Joan Collins (Dublin South Central, People Before Profit Alliance)
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8. To ask the Minister for Transport, Tourism and Sport if it is his intention to intervene in the developing dispute between Bus Éireann Staff and Management; and if he will make a statement on the matter. [22948/13]

Bernard Durkan (Kildare North, Fine Gael)
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18. To ask the Minister for Transport, Tourism and Sport the extent to which he continues to monitor developments in the public transport sector with particular reference to the possibility of industrial action affecting bus services; if he and or his Department continue to have dialogue with key representatives on the issue; the extent, if any to which progress has been achieved with a view to averting industrial action and hardship and inconvenience for commuters; and if he will make a statement on the matter. [22952/13]

Pat Breen (Clare, Fine Gael)
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27. To ask the Minister for Transport, Tourism and Sport if he will provide an update on the situation at Bus Éireann; and if he will make a statement on the matter. [22865/13]

Anthony Lawlor (Kildare North, Fine Gael)
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87. To ask the Minister for Transport, Tourism and Sport if he will provide an update on the current situation in Bus Éireann; and if he will make a statement on the matter. [22768/13]

Alan Kelly (Tipperary North, Labour)
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I propose to take Question Nos. 8, 18, 27 and 87 together.  These relate to the industrial relations dispute at Bus Éireann. Deputies will be aware that the company and trade unions are in talks at the Labour Relations Commission following from last February's Labour Court recommendation on addressing the company's difficult financial position.  It has incurred accumulated losses of €27 million in the last five years, an unsustainable position which places the viability of the company at risk. The Labour Court recommendation on changes to terms and conditions would deliver annual savings of €4.8 million in a full year. In the absence of the necessary savings from changes to terms and conditions and ongoing intercity service changes, Bus Éireann faces annual losses of more than €11 million, which are simply not sustainable.

It is important to emphasise that the issues arising had been explored through the full industrial relations machinery of the State, culminating in a Labour Court recommendation which recognised that the savings had to be made in order to protect the continued employment of the staff.  According to the Labour Court and the trades union's own independent financial assessors, Bus Éireann is in a precarious financial situation and the very viability of the company is under threat.

Under the company's business recovery plan and the Labour Court recommendation, there would be no reductions to core pay or employment levels. I acknowledge that the position is extremely difficult for both sides and there is no easy solution to the problem. I am sure Deputies share my hope that the current negotiations at the Labour Relations Commission, which are likely to continue tonight, will result in an agreement that will deliver the level of savings that was identified as necessary by the Labour Court in its independent recommendation.

The future of Bus Éireann must be secured for the benefit of its employees and members of the public who depend on its services. The company runs commercial Expressway services, which are currently loss-making and which the State is legally precluded from supporting. The viability of these services can only be secured if these savings are achieved. I extend my best wishes to those involved in the discussions at the Labour Relations Commission.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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I hope the discussions will deliver a positive outcome for the workers at Bus Éireann, whom I commend on their determination and willingness to take industrial action to protect their pay and conditions. We are familiar with the line that core pay is not being touched. Allowances, overtime and other forms of remuneration for workers are under attack in the cost-cutting plan. The workers, who are not especially well paid, are right to fight and resist this attack on their pay and conditions because they are not responsible for the problems in Bus Éireann. Responsibility for the company's losses lies with management and the Government which substantially reduced the subvention to Bus Éireann. Ireland provides among the lowest levels of subvention in Europe to its public transport service. Bus Éireann should not be operated purely on the basis of profitability given that it provides a public transport service on routes and to areas where it is not possible to make a profit. I ask the Minister of State to ensure workers at the company do not become the fall guys for the lack of proper subsidy and subvention to our public transport service.

Alan Kelly (Tipperary North, Labour)
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I thank the Deputy and I am sure his views are held sincerely. I, too, acknowledge the excellent workers in Bus Éireann. Friends of mine of many years work in the company and do a fantastic job. We want to ensure the 2,500 jobs in Bus Éireann are protected at this critical point. Staff costs at the company have increased in recent years.

