Sean Barrett (Independent)

I wish to address a number of aspects of this problem. The costs have risen from €50 million to €180 million since 1997. I do not know of any other costs that have increased. The number of pupils has not increased very much so we must ask what the problem is with this service and question how it is organised. The Minister of State referred to the marginal cost of €1,000. The total cost of the scheme at €180 million for 120,000 people is €1,500. Where parents organised a school bus themselves it was possible to do it for between €300 and €400 a year. The operators tell me that the competitive tendering regime has meant they have been receiving less. Therefore, one must question whether it is a problem with the overheads. The operators provide 85% of the vehicles and they carry two thirds of the children, as the Minister of State said in his contribution. If parents organised transport themselves, it could be done for €300 to €400 whereas it is costing €1,500. Senator Power and others raised this issue and I wonder if we have looked at how the scheme is organised. The Minister of State said, "From 2012-13, Bus Éireann will assume responsibility for the operation of the school transport system." Was a competitive tendering process considered? Should this matter have been debated in this House prior to the decision? The evidence seems to be that parents themselves and the independent operators who provide 85% of the vehicles in any case and carry two thirds of the children, could have put in a much better tender bid. I refer to the Minister of State's reference to the value for money audit. Was this audit carried out since the IMF came in on 1 December 2010? Value for money audits of the school bus service were carried out in the past but have not arrested its growth in costs from €50 million to €180 million in just 11 years. I hope that the Ministers of State, Deputies Cannon and Perry, might consult with each other. The Department of Enterprise, Trade and Employment in its report Buying Innovation, the 10-Step Guide to SMART Procurement and SME Access to Public Contracts states: "Given the importance of SMEs to the Irish economy a level playing field is needed for all economic operators wishing to participate in public tendering."

I would love if we could reduce the amount of money spent on the school bus service and put the money into education instead. Its cost base has to be seriously questioned because it is growing far more rapidly than any other transport cost, as the Minister of State knows because he drew our attention to the fact.

Is it wrongly organised? How many layers of bureaucracy do we need? In the post-IMF context should we not see that this is a service which we could provide for €400 per pupil and not the €1,500 it is now costing.