rates that were different from those charged to other people. We cannot deny that it is going on. Hoteliers who do that will catch people once but they will not catch them again. Some of them have been complaining about business being bad, but a lot of the blame must rest with themselves.
The only semi-State industry that one can say for certain is viable is Bord na Móna. They have been making a profit all along. That is why I should hate anything to happen that would jeopardise their progress. I compliment the directors, the staff and the workers who have given such loyal service to Bord na Móna down through the years.
There is an option open to Bord na Mona if the Government do not provide them with the money, that is, to increase the prices of turf and briquettes. The present price is £7 per ton. That is dear enough but if it is to be increased further, it might be a question of robbing Peter to pay Paul because there would then be a fall in the demand for the products. There is some talk of the turf being increased from £7 to £9 a ton in order to allow the company to continue in operation, to pay salaries and start this expansion programme. I warn them that if they impose this increase, there will be a falling-off in demand.
In regard to all of these semi-State bodies, a number of them being under the control of the Minister for Transport and Power, the time has now come when we in this House should have some say in their running and in the functions they carry out, To-day there is a tendency to think that when the State is providing money there is no problem. There are many other concerns, some of them very big, that cannot turn to anybody for help. If they fail to make their business pay, they will find themselves in serious difficulties.
The time has come when we must look at the position very carefully to see how long the taxpayer can continue pumping very substantial subsidies to the semi-State bodies, some of which seem to be coming back to the Exchequer looking for bigger amounts all the time. So a section of the community that is highly taxed at the moment will be more highly taxed from now on to keep all these concerns in operation.
We must ask ourselves if we are keeping something going from a social point of view. I am very alarmed at the amount of subsidies we are making available to the semi-State bodies. Many of the railways in other countries and even a large portion of bus transport have been taken over by private concerns, and from the information I have they have made these pay very well. I know that if we were to do this it would create a great upheaval and perhaps would not be workable. However, a certain tightening up and looking into the day by day workings of these companies is necessary in order to see where savings can be made.
Householders, business people, workers, and everybody else will now be taxed to the hilt. I notice that these statements are always made at the weekends and not here on Tuesdays, Wednesdays or Thursdays. These ESB charges are a cruel blow to the housewife and the workers. There is no doubt that this will bring about further redundancies because costs will go skyhigh again. When costs go up what is sold from the factory floor must also go up. Inflation is now running wild and my information is that there are more price increases in the pipeline.
As I said before, we will be priced out of every market if this continues. It may be said that this is not relevant to the Estimate but it is very relevant in the light of these increases. The Government have taken no action to curb this inflation. They will let it go higher and higher and then we will see factory after factory close. I regret to have to say that this country is heading for a most difficult period from an industrial point of view. I cannot see a number of companies surviving because expenditure and overheads will put them out of business. The trade union movement has been abandoned and sections of it are dictating the terms.
We on this side of the House— although we would very much like to see it—cannot see the wage agreement which was worked out, implemented and agreed on by unions and employers. I fear the worst. I fear that with these increases in ESB and CIE charges the workers will say: "Right, if you charge us more for power and fares we will look for money whether a company can pay it or not."
We are heading for a chaotic situation from an industrial point of view. Most of the concerns in this country were built up by Fianna Fáil over the years, were doing very well and had expanded. We always made sure that capital was freely available. Everything is now being allowed to run riot and the housewife will be serving bread with no butter on it very soon if she is not doing so already.
The Estimate before the House covers a wide range of activities. We are glad to have an opportunity of discussing this Estimate. I cannot share the pessimism expressed by Deputy Connolly. Indeed, I wonder if he was in order in discussing the whole wide-ranging economic scene. Nevertheless he has done so.
