asked the Minister for Transport if the Government are committed to the maintenance of the existing passenger rail network; and if he will make a statement on the matter.

: As the Deputy is aware, the CIE deficit has grown substantially in recent years and it was the severe deterioration in CIE's financial position that led to the engagement of McKinsey in 1979 to undertake a major study of CIE.

Consideration of future long-term policy in relation to CIE has been interrupted to some extent by changes of Government since the McKinsey Report was published. Matters in relation to CIE are under examination in my Department with a view to the submission of proposals to Government in due course. In that connection full account will be taken of the role of the railway in public transport. The McKinsey Report did not recommend either closure or severe retrenchment of the railway but it did set out the financial implications of a number of future policy options.

: Would the Minister say if there are any branch lines under consideration for closure.

: It would be a little bit premature for me to disclose anything of that nature. Deputy Wilson set a limit of £86 million as a subvention for this year and, given that the outturn for last year was in the region of £108 million, it does indicate — and I am sure Deputy Wilson was conscious of this when he was making his decision — severe retrenchment. I am looking at the overall situation to see how this can be achieved with a minimum dislocation for the work force in CIE and the travelling public.

: Could the Minister tell us if CIE have submitted any proposals to him for the closure of any branch lines?

: The Deputy will be aware that earlier in the year we had a Private Members' motion in relation to one branch line, the closure of which CIE agreed to defer until I had time to consider the overall situation. I hope, in due course, to make submissions to the Government on it and it would be premature for me to say anything further at this stage.

: The Minister mentioned the McKinsey Report on two occasions. Is he now telling the House that the Government are actively implementing the McKinsey Report?

: No. The first problem I have to deal with is the decision by the previous Government to limit the subvention this year to CIE to £86 million. This means there is a £22 million reduction on last year's subvention. If you take account of inflation, it is even more than that. I must make decisions which will enable CIE to operate within the limits of the subvention set by the previous Government. Having made decisions in that regard, I will then turn to consideration of the McKinsey Report.

: Arising from the Minister's earlier reply, could he tell us when a decision might be made in relation to the closure of branch lines?

: The decision will not be made by me. These decisions are confined by statute to the board of CIE. However, realistically speaking, as the Government have to provide the subvention for CIE and they have to live within that limit, that will impose on CIE the necessity to make difficult decisions. I am sure Deputies opposite will support CIE very strongly in their decisions.