Thursday, 10 April 2014
Department of Education and Skills
School Transport Administration
55. To ask the Minister for Education and Skills if the FGS report identified areas of services for which Bus Éireann was paid in excess of the amount it cost it to provide the service; and if he will make a statement on the matter. [17144/14]
I propose to take Questions Nos. 54 and 55 together.
The report did not recommend that the Department negotiate a reduction in Bus Éireann charges. The arrangements for the payments to Bus Éireann in respect of school transport services are set out in the 1975 Summary of Accounting Arrangements.
There are two elements to these arrangements:
Direct costs are paid as incurred by Bus Éireann. The FGS report did not identify any such services where Bus Eireann was paid sums in excess of those amounts.
Indirect costs, covered in the transport management charge, are paid on the basis of applying a charge of 13% to direct costs. This does not involve payment on the basis of identified areas of services.
It is my intention, my Department having concluded discussions with Bus Éireann in relation to issues which may be commercially sensitive, that the FGS report will be published shortly and available to the Deputy.