We are indeed in a period of inflation. It is world wide. It is affecting not only us but practically every western European democracy and America. I do not know when we will turn the corner. According to the experts it will be towards the end of this year. We would welcome an up-turn in employment and a down-turn in the rate of inflation. It would have been wrong if we had panicked in 1973-74 when the oil crisis broke and inflation began to take off. We would have been wrong to follow a policy of financial restraint because there is no doubt that such a policy would have led rapidly to a severe crisis in employment.
Any Government can only ensure that the agencies of the State are available to those who want them. People in receipt of social welfare benefits have done very well under our Government, and rightly so. We have adequate incentives for industry to be established and to expand. How far can we control inflation is a question which is baffling many Governments. Perhaps we are in an unprecedented era. Certainly what is now required is a very cool approach to the matter.
The question of subsidising firms rather than allowing a direct price increase deserves to be discussed and there should be a far wider public discussion on it. The question, for instance, of subsidising essentials such as bread and milk is always present and needs to be discussed. Apparently under the terms of the EEC regulations direct subsidies are not welcome. We may have to revise our attitude to this. We should try everything, however novel, to ensure that the consumer price index is held down as much as possible. Deputy Connolly's pessimism is one I do not share.
I should like to discuss the position in our society of Córas Iompair Éireann, a company which is giving cause for concern. That company's report for 1973-74 shows a deficit of £11.66 million, more than £3 million higher than the previous year. That figure was superseded in the last year. The subvention for this year is in excess of £17 million and I wonder, from a taxpayer's point of view, if this can continue. We should have a hard look at the role which Córas Iompair Éireann should play in our society.
We should compare the use to which the Government could put £17 million. If it was spent on road improvements it would be advantageous. This massive support for CIE may not, in the long term, be the best use to which we can put our funds. We should look at the various sections of CIE, for example, the Dublin city bus service, to see if it could be hived off to the private sector. A useful exercise could be undertaken in relation to this.
The main reason for the subsidy is the rail transport system which has a deficit of £9.6 million in 1973-74. I agree it is important that we should have an alternative system of travelling by road and that we should have a good quality rail service for passengers and a specialised freight service. We should have an adequate and good rail service connecting the main centres of population. This could be done more economically than at present.
The road passenger service in 1973-74 was profitable, and there is a sound future for that service. Would it be possible to hive-off the provincial bus service also to the private sector? That service is making a profit and, perhaps, this is the best time to make the change.
The road freight service should also be examined. That service showed a surplus in 1972-73 and a slight deficit in 1973-74. It is in direct competition with the private sector and has a function in the specialised fields where they can link up with CIE rail and container services. Is there a long term need for CIE to have this road freight service on a wide scale? A public debate is needed on the future of CIE and the part that company plays in our society. There will always be a problem in relation to change, but I feel we can get over this problem in relation to manpower. If parts of CIE were hived-off into the private sector, redundancies would not occur. In fact the efficiency of the private sector would ensure the continued employment of those at present involved.
Part of the deficit of CIE is undoubtedly part of the social services provided by the Government. When dealing with the accounts of CIE, this should be segregated and made a separate and distinct item. It should be financed out of the Vote of the Department of Social Welfare. The cost of the school bus service should be part of the Education Estimate and have a direct link with the moneys involved there.
There are a number of aspects affecting the national situation which I should like to comment on. The energy crisis hit us very harshly and the suggested increase in ESB charges of 18 per cent will create more problems. It appears the consumption of electricity will remain static over the next few years and I gather this is Government policy. In that context and in view of the consultant's report on the manpower within the ESB, where it was stated the organisation could be run with a 15 to 20 per cent reduction in staff, the board should ensure that it is not over-staffed even in the long term. They should take every measure they can in the national interest to contain price increases.
Aer Lingus and Aer Rianta, the international air companies, are in trouble because of inflation and the energy crisis and this is likely to continue. I agree with the policy being pursued by Aer Lingus and hope that they can come through the present crisis. I travel quite a lot between here and Europe, being a Member of the Council of Europe, and I can never understand why the tax free facilities at London Airport cannot be used by passengers travelling between Ireland and England. As we have entered Europe, I think the facilities in relation to the purchase of tax free products in England should be available to Irish emigrants returning home in the same way as at any other European airport.
