Shane Ross (Dublin Rathdown, Independent) | Oireachtas source

I thank the Chairman. As time is limited, I will try to be as brief as possible with my answers. I thank the members for their invitation to appear before the committee this morning for what I know will be an interesting and, hopefully, productive exchange of views. The committee has invited me here to talk about the future for public transport and on the levels of subvention. I will outline my thoughts on these matters and look forward to discussing them with members. Members will be aware that the programme for a partnership Government contains a commitment to review public transport policy, to which I will return later, and I hope that today is the beginning of an ongoing dialogue with committee members as regards the future of public transport policy.

First let us look at transport generally and what is at the core of public transport policy. It is about having a system that allows people and goods to move efficiently, sustainably and safely between places they need to go. It is about people getting from home to work, to school and to social activities. It is about alleviating the impacts of congestion in our urban areas and enabling goods to move to markets. It is also about enabling sustainable travel choices and contributing to a more sustainable future. Having an efficient, value-for-money and accessible transport system is critical to underpin economic growth and to enable social and economic development for the future. Those objectives require the development of an accessible, integrated, well-funded, high-quality and efficient public transport system that delivers real value for money for both the taxpayer and the fare-paying passenger.

In recent years, transport policy-makers and planners have grappled with better integrating the transport system to allow for more efficient mobility in order that our economy can continue to grow and develop and that quality of life can be enhanced. In Dublin and the provincial cities, we can see positive initiatives to improve public transport integration with walking and cycling. We have also seen the roll out of integrated ticketing, real time passenger information and journey planning which all serve to improve flexibility and choice for customers who must be at the heart of how we continue to improve the service offering.

Consider how public transport is organised in Ireland. In recent years, there have been great improvements to the way public transport is organised and delivered in Ireland. The major impetus behind these recent changes is the Dublin Transport Authority Act 2008. It established the National Transport Authority, NTA, and lays out the legal framework for how public transport is organised, financed and delivered. As Minister, I retain responsibility for transport policy and priorities for delivery. I provide an aggregate amount of money each year to the NTA and other agencies to fund service delivery. I have certain statutory functions in relation to the NTA and Transport Infrastructure Ireland, TII. I am the shareholder for CIE and its subsidiaries. On a statutory basis, the NTA enters into contracts with public service obligation, PSO, operators. It regulates those PSO services and allocates funding to PSO operators. The NTA licenses and regulates commercial services, develops integrated ticketing and promotes public transport generally.

The regulatory framework for public transport is based on EU law and, like all other member states, we now have a dedicated transport focused authority working with, and allocating funding to, the transport operators. The NTA will tell the committee more about its approach to this task. It is important to note that the public transport system as we know it today is effectively made up of three services - public service obligation services, commercial licensed services and the rural transport programme. The NTA regulates the PSO and commercial services on a statutory basis and administers the rural transport programme on a non-statutory basis under agreement with my Department.

A key element in delivering any public service is the funding of that delivery. Public transport is basically funded through two sources - the passenger and the taxpayer. During the 2010 to 2012 period, there were some significant fare increases, which were imposed to assist with the financial crisis which engulfed all three CIE companies during the economic downturn when passenger levels fell in line with the fall off in employment levels. However, that period is now behind us. The NTA's fares policy in the last few years is part of a medium-term plan to overhaul the complex and different levels and types of fares and move toward a more streamlined system that will encourage greater use of public transport services. With regard to the second major source of funding, Government will this year provide approximately €595 million to fund our public transport system. That comprises €236 million in PSO funding, €346 million in capital funding and almost €12 million for the rural transport programme. The total amount of Government spending must be taken into account if we are to have a real discussion on how public transport is funded. One cannot fund new buses without funding new services just as one cannot fund new services without new buses. I know that comparisons of PSO subsidy levels are frequently raised but the point I have just made is an important caveat to any quick conclusions, which are sometimes drawn. A recent report for the European Commission highlighted the numerous difficulties faced when attempting to accurately benchmark PSO subsidy levels across different countries. I welcome this year's 13% increase in PSO funding and can assure members I am looking to secure further increases for next year, as may be possible within the overall budgetary position. I would like to invest more in public transport but I have to recognise that there are huge demands elsewhere for scarce resources, including in housing, health, education, etc. However, I am clear that any increase in PSO funding should prioritise improvements in the delivery and quality of services. I hope that all members would share the view that if we are to provide more taxpayers' money, we must be able to demonstrate the value for money of that expenditure.

What is the future of public transport? Right now across Government there are a number of important initiatives under way which will heavily influence the future of public transport. First and foremost, there is the development of the national planning framework.

I do not think it is possible to overstress the importance of that work to our transport system.

Additionally, important work that is under way in the area of climate change will have important consequences for the future direction of the transport sector. I recently received a copy of a rail review conducted by the NTA in co-operation with Iarnród Éireann, which examines the funding parameters required to support our rail network now and into the future. I am currently considering its conclusions and I expect to make a decision on the next steps shortly. As I mentioned at the outset, a programme for a partnership Government commits to a review of public transport policy to ensure services are sustainable into the future and meet the needs of a modern economy. I will consult my Department later in the year on how best to make progress with that commitment. I believe this committee will play a crucial role in the development of the revised policy.

In recent months, I have met many stakeholders with an interest in public transport. Those meetings, together with the many different issues raised during Oireachtas business, have allowed me to develop a sense of the essential needs of the public transport sector. As a result of these deliberations, I intend to ensure the interests of commuters and taxpayers are at the heart of public transport policy and our public transport system. I will also consider the conclusions of the rail review and its implications for our rail network and develop our overall public transport investment programme in line with the principles of the strategic investment framework for land transport and in the context of the overall Exchequer funding resources. This will ensure value for money and improved outcomes for all stakeholders in the delivery of public transport services. I look forward to working with this committee as we embark on our work on these issues in the coming months and years. I thank the members of the committee again for inviting me to address them. I look forward to their questions and to our discussion.