Dáil debates

Wednesday, 8 February 2017

3:10 pm

Photo of Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance)
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32. To ask the Minister for Transport, Tourism and Sport his views on the unfolding crisis at Bus Éireann and the case for an increased subsidy from his Department. [6356/17]

Photo of Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance)
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What is the Minister's views on the unfolding crisis at Bus Éireann and will he comment on the case for his Department allocating an increased subsidy to the company?

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I thank the Deputy for his question. As he will note from our encounters here and at the Oireachtas joint committee, the responses I have been making on this matter have been consistent and fairly clear. The company is losing money and those losses must be addressed. The losses arise primarily as a result of the poor performance of its commercial Expressway services, services which do not, and indeed cannot, receive any taxpayer funding.

I have been equally clear in my calls for discussions to commence immediately between the two relevant parties, as I have done today in my answers to two other questions on the same subject. As I clarified to the Deputy last week, those discussions should commence on the basis of no preconditions from both sides, and if uncertainty exists as regards that basis, I urge both parties to clarify their positions.

On the issue of the subsidisation of public transport, the Deputy is aware that subsidies are only provided for socially necessary but financially unviable services and are not available for commercial services. I am committed towards increasing the level of taxpayer funding for public transport services as budgetary resources allow. That commitment is evidenced by the 11% increase secured in budget 2017, and I will be seeking to increase taxpayer funding of public transport services further in budget 2018.

Bus Éireann operates approximately 230 of these socially necessary but financially unviable services. These services operate in every county in the State, and last year around 32 million people travelled on such a service. I also note that in 2016, Bus Éireann received €40.8 million for the provision of those services, which represented a 21% increase when compared with 2015.

Additional information not given on the floor of the House

However, any increase in funding provided must demonstrate to the taxpayer the value for money achieved and, in that regard, the National Transport Authority has an important role to play in its monitoring and enforcement of service levels and quality under the public services contracts entered into with operators.

Photo of Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance)
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The Minister is the sole shareholder in Bus Éireann. We are 12 days away from a national bus strike which could spill over into a national public transport strike. The Minister said the same sterile mantras 12 days ago that he has repeated in the Dáil today. Will he be saying them in 12 days' time when a national bus strike will kick off? We need more than that.

I understand there is a village in his constituency called "Stepaside". It strikes me as apt because he seems to want to step aside from this entire controversy. He seems to be willing to allow Mr. Hernan to provoke a strike by demanding cuts of up to €8,000 for some workers. He seems to be willing, for the sake of €9 million, to put at risk the future of a company whose workers pay €59 million to the Exchequer in payroll taxes every year. Is he prepared to put aside the sterile mantras and the play-acting here in the House and act to deal with this crisis?

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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To address the Deputy's supplementary on the subvention first, he will be aware that the subsidy in past two years increased and it is my intention to increase it even further in the coming years. I have no wish to see any loss of services to people throughout the country who need that subvention and connectivity. That particularly applies to rural Ireland.

I do not see what Stepaside has to do with this particular argument but somehow the Deputy has managed to include it in a way which I still cannot follow, but well done, it is to his credit. "No" is the answer to his question. I will not be intervening in an industrial relations dispute. How often does he have to ask me that question for me to give him the same answer? I am not going to be drawn in. I am not going to be producing the State's chequebook under any circumstances. That is not my role as a shareholder. It would be the worst move I could make.

Photo of Mick BarryMick Barry (Cork North Central, Anti-Austerity Alliance)
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Bus Éireann now runs its Cork-Dublin services along the motorway. The towns that lost out between Portlaoise and Cashel are now served by private operators who are paid €440,000 a year for that work. Bus Éireann services from Dublin to Galway and Dublin to Waterford do not travel only on the motorway. If they travelled exclusively on it, it would cost the State between €2 million and €2.5 million every year to have the towns that would lose out serviced by private operators. Is the Minister prepared to recognise fully the social value of the work done by Bus Éireann and support payment in full for services performed by Bus Éireann in towns such as these?

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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Deputy Barry accused me of repeating the same mantra. He is more repetitive than I am. It is quite extraordinary and that is quite an achievement. He has managed to bring Stepaside into it and has repeated the mantra as frequently as I have. That is pretty good going.

The answer to his question is the same as the one I have given him previously. Intervention is a matter for the National Transport Authority on detailed routes. It is not a matter for me. I am not going to intervene in any way, direct or indirect, in this dispute, which could draw me into a situation whereby I would be implicated in paying more money, producing more money or actually getting involved. The nitty-gritty of this is up to two parties and it will remain with two parties. It does not matter how often the Deputy asks me the same question in this House, he will get the same answer.