Austin Deasy
Ceist:53 Mr. Deasy asked the Minister for Tourism and Transport the steps which are being taken to reduce the losses incurred by CIE in 1989; and if he will make a statement on the matter.
Written Answers. - CIE Losses.
In 1989 CIE incurred a deficit before State grants of £99.14 million. This compared with £119.4 million in 1987 and £118.3 million in 1988, the falling trend being due to programmes of retrenchment and increased productivity implemented by the CIE Group over recent years, reinforced by the formula for settling the Exchequer subvention for the years 1989 to 1991 fixed by the Government in 1988 viz. an annual 3.5 per cent cut in real terms in the subvention payable from the Exchequer.
During 1990 the company have continued to implement cost containment measures including more economic work practices, the expansion of one person operation in Dublin Bus and the reorganisation of some rail and bus services. I take every opportunity to emphasise to the board of CIE the need to further reduce costs and to improve efficiencies within all sectors of the group of companies.