Dessie Ellis (Dublin North West, Sinn Fein)
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5. To ask the Minister for Transport, Tourism and Sport if he will provide an update on the privatisation of bus routes currently serviced by Dublin Bus and Bus Éireann; the rationale for this move; if an impact assessment was sought in relation to effects on current jobs and future pay and conditions for workers in public transport; and if he will make a statement on the matter. [27415/14]

Dessie Ellis (Dublin North West, Sinn Fein)
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Will the Minister of State give an update on plans to put 10% of Dublin Bus and Bus Éireann routes out to tender and the rationale for this move? Has the impact on current jobs and future pay and conditions for workers in public transport been assessed? Will the Minister of State, please, make a statement on that matter?

Alan Kelly (Tipperary North, Labour)
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The direct award contracts for the provision of public service obligation, PSO, bus market 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.  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 has announced that up to 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 for.  The overall level of tendering is very modest. The contracts will go to the best competent tenderer and I expect both Dublin Bus and Bus Éireann to apply for such tenders. The NTA expects that  the procurement process for the routes to be tendered will begin in December 2014, leading to the award of the contracts in March 2016, with the successful operator or operators commencing services in late 2016.

 In the case of either Dublin Bus or Bus Éireann not being successful in the competitive process, staff would be protected under the European Communities (Protection of Employees on Transfer of Undertakings) Regulations 2003, TUPE. These issues need to be addressed by the NTA and the bus companies through constructive engagement with the unions in the course of the procurement process in the next two years. Following a meeting I, ith the Minister for Transport, Tourism and Sport, Deputy Leo Varadkar, held with unions representing Dublin Bus and Bus Éireann workers last November we asked the NTA to put a structured engagement process with unions in place. I understand the NTA met the NBRU and SIPTU unions in January and March this year and consultation continues.

Dessie Ellis (Dublin North West, Sinn Fein)
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I am surprised that the Minister of State, coming from the Labour Party, would go along with this. I would expect Fine Gael to do this because it has been pushing a privatisation agenda for many years. In November 2013 the NTA, in spite of negative experiences of privatisation of bus services, went along with the idea of putting out to tender 10% of Dublin Bus and Bus Éireann routes and 100% of routes in Waterford. This was at a time when passenger numbers were increasing in the major cities. The privatisation of the routes will put 440 jobs at risk. Dublin Bus is increasing its employee numbers, but the Government will put jobs at risk by 2016. This will also undermine terms and conditions for workers. When routes are allocated to private companies, conditions are less favourable to workers. Will the Minister of State reconsider this issue and not blame the NTA? This is a Government decision. Using the NTA is not good enough. This is against the principles for which the Labour Party has stood.

Alan Kelly (Tipperary North, Labour)
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This matter is governed by European and national legislation, as I am sure the Deputy knows. The NTA will continue to define the services that the successful applicants will be contractually required to provide. The tender is for up to 10% of routes and I expect both companies will submit robust bids. The NTA will apply the same level of control and centralised planning to the routes put out to tender as it does to the routes operated by the CIE suite of companies. It will predetermine the routes, schedules, vehicle types, standards, fares and customer service requirements. It is a modest change. In the past few months, even in the past week, Dublin Bus has been hiring. It is looking for 100 new workers. It is in a positive position. I expect issues which arise to be dealt with in in the engagement with the NTA and the unions.

Dessie Ellis (Dublin North West, Sinn Fein)
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The fact that Dublin Bus is hiring workers is a very good reason not to go down this route. Blaming the European Commission and saying its rules have been put in place-----

Alan Kelly (Tipperary North, Labour)
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I am just pointing out the facts.

Dessie Ellis (Dublin North West, Sinn Fein)
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Has the Department produced a proper impact statement on the effects of this process on workers and their conditions? The Minister of State knows as well as I do that the private sector will undercut. Will the Government give it public service obligation, PSO, services? I am sure that in recent years the PSO subvention has been reduced dramatically. It is one of the lowest in Europe and the service is moving towards profitability. I do not understand why we would facilitate in going down this route. The Government is using the NTA or the European Commission as an excuse, but there is certainly a means to do this, as I believe the Minister of State knows. This is a policy decision, a drive towards privatisation. That is the problem.

Alan Kelly (Tipperary North, Labour)
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The NTA will implement this change and define the services to be provided. I expect that when it engages with the unions, it will ensure all workers will be protected. It is a modest change. I expect that Bus Éireann and Dublin Bus will compete very strongly for these routes and have every possibility of being successful. I believe the workers will be protected. Public transport numbers are growing and the statistics are improving every month. We have regular meetings with all of the companies. As a result, I believe the workers who could be affected will be protected as part of this process. The controls in place will ensure that will happen.