Martin Ferris (Kerry North, Sinn Fein)
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Question 6: To ask the Minister for Transport if he will cancel his plans to part-privatise public bus transport here. [35842/06]

Ruairi Quinn (Dublin South East, Labour)
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Question 21: To ask the Minister for Transport when he expects the 100 private sector operated buses to be fully deployed and operating in Dublin; the routes they will be operating on; the person who will decide the routes on which they will operate; and the timeframe for such decisions. [35771/06]

Paul Connaughton Snr (Galway East, Fine Gael)
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Question 43: To ask the Minister for Transport the steps which have been taken to allow private sector operators into the Dublin bus market; when 15% of this market will be open to the private sector; and if he will make a statement on the matter. [35812/06]

Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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Question 46: To ask the Minister for Transport if he has had meetings with the relevant stakeholders including trade unions regarding his proposals to open up the public bus transport market; and if he will make a statement on the matter. [35844/06]

Brian O'Shea (Waterford, Labour)
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Question 98: To ask the Minister for Transport the reason for the delay in updating the bus licensing system; and when he expects to introduce legislation in this regard. [35772/06]

Pat Gallagher (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 6, 21, 43, 46 and 98 together.

In line with commitments in An Agreed Programme for Government, the Government has made a number of significant decisions recently that will provide a solid basis for expanded and improved bus services throughout the country over the coming years, ensuring better value for money for both passengers and taxpayers. The Minister is committed to the introduction of a modernised regulatory framework for public transport and will continue to advance this regulatory reform agenda.

The Government has decided that the regulation of the bus market and future decisions on the allocation of all public subsidies for bus services in the greater Dublin area will be taken by the new Dublin transport authority, which is being established under legislation that is at an advanced stage of preparation. The Dublin transport authority will have responsibility for contracting with all operators in the Dublin market, including Dublin Bus. It will also be responsible for monitoring the quality and cost of the service by all operators and ensuring value for money on all routes.

Under the Government's transport investment programme, Transport 21, it is anticipated that there will be a requirement in the greater Dublin area for an expansion of the number of buses providing scheduled services. This will require an increase in the total number of buses to around 1,800, with a requirement for at least 200 extra buses over the next two years. The Government has decided to meet this initial requirement by providing up to €30 million immediately to enable Dublin Bus to buy 100 additional buses. These buses will begin to enter service by the end of the year and the delivery will be completed by the end of January 2007. Their deployment is a matter for the company.

There are also 100 buses to be procured from the private sector by the Dublin transport authority to provide services on new routes. This is to be done by competitive tendering. This forms part of an initiative to facilitate the entry of private operators, by awarding franchises to operate routes accounting for 15% of services, approximately 200 buses. The identification of routes for these buses and the award of franchises will be a matter for the Dublin transport authority, DTA. Following this period, all new routes will be subject to a competitive tendering process open to all operators, whether Dublin Bus or the private sector. The Government will approve the precise arrangements on the basis of proposals from the DTA. This approach will encourage new investment and innovation in the Dublin bus passenger market.

In the interests of stability and integration of the bus network, the legislation establishing the DTA will allow the DTA to enter into a direct contract with Dublin Bus, in accordance with EU law, on the basis that it will continue to operate without a diminution in the size of its bus fleet. It is proposed that the DTA will make all subvention payments in the greater Dublin area, to Dublin Bus and to new operators, on an objective, transparent and even-handed basis to maximise value for public money.

The integrated nature of the Dublin bus market will be underpinned by the DTA's responsibility for traffic management strategy, which will prioritise public transport, and for integrated ticketing, fares and information systems. The DTA will also be empowered to organise the allocation of routes to operators in such a way as to maximise their prospect of efficient operation and the coherent development of the bus network. The Government is also investing up to €50 million in Bus Éireann for the delivery of up to 160 buses in the period commencing in 2007 for non-commercial services outside the greater Dublin area.

New legislation is being prepared to replace the bus licensing regime under the Road Transport Act 1932 by a modern regulatory and licensing regime in line with commitments in the programme for Government. This will be designed in a manner consistent with EU law on public service obligations and State aids and in such a way as to create new opportunities and a level playing field for private operator involvement in the bus market. I hope the Minister will be in a position to publish legislative proposals later this year.

The combination of immediate investment in new bus capacity and structural reform to introduce competition and enhance incentives for efficiency, represents a balanced strategy to benefit bus passengers and taxpayers alike. It follows extensive consultation with interested parties, including with key stakeholders such as the CIE companies and unions, and study of mechanisms used internationally to achieve efficiency and effectiveness in bus markets. The Government's strategy will deliver immediate benefits and secure steady and continuing progress into the future.

