Clare Daly (Dublin Fingal, Independent)
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454. To ask the Minister for Education and Skills her views on the explanatory notes published with the audited statement of accounts of Bus Éireann, published on her Department's website, in relation to the precise amounts spent by Bus Éireann for return to risk associated with school transport business forming part of the contribution for each of the years 2011 to 2015; if she received this breakdown in written format; when the information was received; and if she will make a statement on the matter. [4862/16]

Damien English (Meath West, Fine Gael)
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The accounting rules governing Bus Éireann's operation of the School Transport 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 Scheme. This charge 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 School Transport 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 and as stated on the website provide for:

- Specific capital investment in School Transport services and administration for example IT to deliver future cost savings.

- Portion of general capital investment for example garage equipment that serves all three businesses.

– Commercial, PSO and School Transport.

- Reduction of cost base through voluntary severance for schools staff (direct and support).

- Return to risk associated with School Transport business.

The table shows the opening and closing balance and committed expenditure for 2011 to 2014 and draft figures for 2015 subject to audit.

The latest breakdown of the risk reserve was provided by Bus Éireann to my Department in written format in 2015.

Schools Summary- Transport Management Charge