§ MR. CLANCY (Dublin Co., N.)I beg to ask the Secretary to the Treasury whether the West Donegal Railway Company, which is promoting the proposed Light Railway to Killybegs, in the County of Donegal, is notoriously insolvent, judgments having been marked against it for the price of rolling stock, and proceedings for a Receiver being pending; whether the company is largely in arrear for both principal and interest to the Treasury on foot of previous advances; whether the granting of State aid to a company so circumstanced is a violation of the principle laid down by Parliament in Section 4, Subsection 3, of "The Light Railways Act, 1889"; and whether the Killybegs line is that promoted by Mr. Barton, and reported on by Mr. Price?
THE SECRETARY TO THE TREASURY (Mr. JACKSOS,) Leeds, N.I am not aware that the hon. Member is justified in stating that the West Donegal Railway Company is "notoriously insolvent." The company has not yet begun to repay the principal of its debt to the Board of Works; but it is paying over £1,300 a year on account of the £1,600 due for interest, and the Revenue prospects are encouraging. Section 4, Sub-section 3 of the Light Railway Act, 1889, forbids the advance of a loan to a company in arrear with principal and interest, or to a company having a working agreement with a company in arrear. It is not, however, proposed to make any loan to this company. As regards the last paragraph, it would be 1644 equally true to say that Major General Hutchinson of the Board of Trade reported on the Killybegs line.
§ MR. CLANCYThe right hon. Gentleman says it is not intended to make a loan to the railway. Is it intended to make a grant to it?
§ MR. JACKSONI am not in a position to say. That was not the question put to me. The question was, whether the Light Railways Act of 1889 forbids the granting of State aid. It does not forbid State aid, but it does forbid a loan.
§ MR. CLANCYWhat guarantee has the Government for the making of the line, seeing that the company by whom it is promoted have been unable to pay their way. Do the Government propose to make a grant to a Railway Company in regard to whom it is not sure that they will be able to pay the working expenses of the line?
§ MR. JACKSONThe accounts would have to be audited by a person appointed by the Treasury.
§ MR. CLANCYIs a grant to be given in this case because the line is promoted by Mr. Barton?
§ MR. JACKSONI am not in a position to say that a grant is going to be made, and certainly not because the line is promoted by Mr. Barton.
§ MR. CLANCYI beg to ask the right hon. Gentleman whether there is any intention or proposal to appoint Mr. Barton, C.E., one of the promoters of the Killybegs Light Railway line, to any position in connection with the construction of light railways in Ireland, in which he would be placed in authority over the projects of rival promoters; and whether, if the Treasury sanction a grant in favour of the Killybegs line, they will put up the further engineering of it in competition?
§ MR. JACKSONI am not aware of any such intention.