asked the Minister for Communications if he has considered trade union views on the difficulty of two separate rail and bus companies in competition covering roughly the same routes in some cases and using the same facilities; and if he will make a statement on the matter.

I gave most careful consideration to the views of the trade unions in regard to the future organisation of CIE and I had discussions in the matter with representatives of the National Executive of the Irish Congress of Trade Unions and the CIE group of unions.

The Transport (Re-Organisation of Córas Iompair Éireann) Bill, 1986, now before the Oireachtas provides for the establishment of three subsidiary companies operating within the public sector and subject to the CIE parent board.

I am satisfied that the proposed arrangements are the most appropriate means of providing efficient and economical rail and bus services and securing the future of the organisation, while safeguarding the interests of the workers.

Can the Minister assure the workers that there is not an effort in this — taking into consideration what I mentioned in my question, similar routes, same facilities being used — to downgrade one system and upgrade another with a view to eliminating some of the services available, for example, by rail?

No, absolutely not. The position is, and it is worth repeating to the House, that for 15 years CIE's deficit escalated by a multiple of a very high inflation rate. For example, it went up from £3 million in 1969 to £109 million in 1982. That was more than seven times the rate of inflation in that period, a period of very high inflation. Since 1982, because of the policies we have pursued the deficit has fallen in real terms each year, in 1983, 1984 and 1985, and when the accounts for last year are published in the very near future, we will see a further very substantial improvement, indeed the best year that CIE have had for many years past. This has been brought about by new financial policies and the strengthening of the board of management.

The reorganisation of CIE is the final step in this reorganisation, to break down CIE into more manageable units, with more vibrant management closer to the scene of operation. That is the idea, to create a new environment and a better service to the public at a cheaper price and is the direction in which we are moving. I want to say again how much I appreciate the efforts made by all in CIE, particularly those in the Dublin bus services in respect of which 1985 was the first year ever that not one manday was lost due to a strike, with the consequences that passenger numbers are beginning to increase.

The Minister did not answer the question I asked about rail and bus companies. Is he stating to the House that no sector of the rail system is in danger as a result of separate bus and rail companies operating and competing on roughly the same routes?

It is my ambition to ensure that all aspects of CIE will be the better for our policies, will be more vibrant and successful, and less a call on the Exchequer than they have been heretofore. All the signs so far have been in that direction.