The question has been raised of the public accountability of semi-State bodies. We have three of them here, CIE, Aer Lingus and Aer Rianta. I agree the scrutiny of their accounts should be more open to Members of the Oireachtas, and to the Public Accounts Committee in particular. That committee should have the right to call employees of the company before them with a view to explaining the activities of the company quite openly to Members of this House.
There are a number of local problems affecting my constituency to which I should like to refer. The Waterford Harbour Commissioners of which I am a member obviously are deeply involved and interested in the development of the harbour. We had recently a move by a company to establish an industry at Cheekpoint which has given cause for concern to the general manager and the board of the Waterford Harbour Commissioners. The positioning of the factory at Cheekpoint is giving rise to concern because it is very near the Cheekpoint harbour and there is a danger that if an industry is established there the depth of the water will be reduced and will damage the entry and exit to the harbour.
The general manager of the harbour board has made the position quite clear, as have the board. We are most anxious to have the company concerned establish an industry on the estuary and we will facilitate them in every way possible, but I feel that the harbour board were right. They had a responsibility to explain the position which, unfortunately, has been mis-interpreted in the area. However, I am glad to say there will be a meeting between the harbour board and the company with a view to resolving the problem.
Waterford harbour is an ideal location for the establishment of an oil servicing industry in view of the gas and oil finds off the south coast. With these finds we are entering a new era of development of Irish Industry and the Irish economy in general. I trust that the committee which have been set up between the Departments of Industry and Commerce and Transport and Power, an Foras Forbartha and the IDA will examine the Waterford coastline and the Waterford estuary and will be satisfied we are ideally placed for the location of such an industry. Again, I would insist that any oil or gas finds off the cost of Waterford be piped to the land in Waterford and that whatever refinery and processing industries are necessary be established there. This will ensure the maximum employment content which can be got from the finds.
I am in complete agreement with the policy which the Government have announced in relation to the oil finds and I feel that their approach has been welcomed by people who are involved in the various industries searching for oil and gas. This kind of government policy will continue to attract people who are interested in these fields.
In relation to Waterford harbour, it is important to ensure that there will continue to be satisfactory livestock export facilities at the port. It was always a great port for the export of livestock, bloodstock and sheep and it is important that we should have such a facility. Even though the era of scheduled livestock services is gone, it is incumbent upon the Government and, indeed, upon the harbour board to ensure that that facility will always be there to take advantage of any market that may come.
We had an unfortunate tragedy in Waterford when a trawler went aground with the loss of the life of the captain from Passage East. It has given rise to great concern about the marine radio station facilities at Dunmore East. The present facilities are not adequate and the people who are involved in fishing and shipping in the area are not satisfied with the present radio links there. I asked a Dáil question about this matter some time ago and I understood from the Minister he was satisfied the facilities were adequate. However, I have advice from the people more directly involved in fishing and shipping in the area that there is an urgent need for an adequate marine radio station in Dunmore East and I would ask the Minister to reconsider the position in relation to this matter.
I wish to pay tribute to Tramore Fáilte for the efforts they have put into developing our resorts under the aegis of the major resort improvement programme which the Government have undertaken. Tramore has come on quite a lot since the programme was introduced and they have done excellent work down through the years.
I have some reservations about one aspect of their activities. I refer to the practice of engaging in activities which are already being catered for by private operators in Tramore. While I appreciate that Bord Fáilte are trying to get the resort as a whole developed I think they have an obligation to local operators not to encroach on their activities if they are satisfying a demand. Bord Fáilte should be careful not to step on their toes. I am aware of one case where concern has been expressed. A semi-State body, such as Bord Fáilte, has an obligation to ensure that the existing operators in a resort are not cut across.
