Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

2. To ask the Minister for Transport, Tourism and Sport if he will ensure that the tendering of 10% of all PSO bus routes and 100% of Waterford city bus services will not further undermine the wider public transport network and lead to wholesale privatisation; and if he will make a statement on the matter. [15405/14]

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

There is a big fear among people that the tendering of 10% of all routes and approximately 100% of the Waterford City bus routes will further undermine the public transport network and will lead to wholesale privatisation. Will the Minister make a statement on this issue because there are huge concerns about it?

Alan Kelly (Tipperary North, Labour)
Link to this: Individually | In context | Oireachtas source

Neither Dublin Bus nor Bus Éireann is being or will be privatised over the lifetime of this Government. In fact, they will have a guaranteed level of public service funding up to 2019.

The direct award contracts for the provision of public service obligation, PSO, services held by Dublin Bus and Bus Éireann expire later this year. The awarding of subsequent contracts is the statutory responsibility of the National Transport Authority, NTA. In accordance with the decision made by the NTA board in December last on the arrangements for the award of public transport contracts after December 2014, all Dublin Bus and Bus Éireann routes will be included in the new five year direct award contracts which the NTA will enter into with the companies next December. However, the NTA announced that 10% of publicly subvented bus services will only remain within the direct award contracts until the end of 2016, after which they will be operated under separate contracts that will have been competitively tendered. It must be recognised that the tendering decisions announced by the NTA are relatively modest and there will be a long lead-in before they take effect. Furthermore, it is open to the two incumbent companies to compete for any tendered routes and I am confident they will make strong bids.

The NTA considered it to be in the public interest to leave Dublin Bus and Bus Éireann with a scale of operation which remains efficient for each company’s resources and overheads. The NTA has determined that tendering about 10% of the market presents little, if any, risk to Dublin Bus or Bus Éireann’s overall operations while giving the opportunity to test market pricing, offer opportunities to improve efficiency and customer service, as well as the possibility, subject to the outcome of the competition, of bringing new operators into the market, and enabling benchmarking. No service changes will occur as a result of this process as it will still be the State, in the form of the NTA, that will determine the schedules, the frequency, the vehicle types and standards, the fares and the customer service requirements. This is the key message we need to promote.

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

Sinn Féin is opposed to privatisation, in particular privatisation by stealth which seems to be happening across the transport service, particularly with Dublin Bus. This is happening at a time when Dublin Bus has made massive strides forward and passenger numbers have risen significantly and continue to rise. I do not believe for a minute that private companies can do what Dublin Bus has done. The evidence across Europe is that Dublin Bus is up there in terms of competition, how it is run and how efficient it is. There is no doubt about this. I met officials from Dublin Bus the other day and they confirmed this.

Seán Barrett (Dún Laoghaire, Ceann Comhairle)
Link to this: Individually | In context | Oireachtas source

Will the Deputy please put his question?

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

There is serious concern about this. The Minister of State mentioned there will be no further cuts to the PSO in 2015. Will he guarantee for us no more money will be removed, making it more difficult to enforce cutbacks?

Alan Kelly (Tipperary North, Labour)
Link to this: Individually | In context | Oireachtas source

I have outlined what will happen in regard to the contracts and the public service obligation, PSO, up to 2016 and then to 2019. There is a plan in place for up to 2019. The key message that needs to be brought out here is that at all times the National Transport Authority must act within the law. Both European law and the Dublin Transport Authority Act 2008 set down strict criteria under which the NTA must operate. Where the NTA proposes to enter into further direct award contracts for bus services, it is obliged to carry out statutory consultation under the Act. It has done that. Under the legislation, if the NTA proposes to enter into direct award contracts, it "may only do so where it is satisfied that the continued adequacy of the public bus passenger services to which the contracts relate can only be guaranteed in the general economic interest by entering into such direct award contracts". If it is not satisfied, it must provide for some level of competitive tendering. This is what is happening, but on a modest scale. There are no further plans to change what has been announced by the NTA in the past few months.

Dessie Ellis (Dublin North West, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

The Minister of State says there has been little change made, but 100% of Bus Éireann's Waterford routes are being put out to tender and 10% of routes across the board are being put out to tender. There are huge implications if these routes go to private companies. It has been suggested that anybody can tender for the routes, including Dublin Bus and Bus Éireann, but I believe this move is a smokescreen for privatisation.

In regard to the bus rapid transport, BRT, plans, is it guaranteed this will be given to Dublin Bus? This is an important scheme. Will the Minister of State guarantee that if it goes ahead, it will be given to Dublin Bus or is it likely that it will go the same road of seeking the best tender? We do not always get the best results when we go down the route of direct award contracts.

Alan Kelly (Tipperary North, Labour)
Link to this: Individually | In context | Oireachtas source

I outlined earlier how this will work up until 2019. In regard to BRT, Dublin Bus will be the operator. We need to get the message across that the NTA in deciding to open up only up to 10% of routes for competition is ensuring that this will have a minimum impact on Bus Éireann and Dublin Bus from the point of view of scale. The NTA will have complete control over this process and all issues relating to public transport to ensure quality of service is maintained. Given the legislation that guides this issue at national and European level, this decision has been handled quite well and it is a modest opening up of the market.