Joan Burton (Dublin West, Labour)
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I propose to take Questions Nos. 97 to 99, inclusive, together.

Compliance by Bus Éireann with the European Communities (Financial Transparency) Regulations 2004 (S.I. No. 693 of 2004) is a matter for the Department of Transport, Tourism and Sport. I understand O.J.E.U. of 15.9.2007 dealt with a complaint by The Irish Coach Tourism and Transport Council concerning alleged unlawful State aid granted to the Córas Iompair Éireann (CIÉ) bus companies, Bus Éireann and Dublin Bus by the Irish Government in form of grants under the National Development Plan. It concerned the financing of the public bus transport services (annual operating compensation payments, upgrading and replacement of buses), and furthermore, the financing of the transport infrastructure (passenger activities and bus garage at Harristown) and disability awareness training in Ireland for the period 2000 to 2006.

The complainant alleged that the financing of the measures detailed therein by the Irish authorities may have involved unlawful State aid. The findings were inconclusive and did not make any recommendations regarding the operation of the free travel scheme operated by the Department.

The Free Travel scheme was introduced in 1967. It is not operated as a public service obligation (PSO) and it does not confer any real financial advantage on participating transport undertakings or place participating transport undertakings in a more favourable competitive position as regards non-participants. The scheme operates in an objective and transparent manner and on the basic premise that participants should be left no better or worse off as a result of the existence of the scheme. To this end, compensation under the scheme is calculated on the basis of fares foregone at a reduced rate to take account of travel generated by the free travel scheme. Those operators which participate in the scheme receive a paymentfrom the Department significantly below the standard fare whereas those operators which do not participate in the scheme are free to charge full fare for all passengers. Operators and routes have to be commercially viable in their own right and cannot rely on payment from the free travel scheme as some form of subvention.

The free travel scheme permits free travel on most CIE public transport services, Luas and a range of services offered by over 80 private operators in various parts of the country at an annual cost to the exchequer of some €76 million in 2013. This Department also provides limited funding of €1.5 million for the Rural Transport Programme (RTP) but organisation and development of the service is a matter for the National Transport Authority.

The Department pays the CIE Group centrally in respect of transport services provided nationwide by the Group for pensioners and other categories of eligible customers under the free travel scheme. The apportionment of payment between the three constituent companies, Bus Eireann, Bus Átha Cliath and Iarnród Eireann is a matter for the CIE Group to determine. Under the Programme for National Recovery 2011-2014, expenditure on the free travel scheme was capped at 2010 levels. Prior to the imposition of the cap the rate of payment was reviewed regularly having regard to authorised fare increases and services provided.

Information on payments to CIE from 2003 is set out below. The additional data requested will require further work and will be forwarded separately when it is to hand. Payments are made monthly to the CIE Group on receipt of invoices. The monthly amount varies only slightly; accordingly, the total amount paid each year since 2003 is set out below: