Dáil debates

Wednesday, 22 March 2017

2:15 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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29. To ask the Minister for Transport, Tourism and Sport if proposals will be forthcoming from his Department in regard to the financial difficulties in Bus Éireann; and if he will make a statement on the matter. [10848/17]

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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Can the Minister bring clarity to the exact financial position of Bus Éireann? There are conflicting reports about losses for 2016 and the first two months of 2017. I hope he will be able to provide the House with some information on the exact position regarding the losses. How much of the 2016 figure refers to operational rather than accounting losses? What is the position for the first two months of 2017, in particular the performance of the Expressway network?

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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In recent months I have taken action on a number of fronts in order to address issues raised by stakeholders in Bus Éireann. I have increased the amount of public service obligation, PSO, funding so that in 2017 almost €263 million will be provided to the NTA to allocate to public transport operators. That figure represents an 11% increase on 2016, and I have publicly committed to further increasing the level of PSO funding in the coming years as financial resources permit.

I have assured rural Ireland that the NTA will continue to use its statutory powers to ensure public transport connectivity is maintained for rural communities affected by changes to routes in the commercial bus market. I have written to my colleague, the Minister for Social Protection, Deputy Leo Varadkar, regarding concerns about the level of funding associated with the free travel scheme and we have mandated our Departments to work together to review this matter.

On the company's industrial relations issues, I am clear that I cannot and will not involve myself in discussions relating to the way in which the company organises itself. I have consistently urged Bus Éireann management and trade unions to constructively engage on those internal matters which require attention within the company.

Last week's comments by management and unions reinforce my stated position that there are issues internal to the company which require attention if we are to resolve this situation. I do not believe that any member of this House can ignore the existence of such issues when a company's management and trade unions are highlighting inefficiencies which require attention, as both did last week.

The company needs to develop a business plan for the years ahead. In developing such a plan there must be realistic engagement between the company and its trade unions in order to ensure the company can deliver its services in an efficient and financially sustainable manner.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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I ask the Minister to outline the exact loss for Bus Éireann for 2016. Was it €9.4 million? If it was, can he confirm how much of that was operational and how much involved accounting issues? I ask the Minister to outline the losses for Bus Éireann for January and February 2017, specifically the losses on the Expressway service.

Of the €263 million in the PSO that the NTA receives, how much will go to Bus Éireann, Dublin Bus and Irish Rail in 2017? In terms of the money going to Bus Eireann, how much of an increase is it compared to the 2016 figure?

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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The figures for 2017 will be decided at a later date. In respect of the figures for 2016, a total of €9.4 million, we have not seen the accounts because they will not be published until such time as they are ready. The Deputy can be certain that the figures are very high, and completely and utterly unacceptable. As Deputy Troy said, the figures are verging on reckless trading.

Management is very conscious of the fact we must ensure we are not running into a situation in 2017 where it is trading in a reckless manner, which is to trade while insolvent. That is vitally important and something my Department and I are watching closely. I cannot tell the Deputies what the accounts will say because they have not yet been published. However, they will be published and the figures will be dramatically unacceptable and bad.

2:25 pm

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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The Minister is the principal shareholder and cannot tell us this information, yet management is writing to various people stating that losses were 41% higher for the first two months of this year than the same period a year ago. Surely the Minister, when he saw it in yesterday's newspapers, would have got his people to state what exactly is the figure. Surely we, as parliamentarians, have a right to know the figure. Further, is the figure for 2016 €9.4 million? The board of Bus Éireann is due to sign off on those figures. How has the Minister engaged with his representatives on the board or on that final report? What is the point of having a Dáil if we can go onto rte.ieand see the figures that the Minister - the principal shareholder - is refusing to give here. We might as well not be here. It is time for the Minister to take his head out of the sand in terms of what is going on in Bus Éireann. I have just come from a presentation by Transport Infrastructure Ireland about the roads programme, which is another disaster. We all agree that there is a serious issue with Bus Éireann and we want to help and be constructive. However, by denying information to Members of this Parliament, the Minister is not being helpful.

Photo of Pat GallagherPat Gallagher (Donegal, Fianna Fail)
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I insist that Deputy Troy's supplementary question is very short.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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The sad fact of the matter is I do not think the Minister is withholding the information because I do not think the Minister knows it. That is the sad reality. During my priority question, I asked the Minister about his concern about the board and reckless trading. The board itself has stated that it will have to implement the plan to avoid reckless trading. Is the Minister in agreement that the plan would be implemented unilaterally and without the agreement of the unions to ensure there is no reckless trading? Does he feel that the implementation of the plan without agreement will prove to be positive or beneficial?

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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If the management puts figures of that sort into the public arena, I have to accept them and take them seriously. However, I will not announce profit or loss figures for a semi-State company before they are published. That would be absurd. The figures will be published in due course in the annual report. For me to pre-empt that would be absurd. Despite the fact the Opposition wants to make me so, I am not the operating entity. I am the shareholder.

Photo of Dara CallearyDara Calleary (Mayo, Fianna Fail)
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Do your job.

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I am a shareholder that allows Bus Éireann to get on with its job and to reduce its figures. Do not ask me to pre-empt them before they are even audited. That would be utterly and totally irresponsible. I utterly accept what is being said at the moment as being an honest reflection of the figures that are anticipated for 2016 and 2017.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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Reckless trading.