Shane Ross (Dublin South, Independent)
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To ask the Minister for Transport, Tourism and Sport if he will provide an update on the financial situation at CIÉ; if he will now report on whether there is any improvement in the company's financial situation since the annual report; if he will provide details of the contacts he has had with the board and the chairman; and if he will make a statement on the matter. [15400/13]

Alan Kelly (Tipperary North, Labour)
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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.

Shane Ross (Dublin South, Independent)
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I thank the Minister of State for his reply. He will be aware that the accounts of CIE have been late virtually every year for the last three or four years. Can I have an assurance that they will not be late this year? The Minister of State has said the accounts are now in the hands of the Government. I hope they do not have to be referred back to the company as they were last year, when they finally emerged in November. If a company like this is losing so much money, why is its chief executive being paid so much? How can we justify paying between €150,000 and €200,000 to the chief executives of Dublin Bus, Iarnród Éireann and CIE at a time when the company is losing a fortune? I know that the loss of money is a kind of movable feast at CIE in the context of the subvention it receives. I would have thought that the aim of the Government should be for CIE to break even without a subvention. Despite the reduction of €36 million in the subsidy, there have been fare increases and very few cost reductions in the past year. CIE has been given an easy way out. I would like the Minister of State to assure the House that there will be no further fare increases. I would like to hear an affirmation and a justification in this regard. The managing director of AIB, David Duffy, this morning justified his salary of over €540,000 in the context of the bank's losses. Leaving the banks aside, why should the State pay €3,000 or €4,000 a week to the managing director of a company that is being rescued by the banks on a weekly basis?

Alan Kelly (Tipperary North, Labour)
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I thank the Deputy for his questions. He raised a couple of specific issues. The accounts were late this year because the board would not sign off on them until many of its questions had been answered from an auditing point of view. I think that is rigorous. As the Deputy is aware, there have been many changes at board level in CIE and its subsidiaries. He also asked about the issue of chief executive salaries. There is no chief executive of CIE. On foot of a decision made by this Government, the executive chair is no longer in place. Three chief executives are in place among CIE's subsidiaries. Their salaries have reduced substantially. Many changes have been made across CIE. There have been many personnel changes at all levels within the organisation and its subsidiaries. These are significant improvements, given that CIE was caught in a perfect storm when its subvention was reduced, its passenger numbers decreased and its fuel costs increased. Iarnród Éireann has implemented a significant voluntary severance programme, which will make a vital contribution to its cost recovery programme. The group has generated cash from various activities, such as the sale of Spencer Dock. It has developed a five-year plan to reduce costs and manage cashflows. It is now engaged in an ongoing process with its unions to implement those plans. The recommendations that have been made to improve the group's treasury and cash management functions have been implemented. A great deal of work is taking place. I assure the Deputy that the Department is working closely with CIE to ensure a robust business plan is in place for the future.

Shane Ross (Dublin South, Independent)
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I accept the Minister of State's goodwill on this matter. We have been hearing about the company in the same terms for ten years. It has had robust business plan after robust business plan. CIE has been the black hole in the semi-State hemisphere for a very long time. We need something more dramatic than this, particularly given that the auditors expressed serious worries last year about whether CIE was a going concern. I wonder what measures and what vision the Minister of State and his Government colleagues have in mind to ensure CIE continues as a going concern. When passenger numbers continue to fall, as they undoubtedly will, the outlook is that we will continue to implement sticking plaster solutions - either withdrawing the subvention or not - as each crisis emerges. In that context, what are the plans for the subvention this year and in the next five years? Is there a plan to run down the subventions or to keep them at a higher level?

Alan Kelly (Tipperary North, Labour)
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There is a robust plan in place. The subvention will decrease this year. The planned subvention for this year is €226 million. That has to be the case, obviously, in light of the economic situation. I would like to give the Deputy some welcome news. Recent figures have shown that the number of people travelling across the various services is stabilising and in some cases is on an upward trajectory. We are quite happy about that. We project that a number of the commercial plans that have been put in place by the various subsidiaries could be quite successful. While there is a long road ahead, I assure the Deputy that day-to-day active engagement with CIE is at a level it has not previously been at. I am well aware of the Deputy's concerns about the historic operation of CIE. The Department of Transport, Tourism and Sport is taking a significant active role with CIE on a day-to-day basis to ensure it will continue as a going concern into the future.