Vol. 503 No. 1
21 Mr. Yates asked the Minister for Public Enterprise the financial arrangements for providing the finances necessary for the implementation of the rail safety investment programme; the plans, if any, she has to introduce a new ceiling on the borrowing level for CIE; and, if so, the level at which it will be. [8641/99]
On 24 February last, I announced that the Government had approved the implementation of the £430 million railway safety programme for the five year period 1999 to 2003, prepared by Iarnród Éireann. As part of that decision there is now a Government commitment to the retention of all the existing railway network.
When taking that decision the Government also approved an annual Exchequer contribution for five years for the funding of the programme. The Government will decide the precise amount of that contribution as soon as an independent review of the scope for revenue generation from the sale and redevelopment of CIE property, which is surplus to its transport requirements, has been completed and a property disposal programme has been agreed.
Pending these decisions the Government agreed to allow CIE to increase its borrowings to fund the safety programme. I will introduce legislation to increase CIE's borrowing limit by £100 million from its present level of £250 million, if that is required.
Is the Minister aware that last Wednesday morning, 24 March, there was a serious derailment on the Limerick Junction-Waterford line at Barnlough, near Bansha, County Tipperary? Five cement wagons went off the track in a speed restricted area of 25 miles per hour. Has she any details of this accident? Is she aware that £24 million was due to be spent on this line? When is it anticipated that this urgent work will be carried out? If there has been an accident in a speed restricted area of 25 miles per hour, what is there to prevent further derailments? Within hours of this serious derailment two passenger trains were due to travel this route.
If there is an accident of any nature, even if it only involves a shunting, the railway inspectors' arrangements are such that I receive notification when it occurs. That has been the practice for a number of years. I am aware of the accident to which the Deputy referred and I discussed it in the Department. It is the duty of Iarnród Éireann to inform the Minister of such incidents.
I circulated the railway safety programme in its completed form to Members. They should have received it yesterday. There was an earlier programme which was essentially the same except it was not tarted up in its glossy cover. The programme lays out, year by year, what work is to be carried out and the approximate costings of each project. We intend to follow that programme.
How can such an accident happen in a speed restricted zone? Will the results of the investigation be published? If CIE is to borrow the full amount of £430 million, its total borrowings will increase from £170 million to £600 million. At a 5 per cent interest rate, that will cost £30 million per year. Will the Minister indicate what level of Exchequer grant will be put in place so there will not be a milestone of debt on CIE into the future?
I do not anticipate borrowings of £430 million. In 1985, section 4 of the Transport Act increased the borrowing limit to £250 million. The limit had also been increased in 1983. On 19 March this year its borrowings stood at £161 million. The company, therefore, has scope to borrow what is required in the safety programme for this year. However, if CIE goes above the limit to do what is set out in the programme, the mechanism is there to enable it to do so through an amendment to the legislation.
In 1981, 1983 and 1985 the borrowing limit was increased. Borrowings are now at £161 million and the company has the facility to borrow £250. CIE has already undertaken work on some of the safety programme for this year and it should be able to stay within the £250 million limit. However, if that is not the case, there is a mechanism to deal with that, as happened under previous Governments.
My final question is a repeat of my original question. This accident at Barnlough, near Bansha, occurred where there is a speed restriction of 25 miles per hour. How could this happen? Given that trains travel at a slower speed and still derail, what assurances can be given to passengers on that route? This is a matter of critical concern to public safety. In this context, there is no difference between a freight train and a passenger train. I assume there will be an inquiry into this. Will the results of such an inquiry be laid before the Houses of the Oireachtas or made available to relevant spokespersons? If I were a passenger on that route, I would be very concerned.
If and when CIE has fulfilled its legal obligation to investigate this matter, I will inquire if it can make its findings available to the spokespersons. To ascertain how this could happen, I requested an international safety report. It was not only I, but Deputy Stagg and others who became—
Exercised.
—overwrought, in a correct sense, about safety needs. We have now got that report and this work has been costed at £430 million for five years. The Government said it will keep every existing line in place. This work will be done on a year by year basis. We have appointed monitors to carry out a spot monitor throughout each 12 months and at the end of the year to give an assessment of whether the work is been done as laid out for that year. I expect it will, because CIE is also keen on this.
As I said on "Questions & Answers", I cannot give anybody an absolute guarantee that there will not be an accident. How could I? Can the Deputy opposite guarantee that those who travel on the roads every day will be safe? He cannot, and neither can I. I will not give such a guarantee. I am glad I have initiated a railway safety programme for which there is Government support.
Under legislation there is a legal stay on CIE publishing such results, but I will inquire whether it can make them available to the spokespersons and, if it can, I will give them to the Deputies.
