Oireachtas Joint and Select Committees

Wednesday, 19 October 2016

Joint Oireachtas Committee on Transport, Tourism and Sport

A Vision for Public Transport: Discussion (Resumed)

9:00 am

Photo of Pádraig Ó CéidighPádraig Ó Céidigh (Independent) | Oireachtas source

I apologise for my late arrival; I was delayed at another meeting. I found the presentation and the witnesses' responses to questions very helpful because I have much to learn about this issue. Public transport is critically important to the economy and society. I strongly agree with Mr. Taft that we need to consider the wider impact of public transport, which is much more significant than pounds, shillings and pence. If it is necessary to commission consultants, I would appreciate if they would consider all of the factors involved in public transport. That point was very well made and I appreciate it.

In 2009 or 2010, an ESRI study found that people spend at least seven hours per week travelling to and from work. This means that individuals spend more or less a full working day commuting. Public transport can help significantly to improve the productivity of those who travel to and from work.

My company's income at macro-level is divided into two parts, namely, income from the public service obligation, PSO, and passenger income. In terms of my company's expenditure, we have very high fixed costs and low variable costs. The same issue was highlighted in respect of rail. A certain number of staff must be available. In that regard, I strongly agree that people should earn a living wage, which means they should be paid an income that allows them to survive and live. On the other hand, competition is also important and we must ask how we can reinvent ourselves and compete in order that we can perform better. In aviation, for example, the industry in which I am involved, the entry into the United Kingdom market of Ryanair, a company which is not my greatest friend, resulted in significant price depletion. One must be careful not to go too far in this regard because, as Mr. Taft noted, a monopolistic scenario can arise. Nevertheless, Ryanair had a very positive effect on Irish consumers and public transport.

It is vital for private operators and the transport trade unions and their members that a level playing field is in place. The procurement process needs to be revisited. Mr. O'Leary made a good point on a French company entering the market. This trend is not confined to transport and it extends to other sectors. The reason for this is that Ireland is not operating on a level playing field. We must review the way in which we deal with procurement.

I was a little bothered by the point the witnesses made about looking at contracts of employment for drivers who work for private companies. It is not fair to make a general assumption on this issue. From what I have seen, these contracts of employment are generally very competitive. While there may be exceptions, for example, one could point the finger at a tractor at the National Ploughing Championships, we would be better off moving from minor matters and looking at the big picture. I strongly believe public transport has a very important role to play in future.

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