Written answers

Thursday, 19 January 2017

Department of Transport, Tourism and Sport

Bus Éireann

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

282. To ask the Minister for Transport, Tourism and Sport if his attention has been drawn to the fact that the State subsidy paid to Bus Éireann per capita of population served is five times less than that provided to Dublin Bus; the policy he has to address this issue and to ensure equality of treatment of all areas in the country in relation to public bus services; and if he will make a statement on the matter. [2361/17]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
Link to this: Individually | In context | Oireachtas source

I am unsure as regards the base year or precise methodology upon which the Deputy is calculating his ratios and in the context of 2016 population and subsidy levels would  question whether the Deputy's statement reflects the current position. Irrespective of that, I have previously stated that accurately benchmarking the level of subsidy paid to transport operators can be a difficult task given the very different services which operators provide. The amount of subsidy provided is reflective of the operator's contractual responsibilities under their public service contracts with the National Transport Authority, which since 2010 is statutorily responsible for the allocation of subsidies to individual transport operators. I have therefore forwarded the Deputy's question to the NTA for direct reply.  Please advise my private office if you do not receive a response within ten working days.

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

283. To ask the Minister for Transport, Tourism and Sport the steps he will take, including the increase of the State subsidy to Bus Éireann, to ensure that there is no deterioration in the services provided by this company; and if he will make a statement on the matter. [2362/17]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
Link to this: Individually | In context | Oireachtas source

As the Deputy is aware, Bus Éireann is developing plans to address its financial position. The Company is currently loss-making and these losses are not sustainable. The Company's difficulties stem from its commercial Expressway services which are not subsidised by the taxpayer and operate in competition with other non-subsidised operators. Last week I met with the Chair of the Company who briefed me on the very serious situation the Company faces. The Chair indicated that an invitation would issue shortly to trade unions to commence discussions on the available options.

I am firmly of the belief that difficult issues such as this can only be resolved through open, constructive and realistic engagement between the company and its employees and I encourage both sides to engage constructively on the matter.

In terms of taxpayer support, last year Bus Éireann received €40million, or over 17% more in taxpayers' subsidy than it received in 2015, in respect of its PSO services. That subsidy is used to support the provision of socially necessary but financially unviable PSO services and last year almost 32 million people travelled on a Bus Éireann PSO service.

I am committed to the public transport system continuing to provide and develop services that are essential for local communities.  That commitment is evidenced by the 11% increase secured for public transport services in 2017.  Bus services are an integral part of our public transport system, particularly in rural Ireland.

Separately to meeting the Chair of Bus Éireann, I also met with the National Transport Authority who outlined to me their powers and responsibilities in relation to the provision of public transport services. I was assured by the NTA that it will work with local communities to maintain an appropriate level of public transport connectivity in the event of any reconfiguration of existing commercial services.

Comments

No comments

Log in or join to post a public comment.