Mr. Tim Duggan:

In the case of private operators, it is done through surveying. If private operators choose to participate in the scheme, they must undertake a survey under the direction of the Department for approximately six months. Based on the findings of the survey and subsequent negotiations, a rate is arrived at. It used to be that way for CIE up until 1973, but from then on a different approach was taken, whereby the payment was based on the provision of services. It is, therefore, a service charge rather than a per journey charge. The rate has been extended and enhanced in the years since based on additional or expanded services provided by CIE. For example, when Luas joined the scheme in 2004, an additional €3.1 million was paid to facilitate free travel on that service. A total of €1.4 million was offset against the payment to the CIE Group because of the transfer of passengers from one set of services to another. When peak time restrictions for all CIE bus services were removed in September 2006, an additional annual cost of €1.15 million was agreed and added to the free travel bill.

Similar adjustments were not made for the introduction of the DART in 1984 or for the development of additional services on intercity rail under the Transport 21 initiative, but each time there is a new service or an expansion of a service, it is open to CIE to request a renegotiation of the rate with us.