Noel Dempsey (Meath West, Fianna Fail)

The mandate of CIE and its subsidiary companies to provide reasonable, efficient and economical transport services remains as set out in the Transport Acts 1958 to 1986. It is a matter for CIE and its subsidiaries to fulfil this mandate from within the financial resources available from fares and Exchequer funds. This statutory base for the funding of public service obligation services has been reviewed in the light of EC Regulation 1370/2007 and a new contract based regime is to be implemented later this year, in accordance with the provisions of the Dublin Transport Authority Act 2008 and the proposed public transport regulation Bill.

The annual Exchequer subvention to CIE in 2009 in respect of its public service obligations is €313 million, an increase of 65% on 2000. This includes over €120 million for bus services in 2009. Bus services have also benefited from significant capital funding of €148.7 million over the period from 2006 to 2008. Despite these high levels of funding and fare increases over the years, Dublin Bus and Bus Éireann are facing a very difficult financial outlook in 2009 due to declining passenger numbers in an increasing cost environment. In response, both companies have put in place cost recovery plans involving measures to increase revenues, change pay, allowances and work practices and rationalise services.

The companies must implement cost recovery plans, as it is not open to the State to compensate for current losses being incurred by CIE given current constraints on the Exchequer, EU state aid rules and, in particular, the "market investor" principle, that is, governments must act in the same way as a commercial investor and are not permitted to give terms to transport operators that are unduly favourable, for example to write-off part losses.

As part of the effort by both companies to maintain and increase passenger numbers, the Deloitte report identifies significant scope within Dublin Bus to improve services to customers, increase efficiencies and save money through, for example, redesigning the network, eliminating unnecessary duplication and improving information to the customer.

Additional information not given on the floor of the House.

Both automatic vehicle location, AVL, and integrated ticketing have been identified as important reform measures by the Deloitte report. The AVL system on the Bus Éireann fleet is expected to go live this summer. Plans are also progressing to install real time passenger information, RTPI, road sign displays on a selected number of stops on a trial basis. The Dublin Bus AVL system will be rolled out on a test basis later this year, with the system being installed across the network in 2010. Associated with this, the roll out of RTPI by Dublin Council will commence in 2010.

Integrated ticketing in the greater Dublin area is being introduced on a phased basis, based on smart card technology. A progressive approach is being adopted to allow customers to familiarise themselves with using the new system and to permit transport operators to undertake the necessary testing associated with the integration of the technologies involved.

A smart card for Luas services has been available on all Luas services for some time. Smart cards are also now in use on Dublin Bus services in respect of a number of integrated ticket products such as annual and monthly integrated bus and rail and bus and Luas tickets. During 2010 smartcards with an electronic purse will be available to almost all public transport users in the greater Dublin area.

With the exception of the single standard fare, decisions regarding ticketing structure and ticket types are a matter for the companies taking account of operational, commercial and customer factors.

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