Ms Fiona Ross:

I am grateful for the invitation to attend the committee meeting today. I am honoured that the Minister for Transport, Deputy Eamon Ryan, has nominated me to serve a second term as chair of the CIÉ group. CIÉ’s statutory mandate is to provide socially necessary bus and rail transport in a well-functioning, integrated manner which contributes to balanced regional economic development and social cohesion at a reasonable cost.

Under legislation, CIÉ has devolved certain of its statutory functions to three operating subsidiaries - Bus Átha Cliath, Bus Éireann and Iarnród Éireann. Therefore, CIÉ’s role as parent is to foster the autonomy of these operating subsidiaries while providing necessary co-ordination in regard to financial sustainability and other shared issues. I am delighted that my fellow chairpersons are with me today and the committee will hear from them in due course.

As members will be aware, the arrival of Covid-19 in early 2020 has impacted on all aspects of our business and personal lives. I am very proud of the role CIÉ has played during these difficult times. Keeping our services running safely helped maintain a semblance of normality in very difficult times, but most importantly ensured that key workers could get to their place of work. We now have a unique challenge to recover our business and to ensure the post-pandemic recovery is sustainable.

As a result of the pandemic, the financial sustainability of the group in the short to medium term has obviously been a key focus of the CIÉ board in 2020 and up to today in 2021. As requested by the board, CIÉ has developed a focused two-year strategy, which was approved by the board in December 2020. The magnitude of the sudden impact of Covid-19 on the group's finances has necessitated the adoption of this strategy, which is primarily focused on ensuring the financial stability of the group, while also progressing wider strategic goals where possible.

In addition to the revenue shortfall, the other very significant challenge facing the group is the scale of our pension deficit. This pension deficit is a key component of the weakness in the group's financial position. The accrued liabilities of the scheme have increased significantly in 2020 and exceeded the scheme's assets by €970 million at the end of 2020. This highlights the group's exposure to the very significant challenges and the value of the scheme's liabilities. This is a priority concern for CIÉ as it puts at risk the long-run security of pension provision for our workforce.

My fellow board members and I know it is increasingly important that measures are taken to further de-risk the schemes and provide for long-run sustainability of pension provision. In order to meet the minimum funding standard, within a timeframe to be agreed with the Pensions Authority, revised funding proposals from the trustees and committee of the CIÉ 1951 superannuation scheme and regular wages scheme are required to be submitted which address the existing deficits in both schemes.

We have made good progress in 2019 and 2020, and the proposals which emerged from the Workplace Relations Commission-facilitated process represent the optimum that can be achieved in the matter. These proposals were accepted by members of the regular wages scheme in June 2020. The regular wages scheme is primarily composed of 6,500 of our front-line workers.

A Labour Court recommendation on proposals for the 1951 scheme, which has approximately 2,200 members, has been accepted by CIÉ and the CIÉ board as the sole basis for developing a revised funding proposal for this scheme. A ballot of members is currently under way.

Ensuring the financial security of the group will allow CIÉ to play a leading role in the nation's recovery post Covid and help deliver a more sustainable future.

The CIÉ Group plays an integral role in delivering a national strategy for decarbonisation. We are prioritising our climate change responsibilities. Being the largest public transport provider and one of the largest landowners in Ireland, the CIÉ Group is in a unique position to provide smarter travel options and contribute to a sustainable economy. The CIÉ Group has adopted the UN sustainability development goals, STGs, and our new sustainability strategy is aimed at aligning our business processes with the STGs and the public targets outlined in the climate action plan.

CIÉ is also committed to integrating transport orientated development, TOD, whenever feasible, utilising the extensive and centrally located property holdings in the CIÉ Group portfolio. We have the potential to optimise the provision of housing, employment and urban spaces in close proximity to the frequent, high-quality transport services which are necessary to support TOD.

Our development objectives prioritise compact growth and access to well-designed mobility hubs, creating the conditions necessary for modal shift.

We are working on a ten-year plan for the delivery of flagship projects such as the Heuston Station master plan, Colbert Station, in Limerick, Connolly Station, Kent Station and Ceannt Station, in Galway.

On behalf of the board I would like to express my thanks to the Minister, Deputy Ryan, and the officials in the Department of Transport for their support in 2020, particularly given the financial challenges of the group as a result of the pandemic. I would also like to thank officials in the National Transport Authority, NTA, and NewEra with whom we have regular contact. I pay tribute to the operating companies and all CIÉ employees. While the pandemic has presented major challenges for the group, it is individuals and families across the country who have borne huge personal cost. They are in our thoughts today. I would be happy to take any questions at a later stage.