Seán Crowe (Dublin South West, Sinn Fein)
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Does the Minister of State not accept that the introduction of franchising in Britain was a complete disaster, resulting in a 25% increase in fares across Britain while passenger numbers fell. Similarly, since the bus market in Copenhagen, which has a similar population to Dublin, was deregulated in the early 1990s costs have risen, while passenger numbers and service reliability have fallen. Does the Minister of State accept that this is due to the lack of subsidy and the absence of extra buses, although more buses will come into the market? Delay is part of the problem. There is no alternative to car transport in many parts of this city and across the State, including in the Minister of State's county. Does the Minister of State agree that is where the investment should be made?

Will the private service be on new routes or existing routes? Is the Minister of State saying that decision will be left to the authority or does the Department have no view on it? My colleague, Deputy Ó Snodaigh, has put down a question about meeting the stakeholders. Has the Minister of State met the stakeholders and the trade unions about the roll-out of this package?

Pat Gallagher (Donegal South West, Fianna Fail)
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I do not accept that with the additional buses and competition, the fares would increase. The more competition there is, the better.

Seán Crowe (Dublin South West, Sinn Fein)
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Will fares decrease?

Pat Gallagher (Donegal South West, Fianna Fail)
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It is Government policy to liberalise the market. After the 100 buses join the fleet it is committed to opening 15% of the overall market to the private sector. The Dublin transport authority should look at new routes rather than overlapping with those on existing routes. The Dublin transport authority may feel it is necessary to restructure routes but many parts of Dublin do not have sufficient services and must be catered for. There will be a great demand from the private sector to be part of this new structure.

The Government has decided to invest up to €50 million in Bus Éireann for the delivery of up to 160 buses between now and 2008——

Róisín Shortall (Dublin North West, Labour)
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Some 200 were promised.

Pat Gallagher (Donegal South West, Fianna Fail)
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——for non-commercial routes outside Dublin. Those areas are being considered. Dublin Bus submitted a business plan, which we have approved, to fund 100 additional buses for 2006-07.

Róisín Shortall (Dublin North West, Labour)
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It asked for 200.

Pat Gallagher (Donegal South West, Fianna Fail)
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Dublin Bus received a subvention of almost €64.29 million in 2005. The subvention for 2006 will be €69.85 million, to be paid this year subject to compliance with certain performance criteria. The subvention has increased by almost €29 million since 2000.

Róisín Shortall (Dublin North West, Labour)
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The Labour Party disagrees totally with the Government policy on breaking up the Dublin bus market. The Government is using this tactic to avoid the issue of adequate subvention. Our subvention rate is approximately 25% whereas the average in most European cities is 50%. The Government is failing utterly to tackle the basic issue of funding for public transport services. It is using this measure to delay expansion in the bus market. We have not yet seen the legislation to establish the Dublin transport authority. It has been long promised, but when will the DTA deliver buses? The level of bus service is not adequate to the demand. The cost of regulation will be excessive, for example, regulating the Dublin bus market is estimated at €35 million. That money would be better spent on the extra buses that are so badly needed.

I have three questions for the Minister of State. When will we see the DTA? Bus licences are being given away for a song under the 1932 Act. We were promised modern legislation to update the bus licensing system. When will we see that legislation? What is the Minister of State's estimate of the cost of the regulation of the Dublin bus market as proposed?

Pat Gallagher (Donegal South West, Fianna Fail)
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The Minister plans to make a formal announcement about the establishment of the DTA soon. Legislation to establish it is at an advanced stage of preparation. In line with the draft ten-year social partnership framework agreement, Towards 2016, the Minister will consult the trade unions and other interested parties during drafting of the legislation. We hope the legislation will be published by the end of this session or this year.

Róisín Shortall (Dublin North West, Labour)
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The Minister promised it six months ago.

Pat Gallagher (Donegal South West, Fianna Fail)
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I am answering the question now.

Róisín Shortall (Dublin North West, Labour)
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Will it be ready by the end of the year?

Pat Gallagher (Donegal South West, Fianna Fail)
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He said that in good faith and we will not circumvent the unions.

Róisín Shortall (Dublin North West, Labour)
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In other words, the Minister does not know when it will be ready.

Pat Gallagher (Donegal South West, Fianna Fail)
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We have agreed to consult the unions as part of the ten-year social partnership framework agreement. The fact that the Deputy represents the Labour Party does not give her any more right to speak for them.

