John Halligan (Waterford, Independent)
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196. To ask the Minister for Transport, Tourism and Sport his views on the proposed privatisation of Bus Éireann; his further views that it would lead to a more efficient service in view of the history of privatisation that has shown that the primary objective is always increased revenue generation and not fee reduction; if he will confirm the impact this privatisation would have on the free travel scheme; and if he will make a statement on the matter. [37074/14]

Paschal Donohoe (Dublin Central, Fine Gael)
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Bus Éireann is not being privatised. However, the direct award contract for the provision of Public Service Obligation (PSO) bus market services held by Bus Eireann expires later this year. The awarding of a subsequent contract is the statutory responsibility of the National Transport Authority (NTA).  

All Bus Éireann routes will be included in the new five year direct award contracts which the NTA will enter into with the company next December.  However, the NTA announced that 10% of publicly subvented bus services will only remain within the direct award contract until the end of 2016 after which they will be operated under separate contract that will have been competitively tendered.  

Tendering will give the opportunity to test market pricing and offer possibilities to improve efficiency and customer service. It will be open to Bus Éireann to compete for the tendered routes. As at present, the fares, timetables and service standards will be set by the NTA. The tendering of these services will therefore not lead to a downgrading of services to bus users. The contract will go to the best competent tenderer who can provide the best service for the least subsidy and should assist in securing efficient and cost competitive services for passengers.

The NTA expects that  the procurement process for the routes to be tendered will begin in December 2014 leading to the award of the contract in March 2016 with the successful operator commencing services in late 2016.

The NTA intends that free travel passes will be honoured by any new operator and is currently in contact  with the Department of Social Protection in this regard.