Oireachtas Joint and Select Committees

Thursday, 18 July 2013

Joint Oireachtas Committee on Transport and Communications

CIE Group Financial Situation: Discussion with Group Management

2:50 pm

Photo of Timmy DooleyTimmy Dooley (Clare, Fianna Fail) | Oireachtas source

One of the main reasons for this meeting is to discuss the overall financial position of the public transport network. There was much concern last year when CIE came back to the Government looking for an additional €35 million outside the profile that existed and that had been presented by way of a budget for the year. The Department was able to find it within its overall budget but it was an unsavoury situation.

The reason we issued this invitation several weeks ago was to ensure the same was not on the horizon again. I am deeply disappointed it took so long for the witnesses to attend the committee. There has been a very good working relationship between this committee and the three companies within CIE and the overall board of CIE. I have sat on this committee since 2002 and this is the first time we have had any difficulty with CIE in terms of coming before the committee. We often had issues before but they were dealt with to the best of everybody's ability.

Will Ms Jupp indicate the projected deficit for CIE in 2013? What will the reduction in the subvention do to the overall integrated network situation? Has CIE devised a plan to present to the Government to show how it intends to protect the entire network as it exists, recognising the reduction in subvention? Has it made any appeals to the Government with regard to the necessity of increasing subventions in line with the reduction in its fare-box and commercial activity, notwithstanding Mr. Doherty’s indication that there seems to be an upward trajectory in that regard?

In terms of the company's negotiation with the unions, which is clearly an exceptionally important element in recalibrating the cost base, has Ms Jupp met any of the trade union leaders? Have any of the chairmen of the three companies met the trade unions in an effort to build a consensus around cost reduction while at the same time protecting the integrated network that exists between the three companies?

It is clear that the future viability of CIE as a public transport company hangs in the balance. There is nothing particularly new about that statement. What actions has the company taken to try to ensure its viability? There has been some talk in the media about the potential sale of the Expressway service. Can Ms Jupp indicate what discussions it has had with Government about that? There is talk about part-privatisation of 10% to 15% of Dublin Bus routes. Will Ms Jupp indicate how she thinks that will improve the viability of the company? There is also talk about Bus Éireann, in an open tendering environment, having to tender for some of the public service obligation, PSO, routes. Will Ms Jupp indicate how that might improve the financial viability of the Bus Éireann wing of the company? It is clear that the missing piece of the jigsaw is the subvention. We have various reports from the companies over several years of a progressive approach to cost reduction, which is welcome. However, I am not so sure that CIE is fighting the battle to the extent it should with the Government around demanding an increased subvention to meet the needs of retaining an integrated public transport system.

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