Simon Coveney (Cork South Central, Fine Gael) | Oireachtas source

It is important to deal with the facts. The subvented part of Bus Éireann's network, the public service obligation, PSO, network, is performing well and will receive additional taxpayers' resources both this year and next year. The issue arises where Bus Éireann is competing with other operators, areas in which the State is prevented from intervening in a way that would be seen to be anti-competitive. We need to identify what the real problems are. The State needs to ensure people have access to an adequate public transport service in areas in which it might not be commercially viable to provide a service, where there are no alternatives and no competitive routes. We are increasing the level of State support in these areas. What are at risk are Bus Éireann services on competitive routes.

Yesterday representatives of Bus Éireann attended the Labour Court. Their appearance was on foot of a pay claim lodged by unions. Bus Éireann outlined the very serious financial position it was in. All Members of the House are by now aware of the situation. I am advised that Bus Éireann is losing about €6 million a year. However, the core problem is on the competitive routes on which the State is prohibited from intervening and subsidising services. It is clear that management at Bus Éireann needs to develop plans to address the commercial challenges facing the company. The formulation and progression of these plans are, of course, matters for its management team. People should not cross over, fudge and merge the arguments between the PSO routes that are supported with taxpayers' money, as they should be, and the competitive routes on which Bus Éireann is struggling and losing money.

See this speech in context