Shane Ross (Dublin Rathdown, Independent) | Oireachtas source

I thank the Deputy for his question. Regarding the industrial relations issues at Bus Éireann, I have been clear in my calls for discussions between the two relevant parties, the management and trade unions, to commence immediately. I do not doubt that those discussions will be difficult.

However, it is obvious that they must occur. As I clarified to the joint Oireachtas committee last week, I am of the view that those discussions should commence on the basis of no preconditions from both sides. If uncertainty exists in that context, then I would urge both parties to clarify their positions.

I can inform the Deputy there was no such report submitted to my Department in January 2016. As I previously informed the Deputy, during the course of 2016, Bus Éireann management worked on developing a business plan to address the loss-making situation in its commercial Expressway business. Several drafts of Bus Éireann's proposals were presented to my Department and NewERA – my Department's financial advisers – and were discussed during 2016.

This type of interaction is entirely in line with the code of practice requirements regarding the preparation of business or strategic plans by a State body. As outlined in the code, the responsibility for the preparation, finalisation and adoption of such plans rests with the board of the relevant body, with an opportunity allowed for departmental consideration of draft proposals.

It is incorrect to state that my Department rejected plans developed by the company. Those discussions between my Department and Bus Éireann did, however, highlight some critical shortcomings that existed in the draft proposals as presented. As the Deputy is aware, these shortcomings relate to the commercial rationale, financing, implementation, sensitivity and risk analysis, and the necessity to consider both state-aid and competition law interactions.

Additional information not given on the floor of the House

The Deputy is also aware that, in September 2016, the board of the company commissioned independent consultants, Grant Thornton, to review the company's proposals as developed during the year and to advise the board. Unsurprisingly, that review by the independent consultants for the board found similar shortcomings with the proposals as those identified previously when the proposals were considered by the Department and NewERA. The review also made recommendations to the board about an approach to finding a way forward. Therefore, arising from the board's consideration of the Grant Thornton advice, the company has now embarked upon developing a new plan to address the company's loss-making situation and restore it to a sustainable future, and the company aims to have this plan in a few weeks.

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