Catherine Connolly (Galway West, Independent) | Oireachtas source

Having got the congratulations out of the way, and having referred to the essential nature of the service, I must mention that the report is damning in respect of the Department's oversight. I realise that things have moved on since then. I suggest we should look at the conclusions in the report. Even though this is ostensibly a cost-based service, the report identifies serious flaws in the recovery of costs, particularly the management charge, which I will come to. Oversight reporting requirements were weak, there was no service level agreement, and forecasting was poor. The report makes three recommendations, within which there are a number of elements. What do the officials from the Department have to say about the serious flaws in the recovery of costs? I understand what Bus Éireann has said. The witnesses can correct me if I am wrong in my understanding that the management charge was fixed at 13% of the direct costs, regardless. It was capped at that level. There was a surplus arising from that year after year. The figure for "accumulated service" was €11.2 million when the report was compiled, but it had decreased to €6 million last year. I might be wrong, but I think it was recommended that this should be eliminated on the basis that there was no adequate explanation from the Department of how it was fixed and so on. Mr. McCarthy might correct me if I am wrong when I say the recommendation was to get rid of it. I understand it is gone now. Where has it gone to? How did it happen? If it was correctly done on a cost recovery basis, how was this charge allowed? Where has it gone to? I understand it has gone this year as a result of the special report. Is that right? It did not go on foot of any action from the Department.