{"id":11379,"date":"2022-04-23T16:54:51","date_gmt":"2022-04-23T16:54:51","guid":{"rendered":"http:\/\/legalblog.ie\/?p=11379"},"modified":"2022-04-23T18:11:12","modified_gmt":"2022-04-23T18:11:12","slug":"nationalisation-closures","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/nationalisation-closures\/","title":{"rendered":"Nationalisation &#038; Retrenchment"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/nationalisation-closures\/#Nationalisation_of_CIE\" title=\"Nationalisation of CIE\">Nationalisation of CIE<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/nationalisation-closures\/#Duties_Financial_Position\" title=\"Duties &amp; Financial Position\">Duties &amp; Financial Position<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/nationalisation-closures\/#Great_Northern_Railway\" title=\"Great Northern Railway\">Great Northern Railway<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/nationalisation-closures\/#Cross-Border_Closures\" title=\"Cross-Border Closures\">Cross-Border Closures<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/nationalisation-closures\/#Beddy_Report\" title=\"Beddy Report\">Beddy Report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/nationalisation-closures\/#Closures_1957-1959\" title=\"Closures 1957-1959\">Closures 1957-1959<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Nationalisation_of_CIE\"><\/span>Nationalisation of CIE<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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.<\/p>\n<p>The ordinary shares were converted on the basis of the \u00a380 of 3% stock for each \u00a3100 held.\u00a0 The government obtained direct control of all CIE stock and could appoint the board.<\/p>\n<p>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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Duties_Financial_Position\"><\/span>Duties &amp; Financial Position<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>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.<\/p>\n<p>It is the duty of the Board to conduct its undertaking so that, year on \u00a0year, the revenue would not be less than sufficient to make the charges properly chargeable to revenue. \u00a0New investment following the 1950 act amounted to \u00a33.4million, half the total authorised by the legislation. \u00a0There had been 25 years of neglect in terms of planned equipment and facilities.<\/p>\n<p>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.<\/p>\n<p>The rest of the \u00a01950s \u00a0involved an almost complete conversion to diesel from steam, cross-border cooperation to continuously support GNR, many \u00a0branch 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.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Great_Northern_Railway\"><\/span>Great Northern Railway<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The financial position of the Great Northern Railway, which was the main transport operator east of the line from Dublin to Sligo, deteriorated.\u00a0 The Great Northern Railway had existed since 1876. Its engineering works at Dundalk employed 1300 people. It operated road and rail services in the Free State with rail operations are only in Northern Ireland.<\/p>\n<p>In 1951, Great Northern Railways gave notice \u00a0of discontinuance of its railways, which led to the joint acquisition of Great Northern Railways by the governments of the Republic of Ireland and Northern Ireland who put the purchased the company compulsorily.<\/p>\n<p>A GNR board was established by the two government in 1952 and its interest in the County Donegal railways passed to them. Parallel legislation was passed in 1953 north and south to establish The Great Northern Railways Board, five appointed by each government \u00a0with one senior member on each side.<\/p>\n<p>Operating losses were incurred 60\/40 between the northern and southern governments.\u00a0 Monies for\u00a0 the \u00a0Dublin, Dundalk engineering works are provided by the southern government .\u00a0 Monies for development were provided by the respective jurisdictions and rolling stock was acquired 50-50.<\/p>\n<p>The Act followed the traditional optimistic language of an obligation to break even on an ongoing basis.\u00a0 It also required the board to pay interest on the \u00a34,500,000 purchase price.<\/p>\n<p>Railway lines which provided cross border services, ran on the \u00a0basis that the board could propose and Ministers could agree or disagree provided that if one government \u00a0objected to the closure, it would have to fund loss making aspects of the line concerned if it did do.<\/p>\n<p>The GNR was loss making from the outset.\u00a0 The Ulster Transport Authority carried the Northern Ireland share of losses.\u00a0 This was the public authority which was successor to the Northern Ireland Road Transport Board established in 1935.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Cross-Border_Closures\"><\/span>Cross-Border Closures<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It is fair to \u00a0say that \u00a0there was less attachment to the preservation of railways in the northern administration than in the southern administration.\u00a0 \u00a0In 1955, the Northern Ireland government proposed the closure of three secondary lines Portadown-Armagh-Tynan, Omagh-Enniskillen-Newtownbutler and Bundoran Junction-Beleek was proposed.<\/p>\n<p>It was also indicated that there was no long-term future for the Portadown Derry line (the Derry Road).The Derry branch had passed the Ulster Transport Authority in 1948 and was closed in 1954.<\/p>\n<p>The matters were referred to the transport tribunals north and south.\u00a0 The southern tribunal opposed the closures and the northern tribunal supported the closures.\u00a0 The southern government was not prepared to foot the bill for lines running losses which were almost entirely within Northern Ireland.\u00a0 In the year 1957, all train services on the above lines were terminated.