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. Stephen Kent:

We do not have any issue at the moment. We have to play within the rules of the game. The NTA are acting within the legislation. If an operator applies for a licence it can get the licence if it is prepared to take on the commercial risk. We have to accept that this is something that is more inevitable as we go forward and that the prospect of competition could actually increase. As to whether we are on a level playing field, if we want to seek to expand our services we have the same ability and freedoms to apply for changes if it is within our ability to deliver those changes cost effectively.

With regard to the playing field we are stuck in, the operation of Bus Éireann and the commercial part of the services is part of the wider infrastructure within Bus Éireann. Bus Éireann has a number of issues that are not within the remit of private operators. The number of depots and garages we occupy and the number of stations we operate from all add overhead to our commercial business, which would not be within the realm of the private operator. They all add costs that must be recovered. Our issue is that we try to recover some of those costs where we can on our fare box and to a large extent we are not the cheapest operator in the market and we do not pretend to be. We offer good value where we can and we are trying to be competitive on our fares. At the same time we have a cost base that at the moment is simply too high relative to some of those commercial operators and we have to put ourselves back in the frame in order to compete better with them. This is what we are trying to recognise in this plan.

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