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 Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance) | Oireachtas source

My first question is to Mr. Franks from Iarnród Éireann. The State subsidy has been halved over the past nine years from €195 million to €98 million. In his opening statement he said the balance sheet will not sustain further losses past 2016 without compromising safety. He has just said if safety was compromised Iarnród Éireann would have to cease operations. Is he saying that if further cuts are made and there are further losses in the next year, it will have to cut operations on safety grounds?

My next question is to Mr. Coyne from Bus Éireann. The deal hammered out allows for a 3% increase over and above the 8.25%, but the Minister has not opened the cheque book or increased State funding to provide for this. How will it be provided for? The deal speaks about a lean management scheme being implemented. Will Mr. Coyne indicate how he sees this lean management scheme producing presumably what management would call savings?

My next question is for Mr. Nolan of Bus Éireann. He indicated plans are under way regarding city services in Cork and Galway. Will he be more specific about this? Bus Éireann has spoken of reduced terms and conditions for staff in a hived-off operation. I am not seeking precise details but I am looking for something beyond a broad comment. What is meant by reduced terms and conditions for those members of staff? Will Mr. Coyne be more specific about this?

My next question is for Ms Graham of the NTA. The question relates to the franchising of the 10% orbital routes. This is effectively privatisation because no one really expects Dublin Bus to win the competition the way it has been established. How does the NTA expect private operators to be more competitive when more than two thirds of the costs of Dublin Bus relate to employee compensation, either wages or pensions, and most of the other 33% of costs covering material services are fixed? Fuel accounts for almost half of it and it is fixed. It is quite evident the only way in which one is more competitive in this environment is by reducing wages and conditions for staff. What has happened to the promised triple-lock for CIE workers whereby there would be a transfer of undertakings? There was a promise of a triple-lock in terms of the registered employment agreement, REA, a sectoral employment order and legislation. This certainly has not been put in place. What is the story? Will new employees who are not transferred from CIE be on lower wages, poorer conditions and worse pensions? Will they have collective bargaining rights? Surely Ms Graham must accept this goes completely against the trend now in Europe, where the re-municipalisation of previously privatised transport services is taking place. This is the case in Germany, France and the UK, where privatisation has delivered a poor service and high fares and services are not being re-nationalised.. If the company tries to operate these routes on the basis of lower wages and conditions and a race to the bottom, it is no way to run a modern transport system in a European capital and I ask Ms Graham for her comments on this.

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