Mr. Tim Duggan:

I thank the committee for the opportunity to appear before it today on the matter of the Department of Social Protection's free travel scheme. Unfortunately, due to other commitments the Minister for Social Protection is not available to attend today and he sends his apologies. My colleagues, Miriam Finnegan, Darragh Doherty and Peter O’Reilly work on the policy and operational sides of the free travel scheme.

The free travel scheme was established in 1967 and permits travel for free on most CIE public transport services, Luas and up to 80 private operators. Free travel is also available on cross-Border journeys and within Northern Ireland. It is available to people aged over 66 years, to carers and to people in receipt of disability allowance, blind pension and invalidity pension. There are currently just under 875,000 customers directly eligible for free travel and when companion and spousal passes are taken into account this brings the total potential eligibility up to over 1.4 million.

In 2017, it is estimated that payment of €61 million will be made to the CIE group. The apportionment of payment among the three constituent companies, Bus Éireann, Bus Atha Cliath and Iarnród Éireann, is a matter for the CIE group to determine and the Department has no role in that. In addition, it is estimated that payments will be made under the scheme of €8.5 million to private operators, €3.9 million to Luas, €1.5 million to the rural transport programme and €1.7 million for cross-Border travel, which is paid to Translink and a private operator.

In 2012 the then Ministers for Social Protection and Transport, Tourism and Sport established an interdepartmental working group to review the free travel scheme. The review was carried out at a time of fiscal constraint to examine and report on the operation, sustainability, effectiveness and future development of the free travel scheme. By the time the report was finalised in October 2014, the economic position had improved significantly and the report and its recommendations were not considered by the then Ministers or the Government and it does not at this stage represent Government policy. The Minister has made it clear on many occasions that he considers the free travel scheme to be an invaluable support for older people and people with disabilities, with a significant role to play in promoting social inclusion and preventing isolation. He has highlighted his full commitment to maintaining the free travel scheme and there are no plans to make changes to it at this time.

Funding for the free travel scheme was capped at 2010 levels under the Programme for National Recovery 2011–2014. In budget 2016 an additional €3 million was made available to allow new entrants to the scheme or to ensure services were maintained where there had been changes to routes. CIE submitted a request to the Department in September 2016 for increased funding. The Department ensured this submission was included in the budgetary considerations at the time, but given the many competing demands for funding in budget 2017, the Government was unable to increase funding for the scheme.

The Minister for Transport, Tourism and Sport has written to the Minister for Social Protection asking that consideration be given to reviewing the funding arrangements and level which was last set in 2010 and proposed that the Departments engage further on the matter. This engagement is under way and further meetings are planned between the Departments and the National Transport Authority to review the payment mechanisms underpinning the free travel scheme. The final decisions onthe funding of the scheme will be a matter for the Government.

I am happy to discuss any issue the committee would like to raise.