The question of the Waterford Gas Company is also of interest in view of the Minister's participation in the Dublin Gas Company, which is the parent company of the Waterford company. It is important that the supply of town gas in major cities should be continued. In view of the many problems thrown up by the energy crisis, steps should be taken to ensure that the Gas Company continues to exist until such time as the extent of gas finds is examined in a national perspective. I would be grateful if the Minister would make some comment on Government policy in relation to the gas companies supplying gas to towns. There are only a few major cities affected. I should like to hear from the Minister that the Waterford Gas Company will continue as a viable concern.
My final comment in regard to the Waterford area concerns the airfield which we do not have but which, as a major city, we should have. I am not satisfied with the progress being made to date on the provision of an airfield near Waterford. Because of the industrial development which has taken place in Waterford the Department should play a more active part in ensuring that an airfield is located there.
I should like to pay tribute to the people who give their services voluntarily to the national sea rescue service. I am only too well aware of the dangerous and hazardous work which these people do. I should like to pay a public tribute to the work which has been done on a voluntary basis by the crew of the Dunmore East lifeboat. On many occasions they have gone out in dangerous weather and have been very brave in rescuing people in hazardous conditions. A tribute to those men is well merited. They are held in high esteem in Waterford.
Another problem is oil pollution. The Government should ensure that the dangers of oil pollution are monitored continuously not only in Bantry but also around the coast so as to avoid effluent or oil being discharged from ships on or near our coasts. I have often seen traces of pollution in Tramore. It is a national problem which needs to be tackled more effectively than heretofore.
The hijacking of ships and planes is another grave problem. Not much progress has been made, even on an international basis. Our approach to this problem should be set down quite clearly and unequivocally in relation to the punishment of hijackers. The Department have a vital role to play in the context of the energy crisis and in the developing economy. I wish the Minister well in his post.
This Estimate has assumed great importance in recent years. Heretofore, the Department of Transport and Power was not considered to be a very important one. In recent years we have had much discussion on the question of energy and all that it entails. Consequently, the Department of Transport and Power has become a very important one. This Department has under its aegis a number of semi-State bodies. I understand there are 12 such bodies. Many of those bodies, as far as ordinary citizens are concerned, are not of great importance, but there are four or five which affect the lives of every citizen.
One of those is CIE, which is concerned with road and rail transport. Another is the ESB, dealing with the generation and supply of electricity, Bord na Mona deals with peat production, and the fourth important body is Bord Fáilte. The activities of each of those bodies affects the lives of every citizen in many ways. We have heard much criticism of CIE. It was debated at length in this House when a Bill was introduced to provide support for the depleted funds of CIE which runs at a considerable loss each year. The most alarming fact for the ordinary citizen is that CIE fares, both rail and passenger, have been increased substantially recently. Those increases will affect the livelihood of many of our citizens. They will affect industrialists who are finding it very difficult to show any kind of profit; who are finding it very difficult to maintain employment in present circumstances. Those increases will add a further cost to their already depleted funds. It is to be regretted.
Like other Deputies, I should like to see a closer watch being kept on those State-sponsored bodies. I see no reason why they should not be made to make some attempt to fill the gap that exists at present. If those people were told they had no business coming back here, that the taxpayers were fed up giving them money and that it was up to them to try to make the service pay, would we have the huge deficit we have at present? Semi-State bodies knew that if they were short of a few million pounds at the end of the financial year, all they had to do was to ask the responsible Minister to promote the necessary legislation and automatically they would get what they asked for. This should not be so. If an industrialist's enterprise is not viable, then he just goes out of business. That is too bad but I do not see why semi-State bodies should be allowed to ask for subsidies at the end of each financial year, as CIE and others have done.
