As the Minister has said, the main reason for the Supplementary Estimate is the financial state of CIE. Every year we come in and vote ever increasing subsidies for CIE and we have supported the present Government in these votes. It seems this will go on and on despite whatever reductions CIE are attempting to enforce. I appreciate that the Minister has been only seven days in his new office and that he would not have had time to look into the affairs of all the semi-State bodies with which he has to deal. I think there are 12 such bodies but, of course, some are more important than others as far as the national economy is concerned, and CIE have special importance.
I should like to ask the Minister to examine in a complete fashion the activities of CIE not only from the point of view of the economic structure involved but also the social structure —the social contribution CIE are obliged to make to this country. Nowhere in the world is there a railway system which is anyway near to paying its way. Even in a country like West Germany, where there is a large amount of through traffic to other countries, they are losing heavily, and proportionately speaking they are losing more heavily than we are.
It appears to many people that CIE have set a definite course in curtailing services all over the country. We have had the instance of the passenger line from Limerick to Claremorris which was debated at length in this House. CIE went ahead and discontinued that service and the Minister's predecessor told us that it was a matter for the board of CIE. I do not think that these decisions can be left to the board of CIE if we are to concern ourselves about the public good. A number of parcel delivery services in the West of Ireland, Kerry, Clare and other counties have been cut off and discontinued during the past 12 months on economic grounds.
At present we are told that CIE are to discontinue the service between Rosslare, Wexford and Limerick Junction. I would ask the Minister to take a hard look at this proposal. Apart from the fact that it is losing more than £100,000, it must be taken into account that this line is the main feeder service for Thurles beet factory. One factor must be weighed against the other. I disagree with the proposal to discontinue this service because although CIE would save a sum in the region of £130,000, they would cause a very serious upset and definitely threaten the livelihoods of people in places such as Thurles beet factory. The amount of money that would be saved is insignificant in comparison with losses in other services operated by CIE.
The Dublin bus service is losing £6.09 million. Most people in this city who use the buses will agree that CIE are doing a very poor and sloppy job at present. Apart from the present goslow, they operate very badly in normal conditions, and I am sure the Minister will find that his Department receive very many complaints about this service.
The Dublin bus service is losing more than £6 million and yet CIE want to interfere with the goods service between Wexford and Limerick Junction which is of such great importance in maintaining the supply of beet to the factory at Thurles which provides jobs for many people in the Thurles area. They cannot justify that proposed action. There is another ferry service between this country and Britain and they propose getting out of the business altogether. This one, in the first half of this year, made a profit of £35,000. They propose discontinuing that service despite the fact that it is allegedly making a profit. Also they are threatening to discontinue the goods service from Wexford to Limerick Junction, through Thurles, because it is losing £135,000. There would appear to be grave inconsistencies in the reasons they put forward for the discontinuance of services.
The railway system has a social role to play in this and every country. The continued closure of lines interferes with the industrial infrastructure and the facilities that should be available in any country hoping to set up more industry, as is the case in rural Ireland. Even though costly it is necessary that the railway system be maintained. It is particularly important for people who come here with a view to setting up industry. It is something they must take into consideration and, if they ascertain that we have not got a proper transport system, particularly in regard to the railways, they will not be tempted to set up industries here.
CIE are seeking a further £3,900,000. The total Supplementary Estimate is for £133,000. Certain savings have been effected under the different subheads, as set out in the Supplementary Estimate, some of which have been worthy and about which nobody will quibble. But there are a few on which we should like more information, such as that under subhead E which represents a saving of £610,000. It is a saving on the original Estimate for Grants for Harbours which amounted to £719,000. As far as I am aware, the original Estimate included something in the region of £500,000 for the development of Cork harbour. As far as I am aware there was an announcement made to that effect. There was a further announcement made recently at a press conference before the Minister's predecessor left office, held in Cork, at which it was said that £2,500,000 more was being made available for Cork harbour in 1977. One wonders what was the purpose of a press conference to announce something like that if it is a fact that the previous amount allocated for the development of Cork harbour has not been paid and nothing has happened. The money has been saved and set off against CIE losses. Perhaps the Minister would elaborate somewhat on this matter if what I say is correct in regard to the £500,000 supposed to be allocated for the development of Cork harbour.
There was another saving of £380,000 under the subhead "Constructional works at airports including furnishing of buildings". I should imagine the main portion of that saving took place on constructional works. Surely that is something that should not have happened at this time because such works provide much needed employment in that industry. The implementation of such works would certainly lead to fewer people drawing the dole. Therefore I do not agree with that saving.
There is a further subhead, X "town gas subsidy" in respect of which there was a saving of part of the subsidy of £70,000. As was mentioned during Question Time today the report on naphtha said there was no information available on its price. The report says that no information is available in regard to naphtha. We all know what naphtha is costing. For small gas companies, such as Limerick Gas Company, it has gone up now to approximately £90. A very large percentage of gas users are old people in this city, in Limerick and, I presume, in Cork as well. Surely this money could be utilised to lessen the burden of providing heating and cooking facilities for many of those people. I question the wisdom of not disbursing the amount of money voted originally in the annual estimate.
We should like to know why these things have happened particularly with regard to the question of grants for harbours. Such work would have provided badly-needed employment as well as implementing what the Government undertook to do during the past 12 months. In the light of the press conference of two weeks ago at which it was announced that an extra £2,500,000 would be given to Cork harbour in the coming year, it will be extremely difficult for anybody to believe that that will happen if they did not provide the money they said they would in the current year. I believe also that the saving effected on gas should have been utilised to the full in assisting people so dependent on it in Dublin, Cork and Limerick.
The amount of money is small but it would be of some help to those people, particularly older people, who are dependent on gas. Speaking of energy in general, we are facing an increase in cost of possibly something in the region of 10 to 17 per cent during January. The OPEC conference is scheduled for 15th December and it seems that prices will escalate. This situation raises further difficulties for us. The Minister has before him at present a report on the conservation of energy, including gas. I would be very critical in regard to that report because it is incomplete and from what I have read of it so far it is not worth the money spent on it—about £5,000. We should be tackling the base of the energy problem. In other words, we should be endeavouring to ensure supplies and also to put ourselves in the position of being able to do something about the cost factor. One of the first steps in this direction would be to set up the further refining capacity that is badly needed. In this regard the Minister for Finance can take immediate action by reducing the taxation content on energy to industry, road users and to all those who use the various forms of energy, particularly oil. The extra taxation that has been imposed in this area during the past three years has added considerably to the problem created by the OPEC countries in increasing costs.
I note that CIE are offering most of their hotels for sale. I do not think they are free to sell these establishments without the matter coming first before this House but perhaps the Minister will confirm whether I am right. So far as I know there is legislation preventing them from taking any such action. The company have tried in the past to dispose of their hotels but the plan did not go ahead. However, I would ask the Minister to ensure that they are not sold without our getting the opportunity of discussing the pros and cons of the situation. Undoubtedly the situation in regard to these hotels is bad because of the failure of the tourist industry to come up to expectations. However, we can look forward to the day when that industry will pick up again. We all know the reasons for its decline. CIE should consider retaining these hotels in which employment is being provided for a large number of people. There is no guarantee that those who would purchase them would continue to employ the same number of people. That is why I suggest that CIE have a duty to consider the various factors involved before proceeding with their plan in this regard.