I want to take up where I left off before the intervention of a vote in the Dáil. I was talking about the increased fines and penalties. These increased penalties give a clear message to would-be offenders that their behaviour is unacceptable and will fall to be punished in a very substantial way. Interference with railway property and the proper operation of rail services cannot be tolerated.
Section 22 of the regulation of Railways Act, 1868, provides for penalties in relation to the provision of communication cords in trains as well as penalties for misuse. At present such cords are required to be fitted in passenger trains which travel more than 20 miles without stopping. The potential penalty for not having communication cords is £10 and section 9 of the Bill provides for increasing the maximum penalty which may be imposed on a railway company for the non-provision of these communication cords to £500. The section also extends its application to all passenger trains so as to bring the legislation into line with existing CIE practice.
Section 11, which provides for arrest without warrant, was introduced because the absence of these powers was hindering intervention by the Garda in the interest of enforcement. This provision was not in the Bill as originally drafted but was introduced as an amendment in Dáil Éireann in the light of representations by Deputies during that debate. The penalty provisions in the Bill are necessary in the interest of facilitating Iarnród Éireann to carry out their responsibilities of safe and efficient transport in an effective manner.
No discussion of legislative measures in relation to CIE would be complete without some account of the general state of affairs of the board and their subsidiaries. The most recent comprehensive report on the affairs of CIE is the board's annual report and accounts for 1986 which were presented to the Houses of the Oireachtas on 8 October 1987. The result shows that for 1986 there was a net profit of £3.648 million before exceptional items such as those of a non-recurring nature. This took account of Exchequer subvention payments totalling almost £117 million.
The railway subvention at £93.326 million continues to represent a huge cost to the Exchequer although the company recorded a profit of £2.925 million during the year. Other figures of note for 1986 were: total railway passenger journeys increased by 8 per cent to a record 21.7 million, with DART accounting for just over 13 million; passenger journeys on provincial bus services increased by 3.8 per cent, and the Dublin city services passenger journeys increased 2 per cent to 165 million. Despite CIE's best efforts, rail freight tonnage dropped during 1986 by 7.5 per cent in comparison with the 1985 figure to 3.126 million tonnes. The road freight results showed a profit of £324,000, compared to a profit of £195,000 in 1985.
Overall, the board had a good year in 1986 and this represented a continuation of the progress of recent years. I would like to take this opportunity to express my appreciation to the chairman of CIE, the board, the management and the whole CIE workforce for their performance. It demonstrates continuing efforts in the board's various sectors for increasing revenue and providing cost effective and efficient transport responding to passengers' needs. The level of Exchequer support required for CIE is still very high and there is a need to reduce it further.
In February 1987 the three new CIE subsidiaries, Bus Átha Cliath, Bus Éireann and Iarnród Éireann, commenced operations. The smoothness of the changeover to the new structures has been remarkable. The board's report for 1987 will present, for the first time, the results under the new structures.
The board's activities got off to a good start at the beginning of the year by achieving their budgetary objectives. More recently, however, there have been downward trends in the operating results against budget. This is a cause for concern. I know, and most other Members of the House know, that CIE are making every effort to correct that situation and I hope their efforts will be rewarded. I believe CIE have the potential to continue to improve their overall financial position but they will not do so without hard work and responsible attitudes throughout the organisation.
An item which seems to have a recurring adverse effect on CIE are the localised labour disputes of doubtful merit which arise from time to time. These interruptions to services are usually limited in scope but they are sources of major annoyance and inconvenience to the CIE customers who are affected. They tend to draw public odium on the whole of CIE. That is very unfair to the vast majority of CIE employees. It is a great pity that in these situations the minority becomes newsworthy, while those in CIE who continue to serve the public remain unsung and get no comment for their efforts.
The Government are tackling the serious difficulties confronting the economy. I indicated earlier but it has to be repeated in case anybody is losing sight of it. At a time when the general economy is going through a period of difficulty, the transport sector is as vulnerable as any other, and the CIE organisation have to face up to the challenges confronting them. Success cannot be achieved without the active support of all CIE employees giving of their best. The employees' own futures cannot be divorced from that of the organisation.
Over recent years the CIE rail carriage fleet and bus fleets have been upgraded and CIE customers have experienced the value of these developments. Most of the mainline rail routes have now modern carriages, very recent additions being those introduced on the Dublin-Westport and Dublin-Rosslare routes. Iarnród Éireann are modifying their carriage-building programme in order to improve the quality of services on radial and outer suburban routes. The first of these carriages will be available next year. The renewal of the provincial bus fleet was completed in 1986 and 50 new luxury coaches for use on the Supabus and Expressway routes and by the tours division were acquired. The Dublin bus fleet has also been improved over recent years, but quite a lot remains to be done as anybody who uses that service will readily realise.
From media coverage it is quite clear that the general image of CIE as a commercial organisation has also been changing. The improved profile which the CIE group have achieved through better marketing of their services and better use of resources is very evident. We have the special DART events, including the cultural links with the theatre and poetry, the special Killarney weekend packages for visitors travelling from Dublin by rail. I personally had the privilege of attending recently the "Showtime Express" as it is known. Not alone are CIE to be complimented on the inauguration of that service but so also are the business people and hoteliers in Killarney, whose initiative was responded to by the people of Dublin simply because they were getting value for money. That exercise in itself is a clear indication to CIE that with a little bit of marketing, and initiative they could improve their service, as has been achieved by the "Showtime Express" to Killarney. Indeed a similar service could be run on other routes to the west and all over the country. This would improve the image, competitiveness, and financial resources of the company.
While the venture was prompted from outside CIE, we must acknowledge that CIE's response indicates that there is a new and a clear effort by the board and the company to achieve greater profitability and greater success. They are improving the product and making strenuous efforts to attract more customers and so improve the utilisation of the rail and road fleets with obvious consequences for the organisation's revenues. These efforts and innovations in CIE reflect a customer-orientated approach which deserves to succeed and will do so.
CIE's role in the tourist industry is a major one. Not only are they engaged in selling abroad Irish holidays and in providing transport services and tours for holidaymakers in Ireland, but they are also responsible for Rosslare Harbour, one of our international gateways and the major sea access point from continental Europe. First-class access transport and facilities for visitors at the points of entry are essential for a further growth in the number of visitors coming to spend their holidays among us.
CIE have been working for a number of years on upgrading the facilities at Rosslare Harbour. A major part of the development plan for the harbour is finished and next year when the new passenger terminal is completed we will have at Rosslare a product of the highest international standards with quality for visitors. These are so necessary to remove for our visitors some of the frustrations which cannot but damage our image as a friendly and concerned people and to create the most favourable impression possible on our visitors as they arrive. As the old sean-fhocal says "your front door creates the first impression, and first impressions are lasting".
In summary, I have explained the background to the Bill and its provisions. I have outlined for the House the progress which CIE have made in recent years and touched on some of the problems facing the organisation. I am heartened by what has been achieved but recognise that there are still many challenges facing the board and their subsidiaries. If Senators have questions arising from the issues raised in the Bill I will endeavour to answer them.
The financial performance of CIE over the past three years inspires some confidence and I know that under the leadership of the chairman and board of CIE every effort will be made to achieve the targets set by Government.
In conclusion, I recommend the Bill to the House.