Dáil debates

Wednesday, 15 May 2013

Other Questions

Industrial Disputes

2:40 pm

Photo of Alan KellyAlan Kelly (Tipperary North, Labour) | Oireachtas source

Last year we paid Bus Éireann its fifth highest subvention ever. The Deputy raised the issue of staff. As stated previously, I have a number of friends who work for Bus Éireann and I know the company quite well. Its average staff cost per employee in 2007 was €46,653. Instead of decreasing, this figure rose to €51,603 in 2012. I wish to place on record a few facts. I am very supportive of Bus Éireann which does a great deal of work throughout the country. Its impact across the network outside of the key conurbation of Dublin is huge. The role the company plays should never be underestimated. As stated on previous occasions, there are three different categories which apply here, namely, cost recovery in respect of school transport, the PSO requirement - as stated in reply to an earlier question, this will have to be reconsidered in the context of routes and areas - and the Expressway service. Given the competition which exists, there is no doubt the company has encountered some difficulties in respect of the Expressway service in the recent past. Bus Éireann has lost a considerable amount of money - €27 million - during the past five years. The projected loss for this year is €11 million.

I have spoken to many union representatives and they accept that this cannot continue because the position is not sustainable. I agree that changes will have to be made at management level and that savings are obviously going to be obtained from staff. There is going to have to be a combined effort and it will only be by means of this that we will be able to protect the company. As Minister of State with responsibility for public transport, my ultimate ambition is to protect Bus Éireann and the three core services it provides. I must also protect the public, particularly as the company provides such an extensive and badly needed service. A total of 2,500 people work for Bus Éireann, and their futures depend on the discussions which are taking place today. I sincerely hope the House will support the outcome of those discussions. The Labour Court, which made the original recommendations, is an independent body. The company sought a great deal more in savings, but the amount recommended by the Labour Court is €4.8 million. That is the quantum which will have to be achieved to ensure Bus Éireann will be able to survive and continue to operate with all of its 2,500 employees on board. We are working collectively to try to achieve that goal.

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