Finian McGrath (Dublin North Central, Independent)
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684. To ask the Minister for Transport, Tourism and Sport the savings he intends to make and the proposed budget in respect of the rural transport programme for the period 2013 to 2015. [18881/13]

Alan Kelly (Tipperary North, Labour)
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The Rural Transport Programme (RTP) was launched in February 2007 and developed from the Rural Transport Initiative (2002 -2006) which was a pilot project to address issues of unmet transport need from a social exclusion perspective.  The RTP is now operational in every county with 35 community transport groups currently being funded under the Programme.

Funding for the pilot Rural Transport Initiative and its successor the RTP increased significantly over the years, rising from €3 million in 2003 to €11 million in 2010, with small decreases in 2011, 2012 and 2013 to €10.62 million, €9.77 million and € 9.133 million respectively. The increased funding for the RTP has led to increases in the level of services provided rising from 40,000 services in 2003 to 217,686 services in 2012. The number of passenger journeys recorded on those services also increased from 151,000 in 2003 to 1.73 million in 2012.

Since 1^st April 2012 the National Authority (NTA has been managing the Programme with Pobal administering it on the NTA's behalf.

Value for Money and Policy Review of the RTP

- The RTP was selected for a Value for Money and Policy Review in line with a commitment given at the launch of the Programme in 2007. The Review covered the period 2002 to 2009.

- Key findings of the Review include:

- Concerns over the value for money in the context of a rate of increase in Programme funding without an accompanying equivalent increase in passenger numbers or services

- The current organisational structure for delivery (35 RTP groups) is a key factor in the lack of cost efficiencies being achieved both in administration and operations

- The cost of administration has been and remains very high as a proportion of total RTP group expenditure (22% in 2009)

- Substantial increases in operating costs - between 2007 and 2009 wages and salaries doubled as a consequence of increased staffing and salary levels

- Lack of data to measure the benefits of the Programme in terms of addressing social inclusion objectives and data gaps in the framework of performance monitoring and evaluation.

The Review made a number of recommendations to improve the efficiency and effectiveness of the Programme. The NTA was tasked with implementing the findings of the Review.

The main recommendations of the report are:

- Reduce overall Programme costs particularly the administration costs

- Improve efficiency of the Programm

- Address the status of the Programme within the context of public transport regulation in Ireland

- Develop a detailed appraisal plan for an organisational restructuring to achieve greater programme efficiencies

- Better alignment to be established between the voluntary county-based RTP groups involved and the Local Authorities

Administration costs to the Programme were reduced by 33.5 % by end 2012. Combined with the reduction in Pobal's costs, the threshold administration proportion of 17% recommended in the VfM Review was also achieved by end 2012. In order to achieve the recommended administration costs of 13%, the proposed restructuring of the RTP is required.  The current structures of the RTP are not sustainable if the required efficiencies and savings are to be achieved. If these are not achieved then with the limited resources available services will decline.

The RTP budget for 2014 - 2015 will be determined as part of the estimates and budgetary process for these years.