Tommy Broughan (Dublin North East, Labour)
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Question 2: To ask the Minister for Transport if he has reviewed the public service obligation to CIE; if he will ensure that the fleets and services of Dublin Bus and Bus Éireann are protected and maintained and that the current programmes of cutbacks are halted in view of the role that the bus services play for urban and rural commuters and workers; if he has encouraged the State bus companies to come forward with new initiatives to increase passenger volumes; if he has ensured, from discussions with those companies, the early introduction of integrated ticketing, real time information, AVL and other technical transport improvements; if he has investigated the cancellation of certain attractive commuter bus tickets; and if he will make a statement on the matter. [13928/09]

Noel Dempsey (Meath West, Fianna Fail)
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The mandate of CIE and its subsidiary companies to provide reasonable, efficient and economical transport services remains as set out in the Transport Acts 1958 to 1986. It is a matter for CIE and its subsidiaries to fulfil this mandate from within the financial resources available from fares and Exchequer funds. This statutory base for the funding of public service obligation services has been reviewed in the light of EC Regulation 1370/2007 and a new contract based regime is to be implemented later this year, in accordance with the provisions of the Dublin Transport Authority Act 2008 and the proposed public transport regulation Bill.

The annual Exchequer subvention to CIE in 2009 in respect of its public service obligations is €313 million, an increase of 65% on 2000. This includes over €120 million for bus services in 2009. Bus services have also benefited from significant capital funding of €148.7 million over the period from 2006 to 2008. Despite these high levels of funding and fare increases over the years, Dublin Bus and Bus Éireann are facing a very difficult financial outlook in 2009 due to declining passenger numbers in an increasing cost environment. In response, both companies have put in place cost recovery plans involving measures to increase revenues, change pay, allowances and work practices and rationalise services.

The companies must implement cost recovery plans, as it is not open to the State to compensate for current losses being incurred by CIE given current constraints on the Exchequer, EU state aid rules and, in particular, the "market investor" principle, that is, governments must act in the same way as a commercial investor and are not permitted to give terms to transport operators that are unduly favourable, for example to write-off part losses.

As part of the effort by both companies to maintain and increase passenger numbers, the Deloitte report identifies significant scope within Dublin Bus to improve services to customers, increase efficiencies and save money through, for example, redesigning the network, eliminating unnecessary duplication and improving information to the customer.

Additional information not given on the floor of the House.

Both automatic vehicle location, AVL, and integrated ticketing have been identified as important reform measures by the Deloitte report. The AVL system on the Bus Éireann fleet is expected to go live this summer. Plans are also progressing to install real time passenger information, RTPI, road sign displays on a selected number of stops on a trial basis. The Dublin Bus AVL system will be rolled out on a test basis later this year, with the system being installed across the network in 2010. Associated with this, the roll out of RTPI by Dublin Council will commence in 2010.

Integrated ticketing in the greater Dublin area is being introduced on a phased basis, based on smart card technology. A progressive approach is being adopted to allow customers to familiarise themselves with using the new system and to permit transport operators to undertake the necessary testing associated with the integration of the technologies involved.

A smart card for Luas services has been available on all Luas services for some time. Smart cards are also now in use on Dublin Bus services in respect of a number of integrated ticket products such as annual and monthly integrated bus and rail and bus and Luas tickets. During 2010 smartcards with an electronic purse will be available to almost all public transport users in the greater Dublin area.

With the exception of the single standard fare, decisions regarding ticketing structure and ticket types are a matter for the companies taking account of operational, commercial and customer factors.

Tommy Broughan (Dublin North East, Labour)
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Does the Minister accept that, as clearly shown in the Deloitte report, at 29% the public service obligation, in other words the subsidy received by Dublin Bus, is among the lowest in city bus companies in the European Union? It is bottom of the old 15. The subsidy of 12% is the lowest of any major regional company.

Was the Minister informed or did he have discussions on the huge range of cutbacks at Dublin Bus where approximately 1,000 scheduled journeys are being cancelled and services on a range of routes such as the 123, 19, 13, 13A, 11A, 45, 121, 122, 172, Euro buses and Nitelinks are being slashed? Was the Minister aware of this during recent months or is it something else in his portfolio he did not know about?

The Minister referred to the efficiency of Dublin Bus but he will remember that Deloitte gave Bus Éireann a clean bill of health and stated it was very efficient. Why is Bus Éireann losing 150 buses? Does the Minister accept the recent comments of the distinguished journalist, Fintan O'Toole, that what he is doing shows personal contempt by him and the Government for people, particularly those on low incomes, senior citizens and all of those dependent on buses? It is a fact that we will have cutbacks of at least 10% when passenger numbers have reduced by only 3.5%. At the worst of times, the Minister is showing utter contempt for people who use buses.

Noel Dempsey (Meath West, Fianna Fail)
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The Deputy is correct if one considers only the amount of PSO on a current basis which is being paid to Dublin Bus. It is one of the lower amounts in the OECD.

Tommy Broughan (Dublin North East, Labour)
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Exactly.

Noel Dempsey (Meath West, Fianna Fail)
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This does not take into account the sizeable capital investment made in buses which has not been done in most other European countries. If we were to compare like with like the situation would not be as black and white as the Deputy stated.

Tommy Broughan (Dublin North East, Labour)
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Deloitte told me it considered the capital.

Noel Dempsey (Meath West, Fianna Fail)
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With regard to whether I was informed of the cuts, I informed CIE of the 10% rate increase and of its subvention. In turn, it informed me of what this would mean and that ultimately the company would end up losing €100 million unless cost and efficiency measures were taken. Dublin Bus expects loses of €31 million. As I stated to the Deputy it is not open to me under law or competition rules to further subsidise a company or to put further money into it. The taxpayers of this country are paying €313 million into public transport. The Deputy is well aware that we do not have the freedom and flexibility we had previously with regard to the amount of money we can invest. It must be spent very efficiently and well.

Tommy Broughan (Dublin North East, Labour)
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Does the Minister have confidence in the management team at Dublin Bus? Is he confident it can lead an innovative and dynamic bus company given that we have been waiting for almost 20 years for a range of technical measures such as real time information and integrated bus ticketing? When does the Minister expect the industrial relations issue to be resolved?

The Minister has a grave responsibility across a range of issues with regard to bus transport. In particular, the Minister is the regulator for fares and has approved personally all the increases in basic fares this year. He has not introduced required legislation. The Minister will bear much responsibility if bus transport is brought to a halt in coming weeks.

Noel Dempsey (Meath West, Fianna Fail)
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It is a neat transfer. I hope management and staff at Bus Átha Cliath are innovative and that they start to implement Deloitte very quickly. I have spoken to the unions and to management about this and they are very enthusiastic. The NBRU, SIPTU and other unions told me they had no problems with the network and that it was not their business but the business of management. They might have changed their minds since then. If management and the unions are flexible and innovative and implement measures such as AVL, the integrated ticketing system which is coming on stream and real time passenger information——

Tommy Broughan (Dublin North East, Labour)
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When, 20 years ago?

Noel Dempsey (Meath West, Fianna Fail)
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The network review would save much money and would provide a much better service for the people of the city. The answer for Dublin Bus and Bus Éireann is to try to increase passenger numbers and they need to do this very quickly.

Tommy Broughan (Dublin North East, Labour)
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Some passengers have gone home to Poland.