Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Tuesday, 6 Dec 1977

Vol. 302 No. 5

Written Answers. - Grants to State-sponsored Bodies.

251.

asked the Minister for Finance the provisions now governing the making of statutory or other grants from public moneys to State-sponsored bodies since entry to the European Economic Community; and if he will set out the limitations imposed by EEC Regulations on the making of such grants and the procedures consequently now adopted to give statutory authority to the issue of such grants.

The only grant payments to State-sponsored bodies which have been affected by EEC Regulations are the annual grants to CIE. The relevant regulations are general transport regulations and are numbered 1191/69, 1192/69 and 1107/70, copies of which have been laid before the House. Brief particulars of these regulations and of the manner in which they have been applied to CIE are as follows:—

(a) EEC Regulation No. 1191/69 enables payment of compensation by the State to transport undertakings in respect of losses incurred on services operated under public service obligations which are deemed essential to ensure the provision of adequate transport services. Payment is being made to CIE under this regulation in respect of losses remaining on rail passenger services after fares increases and any possible economies in operation.

(b) EEC Regulation No. 1192/69 provides for compensation by the State in respect of specified financial burdens borne by railway undertakings. Payments were made to CIE in 1976 under this regulation to cover the following costs in respect of rail passenger and freight operations:

—superannuation and pension costs less savings arising from the Board's exemption from payment of certain social welfare insurance contributions in respect of clerical and supervisory staff.

—50 per cent of the costs of maintenance and control of level crossings.

(c) EEC Regulation No. 1107/70 specifies certain additional circumstances in which State aids may be paid to transport undertakings. Under this regulation payments are being made to CIE in respect of:

—50 per cent of infrastructure costs in respect of rail freight (Article 3.1.(b))

—losses on the Board's road passenger services which cannot be recouped by fares increases or eliminated by economies in operation (Article 3.2).

—residual deficits on railway operations and losses on maintenance of canals (Article 4).

In order to comply with the provisions of these regulations a new subvention structure for CIE was introduced with effect from 1st January, 1975, and this structure in respect of the year 1977 is set out at page 154 of the Estimates Volume for that year. As the regulations govern only aid for transport by rail, road and inland waterway the grant to cover losses on the operation of the Galway-Aran ferry service is not affected by the regulations.

As regards the statutory authority for the issue of grants to CIE the position is that section 6 of the Transport Act, 1964, which provided for an annual grant to CIE of two million pounds, with provision for periodic variation was repealed by the Transport (No. 2) Act, 1974. Section 3 of the 1974 Act envisaged instead payments of unspecified amounts to the board out of moneys provided by the Oireachtas. These payments are accordingly voted annually by the Dáil and included in the Vote for Tourism and Transport. The amounts are calculated annually in accordance with the EEC Regulations.

Barr
Roinn