Kathleen Lynch (Cork North Central, Labour)

I am taking this on behalf of the Minister for Transport, Tourism and Sport. The Minister is speaking at the Road Safety Authority's workshop on the road safety strategy this afternoon and is unable therefore to attend this Topical Issue Debate. He apologises for that. For reasons which will be explained, the Minister has no direct responsibility in this matter. I think both Deputies have made the case I am about to make.

There are two types of commercial service, namely, private bus company operations and Bus Éireann's expressway services. These services receive no Exchequer funding and have to cover their own costs. The Government does not make decisions on these routes. They are made by the National Transport Authority, NTA, the independent licensing body, following applications from operators. In addition, there are public service obligation, PSO, contracted services operated by Irish Rail, Dublin Bus and Bus Éireann. Luas services are also contracted services, but that company is currently able to operate without subvention.

Bus Éireann expressway services form part of the commercial network of services operated by the company, all of which are licensed by the NTA. Five of these routes have been amended recently and two have been issued with new licences. In addition, amendments to two routes are under consideration and one is under appeal. The inter-city expressway services are purely commercial services. Such services operate in competition with private operators in the inter-urban bus market. For example, Aircoach provides 17 express services daily between Cork and Dublin.

As part of its expressway turnaround plan, Bus Éireann is making changes to a number of its commercial services to meet the customer demand for limited stop services with quicker journey times and airport connections to ensure such services are commercially viable. Failure to react to this market demand and competitive pressure would result in areduction and loss of expressway services and jobs.

In the coming weeks, it is understood Bus Éireann will be making changes to the Dublin-Cork expressway service to reflect the demand from its customers in large population centres along the route for shorter journey times and more direct services. This will see the journey time on the Dublin-Cork expressway service reduced by approximately 50 minutes, by using the M7 and M8 motorways, while still allowing for the extension of the service to Dublin Airport. This will mean the Dublin to Cork expressway service will not serve Abbeyleix, Durrow, Johnstown or Horse and Jockey once the revised route comes into effect shortly. Daily patronage of Bus Éireann's services in Abbeyleix, Durrow, Johnstown and Horse and Jockey is not commercially sustainable. Portlaoise and Urlingford will still be served. Bus Éireann is following a viability and efficiency plan designed to address significant financial challenges related to factors such as a 20% fall in passenger numbers, fuel cost increases and competition. It is important the company responds effectively to achieve sustainable finances in the future, particularly as regards commercial services operated in a competitive market.

PSO services like Dublin Bus, Irish Rail and other Bus Éireann services are subsidised by the NTA under a PSO contract. The NTA will be reviewing PSO services to provide a service to towns that lose a long-standing commercial service that is no longer viable. The NTA will also look at services provided by the rural transport programme to mitigate the effect of the withdrawal of commercial services.

The Government is concerned that public transport services cater for the needs of rural areas. However, commercial realities for bus services operating in a competitive market have to be recognised. The Minister will encourage NTA efforts at finding alternative services, as mentioned. However, the overall fiscal position means there must be a realistic understanding of the financial constraints affecting the subvention of public transport PSO services generally. I understand the concerns expressed by the Deputies and I equally understand that the withdrawal of the service can be devastating.

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