Leo Varadkar (Dublin West, Fine Gael)

I propose to take Questions Nos. 30, 52 and 54 together.

I am aware of the report referred to in the questions. Bus Éireann and Dublin Bus strongly dispute the conclusions in the report.

All figures included in the published financial statements of the companies are subject to independent audit by the companies' auditors. Claims provisions are also reviewed by external consultant actuaries under the supervision of the NTA, National Transport Authority. I have been informed by the companies that they take all reasonable steps to ensure they have appropriate information regarding claims exposures. In estimating the cost of claims notified but outstanding, the companies have regard to the accident circumstances as established by investigations, any information available from legal or other experts and information on court precedents on liabilities with similar characteristics in previous periods.

The inter-company loans from Dublin Bus and Bus Éireann are included in the balance sheet of CIE and its bus subsidiaries. The inter-company loans relate to a banking pooling facility operated by the CIE group, which is common in many large businesses, in particular, those with subsidiary companies. When Bus Éireann and Dublin Bus generate cash from their operations it is pooled in a CIE group bank account. The CIE group believes this is a very efficient system which reduces banking costs and fees considerably.

I am informed that their repayment will not have any impact on operations of the companies which are fully accounted for in the profit and loss account of each company.

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