Robert Troy (Longford-Westmeath, Fianna Fail)
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29. To ask the Minister for Transport, Tourism and Sport the progress being made in resolving the financial problems and industrial relations dispute at Bus Éireann; and the reason it is the case that the Bus Éireann report submitted to his Department in January 2016 on the way to resolve the financial difficulties at the company was rejected by his Department, even though it was essentially the same analysis as was presented in the latest report by a company (details supplied). [6342/17]

Robert Troy (Longford-Westmeath, Fianna Fail)
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Since the beginning of the year, the leaking of reports has generated anxiety among staff and passengers who rely on Bus Éireann buses. Then, we realised that the Minister's predecessor was furnished with a cost-saving report more than 12 months ago. During that 12 months, no action has been taken by the Minister or his predecessor. One full year during which efficiencies could have been introduced has been wasted. What happened during the year and what does the Minister intend to do to ensure the viability and sustainability of Bus Éireann?

Shane Ross (Dublin Rathdown, Independent)
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I thank the Deputy for his question. Regarding the industrial relations issues at Bus Éireann, I have been clear in my calls for discussions between the two relevant parties, the management and trade unions, to commence immediately. I do not doubt that those discussions will be difficult.

However, it is obvious that they must occur. As I clarified to the joint Oireachtas committee last week, I am of the view that those discussions should commence on the basis of no preconditions from both sides. If uncertainty exists in that context, then I would urge both parties to clarify their positions.

I can inform the Deputy there was no such report submitted to my Department in January 2016. As I previously informed the Deputy, during the course of 2016, Bus Éireann management worked on developing a business plan to address the loss-making situation in its commercial Expressway business. Several drafts of Bus Éireann's proposals were presented to my Department and NewERA – my Department's financial advisers – and were discussed during 2016.

This type of interaction is entirely in line with the code of practice requirements regarding the preparation of business or strategic plans by a State body. As outlined in the code, the responsibility for the preparation, finalisation and adoption of such plans rests with the board of the relevant body, with an opportunity allowed for departmental consideration of draft proposals.

It is incorrect to state that my Department rejected plans developed by the company. Those discussions between my Department and Bus Éireann did, however, highlight some critical shortcomings that existed in the draft proposals as presented. As the Deputy is aware, these shortcomings relate to the commercial rationale, financing, implementation, sensitivity and risk analysis, and the necessity to consider both state-aid and competition law interactions.

Additional information not given on the floor of the House

The Deputy is also aware that, in September 2016, the board of the company commissioned independent consultants, Grant Thornton, to review the company's proposals as developed during the year and to advise the board. Unsurprisingly, that review by the independent consultants for the board found similar shortcomings with the proposals as those identified previously when the proposals were considered by the Department and NewERA. The review also made recommendations to the board about an approach to finding a way forward. Therefore, arising from the board's consideration of the Grant Thornton advice, the company has now embarked upon developing a new plan to address the company's loss-making situation and restore it to a sustainable future, and the company aims to have this plan in a few weeks.

Robert Troy (Longford-Westmeath, Fianna Fail)
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I am shocked that the Minister now claims there was no report because he confirmed there was a report at a meeting of the Oireachtas committee last week. In fact, at this morning's meeting of the committee, I got a sense of hope, particularly in light of the fact that the Minister said he had checked the grammar and spell-checked the report of the RSA. It is Deputy Ross's duty as Minister to hold the board to account. I hope he will bring that level of authority to the board of Bus Éireann and hold it to account and get it to instruct the new CEO to enter negotiations without any preconditions, good, bad or indifferent.

I also hope the Minister will realise that it is not just the pay and conditions of the workers that are targeted to be slashed in the attempt to turn this company around. There has to be monumental structural change within Bus Éireann, of which the Minister is the sole shareholder and on which he has a major influence in terms of what structural changes and efficiencies can be derived.

Shane Ross (Dublin Rathdown, Independent)
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I thank Deputy Troy for his remarks. I think he misunderstood me. I will reread what I said as I do not think he heard it. I stated, "there was no such report submitted to my Department in January 2016". Many proposals were made and many reports were submitted at the time. Many reports were made to Bus Éireann management. There was no such report made to me in 2016. I did have proposals submitted to me for comment and observation but there was no report to me at the time in question. As the Deputy will know, NewERA did examine the situation and report to me. I also consistently had reports from the board.

The idea that I am not holding the board accountable is absurd. The board has been trotting up and down to my office - or the chairman certainly has been doing so. I have been in constant communication with people from Bus Éireann. I have met the new chief executive on at least two occasions already. The board - as would be the case with any such board - is being held to account by me, as the shareholder. Let there be no doubt about that.

Robert Troy (Longford-Westmeath, Fianna Fail)
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In his negotiations with the chairman of the board and the CEO, did the Minister ask them to enter negotiations with the unions without any preconditions? If so, what was their reply? What level of discussions has the Minister had? I accept that, in industrial relations terms, he cannot get involved personally. However, he can get involved is in the whole restructuring of Bus Éireann. What information has the new CEO brought to the Minister's attention in terms of how he intends to restructure Bus Éireann? Will there be any loss of rural services? Any proposal that comes from the CEO through the board to restructure Bus Éireann must be ratified by the Minister, as the shareholder. Does the Minister agree with that?

Shane Ross (Dublin Rathdown, Independent)
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Deputy Troy asked me about what he referred to as my "negotiations" with the chair. I do not have negotiations with the chair. The chair will, hopefully, have negotiations with the unions in the time to come. I talked to the chair, I asked him to be accountable for his stewardship and I asked him about his plans. The Deputy asked whether I told him there should be no preconditions. I have told him that publicly. It is an absurd question. I have said quite publicly to both the chairman and the unions to come to the table without preconditions. I do not need a quiet meeting on the side to tell them that. The phrase "Without preconditions" provides the simplest message out there.

Robert Troy (Longford-Westmeath, Fianna Fail)
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Then they are ignoring the Minister.

Shane Ross (Dublin Rathdown, Independent)
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Both parties are making themselves available, supposedly without preconditions, yet they are not meeting. It is an absurd situation. I can only say this: I hope and believe that they will come together - I appeal to them to do so - without preconditions because there is no other way out of this dispute.