Oireachtas Joint and Select Committees

Thursday, 27 January 2022

Public Accounts Committee

National Transport Authority: Financial Statements 2020

9:30 am

Mr. Tim Gaston:

There are two parts to this. The public consultation closed in December and we are analysing the contributions now. We are also in the process of developing phase 1 of the plan. It will be a five-year plan and, as the Deputy said, our estimate is that there will be an increase of approximately €50 million in revenue expenditure to match the proposal. We will deliver phase 1 of the plan in the coming weeks. We have targeted those services that are already nearly planned or where the Local Link offices have been able to indicate there is demand. We will shortly be publishing the phase 1 plan, along with an indication of when phases 2 to 5 will be delivered. Those will involve a more regional approach. The plan will have three main strands. Local Link will provide services, or we will jointly tender and then Local Link offices will oversee the contracts for routes. Bus Éireann routes will be modified. We are also in detailed discussions with several commercial operators regarding licensing. Those are the three strands of delivery which must come together.

Turning to the question of indexation, we are very much aware of the cost of fuel increase. Some of our contracts, those I described earlier, include a fuel index component. If there is an increase in the price of fuel, then the feed we pay them will be increased. Some contracts, however, do not have such a provision. In those cases, we have identified what we believe to be the indexation increase and we are doing a one-off variation for 2021 in respect of the increased fuel costs the operators incurred. If fuel remains at a high price, then we will do a one-off indexation variation for 2022 as well.

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