Mr. Ray Coyne:

I thank the Chairman and the members of the joint committee for the invitation to attend. I understand the committee has requested that I focus on the vision for public transport and the level of State subvention. My opening statement will reflect this request.

An efficient public transport system is key to delivering positive economic and social development in the country and, in the case of Dublin Bus, Dublin and its hinterland, in particular. An economically vibrant Dublin is also of benefit to the wider economy. In order to outline a vision it is important to, first, reflect on the recent journey to where we are. Dublin Bus operates under a direct award contract to provide services on all of its public service obligation network. It is a net cost contract in that Dublin Bus has both revenue responsibility and to deal with associated risk. This type of contract is the most used in large European cities and is provided for under EU directive 1370/2007.

Our most recent contract was signed in December 2014 for a period of five years. Creating a customer-centric, well functioning and efficient public transport network is our ultimate aim and it can be achieved through a direct award contract. There are many performance criteria which are independently audited in the contract and Dublin Bus has a strong record in exceeding its targets. The performance criteria outlined in the contract targets areas that benefit the customer experience considerably. By consistently exceeding our targets, we have been able to grow our business in a sustainable, efficient and customer focused manner. Dublin Bus remains the largest public transport operator in Ireland. In 2015 it carried 122 million passengers in operating over 57 million km on 112 routes. We achieved these figures through strong growth on both the commercial and public service obligation network of services.

Dublin Bus customers account for 39% of the retail spend in Dublin city and 62% of all public transport users in Dublin are Dublin Bus customers. Our network speed at peak times is the region of 14 km/h, with substantial variances on all transport corridors. Despite the significant roll-out of quality bus corridors, private transport services remain extremely competitive in terms of journey times to the city and, in many cases, are faster than the bus. In many areas of Dublin private transport services are an attractive alternative to public transport services.

Dublin Bus, with many other companies, felt the impact of the recession. In 2013 it returned to profitability for the first time since 2008, with an operating surplus of €500,000 on total revenues of €268.6 million. This profitability continued into 2014 and 2015, with an operating surplus of €11.6 million and €10.9 million, respectively, on total revenues of €266.4 million and €286.2 million, respectively, helped by a return to growth in our revenues, coupled with the implementation of cost reduction measures throughout the company.

Our fare box coverage - customer generated revenue as a percentage of total revenue - remains one of the highest in Europe, averaging 78% in the past three years. This performance has been achieved against the backdrop of an annual cash cycle, with many agencies competing for the naturally limited current and capital funding available. This is an annual challenge for all concerned in the delivery of public transport services, from the Department of Transport, Tourism and Sport to the National Transport Authority, CIE and Dublin Bus. However, significant progress has been made while operating in this budget cycle.

One of the key benefits of the bus is that the service is flexible. A bus network can quickly match resources with demand, as Dublin Bus proved after 2008 by reducing the scale of its activities by more than 20% to reflect the impact of the recession. As the early signs of economic recovery appeared, the company was in a position to quickly re-adapt to increasing demand. In line with the general recovery, our activities have since increased by more than 12%. This growth continues at a rate of between 5% and 7%. We must ensure we do not leave people waiting at our bus stops and stations. Additional capacity introduced will benefit the city in the long term and introduce new customers to public transport. It is significantly easier to introduce a customer to public transport than to convert a customer from private transport. The youth of today are the future users of public transport and have a strong appetite for multiple transport travel options that exclude car ownership. We must meet their future needs now.

Flexibility also applies to the ability to meet the aspirations of a city and its people. Dublin is undergoing significant change, with the ongoing construction of the Luas cross-city project. Throughout this period Dublin Bus has been able to adapt services and minimise the impact on customers. This has been achieved in a congested city in which we have simultaneously increased customer numbers.

Congestion remains a problem in Dublin, particularly in the morning and evening peak commute times. The city has narrow roads which were not designed to carry large volumes of vehicular traffic. Many users are competing for the limited road space available, including private transport, that is, cars and motorcycles, public transport, cyclists, taxis, delivery vehicles and pedestrians. As economic growth returns, congestion levels will increase further. Congestion limits a city’s ability to achieve its full potential in the economic, environmental, social and cultural areas. Dublin is positioning itself as a modern European capital and a congested city does not fit with this outlook.

The changes I have outlined in the scale of our business were complemented by a total restructuring of our bus network, the largest of its kind in Europe. In this period we also introduced significant enhancements of the customer experience, with the implementation of free Wi-Fi on all our buses; achieving the target of 100% accessible vehicles in our fleet; assisting in the roll-out of the Leap card and the national journey planner, in conjunction with the National Transport Authority; launching real-time passenger information and the Dublin Bus app, with more than 1 million downloads to date; and introducing Euro 6 engine vehicles which comply with the latest EU emission standards. Dublin Bus has achieved these changes in unprecedented times through the prudent management of the resources available to it and, crucially, the commitment of all of its employees. While the recent past has proved challenging for our customers and employees, there is an onus on all of us in Dublin Bus to ensure we provide continuity of the vital service we deliver. Dublin Bus has a proud tradition of ensuring every journey matters for every customer. This is something we will work hard to re-establish with our customers in the coming months and years.

I set out the current environment for public transport relating to Dublin Bus. My vision for the future of public transport services in Dublin is clear. It is a public transport network that is a better option than owning a car. The public transport network of the future must have, after safety, three basic fundamentals in place, namely, frequency of service, reliability of service provision and competitive and consistent journey speeds. Thereafter, information and price are key for customers. Having a public transport system that is a better option than owning a car is a vision that is achievable and will enable the city to fulfil its potential in many diverse areas. They include enhanced urban living opportunities, reduced congestion, improved air quality and reduced noise pollution. Achieving this objective will enable the economy to prosper and provide a platform for a vibrant social and cultural city scene. It will also increase capacity to deliver people to and from the city with reduced road space, increase the pedestrian environment in the city and enhance safety for all road users in the city. These objectives can only be delivered by way of a multi-modal mobility platform as opposed to a single means of public transport.

In short, the public transport network comprises many transport options, including bus, coach, bus rapid transport, buses which offer a high level of service, rail, metro, bicycle, taxi, car share and light rail. We must make the transport experience as simple as possible for customers.