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

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein) | Oireachtas source

I thank Mr. Ray Hernan and Mr. Seamus Boland for their presentations. My main focus is on Bus Éireann but having listened to Mr. Boland, in his words and his presentation, he has actually got the definition of what a public transport network should be about. It is about public transport service provision and not profit. That was my first observation.

I first want to address the ultimatum that was given to workers last week. In the first instance I found it inflammatory, provocative and very demeaning to workers who did not create this crisis. According to its correspondence with workers management is seeking to reduce the average pay by upwards of 30%, reduce Sunday premium hours from 100% to 20%, cut out overtime pay which would be gone completely, cut extra pay for shift work and change all drivers current contracts. It is also seeking to introduce the casualisation of workers by bringing in part-time and casual workers who would be on the minimum wage. The company also seeks the introduction of outside contractors to be brought in whenever and wherever and entirely at the discretion of the company. This would leave Bus Éireann drivers sitting at home while the company enters into contracts with private operators, casual drivers and part-time drivers all on minimum wage.

The witness said that he sees Bus Éireann as a premium employer. That statement is a farce in light of the correspondence he sent to staff last week. For a semi-State company to be instigating and implementing a race to the bottom for workers, as outlined in these proposals, is shocking. The 2% that management had proposed in its correspondence is insulting. It would be considered an allowance and would not be taken into consideration for the pension. It is also stated that it would be paid when the cashflow is there. Staff might never get it. Those worker have not received a pay rise since 2009.

When is the management going to take responsibility for this financial crisis? Everybody knows that the workers did not create the crisis. The first factor that contributed to the crisis was the over-saturation of routes but that has been flagged up continually and ignored. The NTA's licence application, and the criteria or the objectives of it, says that it will take account of demand or potential demand and the services already being provided by the existing bus passenger service.

The company's actions of recent years have therefore directly contradicted its own objectives. They have contributed directly to the financial loss in the company. On the Dublin–Cork route, seat capacity has grown by 120%. The seat capacity on the Dublin–Limerick route has grown by 111%, and that on the Dublin–Waterford and other routes has also grown. Between 2011 and 2015-16, the company issued five more licences. That amounted to 104 services. How in God's name did the company not think that introducing licence after licence would not have any financial effect on the Expressway service? A child could see that. One has to ask whether it was deliberate.

Let us examine the other aspect of the cause of the financial crisis rather than sticking it on the workers. In this regard, let us consider the free-travel pass. The Department of Social Protection contributes 41% of the average fare. That has contributed to loss-making within the company.

According to Bus Éireann's annual accounts, the company pumped €41 million of its own Expressway funds into the PSO business because of the lack of State funding. It was said there were losses of €5 million last year and €6 million this year. The delegates are completely confused about the amount for last year and possibly for this year. Had the revenue from the Expressway service not been pumping up Bus Éireann services because of the lack of State funding, we might not be in the predicament we are in. The PSO funding has been slashed from €49 million in 2009 to €33 million. Sticking it all to the workers just does not cut it; management needs to take responsibility itself.

The press release that was issued some days ago is nothing other than scaremongering. The delegates have said otherwise. The company has been repeatedly called upon to engage with all stakeholders. The Department of Transport, Tourism and Sport and the Government have consistently called on the company to engage with all stakeholders.

In its press release some days ago, Bus Éireann stated 2,600 jobs may be at risk. In saying this, it referred to the entire staff of Bus Éireann. We were told three weeks ago in the Chamber of Leinster House, and through press releases, that the losses incurred for 2016 amounted to €6 million. Within the space of three weeks, however, that figure has been bumped up to €9 million. One has to ask whether the facts were wrong three weeks ago when the figure of €6 million was issued. Why is there such a discrepancy? The difference of €3 million is approximately 30% of €9 million. Who got that wrong? Who is responsible? Does management not know what the loss was?

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