Written answers

Thursday, 2 March 2017

Department of Transport, Tourism and Sport

Bus Éireann

Photo of David CullinaneDavid Cullinane (Waterford, Sinn Fein)
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340. To ask the Minister for Transport, Tourism and Sport the number of reform plans he has received from Bus Éireann from 2013 to date in 2017; the detail of the responses from his Department to such plans; and if he will make a statement on the matter. [10899/17]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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Since I assumed office, Bus Éireann has submitted two documents, one of which I believe would fall to be categorised as stated by the Deputy and the second of which was a review for the Board of proposals being put forward within the company.

In July 2016 Bus Éireann submitted a draft document entitled "Bus Éireann Existence Plan", two further drafts were submitted in August and in September.

These documents were submitted for discussion with my Department in line with the requirements of the Code of Practice for the Governance of State Bodies. As the Deputy is aware the Code states that the responsibility for the preparation, finalisation and adoption of such plans rest with the Board of the relevant Body with an opportunity allowed for Departmental consideration on draft proposals.  My Department was assisted by NewERA in its consideration of those proposals.

Discussions between my Department and Bus Éireann highlighted some critical shortcomings that existed in the draft proposals as presented. Those shortcomings related to the commercial rationale, financing, implementation, sensitivity and risk analysis and the necessity to consider both State Aid and competition law interactions.

The second document submitted since I assumed office is actually a review of the proposals that had been developed by the Company's management in the first document.  This is the review known as the 'Grant Thornton' report and was commissioned from these independent consultants by the Board of the Company in late September 2016. A draft of the review was made available to my Department in November 2016 and, in January 2017 following a meeting I held with the Chairman, I received the later version of the report as had been discussed and adopted by the Board of the Company.  Unsurprisingly, that review by Grant Thornton for the Board found similar shortcomings with the proposals as those identified previously when the proposals were considered by the Department and NewERA.  The Grant Thorton review also made recommendations to the Board about an approach to finding a way forward.

Arising from the Board's consideration of the Grant Thornton report, the Company has now embarked upon developing a new plan to address the company's loss making situation and restore it to a sustainable future, and the Company aims to have this plan in a few weeks' time. 

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