Dáil debates

Thursday, 18 October 2012

Ceisteanna - Questions - Priority Questions

Public Transport

4:15 pm

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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To ask the Minister for Transport, Tourism and Sport his plans to improve the provision of public transport and smarter travel options across the State while at the same time reducing the public transport subvention; and if he will make a statement on the matter. [45456/12]

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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My Department and the National Transport Authority are working with public transport operators to increase the efficiency and attractiveness of existing public transport services.  We are not in a financial position to make significant investment in our public transport network but we can get a better return from our existing public transport system, through targeted investment, better use of resources and by using smart technology to make public transport more responsive and user friendly.

My Department works with the NTA to improve smarter travel, with the NTA providing funds to local authorities in the greater Dublin area and regional cities, while my Department provides direct funding in the other counties and towns. In addition to NTA funding, we are investing €65 million in sustainable transport over the next five years, the majority of which will be invested in cities and towns around the country under key programmes such as smarter travel areas and active travel towns. 

Targeted investment is essential in these financially straightened times.  An example is the Luas BXD project to link the LUAS lines. The Government has also continued to invest in the bus companies, including the recent decision to purchase 80 new buses for Dublin Bus at a cost of €25 million and 60 new buses for Bus Éireann in 2011 at a cost to the Exchequer of €18.5 million. Considerable funding has also taken place in recent years on measures to make public transport more attractive such as the leap card, real time passenger information, automatic vehicle location and providing Wi-Fi. Given the pressure on the public finances, there is no possibility of additional funding by the Exchequer and I expect that subvention levels will reduce over the next two years.

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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I have said many times that we have one of the lowest subventions for public transport in Europe and the Minister has agreed. Even last year, CIE received €316 million and this year the amount is €242 million. Even with the €36 million, it is still only €278 million. If we continue to cut like this, we will hit vital services even more. We have increased fares and the cost of yearly tickets by 10% in the last month. That will further discourage the use of public transport and it penalises those who continue to use it. It does not make sense.

There have been cuts across services in rural and urban areas. The 19 and 19A services in the Glasnevin area were combined into one service. Dublin Bus and CIE are passing the buck on responsibility for these decisions. It is down to the fact that not enough money is being made available. We talk about smarter travel but we must invest in it. I welcome the fund of €65 million that the Minister has made available but what way will that spread out? Will it address the route shortages? Are we going to hit the main lines? The Minister mentioned the Luas and we all know the BXD is being started but we cannot continue to cut.

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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If the €36 million is required, the PSO will be €278 million, the fifth highest subsidy ever in the history of the State and we must remember that. The subvention increased rapidly in the boom but the subvention of €278 million will still be the fifth highest subvention in the history of the State. There are many people in many sectors who would like 2012 to be the fifth best year in their history. Many schools, hospitals and so on would happily be in the same position as CIE now.

When people say subvention in Ireland is relatively low, they do not take into account that it is not just the PSO subvention. There is also the railway safety programme, which involves over €100 million in grants to Irish Rail, and there are capital grants such as the €30 million spent on new buses.

In most countries the public transport company gets a single funding line and the comparisons that suggest that subvention in Ireland is low do not tell the full picture. When one takes into account the very substantial capital grants that go to the public transport companies, subvention is still lower than the European average but not lower by as much as people think. Most European countries need higher subvention because they have underground railway lines. They have high speed railways between their cities. As we do not have any of that, naturally we should not need the same level of subvention as those countries.

It is important to point out that Luas gets no subvention whatsoever. It is a publicly owned privately operated transport system and the only one in the State that does not require subvention and, perhaps, is a good model in that regard.

4:25 pm

Photo of Dessie EllisDessie Ellis (Dublin North West, Sinn Fein)
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It is very disappointing, particularly following the launch of the 80 new buses and a further 60 for the industry, that we are going back to CIE and Dublin Bus to say that assets will have to be sold, whether older buses or otherwise, to make up the shortfall in moneys. There is a need to be more imaginative. Is there any way of addressing the fuel issue and looking at where cheaper fuel can be got or other means because there must be savings somewhere?

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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There are things that can be done over time. Certainly a move to compress natural gas as a fuel over time would save money. We are in an emergency and whatever is done has to be done quickly. That will involve the sale of assets and other cost savings. Luas is an interesting model. Luas should be expensive to run because it involves electrics, tracks and expensive rolling stock, yet it seems to be able to operate without the need for a State subvention.