Dáil debates

Wednesday, 6 July 2011

3:00 pm

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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Question 30: To ask the Minister for Transport; Tourism and Sport in view of a recent report in the published accounts of Bus Éireann and Dublin Bus conducted by a company (details supplied), the reason such large provisions for liabilities and charges were made in their balance sheets; if such large provisions could be used to artificially inflate loses at the companies in order to attract greater State subsidy; and if he will make a statement on the matter. [18902/11]

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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Question 52: To ask the Minister for Transport; Tourism and Sport the reason, in a recent report into the published accounts of Bus Éireann and Dublin Bus conducted by a company (details supplied), Bus Éireann and Dublin Bus have made loans to the CIÉ parent company totalling €143.1 million; the rationale behind these loans; and if he will make a statement on the matter. [18903/11]

Photo of Niall CollinsNiall Collins (Limerick, Fianna Fail)
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Question 54: To ask the Minister for Transport; Tourism and Sport in view of a recent report in the published accounts of Bus Éireann and Dublin Bus conducted by a company (details supplied), if he will instruct CIÉ to repay loans of €76.6 million received from Dublin Bus rather than introduce cuts that will further restrict the company's services; and if he will make a statement on the matter. [18904/11]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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I propose to take Questions Nos. 30, 52 and 54 together.

I am aware of the report referred to in the questions. Bus Éireann and Dublin Bus strongly dispute the conclusions in the report.

All figures included in the published financial statements of the companies are subject to independent audit by the companies' auditors. Claims provisions are also reviewed by external consultant actuaries under the supervision of the NTA, National Transport Authority. I have been informed by the companies that they take all reasonable steps to ensure they have appropriate information regarding claims exposures. In estimating the cost of claims notified but outstanding, the companies have regard to the accident circumstances as established by investigations, any information available from legal or other experts and information on court precedents on liabilities with similar characteristics in previous periods.

The inter-company loans from Dublin Bus and Bus Éireann are included in the balance sheet of CIE and its bus subsidiaries. The inter-company loans relate to a banking pooling facility operated by the CIE group, which is common in many large businesses, in particular, those with subsidiary companies. When Bus Éireann and Dublin Bus generate cash from their operations it is pooled in a CIE group bank account. The CIE group believes this is a very efficient system which reduces banking costs and fees considerably.

I am informed that their repayment will not have any impact on operations of the companies which are fully accounted for in the profit and loss account of each company.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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I have a question on procedure to ask the Leas-Cheann Comhairle. I ask why questions being dealt with in the House use the term, "details supplied". Is there a ruling? It seems unusual to me that we are not supplied with the information.

Photo of Michael KittMichael Kitt (Galway East, Fianna Fail)
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The ruling is that persons outside the House should not be referred to in debate.