<\/p>\n<p>The closures had an immediate effect on connecting lines in the Republic of Ireland, namely, the Clones, Castleblayney, Dundalk line, Glaslough,Monaghan Cavan and the \u00a0Belturbet and Carrickmacross branches. \u00a0\u00a0GNR decided to terminate all rail passenger services and operate freight only.\u00a0 The Southern Transport Tribunal assented. The Sligo, Leitrim Railway Company which received subsidies from both government found that after the closure of the GNR lines, it would have to cease operations.<\/p>\n<p>The GNR engineering works in Dundalk were adversely affected with the axing of the entire rail hinterland to the west. An agreement was reached between the Dublin and Belfast governments that the railway engineering works would be separated into a new company.\u00a0 The Dundalk Engineering Company would provide services to the dwindling GNR system.<\/p>\n<p>The railways were nationalised in Britain in 1948 and the London and Midland LMS stake in the County Donegal Railways passed to British Railways. The British Transport Commission replaced the railway executive in 1953 . In 1959, the Donegal joint railways committees applied to and was permitted to abandon its rail service. The Londonderry and Lough Swilly Railway Company had ceased running trains in 1953.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Beddy_Report\"><\/span>Beddy Report<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The chairman of the transport authority Dr. Beddy was appointed to conduct a committee of inquiry into internal transport, as it affected public transport undertakings and report to the Minister for Industry and Commerce by the end of 1956.The report contained substantial analysis of traffic, trends and data on public and private transport. \u00a0It raised the vexed question of public service and profitability and the question of the viability of the railway service entirely.<\/p>\n<p>The Beddy Report found that CIE&#8217;s use of track locomotive coaches was low by international comparison. Employment had declined by 10 percent due to the dieselisation, although more were employed in construction than before. These locomotives were single manned instead of double manned and surplus staff were redeployed. Employee-employer relationships were difficult.<\/p>\n<p>It noted that a series of government guaranteed stock had issued since 1945.\u00a0 \u00a0CIE had been unable to pay the interest on the debentures and the sums accumulated as owed back by CIE to the government.\u00a0 The report acknowledged that the possibility of repayment of the sums was remote. \u00a0The report criticised the failure of the 1950 Act to reconstruct CIE&#8217;s capitals.\u00a0 It recommended writing off a total of \u00a311 million off the balance sheet and relieving CIE of its liability to pay interest on transport stock and charge depreciation on certain written down assets.<\/p>\n<p>It recommended that beyond a general obligation to provide reasonable public transport requirement in a fair and satisfactory manner and fix maximum rates and fares, s CIE should be free from special restrictions to which it was then subject.\u00a0 It suggested redundancy costs be \u00a0paid from a special fund financed by a levy on road vehicle licences. It did prescribe a way for CIE to become solvent and self supporting.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Closures_1957-1959\"><\/span>Closures 1957-1959<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Beddy report rejected CIE&#8217;s proposals to restrict private operators of commercial vehicles to divert sufficient traffic to the railways.\u00a0 It concluded that that restriction of freedom was unjustified. It also rejects subsidisation and force feeding of traffic on railways. It recommended that railways operated under realistic conditions which meant accepting the reality of low-density transport needs and the emergence of road traffic as a more suitable alternative in many cases.<\/p>\n<p>Although the report seemed to argue in favour of the abandonment of the railways, it \u00a0ultimately came down in favour of radical changes and retention of key lines.\u00a0 It concluded that if the length of lines and number of stations were more closely related to the volume of suitable traffic, it might have been possible to demonstrate it could operate economically in providing safe, speedy organised and disciplined methods of transport. \u00a0Railways had retained a significant \u00a0share of goods freight and this assisted help their retention.<\/p>\n<p>The report was published in May 1957 and recommended closing one thousand miles of lines at 150 railway stations. The map of railway lineage it proposed of approx. 850 kilometres largely resembles the present mainline railway connections between Dublin to Wexford, Waterford, Cork, Tralee Limerick, Galway, Westport Ballina \u00a0and Sligo.<\/p>\n<p>It recommended closure of the \u00a0second line to Limerick via Nenagh, but it was retained,\u00a0 It \u00a0recommended examination of the Limerick to Sligo line between Tuam and Claremorris. This was retained in part and partly reopened in the 2000s.<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-11379\" data-postid=\"11379\" class=\"themify_builder_content themify_builder_content-11379 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[104],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11379"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=11379"}],"version-history":[{"count":4,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11379\/revisions"}],"predecessor-version":[{"id":11383,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/11379\/revisions\/11383"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=11379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=11379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=11379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}