Noel Dempsey (Meath West, Fianna Fail)

I propose to take Questions Nos. 58, 59, 76, 80, 95, 100 and 267 together.

In the course of the 2009 Estimates process, CIE indicated that it was seeking an increase in subvention to reflect increases in cost broadly in line with the consumer price index and to meet the additional costs associated with the withdrawal of the fuel duty rebate. Following discussions with the company and its subsidiaries and taking account of the group's financial position and the overall position of the Exchequer finances, an amount of €313.279 million was provided for in the Estimates, representing an increase of €5 million on the 2008 provision.

Despite this increase in subvention and a fares increase of 10%, CIE and its subsidiary companies are facing a difficult financial outlook in 2009 due to declining demand in an increasing cost environment. In response, the CIE companies are considering a broad range of measures in the area of pay and allowances, efficiency measures and service rationalisations to restore financial stability.

While I have discussed the overall position facing CIE with the chairman, it is a matter for the CIE companies, within the resources available to them from fare revenue and Exchequer subvention, to optimise their services in the most customer-focused, efficient and effective manner, while maintaining as high a level of service as possible to the travelling public. Issues such as staff numbers, pay and the level of redundancies are matters for the companies, in consultation with their staff. It should be noted, however, that the companies have given an indication of the number of bus withdrawals that may be required, which at 270 is lower than the 400 buses referred to by the Deputy. I have requested that when the companies consider service reductions, every effort should be made to maintain peak-time services and those to developing areas. Service reductions should be a last resort in their efforts to maintain financial stability.

The aforementioned Deloitte report, the recommendations of which I accept in full, sets out a series of measures that are designed to enhance the role of the bus. In my statement that accompanied the report's release on 26 January, I indicated areas in which the report had identified considerable scope within Dublin Bus to improve its services to customers, increase efficiencies and save money through, for example, redesigning the network, eliminating unnecessary service duplication and improving information to the customer. In the case of Bus Éireann, I identified areas in which it could explore opportunities to further reduce costs and pursue new business opportunities.

The Deloitte report should, therefore, be seen as supporting the actions being taken by both companies to turn around their financial position, which is not sustainable in the current environment. I have asked the companies to present to me their plans for the implementation of the report's recommendations at an early date.

I do not envisage that new legislation will be necessary to facilitate the implementation of the findings of the Deloitte report. Details of the Finglas corridor case study are available in the appendix to the Deloitte report, a copy of which is available in the Oireachtas Library. As I stated in answer to Parliamentary Questions Nos. 245 and 246 of 3 February last, I am in regular contact with my Cabinet colleagues in the Green Party regarding developments in public transport and the sustainability agenda.

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