Clare Daly (Dublin North, Socialist Party)
Link to this: Individually | In context | Oireachtas source

106. To ask the Minister for Transport, Tourism and Sport the reason public transport workers have endured a significant erosion of their wages and terms and conditions of employment on cost cutting grounds, while the State hands over €50 million per annum to the developers of the Westlink toll bridge which has already been paid for many times over and millions more to consortia which built motorways that not enough cars are using. [7522/14]

Timmy Dooley (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

113. To ask the Minister for Transport, Tourism and Sport if he will provide an update on management-worker relations and negotiations in Iarnród Éireann, Bus Átha Cliath and Bus Éireann; if he is confident that the financial position of the CIÉ Group will improve in 2014; if he is satisfied with the performance of the boards of the CIÉ Group of companies; and if he will make a statement on the matter. [7612/14]

Leo Varadkar (Dublin West, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I propose to answer Question 106 and 113 together.

The Government attaches great importance to the continued operation of Bus Átha Cliath, Iarnród Éireann and Bus Éireann. Their services are vital to many of our citizens and to the Irish economy. 

Unfortunately, CIÉ is in a precarious financial situation and is dependent on continued bank funding. The three CIÉ subsidiaries have incurred accumulated losses of €230m over the period 2008 to 2012, a position which is unsustainable.  Given the pressure on the public finances, there is no possibility of additional funding by the Exchequer. To compensate for the reduced passenger revenues and PSO subvention, CIÉ has engaged in a cost recovery program over recent years. The cost savings agreed last year by Bus Éireann and Dublin Bus workers had to be implemented and I hope that the discussions with Iarnród Éireann unions, under the auspices of the Labour Relations Committee (LRC) and which are due to be balloted on shortly, will also be successfully concluded. 

The total PSO subvention payable to the National Transport Authority (NTA) for 2014 is €209.7 m (a reduction of €16.8 m from 2013).  The allocation of the 2014 subvention, including the amount payable to the three CIÉ subsidiaries, is decided by the NTA in accordance with their PSO contracts with the companies.  The CIÉ Group Business Plan has already factored in the expected cut in PSO subvention in 2014 and CIÉ has negotiated improved bank facilities in relation to refinancing of the Group. I intend to propose no further reduction in subvention from 2015.

The Government continues to provide substantial Exchequer investment in the public transport network despite the significant financial challenges.   Over the three years 2011-2013, the total Exchequer allocation to the three CIE companies, in respect of PSO services, free travel, school transport and capital expenditure, has been more than €1.5 billion.  The priority must be to get a better return from the public transport system, through targeted investment, better use of existing resources and by using technology to make public transport more responsive and user friendly.

While still in a difficult financial position, I have every confidence that the CIE Board and its subsidiary Boards are putting the necessary measures in place to ensure an improving position in 2014 and a return to financial viability. I will continue to support their determined efforts in that regard.

With regard to Deputy Daly’s reference to the West-Link toll bridge, a decision was made by the previous Government in 2006 to introduce barrier free tolling on the M50. Under the agreement reached between the National Roads Authority (NRA) and the National Toll Roads (NTR) to buy out the West-Link concession,  NTR was to receive annual payments of €50 million, adjusted for inflation, for the years 2008 to 2020. The bridge was built with private funds and not tax euros and the situation is not comparable to public transport.  I am advised that the cost of compensating NTR for the buy-out was a matter for determination between the NRA and NTR in line with the 1987 West-Link concession Agreement. I had no role in those decisions.