Bus Éireann operates three different types of service. The school bus service is operated on a cost recovery basis. The public service obligation, PSO, services are subsidised by the State on the basis that they are badly needed in areas which would not otherwise have a service. As the Expressway services are subject to competition, the State is legally precluded from subsidising them and could not throw money at them, even if it had additional funding available.

I accept that management has a significant role to play in the ongoing discussions. I have deliberately chosen not to discuss the detail of the negotiations as it would not be fair or appropriate to do so. It is imperative that both sides pull together in the coming hours and days to ensure an agreement is reached to secure the 2,500 jobs in the company. This is of critical importance to the company's customers who benefit from the fantastic service provided by Bus Éireann.

Dessie Ellis (Dublin North West, Sinn Fein)
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It has been reported that an attack on a Dublin Bus driver in Parnell Square yesterday was racist in nature. A number of attacks on ordinary bus drivers have been taken place, not all of them racist, and they must be condemned by all Members of the House. The bus drivers in Dublin Bus and Bus Éireann who must take such risks are having cuts in pay imposed on them. In the case of the latter, it is proposed to cut their core pay by between €3,000 and €4,000 per annum.

Has the chairman of Bus Éireann been summoned to Dublin? Has he been asked to explain his absence from his country? Has the board of the company met to discuss what is taking place? We have an absentee chairperson or technological manager who appears to work remotely from a computer. It is a disgrace that he has not had the courtesy to return to the country during a time of crisis in the national transport service.

Alan Kelly (Tipperary North, Labour)
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I share the Deputy's abhorrence at attacks on bus drivers. This is disgraceful behaviour and those who carry out such attacks should be brought to justice.

On the contributions that are being asked of staff, I have deliberately decided not to discuss the figures at this time. I did not have a problem discussing the issue previously and will do so again once the negotiations have concluded. However, as the Minister of State with responsibility for public transport, it would not be appropriate to discuss these figures while discussions are ongoing.

On the chairmanship of Bus Éireann, while the employment of the person in question has changed, he remains in constant contact and has attended numerous meetings. The role of chairman will be reviewed in due course, as necessary.

Anthony Lawlor (Kildare North, Fine Gael)
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I acknowledge the work being done by the Labour Relations Commission in addressing the Bus Éireann issue and other issues.

During the strike by Bus Éireann drivers on Monday, I noted that a significant number of private operators took up the slack in my home town of Naas. Bus Éireann needs to be cognisant that a large number of private operators are willing to take up the slack if and when the company's workers do not operate routes. I hope the ongoing talks will be successful and the issue will be resolved quickly.

Alan Kelly (Tipperary North, Labour)
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I welcome the Deputy's support for the process of negotiation under way in the Labour Relations Commission. I also acknowledge that the commission is engaged in separate discussions on a different matter. We should appreciate its willingness to deal with both issues at the same time.

I thank the private bus operators for the contribution they made during the strike. Bus Éireann services are up and running again and I hope full services will resume in the coming days. I also hope the negotiations under way at the Labour Relations Commission will reach a successful conclusion.

Clare Daly (Dublin North, Socialist Party)
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Does the Minister of State accept that payroll costs at Bus Éireann have been slashed by €15 million since 2009? Does he agree that payments for overtime and driving throughout the night form part of the core wages Bus Éireann workers bring home to their families? I expect he will agree that they cannot afford to lose approximately €3,000 per annum under the deal that was placed before them. Does the Minister of State accept that an independent report commissioned by Deloitte on behalf of the Department indicates that Bus Éireann is an extremely efficient operation?

Does he further agree that the root of this problem lies in the fact that an inadequate level of subvention is being provided? On Leaders' Questions yesterday, the Taoiseach provided a reply which his office subsequently corrected by e-mail. The Taoiseach originally stated that the Department gave Bus Éireann its highest ever subvention, but the e-mail I received in the interim indicates that this is not the case. Does the Minister of State agree that it is obscene that we are paying out millions in taxpayers' money to public private partnerships each year as a result of the fact that roads are not being used? This is at a time when, as he stated earlier, he is prevented from investing in buses that are being used? I have no difficulty with those who operate private buses as long as they pay union rates to employees and allow unions to be recognised.

