Jimmy Deenihan (Kerry North, Fine Gael)

The Government's intention to remove fuel rebates on school contract work from 31 December 2007 came to the attention of private bus operators through an article in The Sunday Business Post on 4 November 2007. The announcement, which came out of the blue, places private bus operators in a difficult financial situation, especially in light of enormous increases in fuel prices. Operators are in the middle of a contract agreement with Bus Éireann and the withdrawal of the fuel rebate puts them in a no man's land because the rebate was used as a bargaining tool when negotiating the contract. The usual response from Bus Éireann was that operators would always have the fuel rebate. The fact that the company knew about the imminent removal of the rebate further infuriates the private operators, who were aware that the prices agreed were for a period to June 2008 and based on receiving 3.4533 cent per litre of a refund for fuel consumed on each contract.

I received a number of letters from operators, one of whom states:

We presently employ eight school bus drivers on our payroll and transport approximately 550 children daily to and from school. The impact that this withdrawal will have for us will be devastating as we now have to operate for six months of 2008 without the rebate which we based our figures on initially, and which Bus Éireann allowed us do, knowing full well that it was to be withdrawn. This is coupled with the fact that we had to absorb the costs of the seat belt changes over the last few years but these were for the overall good of the school transport system unlike this present problem which will inevitably push operators out of the business. The long term issue will be who will transport children to and from schools in the 2008-09 school year.

Another operator wrote:

All of my prices and contracts for 2008 are based on this fuel rebate and they cannot be withdrawn. My business will fail. I do not know what I can do now with such short notice and I plead with you to make the strongest representation on my behalf to have this decision at least postponed to allow me seek alternative arrangements. I have been put at a serious disadvantage also, as the State company, Bus Éireann, were made aware of the removal of this rebate last year. I employ two people and carry approximately 70 kids to school each day. The removal of this refund, 3.4533 cent per litre, will make my business unsustainable and I will be forced to cease trading.

Another operator wrote:

All of my prices and contracts for 2008 are based on this fuel rebate and they cannot be withdrawn. My business will be severely disadvantaged. I don't know what I will do at such short notice and I plead with you to make the strongest representation on my behalf...I employ 20 drivers on a part time basis, and run numerous amount of tours from March to November each year. The removal of this refund, 3.4533 cent per litre, will make my business unsustainable and I will be forced to lay off workers earlier in the season, and I might even be forced to cease trading.

I urge the Minister to postpone the decision until June, when the contract ends. That is reasonable.

See this speech in context