Joanna Tuffy (Dublin Mid West, Labour)
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Question 67: To ask the Minister for Transport if he will report on the recent awarding of the contract to operate the integrated ticketing scheme to a company (details supplied); when the ITS will be rolled out and operational; the estimated cost of implementing and running the ITS; and if he will make a statement on the matter. [17864/10]

Noel Dempsey (Meath West, Fianna Fail)
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The contract to operate the Integrated Ticketing Scheme was recently awarded to Hewlett-Packard (HP) Ireland. The contract will provide a number of key services required to operate and administer the scheme. HP Ireland will be responsible for customer support services including provision of a telephone customer support helpdesk, back office business processing, an ITS website, and the supply of smart cards. They will also be responsible for the provision and management of a smart card point-of-sale network so that customers can buy smart cards, top them up, and buy a range of products in retail outlets. The point-of-sale service is being provided by Payzone as a sub-contractor to HP and will be available at over 400 retail outlets across Dublin.

The integrated ticketing project is being introduced in the Greater Dublin Area (GDA) on a phased basis, based on smart card technology. A progressive approach is being adopted to allow customers to familiarise themselves with using the new system and to permit transport operators to undertake the necessary testing with the integration of the technologies involved. The project is now firmly in the implementation phase and extensive testing of elements of the system is already underway.

Subject to successful completion of the testing that is currently underway, Dublin Bus and Luas annual pass-holders will be migrated to integrated smart cards from late Summer. This will be followed in the Autumn by similar testing for ePurse (pay-as-you-go) users of Dublin Bus and Luas services. The pay-as-you-go system will be fully launched when this function is sufficiently robust. When this system goes live, it will facilitate cashless travel on services of participating operators.

The integrated smart card will subsequently be rolled out to cover services provided by private operators, Irish Rail (DART and commuter rail) and Bus Éireann following completion of the necessary development, testing and commissioning of their systems. Testing and roll-out for these service providers will commence in early 2011.

The overall capital budget for the integrated ticketing project is €55.4 million. This expenditure encompasses project management, design and development costs and operator contributions for the development of the single smart card. The operating costs will be borne by the transport operators and will not be met by the Exchequer.

In a project involving numerous organisations, and where there are many business and technical complexities, there are and will continue to be difficulties that will pose challenges to all participants in delivering on the agreed programme. This has also been the experience internationally. The experience to date is that the Project Board, which is responsible for the successful delivery of the integrated ticketing system, is working well and in a manner that allows them to meet these challenges as they arise.