Seán Fleming (Laois-Offaly, Fianna Fail) | Oireachtas source

I thank the Deputy for raising this issue. It is timely to do so. Before I address it, I wish to give Members an outline of the extent to the school transport service.

School transport is a significant operation managed by Bus Éireann on behalf of the Department of Education. In the current year, as Deputy O'Rourke is aware, more than 121,400 children, including more than 15,500 with special educational needs, are transported daily to primary and post-primary schools throughout the country. This was at a cost of €289 million in 2021. The purpose of the Department's school transport scheme, having regard to available resources, is to support the transport to and from school of children who reside remotely from their nearest schools.

Regarding increasing fuel costs, as the Deputy will be aware, the Government's announcement of a reduction in excise on fuel will result in a decrease in the cost of fuel. The reduction of 20 cent per litre on petrol and 15 cent per litre on diesel will be in place until 31 August at an estimated cost of €320 million. This is a national measure aimed at easing the financial burden on contractors and families at this time.

In saying this, the Department of Education is aware that a number of contractors have highlighted concerns about the ability to sustain school transport services to the end of the school year given the recent increases in the cost of fuel. As the Deputy made clear, the contracts that are in place do not have fuel variation clauses and, as such, no such mechanism can be invoked.

In this context, the Department is considering, in consultation with relevant Departments and Bus Éireann, the implications that increasing fuel costs may have on the provision of school transport services. It is engaging with the Department of Public Expenditure and Reform on the matter. The Department of Education is also aware of the potential impact of the current situation unfolding in Ukraine, which is impacting on fuel prices further.

The Department's negotiations with the Department of Public Expenditure and Reform have commenced, but I am not in a position to say what their outcome will be.

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