Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I welcome the Minister of State, Deputy Ring. Today we learned from a newspaper report that CIE’s auditors, PricewaterhouseCoopers, have stated the company’s status as a going concern is at considerable risk. This should cause considerable concern to the Minister for Transport, Tourism and Sport and the House. The rail section of CIE recorded a deficit of approximately €22 million, even after receiving a considerable subvention for current spending of €149 million. PricewaterhouseCoopers has warned about the company’s finances and whether it can be a viable business. The auditors spoke of, “Material uncertainty which may cast significant doubt about the group's and company's ability to continue as a going concern.” When an auditor with the reputation of PricewaterhouseCoopers puts such a commentary in the audited accounts of a company, which were also overdue, then immediate action must be taken by the Minister and the Government.

In July, I intensely questioned the Minister about his proposal to get an additional €36 million from other areas in his Department to shore up CIE’s financial position. He assured me then it was available. Last month, during Question Time we learned none of this money has yet been paid over. Again, the Minister was quite vague and talked about the necessity of CIE to demonstrate to him its capacity to make significant savings in the years ahead. He also stated that while he may be able to provide funding this year, he would not be able to do so heretofore.

Depending on the strength of the Minister’s position, this news today could spell a serious disaster for the public transport network. CIE, as the Minister of State knows, has cut rail and bus services in rural areas and across Dublin. That is fine if the Government’s requirement is about just having CIE as a going concern. It will be able to balance its books. However, as a public transport company, I believe the Government must ensure it meets its policy platform of having an integrated network and providing public transport to the citizens of this State. There is a significant difference between the fiduciary duties of CIE’s directors and the role of the Minister. It is not good enough to say it is up to the board of the company to resolve the issues. Quite frankly, it might not be in a position to do so. It must get its accounts in order, the directors’ fiduciary duties require them to balance the books and meet the company’s financial commitments.

However, the Minister has a different role in that he has to ensure we have a public transport network that is fit for purpose. I am concerned the Minister is taking a hands-off approach. I hope the Minister will give confidence to me and the travelling public that there will be no further diminutions of public transport services. We need to have a viable public transport network at a time when we are trying to reduce the number of private cars on the road and assist the economic recovery.

See this speech in context