Alan Kelly (Tipperary North, Labour) | Oireachtas source

Both the Minister, Deputy Leo Varadkar, and I, with the Department, are in regular contact with CIE and its subsidiaries on the current and future financial situation of the group. The Department, supported by NewERA, has engaged extensively with CIE on its financial and business planning. CIE's draft annual report and financial statements for 2012 were received on 28 February, in accordance with the timeframe laid down in the code of practice.

In addition to the supplementary PSO funding of €36 million allocated by the Government in 2012, further financing was required in 2012 in order to fund the voluntary severance schemes, particularly in Irish Rail, and ensure adequate funding into 2013. Progress was made at the end of 2012 on the sale of non-core assets, in particular the sale of Spencer Dock properties. The resolution of CIE's financial position will involve increased borrowing facilities for non-capital purposes. Discussions are continuing to secure additional banking facilities to ensure adequate funding into 2013. Any such funding will rely on the delivery and implementation of a convincing business plan. CIE has undertaken a rigorous business planning process with the aim of returning to a break-even position and achieving a sustainable debt position. Given the pressure on the public finances, there is no possibility of additional funding from the Exchequer in 2013. The implementation of a credible business plan will, therefore, be essential to CIE’s financial recovery in the period ahead.

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