Róisín Shortall (Dublin North West, Labour)
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I did not mention the unions, I said that the Government promised legislation six months ago that it has not yet delivered.

Pat Gallagher (Donegal South West, Fianna Fail)
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No one can point fingers at us alone. The 1932 legislation is 75 years old. We are anxious to introduce legislation to cater for the demands of a modern transport infrastructure. While the 1932 Act provides for the licensing of bus services, the establishment of CIE later was not subject to this regime. We are anxious to create a level playing field.

Róisín Shortall (Dublin North West, Labour)
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When will we see the legislation?

Pat Gallagher (Donegal South West, Fianna Fail)
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We are working on it and it should be introduced some time next year. I cannot, however, give the Deputy a precise date.

Róisín Shortall (Dublin North West, Labour)
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Will the bus licences be given out under the provisions of the 1932 Act? That means they will be given away for nothing.

Pat Gallagher (Donegal South West, Fianna Fail)
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They are not being given away for nothing.

Séamus Pattison (Carlow-Kilkenny, Labour)
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Order, please. I call Deputy McEntee.

Pat Gallagher (Donegal South West, Fianna Fail)
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It has not changed dramatically. The Labour Party was in Government as well.

Róisín Shortall (Dublin North West, Labour)
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They are being given away for a matter of a few euro.

Pat Gallagher (Donegal South West, Fianna Fail)
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Until such time as the new legislation is in place, we cannot work outside that framework.

Róisín Shortall (Dublin North West, Labour)
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The Government has been in power for nine years and has done nothing about this matter.

Séamus Pattison (Carlow-Kilkenny, Labour)
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Order, please. The Chair has called Deputy McEntee.

Pat Gallagher (Donegal South West, Fianna Fail)
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We are providing substantial funds to Bus Éireann and Dublin Bus through subventions.

Róisín Shortall (Dublin North West, Labour)
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I asked about the estimated cost of regulation.

Séamus Pattison (Carlow-Kilkenny, Labour)
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The Chair has called Deputy McEntee.

Róisín Shortall (Dublin North West, Labour)
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Does the Minister of State have a figure for the estimated cost of regulation?

Pat Gallagher (Donegal South West, Fianna Fail)
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Deputy Shortall simply will not listen.

Róisín Shortall (Dublin North West, Labour)
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Has the Minister of State any idea of how much the regulatory system will cost?

Séamus Pattison (Carlow-Kilkenny, Labour)
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Order, please. The Chair has called Deputy McEntee.

Pat Gallagher (Donegal South West, Fianna Fail)
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We do not know exactly.

Róisín Shortall (Dublin North West, Labour)
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Why does the Government spend the money on buses instead? There are people standing in queues.

Pat Gallagher (Donegal South West, Fianna Fail)
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The number of buses we have provided is in sharp contrast to what the Labour Party provided when it was in Government.

Séamus Pattison (Carlow-Kilkenny, Labour)
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Order. The Chair has called Deputy McEntee.

Shane McEntee (Meath, Fine Gael)
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When one is caught in traffic on the Dublin roads, it is soul destroying to see an empty bus lane for 40 minutes. Any driver who breaks out on to it, if caught, will automatically receive penalty points. Students will often say that while waiting for a bus, many of them pass by full. We need extra buses and better use must be made of the bus corridors. People do not care whether the bus operators are private or Dublin Bus. Additional buses would see a reduction in the number of cars entering Dublin. Students travelling into Dublin do not get a fair service. Will the Minister of State take action in opening up the bus corridors? It is a waste of taxpayers' money. In Dunshaughlin, bus corridors were developed but no proper bus service was provided.

Pat Gallagher (Donegal South West, Fianna Fail)
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I recognise the difficulties experienced by drivers in Dublin each day. Plans are in place to extend the bus corridor routes.

Róisín Shortall (Dublin North West, Labour)
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Will the Government finish the existing ones first?

Pat Gallagher (Donegal South West, Fianna Fail)
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We have plans to do that. When it comes to funding, I challenge any Opposition party to match the Government's commitment to the provision of funds for a first-class transport system.

Róisín Shortall (Dublin North West, Labour)
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The Minister of State should tell that to people who sit in traffic for three hours a day.

Pat Gallagher (Donegal South West, Fianna Fail)
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The Government will provide an unequalled €34.1 billion in funds through Transport 21.

Róisín Shortall (Dublin North West, Labour)
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The Government has had nine years to sort it out.

Séamus Pattison (Carlow-Kilkenny, Labour)
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Order, please. I call Deputy Eamon Ryan.

