Timmy Dooley (Clare, Fianna Fail)
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117. To ask the Minister for Transport, Tourism and Sport his views on the recent decision by Bus Éireann to withdraw service on routes linking Dublin with towns in the south and south-east and plans being proposed by the company that could result in fewer services on the Athlone to Westport route. [10011/15]

Timmy Dooley (Clare, Fianna Fail)
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I ask the Minister to expand on the Government's views on the decision by Bus Éireann to withdraw a number of bus services, especially in the south-east. The areas affected include towns such as Bunclody, Castlecomer, Ballyporeen, Roscommon and Castlerea. What is the Government's thinking on this matter? The Minister will be familiar with the ongoing conversation about the hollowing out of services in rural areas. Will he explain how he intends to address the issue?

Paschal Donohoe (Dublin Central, Fine Gael)
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I refer the Deputy to my reply to the earlier priority question relating to bus services in the south and south-east.  I am very much aware of the concern that these issues are causing in many rural communities. I reiterate that public service obligation, PSO, funding to public transport companies has been maintained this year at 2014 levels. This is the first time since 2008 that this funding has not been reduced.

I have been advised that Bus Éireann has not taken a decision to withdraw services on Expressway route 21 from Athlone to Westport.  The company informed me that it undertook a "Use it, don't lose it" public campaign in late 2014 in the area, with promotional fares and a media and marketing campaign to encourage people to use the service or face losing it.  These promotional fares are still in place and the company continues to review the service from a commercial perspective.

The Deputy will appreciate that Expressway services do not receive a public service obligation subvention. They are required to operate on a commercial basis and may be subject to competition from other operators.

Timmy Dooley (Clare, Fianna Fail)
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I thank the Minister for setting out the position. An issue is emerging in discussions with unions and people who have an interest in the provision of these services. Concern has been expressed about the issuing of licences by the National Transport Authority. There would appear to be a lack of appropriate co-ordination in balancing the needs of the rural community with the necessity for competition on inter-urban routes. While I recognise fully the work the NTA does in ensuring a competitive environment exists on routes between large towns and what may be termed inter-urban routes, the associated effects, or, perhaps, the overemphasis on creating absolute competition on every service, has created a situation in which many services which had been profitable at certain times heretofore are no longer profitable. This is putting Bus Éireann in a difficult position.

I appeal to the Minister to talk more generally about the approach towards the issuing of licences, the role of the NTA and the direction from Government in terms of a coherent policy position on the provision of appropriate bus services to rural areas.

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy has made some very fair and important points. One of the big drivers in all of this has been the fact that we have so many new and improved national routes. There is a great demand from communities on those national routes to make use of services from point to point. As a consequence, some communities are now facing either a significant reduction in a service or a complete loss of that service.

I will set out a direct answer to the core question the Deputy has put to me regarding how this should be managed. I am considering how we could develop it in future, but the way it is being done at the moment is that in the absence of a commercially feasible service we are looking at the alternatives that could be put in place and which would be affordable to the taxpayer to deal with the needs that I know rural and local communities have. This work is ongoing and I expect that we will be in a position to be able to confirm how routes 5 and 7 will be dealt with.

Timmy Dooley (Clare, Fianna Fail)
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Will the Minister initiate a review of the issuing of licences by the NTA? I do not mean this in a Big Brother way, but perhaps in consultation with the NTA. Will the Minister review the entire process of the issuing of licences to establish when and if there is effective competition? I call on the Minister to look to the broader need of the catchment area to ensure that all areas are served adequately and appropriately.

Let us consider a route between two large towns or one of the cities and a large town. Not every service need go on the main route. With proper structuring it should be possible to serve the direct requirement and the indirect requirement, perhaps without requiring a subvention. None of us are suggesting that we simply need to find more money to subvent services. Of course it should be provided if it is absolutely necessary, but I believe there is a more appropriate, balanced and structured way of achieving the same result. It will require the input of the NTA as well as a little change in direction. The competitive environment should be considered in a holistic way rather than simply in the point-to-point way it is being considered at the moment.

Paschal Donohoe (Dublin Central, Fine Gael)
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That is a suggestion from the Deputy to which I will give some consideration. All of this is in the context of a bus market that is growing. More passengers are using the services now than last year. Buses and services have been made available. The evidence of my commitment to the need to expand public transport in our country is the fact that, of the Supplementary Estimate of €110 million that I brought to the Dáil before Christmas, a little over half went to public bus transport companies, Dublin Bus and Bus Éireann.

I will give consideration to the point regarding the need to look at how licences are being granted to see if it is contributing at all to the challenge that we are facing.

I think it very unlikely in dealing with the services needed by villages and communities below a certain level, although I wish it were the case, that these can be provided without some support from the State. The point is that if they could be supported and delivered in a viable manner, we would not be in the situation where these services are being withdrawn in the first place.

We are working on a model to respond to the issues concerning routes 5 and 7 and we will look at how this broader matter can be dealt with.