Seanad debates

Wednesday, 7 October 2009

6:00 pm

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)

I thank Members for their contributions.

The reality is that, since 1997, successive Governments have done more than any of their predecessors to develop rural transport in general and the rural transport programme. We are delivering high levels of service because of ongoing investment and policy development for more than a decade.

I intend to set the record straight with regard to rural transport and review the legislative innovation that will provide a comprehensive modernised regulatory framework for rural transport. The policy framework for the provision of rural transport shows the Government wants to ensure that services are provided in a joined-up way. When the Department's present statement of strategy was being formulated, the magnitude of the economic challenge facing us was much less obvious than it is now. Paradoxically, the objectives set out then and the strategies to achieve them are even more relevant today in the face of our present economic and environmental challenges. The key objective is to provide public transport for an increasing number of people and to encourage them to use it. Very significant financial resources, capital in the form of Transport 21 investment and current subventions have also delivered significant improvements in public transport services, including rural transport.

The Government's commitment to rural transport is clearly stated in Towards 2016 and in the present national development plan. The development of rural transport is also a key objective in the Government's sustainable travel and transport plan, Smarter Travel - A Sustainable Transport Future, and in the Department's sectoral plan under the Disability Act 2005.

The rural transport programme was launched in February 2007. Its principal objective is to help to address rural social exclusion related to unmet public transport needs. Older people and people with disabilities form the core customer base of the programme. The rural transport programme was not established to provide regular inter-urban transport services. It is a principle of the programme to complement and not to compete with other existing public transport services.

The rural transport programme mainstreamed the former pilot rural transport initiative. The programme benefits from significantly increased funding compared to the former initiative. The bottom-up approach developed for the pilot rural transport initiative demonstrated the effectiveness of community and voluntary participation in the provision of rural transport services. The rural transport programme continues to rely heavily on the work of local communities for its success.

Pobal administers the programme on behalf of the Department. It works with 36 individual groups to provide local public transport. The programme is operational in every county and is working to maximise coverage on a phased basis having regard to the availability of resources.

The provision of services under the programme is for the individual rural transport groups. Local communities know the needs in their areas and how best to address them. The Government's role is that of facilitator through financial and administrative support, but communities themselves have the lead role.

Funding for rural transport has steadily increased over the years. Some €3 million was provided in 2002, 2003 and 2004, rising to €4.5 million in 2005. Some €5.1 million was provided in 2006 and €9 million in 2007. A sum of €11 million is being provided from my Department's Vote for 2009, an increase of €1 million on the provision for 2008. This funding has led to continuing increases in the levels of service provided, rising from 40,000 services in 2003 to 140,000 services in 2008. Services are now extended to every county. The number of customers using the service has risen greatly. There were 151,000 passenger journeys in 2003, rising to 1.2 million passenger journeys in 2008. Further increases will be achieved in 2009.

Pobal works closely with the groups to maximise the impact of the funding in addition to value for money. In addition to benefiting from funding from my Department, rural transport groups benefit each year from funding provided under the free travel scheme. Some groups also benefit from local development funding from the Department of Community, Rural and Gaeltacht Affairs, while many also generate funds from their own resources.

In tandem with the rural transport programme, the Department of Community, Rural and Gaeltacht Affairs funds a pilot night-time rural transport scheme in seven areas around the country, namely, west Cork, east Cork, Meath-Cavan, Sligo, Roscommon, Donegal and Laois. The scheme has been in operation since 2007 and provides a great opportunity to evaluate the operation of evening and night-time rural transport services. This scheme is also overseen by Pobal, which manages the main rural transport programme.

Earlier this year, my colleague the Minister for Community, Rural and Gaeltacht Affairs, Deputy Ó Cuív, met representatives of the groups involved with the pilot and with Pobal to discuss the future of the evening and night-time rural services beyond the completion of the pilot project at the end of 2009. The groups now have the opportunity to examine options for increasing the efficiency and cost-effectiveness of the transport service. They will be able to prioritise routes, increase load capacity, re-tender to operators to seek cheaper quotes where appropriate, and focus more on generating income from passengers. It is intended that, by the end of the year, the seven groups, with support from Pobal, will prioritise routes that can be supported from existing resources, thus sustaining some level of evening services for 2010. The Minister has highlighted in particular the need in the current climate for the groups operating the evening rural transport scheme to do whatever they can to make these income-generating services as self-sufficient as possible.

Everyone with an interest in rural transport will know that the Report of the Special Group on Public Service Numbers and Expenditure Programmes recommends the termination of the rural transport programme, with an annual direct saving to the Exchequer of €11 million - the amount provided for the programme for 2009.

I want to make it absolutely clear that, at this time, no decisions have been taken with regard to the future of the rural transport programme or any other of the report's recommendations. Anyone now claiming that the rural transport programme has been discontinued is incorrect.

