Seanad debates

Wednesday, 28 November 2012

Transport (Córas Iompair Éireann and Subsidiary Companies Borrowings) Bill 2012: Committee and Remaining Stages

 

11:25 am

Photo of Sean BarrettSean Barrett (Independent) | Oireachtas source

I thank the Acting Chairman for his guidance. Amendment No. 4 reads: "and not for the purpose of distorting market competition". I have addressed this point and I thank the House for its indulgence.

Amendment No. 3 relates to the top of page 4. As I interpret this section, the CIE board establishes the priority of such charges. I hope that my interpretation is correct. I am citing the top two lines on page 4, which read: "establishing the priority of such charges among themselves". Does this mean among board members? The board is the problem.

The guidance on how the money will be spent should include the Minister for Public Expenditure and Reform, the Minister for Transport, Tourism and Sport and the NTA and involve some independent evaluation of the investments. As such, it should be subject to section 1(1), which specifies that expenditure would be made "with the consent of the Minister and of the Minister for Public Expenditure and Reform". If I have interpreted the provision correctly, it would be wrong for the board to make this decision without referring to the Ministers.

We are trying to correct a problem rather than providing more money to the organisation to continue as it has up to now. Those comments relate to the sections regarding competition.

Is this a serious proposal? The Goodbody report from 2005 indicated that the independent bus fleet, with 4,859 vehicles, provided double the capacity of the Dublin Bus and Bus Éireann fleet, with 6,000 employees. They expanded fleets by 91% without subsidy between 1992 and 2003, with an income of ¤307 million in 2003, some 77% more than Dublin Bus, 41% more than Bus Éireann and 124% more than railway passenger receipts. They are big operators with a remarkable business despite the best efforts of the Department to stop them doing that business.

We should bring these operators into play because the country is short of money. If we are to give more money to today's applicant, we need new procedures, a more active Department and the involvement of other Ministers. The National Transport Authority should buy this socially necessary transport on behalf of society as a whole rather than having the strange position of having the decisions made by the board of CIE. Later pages in the Bill also indicate that decisions are to be made by the board of CIE.

The organisation is applying to operate services for the Minister on behalf of the wider society so it is not worth handing over all the sovereignty to the board to decide on what to spend the money. This is an opportunity to act, as there is a difficulty in the public finances in this company which arose after the Dáil and Seanad adjourned. Did the company not know it was running out of money before July and why could we not have had this discussion in the spring? The Minister of State's suggestions could have been brought forward along with mine at that stage. Much stricter controls are necessary to ensure a proper performance in the market and proper value for public money, which requires safeguards.

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