Tourism is a very important part of this Estimate. It is the third largest industry in this country. It is one that should be encouraged in every way by the Government. Greater effort should be made by the Government to bring tourists to the country because of the amount of money that is distributed throughout the country by tourists. Prices in recent years may have had a bad affect on our tourism. The prices of food, petrol and drink have rocketed. These are essential items for tourists. They have an impact on hotel prices also. We are really pricing ourselves out of the market. Tourists can find cheaper places to spend their holidays than Ireland. This is an unfortunate situation because we have a beautiful country; we have fresh waters, fishing, all the amenities and it is too bad if we chase tourists away by allowing prices to rocket as they have done over the past few years. Greater effort should be put into encouraging tourists from England and Europe.
This is the area from which we can attract people and every effort should be made by the Government to attract those people to our country because they are the people who spend money. There is little use in having a tourist promotion campaign in Australia or Japan because it would cost too much and for the number that we would get from there it would hardly be worthwhile.
I would also like to see the farm guesthouse business encouraged. Greater subsidies should be given to the people engaged in this industry. Areas such as Salthill, for example, which has several amenities get quite a substantial amount of money from Bord Fáilte to extend hotels and for other amenities. It is only fair that some of this money should be spent in rural areas, in small towns and villages in rural Ireland. There is more money spent in one square mile around Salthill than there is in the whole of County Galway. I see no reason why this should be so. The money should be spread around. The people in small rural areas are entitled to their share and the people who are engaged in the farm guesthouse business should be encouraged because it is something from which the small towns benefit. I was delighted to see in the report presented by the Minister that there is an increase in the volume of home holidays. This is something that should be encouraged.
I do not intend to go into all the other State-sponsored bodies but there is one which I would like to mention, that is, Bord na Móna. This is one that affects all of us. Deputy Connolly mentioned the effects it has in midland counties. We all know that ESB charges have been rocketing too. Electricity produced from milled peat is now the cheapest form of electricity apart from that produced by hydroelectric plants such as at Ardnacrusha. We can encourage Bord na Móna and the Government to make greater use of our bogs.
The importance of this has been brought home to all of us in recent years as we have seen the terrible crisis that the oil situation created for our Government and for our people. For that reason it is important that our bogs should be developed to the full. The bias towards oil which was so evident in the ESB has no longer a price consideration to recommend it. The possibility of a cut-off of oil supplies in peace and the possibility of the oil being cut off entirely in time of war is very real. It makes oil produced power a dicely business. It is vital, in order to keep the country going, that all native resources be tapped to provide power. It is only common prudence in the present situation that we prepare ourselves for an emergency as our predecessors did, and indeed as two of our former statesmen, Mr. Lemass and Mr. de Valera, did in the thirties. The surest and most economical way to provide that power from native resources is to utilise the bogs. We all realise that the bogs have, as yet, been undeveloped. For that reason, mainly, I welcome the Bord na Móna decision to develop bogs in the Ballyforan area, north of Ballinasloe, which is quite adjacent to the area I represent in the Dáil.
The Ballyforan area is particularly suitable for development. Not only is there a pool of some 25,000 acres of suitable bog in the immediate vicinity but there are also vast reserves of bog both to the north and west of Ballyforan, to the north especially in the area extending from Ballygar to Castlerea and from Westport to Glenamaddy, Moylough and Mountbellew. There are more than 50,000 acres of bog in this area. Two of the bog areas are at Lerhan, Breevna and Meelidr and the other extending from Moylough through New Forest to Gortnadeeve have more than 10,000 acres each. In the present circumstances and having regard to safeguarding our future supplies of electricity it is most desirable that we utilise these bogs.
We can realise the employment content of a venture of that nature. When the price was low there were economic reasons for ignoring the social advantages of using our own resources to produce electricity but with the present price of oil we need to take a much harder look at the consequences of spending our money in Arabia rather than in Galway.
