CIE & Rationalisation
The Transport Act, 1944 established Córas Iompair Éireann and CIE and dissolved the Great Southern Railways and Dublin United Transport Company Limited. Their undertakings were transferred to CIE. Later, in 1945 following the fall of the previous minority government and the Transport Bill (due a pending investigation in on stock market irregularities) legislation was passed to compulsorily acquire the Great Southern Railways.
CIE also acquired the Royal Canal which is the property of The Midland Great Western Railway since 1845. CIE became the largest employer in the state with a staff of over 21,000. At that point in time, there existed the Great Northern Railway and four other railways across borderlines mainly to London and Lough Swilly Railway. The County Donegal Joint Railways Committee, the Sligo, Leitrim and Northern Counties Railway and the Dundalk, Newry and Greenore Railway.
CIE a Private Company
The legislation provided for government appointments to the board of CIE, but it remained a private company. There were provisions to ensure that there was adequate control by the authority over charges. There were provisions to procure that there were transport services in all parts of the country. There were provisions against discriminatory treatment between different industries. There were provisions regarding conditions of employment.
Subject to the above, the intention of the government was that the board should be left to free to run the business as it thinks best. Restrictions imposed by earlier legislation on transport undertakings were relieved. Special tariffs might be established for protector industries. Ministerial approval was required for branch cline closure.
Nationalisation of CIE
The Transport Act, 1950 nationalised CIE. It saw the government buying out the debenture stockholders at par by giving them three percent transport stock for the holdings. CIE would be liable in interest on the new transport stock and could borrow from the government if funds were inadequate.
The ordinary shares were converted on the basis of the £80 of 3% stock for each £100 held. The government obtained direct control of all CIE stock and could appoint the board.
CIE was released from all statutory controls over the fares and rates on the basis of the CIE board being appointed by the government. A transport tribunal was established which was to be involved in the stations concerning the closure of branch lines.
Duties & Financial Position
Under the 1950 act, it was the general duty of the board to exercise its power to secure and provide economic, efficient, convenient and properly integrated public transport for passengers and merchandise by rail, road and water which due regards to safety of operations encouragement of national economic development and the maintenance of reasonable conditions for employment.
It is the duty of the Board to conduct its undertaking so that, year on year, the revenue would not be less than sufficient to make the charges properly chargeable to revenue. New investment following the 1950 act amounted to £3.4million, half the total authorised by the legislation. There had been 25 years of neglect in terms of planned equipment and facilities.
Throughout the 1950s CIE continued to lose significant sum, even greater than those which had been the intermediate cause of nationalisation. Under the authority of the legislation transport stock was issued to fund investment including that for diesel traction.
The rest of the 1950s involved an almost complete conversion to diesel from steam, cross-border cooperation to continuously support GNR, many branch line closures, development of road services and absorption of the Grand Canal. Applications were made to the transport tribunal in relation to the closure of branch lines. Numerous branch lines were closed in the late 1950s.
In 1958 CIÉ absorbed the road and rail services of the Great Northern Railway, which lay within the republic. This company had previously operated as a cross border body jointly managed by the two governments.
- Bus Átha Cliath – (Dublin Bus
)which operates Dublin City services.
- Bus Éireann – Irish Bus which operates provincial bus services, Expressway and city bus services in Cork, Limerick and Galway.
- Iarnród Éireann – Irish Rail which operates rail services, including the cross-border Enterprise services operated jointly with Northern Ireland Railways. It also operates Rosslare Harbour.
Bus Átha Cliath Bus Átha Cliath services, across Dublin, are delivered by a highly diverse and talented workforce of over 3,800 people. Improving service performance and reliability for customers across the Greater Dublin Area (GDA), whilst also delivering key state projects such as BusConnects and Electrification of the city’s bus fleet, was a key focus in 2022.
Bus Éireann Bus Éireann is Ireland’s national bus company, delivering public transport between and within towns and cities across the country. Through its three businesses, Public Service Obligation (PSO), Expressway, and School Transport, Bus Éireann connects people to whom and what matters to them, right throughout the country, on a weekly basis.
Iarnród Éireann Iarnród Éireann is Ireland’s national railway service provider, developing and operating the country’s rail network. Iarnród Éireann’s operational highlights
Purposes of the 2012 Act
The purposes of the Act are:
- to increase CIÉ’s borrowing powers for non-capital purposes, under the Transport Acts from €107 million to €300 million;
- to include a provision allowing CIÉ to charge any borrowings of the Group to property held by it or its subsidiaries; and
- to streamline CIÉ borrowing powers into a single enabling provision for all forms of borrowing undertaken by CIÉ for non-capital purposes.
Provisions of the Act
The Act allows the Minister for Transport, Tourism and Sport and the Minister for Public Expenditure and Reform
• To give consent to CIÉ to raise or borrow money for non-capital purposes
• sets a ceiling of €300 million for such borrowing. Subsection
• enables property to be used as security for borrowings, subject to compliance with section 67 of the Credit Institutions (Stabilisation) Act 2010 where Regulations are made under section 67(5) of that Act affecting CIÉ or its subsidiaries.
CIÉ may lend money to the subsidiary companies and for the subsidiary companies to borrow money, with the consent of the Board of CIÉ, subject to the total ceiling for all borrowings of €300 million.
The 2012 Act repeals sections 30 and 31 of the Transport Act 1950, which provided for the State guarantee of temporary borrowings and the laying of particulars of guarantees before the Houses of the Oireachtas.