Fergus O'Dowd (Louth, Fine Gael)
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Question 433: To ask the Minister for Transport the way CIÉ acquires its transport fuel; the price they pay for transport fuel; if public money is used to purchase fuel; and if he will make a statement on the matter. [27006/08]

Noel Dempsey (Meath West, Fianna Fail)
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The procurement of fuel is a day-to-day operational matter for CIÉ and not one in which I have any role.

The annual Exchequer subvention paid to CIÉ is provided to support socially and economically necessary but commercially non-viable public transport services in Dublin and throughout the country. The compensation payment is used, with fare revenue, to meet the operational costs of the services, including the cost of fuel.

Fergus O'Dowd (Louth, Fine Gael)
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Question 434: To ask the Minister for Transport if there is public funding supplied to transport operators by his Department used to purchase transport fuel; and if he will make a statement on the matter. [27007/08]

Noel Dempsey (Meath West, Fianna Fail)
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My Department does not provide public funding to public transport operators in order to purchase transport fuel.

In the case of CIÉ, the annual Exchequer subvention paid is provided to support socially and economically necessary but commercially non-viable public transport services in Dublin and throughout the country.

Fergus O'Dowd (Louth, Fine Gael)
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Question 435: To ask the Minister for Transport if he will change public service order regulations in order to make the use of public funding more transparent when it is used by public transport operators; and if he will make a statement on the matter. [27008/08]

Noel Dempsey (Meath West, Fianna Fail)
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A new regulation of the European Parliament and of the Council on public passenger transport services by rail and by road, Regulation (EC) No. 1370/2007 of 23 October 2007, will come into force on 3 December 2009. The Regulation creates a framework regulating how Member States award exclusive rights and pay compensation for services deemed to be 'public service obligations'. The purpose is to ensure transparency in the award of subvention for public transport services. The Regulation requires all PSO transport services to be subject to contracts.

At present the provision of funding to Bus Éireann, Dublin Bus and Iarnród Éireann is based on Memoranda of Understanding between the companies and the Minister. It is proposed to replace these memoranda with contracts before 3 December 2009 in order to comply with the new EU Regulation. In the case of the GDA, these contracts will be put in place in accordance with the provisions of the Dublin Transport Authority Bill, which is currently before the Oireachtas.

In the case of bus services outside the GDA it is my intention that proposals for a new bus licensing regime will follow in a proposed Public Transport Regulation Bill which will also encompass provisions relating to the subvented bus market outside the Greater Dublin Area that are consistent with the EU PSO Regulation.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 436: To ask the Minister for Transport the steps he is taking to provide a similar support to the fuel duty rebate scheme for passenger bus transport services which is being withdrawn; if his attention has been drawn to the impact this will have on the development of public transport, particularly in rural areas; and if he will make a statement on the matter. [27077/08]

Noel Dempsey (Meath West, Fianna Fail)
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The EU Energy Tax Directive incorporated special derogations which allowed specific excise duty reliefs to be applied in a number of Member States below the EU minimum duty rate. In the case of public transport services under my responsibility, these derogations included reduced rates to apply to fuel used for scheduled bus services. Scheduled bus services comprise bus passenger services provided by Bus Átha Cliath, Bus Éireann, private operators in accordance with bus route licences under the 1932 Road Transport Act and holders of Authorisations pursuant to European Council Regulation 684/92 as amended.

While these derogations expired on 31 December 2006, Ireland, along with other Member States, sought retention of its derogations beyond that date. However the European Commission, which is the deciding authority, has to date refused all such requests. The Finance Act 2008 provided the basis for the removal of these excise duty reliefs with effect from 1 November 2008.

My Department, in conjunction with the Department of Finance and other Departments, has been exploring whether alternative support mechanisms could be appropriate and could be done in a manner compatible with EU State Aid and other legal requirements.

My Department has also met the Coach Tourism and Transport Council, as well as CIE, on this matter. My Department has also received a written submission from the Coach Tourism and Transport Council.

While my Department is in discussion with the Department of Finance on these issues, it is necessary to stress that, despite claims being made otherwise, introducing an alternative suitable mechanism is not a straightforward matter in the current economic climate. I don't envisage any approval from the Department of Finance for a replacement scheme in the current economic circumstances.

The issue of how to better facilitate and promote public transport services is being considered in the context of the development of the Sustainable Travel and Transport Action Plan.

Initiatives under the Rural Transport Programme do not involve scheduled bus services. Accordingly they are not affected by the cessation of fuel excise repayments from 1 November 2008.

Denis Naughten (Roscommon-South Leitrim, Fine Gael)
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Question 437: To ask the Minister for Transport the status of the plans for integrated ticketing; when this facility will be rolled out throughout the public transport system; the estimated cost of the project; and if he will make a statement on the matter. [27096/08]

Noel Dempsey (Meath West, Fianna Fail)
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Currently a smart card system is in place on LUAS services and Dublin Bus will commence rolling out an interim smart card on their services later this month. Irish Rail also intend to introduce their own interim smart card systems in mid 2009. These interim cards will enable both users and operators to familiarise themselves with the use and flexibilities of smart card systems. All interim systems will migrate to the Integrated Ticketing System.

The initial rollout of the Integrated Ticketing Scheme will commence on the services of Dublin Bus and the Luas in late 2009. Within the following 12 months, it will be extended to Irish Rail, Dart and commuter rail services in the greater Dublin area.

Bus Éireann will also be implementing a smart card on a pilot basis on a number of its commuter routes. It is also hoped that other private bus operators will join the scheme over this period.

The new public service card being developed by the Department of Social and Family Affairs will be rolled out later this year. It will also be a smart card for free travel under the Integrated Ticketing Scheme. This phased roll-out of the integrated ticketing system is in line with best international practice.

Contract negotiations to build the Back Office and associated systems are currently being finalised and it is expected that the contract will be awarded in the coming weeks. Once the Back Office contract is finalised, the Project Team will immediately move to commence the EU public procurement process for a contractor to operate the system. It is expected that contract will be awarded in early 2009.

In December 2006, the Project Board put the expected capital cost of the integrated ticketing project at €49.6 million. This was based on pre-tender best estimates at that time in respect of a number of elements of the project. In the light of the progress being made, it appears from the actual tenders received to date, as distinct from previous estimates, that the price is likely to be at a level higher than that provided for in the budget. The final costs and timelines for implementation will become clearer when all public procurement processes are complete and tender prices are known. In the meantime, I am being kept appraised of ongoing developments by the Integrated Ticketing Project Board.