Mr. Brendan Crowley:

I thank the Cathaoirleach. On behalf of the members of the CTTC, I would like to thank the committee for inviting us to present here today and for giving us the opportunity to discuss the very important issues affecting commercial bus operators in Ireland today. By way of introduction, I am Brendan Crowley from Wexford Bus, and I am accompanied by Mr. William Martin, chair of the CTTC, and Mr. JJ Kavanagh from JJ Kavanagh and Sons in Kilkenny.

The Coach Tourism and Transport Council of Ireland is the country’s largest representative body for commercial bus operators and we have a combined fleet of over 1,500 coaches. We are a proactive organisation operating across all sectors of public transport and tourism in Ireland. We act as a conduit between the sector, Government and other stakeholders. As a sector, we support more than 11,000 jobs across every constituency and region in Ireland. We are grateful to the committee for the invitation to be here today.

For many years the CTTC has worked collaboratively with the NTA and its predecessors on key projects, including the ITS system, otherwise known as the leap card. We fully participated at project board level and provided many hours of support with the testing of equipment to ensure the success of the leap card and the NTA’s ticketing system. More recently we worked with the NTA and other stakeholders to introduce the young adult card, YAC, to passengers travelling across the entire public transport network, which has been deemed by the NTA as a resounding success. This is evidenced by the tens of thousands of students and young people who use public transport, public and commercial, in ever increasing numbers on a daily basis. This is a clear example of how we can build on successes, using the technology available to deliver verifiable cross-sectoral systems.

Currently over 40 commercial companies participate in the YAC scheme. The scheme is not without concerns. In particular, we are concerned about maintaining the compensation rate, which is currently at 70%. Members will recall that a further fare reduction initiative was introduced by the Government as part of a package of cost-of-living measures during 2022, which saw fares on public transport reduced by 20%. Unfortunately, that spirit of collaboration and equality was absent in this case. Whether it was intentional or otherwise, we missed out on that.

This 20% fare reduction scheme initiated by Government has created an anti-competitive environment and threatens the viability of commercial bus operators which provide a valuable service, particularly on regional routes that are not served by other State operators. More than half of all kilometres on scheduled bus services in Ireland are operated by commercial operators and therefore passengers who travel on these routes are excluded from the 20% State discount scheme. This sector has grown by 52% over the past six years with zero cost to the Exchequer. The current inequity threatens the future viability of the commercial sector in a market where costs are constantly increasing.

Therefore, we ask committee members to use their influence to advocate for the passengers of all operators, whether commercial or public, to be included in any future fare reduction schemes. This was recently adopted as party policy at the Fine Gael Ard-Fheis and we ask that all other parties do likewise. As the NTA attested at this committee last week, such fare reduction schemes have been very successful in attracting passengers on to public transport and by including commercial operators, we can continue to assist the Government in achieving its stated policy of reducing dependency on car usage. The cost of including commercial bus operators in any further fare reduction schemes pales in comparison to the financial repercussions of a diminished commercial bus network and the environmental consequences of a mass return to private vehicles among disenfranchised rural communities.

Sustainability has to be at the heart of all we do, so we stress that, as an industry, we are committed to adopting best sustainable practices. Currently, CTTC members possess some of the most environmentally-friendly fleets in the market today. We remain determined to build on this progress and feel that now is the opportune time for the Government to begin working in meaningful collaboration with the private bus and coach sector to ensure the target of 50% carbon emissions reductions in transport is achieved by 2030. There are significant hurdles for operators, not least the significant costs associated with transitioning away from diesel powered fleet.

At present, the transport sector is VAT exempt, thus not allowing operators to reclaim VAT when purchasing vehicles, except for tour coaches that are deployed in very specific markets. In order to accelerate decarbonisation and encourage operators to invest in electric and lower carbon or alternatively fueled vehicles, we are asking the Government to extend VAT 71 relief. This can be enacted by the Department of Finance and is vital to assist our members in the upgrade of fleet to low emission vehicles, in line with Government policy. The current qualifying criteria relates to floor height and luggage capacity. This can be changed and has been changed in the past. Therefore, the criteria are not set in stone and could be adjusted to support the transition to low-floor sustainable vehicles.

