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Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: I do not know what the detail is at the moment but I can give the committee some stuff on it. I gather committee members received a note on the matter. The majority of the funding is focused on supporting the operational costs of the provision of essential safety and security services. The point is that this money can never be considered as state aid because it has no economic benefit. It...

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: The funding will go up overall next year. I am not sure what the numbers are at the moment for wages, but the allocation is being used for customs and fire brigade equipment and personnel as well. I suppose there will be an expectation that next year the figure will be a little higher as well.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: I do not think it is a Brexit-related issue.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: It is not Brexit-related. It relates to the normal course of events.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: Yes.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: Let me start with Deputy Troy's questions. He is correct that the €5 million will go towards buses and the Luas due to the growth in passenger numbers. There will be a staged payment for the Luas green line enhancement, which is a problem area. The revised allocation will enable the NTA to take delivery of extra bus vehicles this year, enabling some of the additional services to...

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: This is not privatisation. A tendering process is being set. To the best of my knowledge, Bus Éireann and Dublin Bus are tendering for all of the routes. It is open to outside companies, including those from outside the State, to tender. The selected provider will get a contract which will probably run for five years. However, it will not get any assets. We are not selling any...

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: They are not the most profitable routes.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: Yes. That is not what happens at all.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: No, they are not.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: They are not. They are all public service obligation, PSO, routes. They are socially necessary but not financially viable.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: I think they are all PSO. They are not the most profitable routes. We must make it clear that although certain things are said here genuinely and with great conviction, this is not an issue of asking someone to cherry-pick the most profitable routes. These are not the most profitable routes. They are all PSO routes, which means they are not profitable.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: May I finish my reply?

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: As far as I know, there is no reduction in revenue to Bus Éireann or Dublin Bus because they have expanded their services. What is happening in the bus and public transport market is quite exciting. It should not be knocked. We should welcome the fact that outside companies want to tender for these routes because, as members are aware, the passenger numbers are increasing very quickly...

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: I will deal with that, hopefully, in consequential order. First, the €3 million is not going to Go-Ahead. That is not what happens. It is a cashflow issue. In other words, it is bridging a gap. It is a working capital requirement for bus market opening. It arises from the gross cost contract arrangement, to which the Chairman referred, with Go-Ahead and Bus Éireann for BMO...

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: It is basically run, in this case, by the NTA. The NTA will be holding the bridging finance. It certainly will not be going to Go-Ahead in that sense. It is a timing issue, rather than an asset issue.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: The NTA will be organising that, as it will all the routes. All the routes are on the NTA website. The Deputy cannot ask me to micro-manage in a way where I decide what routes are profitable and what routes are not. By definition, all these are unprofitable because they are PSO routes.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: I certainly cannot supply it today. I do not mind coming back on it.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: Sorry.

Select Committee on Transport, Tourism and Sport: Estimates for Public Services 2018
Vote 31 - Transport, Tourism and Sport (Supplementary)
(5 Dec 2018)

Shane Ross: The answer to that is, "No, there are not".

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