Oireachtas Joint and Select Committees

Thursday, 18 July 2013

Joint Oireachtas Committee on Transport and Communications

CIE Group Financial Situation: Discussion with Group Management

3:20 pm

Mr. Martin Nolan:

Profits were mentioned. We run commercial services. As we must reinvest in buses, we must create a profit. The public service obligation, PSO, is a net cost contract and we are exposed to revenue fluctuations. We must ensure we make enough to buffer us and repay our loans. The plan to break even at the end of this year and to make a profit next year is realistic.

We are involved in many groups under the rural transport scheme announced by the Minister of State, Deputy Kelly. Between school transport and our own rural transport schemes, we are the largest supplier of rural transport in the country. My understanding of the plan is to reduce the cost of administration and get more rubber on road, which would be beneficial to everyone.

All of our vehicles in provincial cities are wheelchair-accessible. Outside those cities, most buses are wheelchair-accessible. However, the infrastructure for accessing high-line vehicles is not present in many places.

We pay €1.5 million per year on tolls and airport parking charges. We are grateful to have the rebate back, albeit at a lower rate than seven or eight years ago.