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Dáil Éireann díospóireacht -
Tuesday, 10 Nov 1998

Vol. 496 No. 3

Written Answers. - CIE Property.

Pat Rabbitte

Ceist:

59 Mr. Rabbitte asked the Minister for Public Enterprise if she has issued an instruction to CIE to dispose of certain lands and property; if so, the purpose of this instruction; if her attention has been drawn to concerns expressed by unions in relation to the implications of this move; if she will consult with the unions before any sale takes place; and if she will make a statement on the matter. [22550/98]

Derek McDowell

Ceist:

67 Mr. McDowell asked the Minister for Public Enterprise the reason she is proposing to sell off CIE's property holding in view of the fact that she indicated in Parliamentary Question No. 24 of 3 June 1998 that the management and development of CIE's property holdings is a matter for the company and she had no statutory function in the matter; her views on whether using property holdings for joint ventures is the best use of these properties; and if she will make a statement on the matter. [22643/98]

I propose to answer Questions Nos. 59 and 67 together.

At my request, CIE prepared a number of public transport investment reviews, covering all their main areas of activity, mainline rail, Dublin suburban rail, bus, provincial cities and rail freight. These were submitted to my Department at various times over the past year or so and identified total medium term investment requirements of over £1 billion in the period to end 2006. This figure does not include the cost of the first phase of the Dublin light rail system which I announced in May.

The full cost of this programme could not be met from a combination of Exchequer support, reducing levels of EU assistance post 1999 and CIE's own existing internal financial resources. I therefore had to look at alternative funding options. It was against this background that I have, with Government approval, asked CIE to dispose of all property which is surplus to public transport requirements so as to part-finance the medium-term investment programme. I have also made it clear that what I am proposing is disposal at full commercial value and that existing contractually binding commitments will be honoured.
I have asked the CIE board to submit a report to me by the end of November and I will then bring it to the attention of the Government. I have already told the CIE unions that I am available for discussions with them on how best we can generate cash for CIE's property portfolio with a view to part-financing urgent public transport investment requirements in years immediately ahead.
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