Mr. Ray Hernan:

Just to clarify, when the Senator mentions outcomes, does that mean outcomes in terms of a financial plan to turn the business around and make it sustainable? If that is what the Senator is referencing, I will say that I have come into the organisation at a very difficult time in its history. I take my responsibility very seriously. I have a lot of staff working on my behalf and on behalf of the Government. What we are trying to do is a root and branch review of every single cost line and every single structure within the organisation. We cannot avoid assessing the efficiency of our staff as well, and the structures that surround the staff, including pay structures, and analyse whether that needs to be changed to bring it into line with what our customer needs.

We have to accept as well that payroll represents approximately 40% of the total cost base, so unfortunately it cannot be ignored. I believe that we do not have the most efficient structures in place. What I have done to stem the tide of the continuing financial loss is that we have implemented measures which were already part of collective agreements, but which had not been implemented across the whole network. We are trying to take very concrete steps to ensure the viability of this organisation going forward. I am more than happy to listen to anybody who has any other suggestions as to what we should be doing to try and stem the losses that are currently occurring. What I want to do ultimately is come up with a viable long-term solution to the financial difficulties that we have.

I am more than happy to speak to anyone, including the unions. My challenge, in terms of trying to meet the unions, is that we have a very obvious financial crisis. If we do not start to make changes very, very quickly we are going to run out of reserves before the end of this year. I wrote to the unions inviting them to meet but they all declined. I had to include a deadline to apply urgency to the matter, because ultimately the board of our organisation has to approve the 2016 accounts before the end of March.

If we do not have a viable plan ready which shows the board a return to profitability within a period of time, then under its fiduciary duties it will not be able to sign off on the accounts of Bus Éireann as a going concern. That creates a massive vista that I do not wish to go near. It is absolutely critical that the unions which represent our staff and which I will have to work with going forward to implement the service that I believe our customer wants, must engage very urgently. I laid out in a very detailed letter what I felt needed to be discussed.

Last week, at another Oireachtas committee meeting, I outlined that I do not see these as preconditions. Rather, we highlighted them to the unions as issues we need to review and change if we are to become fit for purpose as an organisation that best serves the customer.