Oireachtas Joint and Select Committees

Wednesday, 17 October 2012

Joint Oireachtas Committee on Transport and Communications

Public Service Obligation Bus Contracts: Discussion

12:05 pm

Mr. Gerry Murphy:

Senator Mooney asked how we can respond to the real challenge of protecting small communities. The real challenge in this regard is the financial one. In 2008, some €308 million was allocated for the subsidisation of public transport services in the State. The figure is now €242 million. Therefore, there has been a drop of €66 million. There is to be another drop in subvention, in the order of 12%, in the next two years. This is why I contend that if we had the necessary moneys available, we would have the tools to remedy the problems. We do not have the moneys available, however.

We chose to tender the Durrow-Abbeyleix route but we had no subsidy available. In looking at quality and the service response, we made a decision simply on the basis of the fares that could be collected. The only moneys that were to be received were to be collected fares. We chose to go to tender because we felt it might be possible to find an operator that could exist on the fare box that was collected for a limited number of services. However, that could not be replicated in many of the areas talked about today. We could tender based on the same principle but we do not believe there is any point because the patronage would be so small that a service would not be justified. That is why we are faced with trying to reconfigure the services. I do not have an immediate short-term solution for the committee. We just have to work through the matter and try to reconfigure allied services effectively.

Deputy Flanagan asked about the meeting with us and what we could do if Bus Éireann decided to move every stop on its licensed services. The answer is that we could do nothing. On the question about the function we perform, I draw the Deputy's attention to my opening statement. The commercial bus licensing system is not to resolve these issues. One tool for doing so is State-subsidised services embodied in contracts. The licensing system can only do so much - it can only regulate the commercial responses for the services that are commercial.

Ms Graham will refer to the rural transport timeline.