Mr. Aidan Murphy:

I am very pleased to have been asked by the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, to become chairman of Bus Éireann. I also thank the Chairman, Deputy John O'Mahony, and members of the joint committee for the invitation to come before them.

I am a native of County Wicklow, although I have lived in County Tipperary for the past eight years. I was educated at Presentation College, Bray and University College, Dublin, where I studied science and undertook a H.Dip before commencing a career as a science and maths teacher. I obtained a junior transport and warehouse role at Albright & Wilson at the start of the 1980s and progressed my career in transport, logistics and supply chain management through appointments as logistics director at Allegro, group head of supply chain at Fyffes, general manager at Wincanton Ireland, managing director of supply at C&C Group and chief executive officer at Pulse Logistics. I was honoured to be elected president and a fellow of the Chartered Institute of Logistics and Transport Ireland. I have extensive experience as a senior executive and a supply chain professional. I have been a keynote speaker at several European supply chain events, as well as a member of the judging panel for the European Supply Chain Awards. I was privileged to be appointed a director of Bus Éireann in April 2013 and have served on the audit review group and commercial and innovation committees; therefore, I am acutely aware of the issues facing the company.

Bus Éireann operates three businesses within one entity, namely, public service obligation, PSO, services in urban, commuter and rural areas; commercial services, primarily, Expressway services; and the school transport scheme. The main remit of Bus Éireann’s extensive network is to connect communities throughout the country with efficient, reliable services, while focusing on innovation through technology and investment in fleet and customer facilities. PSO services, in particular, are an essential component of the Government's transport strategy for provincial rural Ireland.

Bus Éireann had an annual turnover of €324 million in 2013, recording an overall surplus of €400,000. This was achieved in very challenging conditions and delivered through growth in core revenue, with significant payroll savings and the continuation of a range of efficiency measures.

The public service obligation, PSO, payment of €34.4 million in 2013 has been reduced by €15 million or 30% in the last five years and will reduce to €32 million in 2014, but passenger revenue, excluding schools, has increased by €5 million since 2011. In 2013, the company carried over 78 million passengers. Passenger numbers on PSO and Expressway services increased by 0.4 million journeys and schools passenger journeys increased by 0.7 million. These positive trends are continuing in 2014 with passenger numbers growing ahead of economic indicators, while operational costs, despite significant increases in fuel costs, have been reducing and customer satisfaction remains at a very high level.
Bus Éireann provides direct employment to nearly 2,500 employees across the country and supports the employment of a further 7,500 among suppliers and subcontracted service providers across its network of services. The company has been in survival mode in the past few years but it has worked through this difficult period while delivering on all commitments to the National Transport Authority, NTA, the Department of Education and Skills and in creating a framework for a sustainable public transport system. The return on commercial Expressway services has improved, while still serving many locations in Ireland at no additional cost to the State and absorbing overheads in rural depots that would have to be allocated to PSO services. Expressway is providing an integrated inter-regional connectivity, in particular where no rail services exist, helping to defray costs for public services.
There are four main challenges for Bus Éireann arising from the recently agreed five year comprehensive strategic plan to invest further in the business, grow profitability and deliver a best-in-class public service transport offering. The first key challenge is to grow revenue and passenger numbers, through focused investment and increasingfinancial sustainability across the range of Bus Éireann products. We must continue to work in partnership with the NTA to negotiate and deliver the best possible public transport offering for PSO services provided under direct award contract through passenger and capacity growth on the core network along with fleet and facilities replacement. We must reposition the Expressway brand along with network improvements for faster journey times and more competitive fares to improve profitability and provide funds for reinvestment. Third, we must deliver further cost savings in the provision of school transport services, including the introduction of a new information technology, IT, system, while continuing to provide all the services required by the Department of Education and Skills. Fourth, we must identify opportunities for new revenue streams, particularly in international markets.
The second challenge is to continue to build a competitive cost baseacross all products to maintain competitiveness and ensure flexibility of customer service delivery. The focus must be on delivering a safe, sustainable and competitive cost base with increased operational efficiencies and operational key performance indicators, KPIs, to meet market requirements which are benchmarked against best international practice. One key requirement will be to work in a practical way with the NTA regarding the tendering of 10% of the direct award contract by the end of 2015 in order to ensure a cost neutral impact on the company and minimise the impact on staff.
The third challenge is to enhance relationships with customers, partners and stakeholdersacross the community to further improve customer satisfaction and Bus Éireann’s corporate reputation. Bus Éireann has a proud tradition of local transport delivery, working with local stakeholders and suppliers to keep public transport close to the community. A renewed and invigorated customer focus is essential to grow public transport across the country.
The fourth main challengeis to have a fully engaged, informed and committed workforce with the right skills and competencies to grow the business in a safe and effective manner in line with evolving market requirements.
In conclusion, I look forward to working with the Minister, the Departments, the NTA, the CIE chairman and the Bus Éireann board and management to grow public transport in a sustainable, safe and efficient manner and to put in place an investment framework that makes it happen.