Michael Colreavy (Sligo-North Leitrim, Sinn Fein) | Oireachtas source

I thank Mr. Gaffney for his stark presentation which contained a number of red flags. It is informative to hear about his success in Hong Kong and elsewhere and the significant challenges facing Iarnród Éireann. He referred to a substantial reduction in the amount of capital funding available to the company. A reduction of 75% over five years is significant in any industry. There must be a cliff edge, a point at which reductions must not only cease but be rolled back. Failure to do so will call into question the safety of the services operated by Iarnród Éireann.

Mr. Gaffney has noted that the cost per kilometre operated by Iarnród Éireann has declined by 20% in the past three years and 33% in the past five years. Again, there must be a point at which it is no longer possible to reduce costs without adversely impacting on the safety of the service.

I am concerned by Mr. Gaffney's comment that PSO payment levels and the reduction in capital funding are not sustainable and present a significant threat to the solvency of Iarnród Éireann. I am also concerned by his statement that should a decision be taken not to invest in the company, it will be necessary, to sustain safe and reliable operations, to review the extent of the current network. Is there a plan B? Has Iarnród Éireann examined the routes it operates? Are routes that depend on the payment of a public service obligation subsidy more vulnerable if the company is forced by economic circumstances to review or reduce its current operations?

What discussions are taking place with funding agencies and Government? What is the state of industrial relations within the company? I am aware the workforce has taken significant pay reductions. Have senior management and the board of directors made similar sacrifices?