Oireachtas Joint and Select Committees

Thursday, 13 December 2018

Public Accounts Committee

Comptroller and Auditor General Special Report 98: Provision of School Transport

9:00 am

Mr. Stephen Kent:

There are two aspects to this. The Deputy asked about value for money and whether we are making a profit. First, 90% of the routes that we operate are put out to tender and procured in complete compliance with EU guidelines. Anybody who gets to operate them will have won them on a competitive basis. Second, 83% of all of the costs associated with the delivery of this scheme at the moment go back to the contractors. They come through the Department, they pass through us and they go out there. This company has been through a radical transformation, as the Deputy may be aware, even in the past couple of years, and it continues to take on board a lot of the findings that we have. We have a transport management charge that tries to recover the indirect costs. It has fallen almost every year. It has fallen from €11.2 million and is part of the transformation that we tried to do again last year. It will be of the order this year of €10.5 million of costs. That goes to cover all of the indirect costs that surround and go into the business. We try to deliver and utilise it to get as many double trips into the business as we can into every single route. That is an important point.

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