The Galway bog produces cheaper power than is produced by Trabian oil. We have no guarantee that the supplies of foreign oil will continue to be available in a troubled world situation. We are faced with the situation when £1 spent on Arabic oil will buy less electricity than the £1 spent in Galway. At the same time our balance of payments is growing gradually worse because of a world situation that has changed completely. I see no point in waiting to see if the world situation will change back to what it was in 1972. There is nothing to be gained by hoping that somehow Henry Kissinger will wave a magic wand and change all this and bring the prices back to what they were before 1972. Even if oil prices were to become cheaper there are good reasons, both economic and social, for making use of our own natural resources to produce the power we need. It should not be necessary to spell out the advantages of using our own natural resources rather than imported ones.
Some of our economists regard the economic thinking of Arthur Griffith and de Valera as outdated, but anybody who opens his ESB bill and reads the marked fuel variation charges will realise what inspired those two men in the past. We live in a troubled world and we cannot afford the luxury of clinging to an out-dated power policy now that world circumstances have changed.
There were economic arguments in favour of oil a few years ago. But today there are social and economic arguments in favour of bogs. The social advantages of bog development in Ballyforan, Glenamaddy and so on, and the comparatively small parts of Galway would be considerable. The revival of Bord na Móna and ESB activities in those areas would affect not only the prosperity of the areas but would have a considerable effect on the morale of the people, many of whom live on small farms. These people are worried about the future of the small farm in regard to development such as grants and so on. The prospect of steady employment in these areas would revitalise the whole life of north-east Galway. The eventual prospect of a pool of valuable cut-away bog of 75,000 acres in these areas alone would contribute to the future prospects of a countryside which has continually looked to the land for a means of livelihood.
Bord na Móna have shown that cut-away bog can be valuable. The experiments carried out by the Bord and by the Agricultural Institute suggest that the cut-away area will be at least comparable with good mineral soil. The eventual prospect of an additional 75,000 acres to be added to the areas of farmland is a factor that needs to be taken into account in the long-term thinking of any Government. It is only natural that the ESB policy should be dominated by its main objective—the production of power. But the Government must look beyond that immediate objective, to the eventual advantages of an extra 75,000 acres, in making the decision to develop.
The bogs in this part of County Galway are similar in quality, quantity and potential to the other raised bogs that have been developed by Bord na Móna and used by the ESB for the production of electricity. There have been surveys carried out in those areas as far back as 1809 and 1814. The exact extent and the suitability of the bog in question must be well known. It is now time that it should be developed.
We have seen a lot of economic upsets in the past 10 years. We have no guarantee that these trends will not continue. We have an excellent opportunity here of providing employment, of providing power by developing those bogs.
Because of the social advantages of bog development in an area such as County Galway, a case can also be made for seeking money from abroad for such an undertaking. One of the main objectives of the European Economic Community was to help those communities living along the perimeter of Europe. This is a project which should be recommended to our people in Europe by the Government. They should seek money to develop those bogs. It might be possible to get the World Bank to give a loan as I understand they have done at Turlough Hill in County Wicklow. If this were done it would stint the tide of emigration, it would create employment and it would have a great effect on this part of the country which cannot hope to attract suitable industries, as has been done in other parts of the country such as the eastern part. There is a very strong case to be made here for the development of these bogs.
I hope the Government will ensure that every effort is made to develop them. In that respect they can play a very important role by ensuring that the access roads to many of those bogs are in order. Many of them have not been developed. Nobody seems to know whose responsibility those roads are. The county council tell us they have not got the resources available and that, in any case, the bog roads are not their responsibility.
This is one area where the Minister for Transport and Power, and perhaps the Minister for Local Government, and perhaps too the Minister for Industry and Commerce, could come together and pool their resources and ensure that an allocation of money is made each year for those roads and to ensure that our bogs, which have been left untapped for years, are developed. In recent years people have been inclined to go back to the bogs for their fuel because of the high prices obtaining in the oil fields. This should be encouraged. Unfortunately many of them cannot do so because of the bad state of the roads leading to them.
Debate adjourned.