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

48. To ask the Minister for Transport, Tourism and Sport his position regarding the sustainability and future success of Irish Rail; the impact the EU’s fourth railway package will have on the company; if he is satisfied with the industrial relations between unions and management in the company; and if he will make a statement on the matter. [27347/14]

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

The issue raised by the Deputy is a matter for Irish Rail management and their employees and trade unions and has been the subject of lengthy negotiations under the auspices of the Labour Relations Committee (LRC) and the Labour Court.  

As you know, Irish Rail is in a precarious financial situation and together with the rest of the CIE Group is dependent on continued bank funding.  The problems in Irish Rail are particularly acute - the company has incurred accumulated losses (after subvention) of €148m over the period 2008 to 2013, a position which is unsustainable.  I am very supportive of the efforts by Irish Rail to strengthen the company's financial position through cost saving measures and other strategies. The Deputy will be aware that I have publicly commented on the importance  of agreement being reached by trade unions and management on payroll savings. There have already been substantial fare increases and the payroll savings must happen in the context of the very difficult financial challenges that the company faces.

The Fourth Railway Package consists of six proposals aimed at removing the remaining barriers to the completion of the Single European Railway Area. The Package comprises three pillars which are referred to as the technical, market opening and governance pillars. The technical pillar of the Package reinforces harmonisation of interoperability and safety arrangements and extends the role of the European Railway Agency. It had been politically agreed within the Council of Ministers and will now be considered by the European Parliament in its second reading. Those measures will not impact significantly on Irish Rail.

Negotiations have not yet commenced in the Council of Ministers on the proposals for market opening and governance. The Commission’s proposal is to introduce mandatory tendering for public service contracts and the opening of the domestic passenger markets to competition. The Irish rail market is the subject to a single public service contract and there are no unsubsidised rail passenger services. These proposals would potentially have a very significant impact for Irish Rail if agreed in their current form. It is notable however that the European Parliament has proposed a significant amendment in relation to the mandatory tendering proposal. I am of the view that the size of the market places a constraint on the potential benefits that could be achieved through competitive tendering. In this context, I will consider seeking a derogation for Ireland.