Oireachtas Joint and Select Committees

Wednesday, 5 October 2016

Joint Oireachtas Committee on Transport, Tourism and Sport

A Vision for Public Transport: Discussion

9:00 am

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats) | Oireachtas source

The Oireachtas Library has provided me with a table showing that the subvention has consistently decreased over several years but fares have increased because there are only two ways to fund public transport, that is, people pay as they use the service or the public service obligation, PSO, levy is sufficient to keep it in balance. There is a cost of living driver in that respect and a point of diminishing returns if people opt to use their cars when it becomes less cost efficient to use public transport.

In turn, we must pick up for this with hard cash under our climate obligations. I would have expected some of these issues to be addressed in the Minister's strategy for the future of public transport. Cost of living increases will drive wage demands. Since they have many effects, it is important to get the strategy right.

Previously, the Minister told us there were two ways of funding public transport, namely, the public service obligation, PSO, levy and increasing bus and train fares. The subvention increase really only restores some of what was cut. In 2013, 2014 and 2015, the degree to which the PSO levy included operators other than Iarnród Éireann, Bus Éireann and Dublin Bus increased. Subventions increased from €27 million to €174 million to €228 million. I am sorry - those figures are in thousands. An increasing amount of money is being provided to private operators, which tends to suggest that a particular approach is being taken. Will the Minister comment?

The Minister told us previously that he felt that management had a role to play in getting better value. Has the Minister conducted an assessment of issues such as contractual obligations, which management can do nothing about, or the things that have been trimmed over the years to achieve efficiencies? Has work of any description been done in this regard or is it just the Minister's view? What is the basis for believing there is a fund that can be called on to increase the amount of money that is available for other initiatives, including wage matters or increases in public transport output?

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