Michael McGrath (Cork South Central, Fianna Fail)
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79. To ask the Minister for Transport, Tourism and Sport the position regarding the current discussions at Irish Rail in relation to plans to reduce the company’s expenditure in the coming years; and if he will make a statement on the matter. [40841/13]

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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128. To ask the Minister for Transport, Tourism and Sport his plans to ensure the future of Irish Rail company; and if he will resist any moves to privatise routes on the rail network. [40911/13]

Alan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 79 and 128 together.

These questions are about the future of Irish Rail. Since 2008, the financial performance of Irish Rail has been severely affected by the economic recession which has resulted in a significant reduction in passenger numbers. Irish Rail passenger numbers have dropped by 21% in the period 2008 to 2012 and has recorded total losses in the same period of over €131 million.

The Board of Irish Rail are pursuing a range of measures to address the financial position, including cost reductions. At the end of 2012 a significant voluntary severance programme was implemented in Irish Rail and the company has also benefitted from fare increases approved by the NTA. I understand discussions are continuing between management and unions, under the auspices of the Labour Relations Commission, in relation to futher necessary cost saving measures. It is vital that these discussions lead to an agreement that will ensure the long-term financial stability of Irish Rail, the public transport services that it provides and the jobs of workers.

The Dublin Transport Authority Act 2008 provided for the granting of contracts by the National Transport Authority (NTA) on a direct award basis with Irish Rail in respect of existing services in accordance with EU Regulations. The 2009 direct award contract with Irish Rail is for 10 years to December 2019. The awarding of licenses for the services thereafter is a matter for the NTA, and not for Government.

The European Commission adopted a suite of proposals relating to reform of regulation of the European railways in January this year. Building on earlier reforms agreed by the Council and Parliament through the co-decision procedure the proposals span technical, safety and institutional matters as well as measures to promote further opening of the market to competition. Freight and international passenger transport service are already open to competitive service provision. The latest package of measures proposes that market opening should be completed through on the one hand the liberalisation of domestic rail passenger services and on the other through the introduction of mandatory requirements for tendering for the supply of public service contracts on the railways.  My Department has undertaken a public consultation on the proposals. Taking account of the responses received and following further analysis, a decision will be made in the coming months on Ireland’s stance within the Council of Ministers in relation to the market reform proposals.