Alan Kelly (Tipperary North, Labour) | Oireachtas source

I propose to take Questions Nos. 9, 32 and 45 together.

The direct award contracts for the provision of public service obligation, PSO, bus market services held by Dublin Bus and Bus Éireann expire late next year. The awarding of subsequent contracts is a matter for the NTA. On 5 December and in accordance with the provisions of the Dublin Transport Authority Act 2008, the NTA announced that up to 10% of publicly subvented PSO bus services would be tendered out, with the new services commencing in the summer of 2016. Tendered services are due to commence in August of that year.

There are a number of trade union concerns about potential tendering for PSO services. These include the impact on industrial relations and cost savings measures within CIE at a general level and the specific implications of transfer of undertakings legislation, TUPE, and related issues. However, it must be recognised that the proposals outlined in the consultation process are relatively modest and there will be a long lead in before any tendering takes effect. Furthermore, it is of course open to the two incumbent companies to compete for any tendered route. Sometimes, this point is lost. It should not be assumed that there will be any reduction in staff numbers or that TUPE will even arise.

Following the announcement by the NTA on 5 December, these issues need to be addressed by it and the bus companies through constructive engagement with the unions in the course of the procurement process over the next two years. Following a meeting in recent weeks that the Minister, Deputy Varadkar, and I attended with all of the trade unions involved, including SIPTU and the NBRU, the chairman of the NTA has been asked to carry out such a structured engagement.

The winning tenderer will be required to deliver a specified service under which the timetables, fares and standards of service will be set down by the NTA. There will be no cherry-picking. The State, in the form of the NTA, will be determining frequency and routes of these services. The intention is that a better service can be procured for the same PSO subvention that is currently provided or that the same service can be provided for a lesser cost to the taxpayer.

Regarding the Irish Rail market, the European Commission announced a package of proposals last January aimed at delivering better quality and more choice in railway services across Europe. Among the proposals is the opening of domestic rail passenger markets from 2019 onwards. The package also contains a proposal that would lead to all PSO contracts being awarded by means of a competitive tender process from December 2019. The discussions on these latest proposals have not yet commenced. The proposals are being scrutinised by my Department and the approach to be taken will have regard to the views of interested parties. As the House will be aware, Ireland has specific rail issues, given the fact that we are surrounded by water.

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