Willie O'Dea (Limerick City, Fianna Fail)
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To ask the Minister for Social Protection if the free travel pass scheme will be fully maintained in Budget 2013; her future plans for the scheme; and if she will make a statement on the matter. [49975/12]

Joan Burton (Dublin West, Labour)
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The free travel scheme is available to all people living in the State aged 66 years of age or over. It is available to carers and to people who are in receipt of certain disability-type payments. Currently, more than 745,000 customers are eligible for free travel in those categories - retired people, carers and people who are in receipt of disability-type payments. In addition, there are more than 300,000 companion passes, which brings the total number in receipt of free travel eligibility to more than 1.1 million customers. The scheme provides free travel on Dublin Bus, Bus Éireann, Irish Rail and Luas as well as services provided by more than 90 private operators.

The previous Government, of which Deputy Willie O'Dea was a member, froze expenditure on the scheme in 2010 and it has remained at almost €76 million since.

There are considerable challenges ahead in protecting, as far as possible, the key income supports provided by my Department which impact in some way on the lives of almost every person in the State. As part of the deliberative process for the budget, we are reviewing all of the headings under which the Department spends money. As I stated in response to the Deputy's earlier question, no decisions have been made at this time on the upcoming budget. An interdepartmental review of the free travel scheme is being carried out with a view to ensuring the scheme operates in a sustainable and cost effective manner. The scheme plays an enormous role in the lives of very many citizens and in preventing the social isolation of elderly people. However, it is also important to look at issues certain operators have raised. They believe some individuals who are not entitled to free travel are utilising the scheme, thereby undermining it for those properly entitled to free travel.

Willie O'Dea (Limerick City, Fianna Fail)
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Unlike the Minister, I am not irredeemably wedded to the notion of universality, whereby people obtain benefits regardless of their circumstances. Nevertheless, the Minister will agree with me that the free travel scheme has been an outstanding success and played a huge role in combating social isolation. Recently, my attention was drawn to a heavyweight report produced by the Imperial College, London, which set out in some detail the health benefits of the free travel scheme operated in the United Kingdom. I will not go into the report in detail but merely refer to it in passing.

An article in The Sunday Business Post of 4 November stated: "The free travel scheme is likely to be means-tested for new pensioners in the budget in order to meet the demands of the troika, and the cost of universal payments is likely to be curtailed". The article further stated two elements were under consideration, first, that entitlement to free travel be means-tested along the lines of the means test applied to the medical card for those aged over 70 years; and, second, that there be a certain administrative charge, either in addition to or instead of means testing. I am not sure which is intended. Is either or both proposals under consideration?

Joan Burton (Dublin West, Labour)
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I have noted how valuable free travel is in Ireland, particularly for retired people and those with serious mobility impairments. It is a considerable cause for celebration in Ireland that retired people can avail of free travel. There were requests from a number of operators that we look at elements of the scheme because it was believed there was some abuse by persons not entitled to use it. These persons may have been using fraudulent passes or passes to which they were not entitled. The review is ongoing and no decision has been made. I appreciate how much people value the free travel scheme. The Sunday Business Post may have views on how the scheme might be changed, but in framing the budget the Government will act in the best interests of all the people in Ireland, including retired individuals who have enjoyed the benefits of the scheme.

Willie O'Dea (Limerick City, Fianna Fail)
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The Minister referred to the previous Government as having frozen the amount payable to the Department of Social Protection, which is true. However, under freedom of information regulations, the writer of the article in The Sunday Business Post had obtained a letter from the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, to the Minister for Social Protection, Deputy Joan Burton, which stated: "While the money paid by your Department to CIE does not cover the cost of providing free travel - €77 million - CIE is nonetheless willing to continue to provide free travel to seniors at the same price to the Department of Social Protection".

There has been some creative arithmetic in this instance. I presume that the €77 million to which the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, refers is based on an assumption that those who avail of free travel would pay full fares if the scheme relating to such travel was brought to an end. Obviously, that would not be the case. What the Minister for Transport, Tourism and Sport is saying is that while CIE has indicated that €77 million does not cover the full cost of the service, the company remains willing to offer it for that amount. If a means test along the lines suggested was applied, a minority of those availing of free travel would no longer be eligible. CIE has indicated that it is not in receipt of the full amount, but I presume it will still be given the €77 million to which I refer. In that context, where will the savings be made?

Joan Burton (Dublin West, Labour)
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CIE is very happy to be part of the scheme which it sees as a valuable source of income. The company's income from other passengers has fallen owing to the economic collapse brought about by the bank guarantee and the difficulties in the construction sector. I am well aware that the company is anxious to continue to be part of the scheme, from which to date one company has withdrawn. That company operated a dedicated service from Galway to Dublin Airport. The proprietors met representatives from my Department early last December and advised that they had pulled out of the scheme because they considered it no longer commercially viable to continue. Pensioners wishing to travel from Galway to Dublin Airport and vice versa would, of course, be in a position to avail of other services. Other than that one instance, I am not aware of any operator - least of all CIE, which values this source of revenue - wishing to withdraw from the scheme.

As stated, some operators have suggested a degree of abuse has taken place perpetrated by people not entitled to free travel passes being in possession of them or of forged versions. Some 14 joint operations have been carried out with Veolia, the company which operates Luas. One of these, the multi-agency Operation Clean Tram, was designed to target fraud. The agencies involved carried out a number of exercises to identify persons engaged in the improper use of passes. During October and November a total of 46 passes were seized. Operations of this nature are ongoing in order to ensure only those properly entitled to free travel actually avail of it.