Dáil debates

Wednesday, 2 November 2016

Ceisteanna - Questions - Priority Questions

Bus Services

3:30 pm

Photo of Shane RossShane Ross (Dublin Rathdown, Independent) | Oireachtas source

I thank Deputy Munster for the question. It is topical because of the critical situation in which Bus Éireann finds itself.

Since December 2010 the NTA has operated as the regulator of licensed bus services and all commercial operators must apply for a licence under the Public Transport Regulation Act 2009. I am unaware of the forum as referred to by the Deputy. It is worth noting that since 2010 the NTA has issued only five new licences in the intercity bus market. It has approved amendments to a further three licenses and refused eight applications for licences.

Last year, almost 28 million people travelled on licensed bus services, with over 7 million of those travelling on Bus Éireann Expressway services. Specifically, on the major intercity corridors, the annual number of passenger journeys rose by approximately 1 million between 2012 and 2015. However, that overall growth in passenger numbers and revenues is not being reflected in the Expressway operation and it has lost approximately 6% in passenger numbers since 2012. As a result, Expressway is loss-making and this, in turn, is affecting Bus Éireann's overall profit. Last year, the company as a whole lost approximately €5 million and this year the company forecasts losses of up to €6 million. Clearly, these losses are not sustainable and the company is required to address them.

I have been consistently clear since assuming office that issues relating to pay and conditions in any particular State-owned company under my Department's aegis are a matter for discussion and agreement between the employer and the employees.

The Deputy is aware that Bus Éireann has engaged consultants to review independently the options available to it as it seeks to address these aforementioned losses. That process is still going on. In addition, the Deputy is probably also aware that the company has indicated its desire to discuss the Expressway issue with trade unions. I am firmly of the belief that difficult issues such as this can only be resolved through open, constructive and realistic engagement between the company and its employees. A Programme for a Partnership Government commits to a review of public transport policy, and as an integral part of our public transport network, the commercial licensed bus market will come within the ambit of that overall policy review.

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