Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I thank the Deputies for raising this matter. Since this is such an important matter I am pleased to have the opportunity to brief the Dáil. It is disappointing that unions have withdrawn from discussions being facilitated by the Labour Relations Commission. I understand the discussions had been progressing with several employee concerns being addressed.

The National Transport Authority has the statutory responsibility under legislation for judging how best to balance direct award and tendered public service obligation bus services. The NTA decided in late 2013 that 10% of the existing PSO bus market should be tendered following a wide-ranging consultation process. The NTA was proceeding with the public procurement process while participating in an LRC-facilitated process to address CIE employee concerns on the implications of this market opening. The talks have been adjourned following the threat of litigation by the NBRU and trade union withdrawal yesterday.

I reiterate that there has been intensive engagement for some time on employee issues. It is the Government view that these LRC discussions would allow employee concerns to be addressed satisfactorily. Indeed, there has been a particular focus on facilitating existing employees to remain in either Dublin Bus or Bus Éireann if either company did not succeed in the tendering process. I understand that strenuous efforts were being made within the talks process to facilitate as many existing employees as possible to stay in their respective companies, arising from forecast growth in the PSO market under the Dublin Bus and Bus Éireann direct award contracts.

The introduction of competitive tendering has the potential to save taxpayers' money, encourage cost competitiveness and enhance service quality. The international experience indicates that competitive tendering is beneficial in providing subsidised PSO bus services or socially necessary non-commercial bus services.

This year, 2015, for the first time since 2008, the level of PSO contribution for bus and rail services is being maintained at the same level as the previous year. Moreover, I secured €110 million for public transport as part of the 2014 Supplementary Estimate. Improved public transport, whether new services or increased frequencies of existing services, will require additional funding. Our support for improved services should be given in conjunction with an appropriate degree of competitive tension within the market in the interests of quality and cost-effectiveness for commuters. This is why I am committed to the 10% tendering of bus routes.

I recognise, however, that trade unions have concerns about the impact of our existing legislation post-2019 when the direct award contracts granted to Dublin Bus and Bus Éireann are due to expire. I am advised that the legislation, which was enacted by the previous Government, was carefully crafted in accordance with EU law. This legislation has recently allowed the NTA to renew the direct award contracts of Bus Éireann and Dublin Bus subject to arrangements being made for the tendering of 10% of the PSO bus market. However, in light of trade union concerns, my Department has recently agreed to seek legal advice on specific aspects of the compatibility of our legislation, in particular with regard to the post-2019 scenario, with the provisions of EU law. Despite this agreement, the NBRU decided to withdraw from the talks yesterday.

The NTA is satisfied that it has the necessary powers under existing legislation to continue with the tendering process and will defend any threatened litigation by NBRU as necessary.

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