Oireachtas Joint and Select Committees

Wednesday, 25 January 2017

Joint Oireachtas Committee on Transport, Tourism and Sport

Current Financial Situation at Bus Éireann, the Expressway Service and the Rural Transport Programme

9:00 am

Mr. Ray Hernan:

The letter stated I am looking at all cost drivers within the organisation. We have already implemented 70 work streams across the organisation to try to achieve efficiencies. This covers, for example, improving maintenance scheduling for our bus fleet to ensure buses are available at peak times in the mornings and evenings. Currently, we do all our maintenance during the day. It is of no use having our buses being maintained in garages and depots during the day when they should be on the roads delivering passengers.

Unfortunately, staff costs account for approximately 40% of our total cost base and this cannot be ignored. We do not have the most efficient structures and we do not obtain best value for money from our staff structures. However, we have also identified many other areas which will deliver savings. It is not only about delivering savings to turn around the current financial crisis but also about placing the company in a much more competitive position for the future in terms of new tenders. We have already received our first tender for a public service obligation, PSO, route this year, namely, for the Waterford city service. I want Bus Éireann to be able to compete successfully to win that contract. We will probably be up against national and international competition.

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