Pat Gallagher (Donegal South West, Fianna Fail)
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It looks as if we will be in power longer.

Róisín Shortall (Dublin North West, Labour)
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Nine years and increasing times of sitting in traffic.

Pat Gallagher (Donegal South West, Fianna Fail)
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With the Labour Party standing at 10% in the opinion polls, it does not look as if it will have a chance——

Róisín Shortall (Dublin North West, Labour)
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The Government has failed to sort out public transport.

Séamus Pattison (Carlow-Kilkenny, Labour)
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The Chair has called Deputy Eamon Ryan.

Pat Gallagher (Donegal South West, Fianna Fail)
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The public is not recognising that in the opinion polls. I appreciate Deputy McEntee's concerns and we will continue to address them.

Eamon Ryan (Dublin South, Green Party)
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I should not presume that the Government will be in power for the next ten years to make the same mess it has in the past ten years. Will the new regulator have the authority to compel Dublin Bus to change existing routes or service levels? If the Minister of State cannot respond to my question, will the Department or Minister write to me separately?

Pat Gallagher (Donegal South West, Fianna Fail)
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When the 15% kicks in after the 100 buses are provided, I expect the authority to examine new routes. We cannot be firm and fixed in our views. If the current routes can be improved with a mix of private and public operators, we would not tie the authority's hands in the matter.

Eamon Ryan (Dublin South, Green Party)
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I did not ask about private operators. Will the new regulator have the authority to compel Dublin Bus to amend its existing routes and service levels?

Pat Gallagher (Donegal South West, Fianna Fail)
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Any regulator should have the responsibility to ensure the best services are made available from the funding that will be provided.

Eamon Ryan (Dublin South, Green Party)
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I am wasting my time.

Catherine Murphy (Kildare North, Independent)
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Have many new licences been issued to private operators in north Kildare under the 1932 Act? Will there be a competitive tendering process before the new Dublin transportation authority is instituted? Has any consideration been given to the practical issues of additional bus stops, termini, ticketing and timetabling? In my area, two operators provide two bus stops next to each other. People must stand in the middle and run for which ever one comes first. Granting of new licences becomes unworkable if there is no thought-out process in how the various services will integrate. Breaking up the services will only cause more problems rather than solutions in an area where we already have a crisis.

Pat Gallagher (Donegal South West, Fianna Fail)
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On whether there will be a rush prior to the introduction of the legislation, it is a matter for each individual company to submit their applications. Under the 1932 Act, it is the first company that applies, providing it meets all the criteria. There is no subvention in such cases.

Róisín Shortall (Dublin North West, Labour)
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That is not what the Minister for Transport, Deputy Cullen, said.

Pat Gallagher (Donegal South West, Fianna Fail)
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When the 1932 Act is amended, it will ensure a level playing field for all operators. The Department is examining bus service applications. There may be some scope for additional services. Commercial opportunities identified by the private sector may not be where additional bus service obligations are required.

Regarding north Kildare, the Department has authorised a significant increase in frequency of services by a private operator between Celbridge, Lucan and Dublin city centre.

Olivia Mitchell (Dublin South, Fine Gael)
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Question 7: To ask the Minister for Transport when integrated ticketing will be fully operational; and if he will make a statement on the matter. [35811/06]

Ruairi Quinn (Dublin South East, Labour)
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Question 13: To ask the Minister for Transport the steps he intends to take to ensure integrated ticketing is provided as soon as possible. [35773/06]

Pat Gallagher (Donegal South West, Fianna Fail)
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I propose to take Questions Nos. 7 and 13 together.

The Minister set out the position in regard to the integrated ticketing project in his response to Parliamentary Questions Nos. 13, 41 and 91 on 28 September 2006. The chairman of the integrated ticketing project board submitted the first report of the board to the Minister on Tuesday, 9 October 2006 and the Minister has since considered the report's findings. The chairman states that the project board is working well and is confident it can oversee a prudently phased and controlled introduction of the integrated ticketing system. The board is also satisfied there are no technical barriers to the introduction of integrated ticketing.

The chairman has requested that the board be allowed sufficient time to complete its deliberations and has indicated that it intends to bring a comprehensive proposal to the Minister for approval within two months. This will include proposals in regard to scope, time-lines and a definitive budget for the phased completion of the integrated ticketing project. The Minister has accepted the report and requested that the project board proceeds immediately with the preparation of its proposals.