The CTTC acknowledges the progress made to date via the alternatively fuelled heavy duty vehicle purchase grant scheme, which provides a level of financial aid for the purchase of low and zero-carbon vehicles. Yet owing to the current VAT 71 regulations, cost barriers still exist for many operators which are actively seeking to improve the environmental efficiencies of their respective fleets. We would also ask that the limited alternatively fuelled heavy duty vehicle purchase grant scheme be extended.

Commercial operators run over 92% of school transport routes on behalf of Bus Éireann, which are under contract by the Department of Education. We welcome the ambition contained in the recent school transport review. However, there are several issues we are concerned about which will severely hamper the expected growth in the system. An ongoing skills shortage combined with competition from other industries, such as the logistics industry, has resulted in a crisis in the recruitment and retention of drivers, in particular younger drivers. The industry now faces considerable barriers to continued growth and sustained service provision, in part due to the older age profile of drivers but owing more to the excessive time delays and associated costs of licence qualification, which is now in the region of €2,500. We believe this excessive financial burden is acting as a deterrent to those seeking employment within the commercial bus sector.

CTTC members are determined to safeguard continuity of service in the years ahead, while emphasising the need to ensure that all drivers strictly abide by training requirements that are expected of them. In this context, we are keen to work with other transport stakeholders to explore the feasibility of introducing an innovative driver training programme similar to other apprenticeship schemes. We believe this would allow young drivers to acquire a PSV licence while learning from experienced colleagues and without incurring a significant financial cost normally associated with obtaining a licence.

This could be facilitated through the ETB network. We welcome the inclusion of drivers and mechanics on the employment permits list as announced last year. Simplifying and streamlining the process for issuing work permits for non-EU drivers would open one pathway to easing the issue of driver shortages, while providing valuable employment opportunities for those who live or are seeking to work in Ireland.

Coach tourism remains a key component of Ireland’s tourism sector. We currently carry 2 million coach tourists across the country each year and generate 5,000 SME jobs. It is important that the coach tourism sector continues to develop sustainably and grows with the tourism industry. To protect the vibrant and sustainable coach tourism industry and the benefits this brings to the environment, visitors and the regions, we must invest in appropriate infrastructure. The lack of safe set-down and pick-up areas due in part to the reallocation of road space, particularly in our major towns and cities, is having a negative impact on visitor experience. Lack of secure overnight parking, toilet drops and passenger comfort facilities are all working against the Government’s stated policy of disincentivising private car use within the tourism sector. The decision to limit cruise ship berths in recent years at Dublin Port is equally having a negative impact, not only on retail, hospitality and visitor attractions in Dublin, but in the regions where stop-off visits generally follow those to the capital. This segment contributes more than €50 million annually to the economy and it is our contention that the Government must develop a cruise tourism policy for Ireland, in particular for Dublin, which is a popular destination for cruise passengers.

With the onset of summer, as concerts and sporting events commence, we urge that comprehensive public transport plans be mandatory for event permits issued to promoters and venues. The removal of designated coach parking from Mountjoy Square, for example, which traditionally served Croke Park, has resulted in private coaches being forced to park more than 3.5 km away, which is a 45-minute walk for patrons. Passengers from across the regions are disproportionately affected by the lack of viable set-down and pick-up options to access Dublin arenas for major games or events.

Despite the many challenges facing our members across all sectors of the industry we remain ready, willing and able to play our part. We have outlined some of the major successes and challenges facing our sector. There are many more which are currently under discussion with the relevant authorities and hopefully will find resolution soon. Not least amongst these are regulatory challenges, including issues with PSV inspections, bus stop approvals and route licensing on which we have engaged and will continue to engage with the Department of Transport. Aside from fares, there are many other opportunities for improvement such as the introduction of proper park-and-ride facilities, mobility hubs, enhancing our network of quality bus corridors and improving the overall efficiency of existing vehicles with shorter journey times which, in turn, will reduce our carbon output. A single deck coach has the potential to take between 40 and 50 cars off the road. It is estimated that a 10% reduction in peak period car usage will cut CO2 emissions by 14,500 tonnes per annum. The year 2030 is not that far away. It is time to act. Once again, on behalf of the CTTC, I thank the committee for the invitation to speak today and we are happy to hear any observations.