Damien English (Meath West, Fine Gael)
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The accounting rules governing Bus Éireann's operation of the Scheme are laid down in the 1975 Summary of Accounting Arrangements. These Arrangements require Bus Éireann to charge my Department for all direct costs- contractors, fuel, maintenance etc. In line with the Accounting Arrangements, a charge of 13% of certain direct costs is levied to cover all other costs associated with the School Transport Scheme. This is commonly referred to as the School Transport Management Charge.

The School Transport Management Charge is used to defray immediate overheads incurred by Bus Éireann in respect of the School Transport Scheme. Any surplus which may remain, after accounting for the overheads referred to above is used to provide a reserve for additional expenditure which may be required in connection with the Scheme; this is commonly referred to within the Company as the risk reserve fund. These funds can only be used in respect of the School Transport Scheme.

Since 2008 and in view of the serious financial challenges facing the country, Bus Éireann has provided a rebate to the Department of an element of this charge.

As of the end of 2014, the latest figures available, Bus Éireann was holding some €7 million in respect of School Transport which was not yet committed to specific projects. It should be noted however that the range of School Transport projects competing for these funds would currently exceed €7 million.

The average balance of the risk reserve fund over the period 2005 to 2014 was approximately €6 million.