Shane McEntee (Meath, Fine Gael)
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We were promised that an integrated public transport ticketing system would be in place five years ago. The €13 million that was initially spent on the project has been wasted and the budget has increased from €29 million to €42 million. Everyone is proud of Dublin city — it is one of the best cities in Europe in every respect — but it is unacceptable that it is necessary to purchase separate tickets for each mode of public transport. There is an increasing volume of requests for such a system, particularly from young people, given that one can travel to any capital city in Europe and need only purchase one ticket to avail of all public transport services. The lack of an integrated ticketing system is another factor in our traffic congestion.

When will the Minister get all the concerned parties together and tell them what to do? It seems there are disagreements among the three public transport providers and the Minister has not taken control of the situation. Progress will not be made until he does so by setting out what must be done in the interests of Dublin city. When will this project finally be implemented?

Pat Gallagher (Donegal South West, Fianna Fail)
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As I outlined, we expect the report of the integrated ticketing project board to be made available to the Minister by the end of this month. There are genuine business issues in terms of the cost of the project and the phased timing of its introduction. On the question of implementation, we must, as always, abide by the procurement policies. Although it sounds simple, the development of the system is rather involved and its design and implementation must take account of such issues as how the revenue from each card should be distributed to the various providers. After all these issues are resolved, it will take a period of two years to develop the system. That is normal in projects such as this where we must go through the correct procedures.

Róisín Shortall (Dublin North West, Labour)
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It is difficult for anybody who has travelled to another European city where there is integrated ticketing to understand how the Government could have made such a dog's dinner of the project. Proposals in this regard were first made in 1994 and the project was awarded to the Railway Procurement Agency, RPA, in 2000. Some €9.5 million has been spent since then and it seems to have gone down the drain. Does the Minister of State accept it was a serious mistake to allocate responsibility for this project to the RPA, which has no experience or expertise in this field?

This saga can no longer be allowed to drag on. What is the estimated cost of introducing integrated ticketing? Will the Minister of State agree to publish the report of the expert group?

Pat Gallagher (Donegal South West, Fianna Fail)
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All of us would be pleased if the integrated ticketing system were already in place. However, I have outlined the facts of the case and pointed to the further information that will be available by the end of November. It will take two years before the system is in operation because of the various obstacles we must overcome.

It was in March 2002, not 2000, that the RPA was given statutory responsibility for the delivery of what could be described as a multi-operator system of integrated public transport ticketing use. As Deputy McEntee said, the cost was estimated at €29.6 million but is now projected to be €42.7 million. At the end of 2005, as Deputy Shortall observed, €9.5 million had been paid to the RPA in respect of the integrated ticketing project. Some progress has been made. Smart cards were issued by the RPA in April 2004 for use on the services of Morton Coaches and, later, on the Luas service. We must ensure we get everything right. There are genuine business concerns which remain to be resolved.

The report of the integrated ticketing project board will be made available as soon as possible.

Róisín Shortall (Dublin North West, Labour)
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When is that likely to be?

Pat Gallagher (Donegal South West, Fianna Fail)
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I hope it will be available in the Oireachtas Library before the end of the year.

Catherine Murphy (Kildare North, Independent)
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The integrated ticketing system project was established as part of the Dublin transport initiative. EU funds were drawn down to finance it in view of the damage to the economy arising from the traffic congestion that resulted from the lack of such a system. Twelve years after it was proposed, however, integrated ticketing is still not in place. In regard to the new licences being granted, is it a precondition that potential licence holders must agree to provide integrated ticketing services? Will it be the same in terms of the competitive tendering process? Given that this project, which is part of the programme for Government, is unlikely to be delivered in the lifetime of this Government, will it be part of Fianna Fáil's manifesto at next year's election?

Pat Gallagher (Donegal South West, Fianna Fail)
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As of now, the licences that are being issued, including one to Deputy Catherine Murphy's constituency this week, will not be based on a precondition that the holder must provide integrated ticketing. In future, however, we will do our utmost to ensure integrated ticketing is included. We cannot cover the entire country immediately——

Catherine Murphy (Kildare North, Independent)
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There is little sense in not including as a precondition that all new licence holders should sign up to integrated ticketing.

Pat Gallagher (Donegal South West, Fianna Fail)
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We cannot cover the entire country immediately.

Róisín Shortall (Dublin North West, Labour)
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The Minister of State speaks of progress not happening "immediately", but this has been in the pipeline for 12 years.

Pat Gallagher (Donegal South West, Fianna Fail)
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It will be done on a phased basis. We will look at the greater Dublin area initially, after which we will endeavour to ensure the service is available throughout the State and that all those who receive licences are in a position to provide integrated ticketing facilities.