CIE have had under consideration for some time past the position in respect of the continuation of the services on the Waterford-Mallow railway line. Normally, CIE could proceed in a matter of this kind by giving notice of intention to close the line under the powers vested in the Board by section 19 of the Transport Act, 1958. Section 19 of that Act gave CIE full discretion in the closure of railway lines, subject to the Board, before terminating any service, satisfying themselves that the service is uneconomic and that there is no prospect that it could be operated economically within a reasonable period. I am advised, however, that a technical legal difficulty arises in relation to that part of the line between Waterford and Fermoy. While the services on the line are operated wholly by CIE and the lines and works are maintained wholly by them, they are only part owners of the section from Waterford to Fermoy. That section forms part of the undertaking of the Fishguard and Rosslare Railways and Harbours Company.
CIE and British Railways are part owners of the Fishguard and Rosslare Company. The undertaking is jointly worked, managed and maintained by CIE and British Railways under the provisions of certain old statutes dating back to 1898. CIE are responsible for the services on the Irish side and British Railways are responsible for the services on the British side, including the shipping service between Fishguard and Rosslare. In these circumstances, there is a legal doubt as to the applicability of section 19 of the Transport Act, 1958, to the Board's services on the lines of the Fishguard Company and it is considered necessary to remove that doubt.
In the course of my speech to the House on the second reading of the Transport Bill, 1964, I indicated that the Government had decided after very full consideration to preserve the railway system subject to such further concentration and reorganisation as might prove practicable and desirable. CIE have now advised me that they have carried out a detailed analysis of the cost of operating the rail services on the Waterford-Mallow line. They have found that the services are seriously uneconomic and they are satisfied that there is a clear case for making at an early date a final decision on whether to close the line. This situation obtains despite the fact that operating costs had been reduced by dieselisation. CIE have had to order a number of replacement diesel locomotives this year and if the line remains open they will have to spend an extra £344,000 on additional replacenient locomotives. Apart from this capital saving, CIE estimate that a saving of £50,000 per annum would result from the withdrawal of rail services on the line and the provision of substitute road services where necessary.
Section 2 of the Bill is intended to provide the necessary statutory power to enable the termination of train services on the lines of the Fishguard Company in this country as if they were services on the CIE railway system. CIE will thus be empowered to terminate services on the Waterford-Mallow line if they so decide.
I would like to give Senators some details of the line and of the services. The Waterford-Mallow line is approximately 76 miles long, all single track, with 14 intermediate stations. The principal passenger service over the line is the Rosslare Express between Rosslare and Cork, which connects with the Fishguard/Rosslare passenger sailings. During the summer timetable the express operates twice daily from Cork on Mondays to Saturdays, twice daily from Rosslare Harbour on Tuesdays to Saturdays and once daily from Rosslare Harbour on Sundays and Mondays. During the winter the express operates each way on three days a week. In addition, there is one passenger service each way daily, except Sundays, between Waterford and Cork all the year round. This service also provides main line connections at Mallow and Waterford. For freight traffic there is one train each way daily between Waterford and Mallow. The number of passengers joining and alighting daily per intermediate station on the line has been found to average between eight and nine. The volume of freight traffic originating and terminating at these stations is relatively small and could be catered for by CIE with an addition to their road freight fleet of seven lorries and trailers.
CIE have advised me that if the final investigation clearly indicates the need to close the line, there would be no intention to withdraw the Rosslare Express service serving Waterford, Mallow and Cork. This service would be diverted via Limerick Junction with 20 minutes increase in overall time for through passengers, who will still have the benefit of a through service without change of trains. CIE are satisfied that this arrangement, together with the substitute road passenger services for the areas no longer served by rail, would provide an adequate substitute for the terminated services. Substitute road freight services, based on Waterford and Mallow, would be provided for intermediate station traffic, and through freight traffic, Waterford-Mallow-Cork, would be diverted by rail via Limerick Junction. CIE are satisfied that these measures would meet requirements adequately. The number of additional road vehicles required by CIE for the substitute road passenger services is five single-deck buses.
As Senators are aware, I have, in recent months, stressed many times that CIE must live within the annual subsidy of £2 million for which provision was made by the Transport Act, 1964. If the railway system is to be preserved even in attenuated form it is essential that CIE should continue to seek all possible ways and means of reducing losses. The Board's costs continue to rise steadily due mainly to increases in salaries and wages and there are definite limits to the extent to which they can recover these losses by increases in fares and rates. It is, therefore, clearly in the interests of the taxpayer and of the Board's employees and of the general public still relying on the Board's services that the Board should make a final decision on the possibility of cutting losses on uneconomic rail services which can readily be substituted by cheaper road services and, as in this particular case, by better utilisation of alternative railway lines.
When the Bill was published I received a deputation of Senators and Deputies from the counties concerned. I have requested the Chairman of CIE to arrange for one representative deputation to be received in order that the Board may hear the case for the retention of the line. I should make it clear that in my experience over many years there is always a protest at almost any change made of this and other types but the Board of CIE will be able to make their final decision having evaluated the two conflicting sets of arguments.
It has been CIE's general experience that people in areas affected by rail closures have found that the alternative road services provided have proved a satisfactory substitute for the former rail services and over seven years I have had very few complaints of substance.
I wish to make it clear that when CIE receive a deputation on the matter there is one argument which I as Minister cannot accept. I do not believe that a minor branch railway line whose major traffic can be carried on a parallel line has any prestige value whatever in a rural area.
If the line were to be closed provision would be made for redundant staff either by transfers of personnel or by payment of compensation in accordance with the provisions of the Transport Acts.
I will now deal with other matters covered by the Bill. While, as I have already indicated, CIE have a statutory obligation to work, manage and maintain that portion of the Fishguard Company's undertaking within the State, the undertaking still remains vested in the Fishguard Company. It will be necessary to provide for the abandonment of the Waterford-Fermoy section of railway line by the Fishguard Company if the line is closed and the purpose of section 3 of the Bill is to give the company the same powers of abandonment as apply in the case of CIE.
Section 4 of the Bill is designed to facilitate the disposal of the land of any abandoned railway line. It will enable CIE to sell by private treaty cottages and land forming part of an abandoned railway system to the tenants of such property. It will also enable CIE to include in the sale, where convenient, some additional land of the abandoned line in order, for example, to make the tenant's holding more attractive. It will be noted that it is the intention that section 4 will be deemed to have come into operation on the 9th day of July, 1963. The reason for this is that certain sales of this kind have already been made on the assumption that the position was covered by the powers given under section 18 (2) of the Transport Act, 1963, whereas in fact that section was not adequate for the purpose.
The purpose of section 5 of the Bill is to provide for the more expeditious handling of disputes arising in regard to claims for redundancy compensation under transport legislation and so to avoid inconvenience to claimants. As some Senators may be aware there has already been delay in dealing with a number of claims. I have considered how best to remedy this situation and I am advised that the most effective and expeditious remedy is to give claimants the right to apply to the Circuit Court to have their claims heard and determined. Section 5 accordingly provides that claims, which have already been submitted to arbitration and which are not decided within three months of the passing of the Act, may be referred by either party to the dispute to the Circuit Court. In the case of future claims the applicant will have the option of referring his case either to the arbitrator or to the Circuit Court.
I recommend the Bill to the House.