Alan Kelly (Tipperary North, Labour)
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Last year we paid Bus Éireann its fifth highest subvention ever. The Deputy raised the issue of staff. As stated previously, I have a number of friends who work for Bus Éireann and I know the company quite well. Its average staff cost per employee in 2007 was €46,653. Instead of decreasing, this figure rose to €51,603 in 2012. I wish to place on record a few facts. I am very supportive of Bus Éireann which does a great deal of work throughout the country. Its impact across the network outside of the key conurbation of Dublin is huge. The role the company plays should never be underestimated. As stated on previous occasions, there are three different categories which apply here, namely, cost recovery in respect of school transport, the PSO requirement - as stated in reply to an earlier question, this will have to be reconsidered in the context of routes and areas - and the Expressway service. Given the competition which exists, there is no doubt the company has encountered some difficulties in respect of the Expressway service in the recent past. Bus Éireann has lost a considerable amount of money - €27 million - during the past five years. The projected loss for this year is €11 million.

I have spoken to many union representatives and they accept that this cannot continue because the position is not sustainable. I agree that changes will have to be made at management level and that savings are obviously going to be obtained from staff. There is going to have to be a combined effort and it will only be by means of this that we will be able to protect the company. As Minister of State with responsibility for public transport, my ultimate ambition is to protect Bus Éireann and the three core services it provides. I must also protect the public, particularly as the company provides such an extensive and badly needed service. A total of 2,500 people work for Bus Éireann, and their futures depend on the discussions which are taking place today. I sincerely hope the House will support the outcome of those discussions. The Labour Court, which made the original recommendations, is an independent body. The company sought a great deal more in savings, but the amount recommended by the Labour Court is €4.8 million. That is the quantum which will have to be achieved to ensure Bus Éireann will be able to survive and continue to operate with all of its 2,500 employees on board. We are working collectively to try to achieve that goal.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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The workers are just as concerned as the Minister of State and everyone else about their jobs and the viability of the company. However, they are not in a position to take a hit of in the region of €3,000 each per year. The figure of €51,000 to which the Minister of State referred relates to all employee costs and contemplates the salaries of executives who are on much higher levels of pay. It is those executives who, along with the Government, are supposed to bear responsibility for any problems which arise within the company. Will the Minister of State acknowledge that there is a difficulty with regard to the low level of subvention relating to the company? As a proportion of its total revenue, Bus Éireann receives a subvention of 12%. In comparison, the bus company in Switzerland receives a subvention of 51%, that in the Netherlands receives 49% and that in Belgium receives 78%. I put it to the Minister of State that the pathetically low level of subvention being provided in respect of a company which provides a public service and which is not just a profit-oriented entity is obviously forcing attacks on the pay and conditions of ordinary workers. In addition, it is driving the public bus services in their entirety towards privatisation, which I suspect is the real agenda.

Alan Kelly (Tipperary North, Labour)
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As Minister of State with responsibility for public transport, I assure the Deputy that under no circumstances is there a privatisation agenda. I do not know if he missed what I said earlier but last year Bus Éireann was provided with its fifth highest subvention ever. I have already outlined the position in respect of staff and I have no intention of discussing the quantum because to do so would be to cross the line regarding negotiations. The House will respect that, in view of my role, it would not be appropriate for me to do so today. I had no problem discussing that matter previously and I will have no difficulty talking about it at a later date.

There are some restrictions here which lie outside the control of Bus Éireann. In particular, there are certain rules on competition, state aid, etc. which must be adhered to in the context of the Expressway service. We are working closely with the company to ensure the services it is developing for its customers will be sustainable into the future. Creating such sustainability is my ultimate objective.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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Why are the subventions available elsewhere in Europe much larger than those given to Bus Éireann?

Alan Kelly (Tipperary North, Labour)
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I have already stated that the company received its fifth largest subvention ever last year.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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That is still a fraction of what is available throughout the rest of Europe.

Alan Kelly (Tipperary North, Labour)
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There are some issues with which Bus Éireann must deal. There is a reason that savings, which are outlined in the Labour Court recommendation, must be delivered. I sincerely wish all those involved the best of luck in their endeavours today.