Olivia Mitchell (Dublin South, Fine Gael)
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Question 406: To ask the Minister for Transport his views on whether public transport subventions should be based on the operator's ability to attract increased passenger numbers; if he will reform the existing criteria for granting such subventions; and if he will make a statement on the matter. [8254/07]

Martin Cullen (Waterford, Fianna Fail)
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The public service obligation payment to each of the CIÉ companies in respect of public transport services is currently administered by means of Memoranda of Understanding (MOU) between each of the companies and my Department relating to service levels and targets. The Memoranda set out requirements relating to a range of matters viz service quantity including number of passengers carried, service quality, financial and operational requirements and monitoring and reporting.

While passenger numbers carried is a key performance indicator I believe that the annual payment to the CIE companies in respect of public transport public service obligations should, as in the current Memoranda, relate to a range of variables and not just passenger numbers carried. As part of the current process of agreeing the Memoranda my Department and the companies seek to refine and develop the provisions of the Memoranda relating to service levels and targets.