The Government is considering all the recommendations in the special group's report and decisions will be made by the Government in the context of the budget for 2010 and later years. To assist in that task, the Government has referred the report to the Oireachtas Committee on Finance and the Public Service for its views prior to the budget.

Bus Éireann is a very important provider of public transport services in rural areas. Since 2000, a total of €283 million in current funding and €125 million in capital funding has been paid to it to assist it in providing non-commercial services. The annual subvention to Bus Éireann has grown from €15.7 million in 2000 to €44.9 million in 2009. This funding has supported the development of a countrywide integrated network of services. Bus Éireann operates a public service obligation fleet of 477 buses and it also operates a fleet of 223 buses on its commercial Expressway routes. Taken together these services enable Bus Éireann to provide a comprehensive national network of services carrying approximately 48.2 million passengers per annum. The integrated network enables Bus Éireann to provide linking routes, discounted through fares and ease of transfer, all of which ultimately encourage access to and use of public transport.

The economic downturn is having a severe impact on Bus Éireann's fare revenues despite sustained high levels of Exchequer support and a 10% fare increase earlier this year. Bus Éireann has therefore had to identify cost reductions through efficiencies and service adjustments to restore its financial position. Discussions on the necessary measures are under way under the auspices of the Labour Court. Meanwhile, Bus Éireann has deferred implementation of its cost recovery plan pending the outcome of those discussions. The objective is to ensure the financial viability of Bus Éireann while maintaining services at the highest possible level within the resources available.

A number of private transport operators are also providing public transport services in rural Ireland. Many of these provide commercial services in their own right, a number provided contracted services to Bus Éireann and, as RTP contractors many of them also make an important contribution to the success of the rural transport programme, providing services under contract.

A number of initiatives are under way around the country to look at possible innovations to extend the reach of the rural transport programme. They include the Louth County Council Age Friendly initiative, pilot projects in the north west and north east and the cross-Border community transport research pilot that is being overseen by the North-South Ministerial Council.

Bus Éireann, Pobal - in respect of the rural transport programme - the Health Service Executive and the Irish Wheelchair Association are now working together on two initiatives in the north east and north west with a view to devising a co-operative model for a more cost-effective rural transport service which could apply nationally. The outcomes of these pilots, together with the outcomes of the County Louth Age Friendly initiative, should provide the paradigm for rural transport in the future. The cross-Border pilot project is intended to examine the needs for cross-Border community transport and how these could be best met. The feedback from this project will also feed into considerations about the further development of rural transport.

The provision of public transport generally outside of the greater Dublin area will also be supported by a new legislative framework that is being promoted through the Public Transport Regulation Bill, which is the second phase in the Government's public transport legislative reform programme that commenced with the enactment of the Dublin Transport Authority Bill last year. The Bill builds on the enactment of that legislation and, together with that Act, presents a comprehensive framework for the future regulation and control of public passenger transport.

The Bill is on Committee Stage in this House and I acknowledge the constructive contribution from Members on all sides and the excellent progress which is being made. The Bill contains proposals for a modern regime for the licensing of commercial public bus transport services and facilitates a national statutory framework for the procurement of public transport services by way of public transport services contracts. Among other elements, the Bill promotes integrated, well-functioning and cost-efficient public passenger transport services which will include the integration of rural services.

The Planning and Development (Amendment) Bill 2009, among other issues, aims to ensure a closer alignment between the national spatial strategy, regional planning guidelines, development plans and local area plans. A key element in the Bill, which was presented to this House on 29 May last, is the introduction of a requirement for an evidence based "core strategy" in development plans which will provide relevant information as to how the development plan and the housing strategy are consistent with regional planning guidelines and the national spatial strategy. The Bill requires that development plans contain mandatory objectives for the promotion of sustainable settlement and transportation strategies. Local authorities must therefore take account of transport issues when drafting development plans and local area plans.

This Government and its immediate predecessors have given more attention to institutional and regulatory reform of public transport than any Governments over the previous 50 years or so. We have to look back to the circumstances which led to the establishment of CIE for a period of comparable policy development and legislative activity. Not only that but we have put in place coherent investment strategies through the national development plans.

We are also planning for the longer term. High levels of current and capital expenditure have been made available by this Government to provide public transport infrastructure and to support public transport services. As recently as 1977 the Exchequer was investing little or nothing in public transport infrastructure compared with over €600 million today. Public transport subvention was less than half of what it is today.

Our bus fleet has been modernised and our railway system, including the rolling stock, has been utterly transformed in a very short time span. Bus and rail services have been improved and expanded. It can be clearly seen from the various initiatives that the Government is very conscious of the need for public transport services, in particular in rural areas, and continues to be proactive in that regard. I commend to the House the actions of this Government and its immediate predecessors on the development and implementation of rural public transport policy. This Government has done more than any other to reduce the effects of social exclusion in rural Ireland arising from previously unmet public transport needs.

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