Oireachtas Joint and Select Committees

Wednesday, 17 October 2012

Joint Oireachtas Committee on Transport and Communications

Public Service Obligation Bus Contracts: Discussion

11:15 am

Mr. Martin Nolan:

It was over €30 million.

Bus Éireann's part of that scheme is €150 million, of which over €100 million goes to private operators. One third of the cost is used on special needs. A large bus normally costs €3.50 per head, a minibus costs €8.50 per head and a taxi for a child with special needs costs €100 per head.

Deputy Ellis asked about expansion. We can do a number of things without much additional cost. Bus services must be frequent and reliable.

We need more priority measures, particularly when the economy is a little depressed and it is better to implement them before the economy grows.

On the question of technology, I refer to our work with the NTA on real time passenger information, AVL systems - it is very important to know when a bus is coming - and smart cards. We try to be as efficient as possible with regard to the management of staff numbers. Most employees who leave are those who retire. Our policy is to ensure as many of the front-facing staff as possible are retained while trying to reduce the number of back-office staff. On the question about vehicle standards, the RSA referred to Bus Éireann as being one of its gold partners. We work very closely with the RSA. An independent UK company checks out 7% of all vehicles, both our own buses and those privately operated buses. This is paid for by Bus Éireann. This year saw a reduction of 11 vehicles out of approximately 4,000.

In answer to the question about tourism, our sister company, CIE Tours, is the flagship for CIE in the tourism sector. We have noted an increase in tourist numbers using our services in particular along the west coast. Ireland is becoming competitive again and Bus Éireann is in the market to cater for tourists travelling in Ireland. Free travel makes up just over 20% of our revenue.

I refer to the switchover in school transport of 85%. The reason Bus Éireann keeps a fleet is to ensure that the quality and standard is maintained. Industrial unrest has occurred in the company on three occasions in the past 15 years in cases where cartels of private operators had tried to hold the company to ransom. That is the reason for the strategic fleet which used to be 700 vehicles but is now under 500 vehicles. During a recession it is right for us to reduce our involvement in school transport it but it was not too long ago when nobody wanted to drive school buses or wanted to provide vehicles and the price was going up. Therefore, there is a need to keep that strategic fleet. A court case is pending and matters are sub judice. The company appeared before the Committee of Public Accounts last year. An explanation of the school transport accounts is available on the Oireachtas website. It includes correspondence from the Secretary General of the Department of Education and Skills at the time, Brigid McManus, and all the information is contained on the websites of Bus Éireann and the Department of Education and Skills. The accounts are independently audited and every part of Bus Éireann is independently audited. We have very strong corporate governance and we have employed numerous consultants over the past 30 to 40 years. Our records are available for anyone to see.

There are two parts to the issue of bundling. Customers have a variety of options such as road and rail transport and it is hoped they will not vote with their feet. While passengers in towns and villages have to be picked up, if the customer does not stay with us then the whole service will go.

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