Imelda Munster (Louth, Sinn Fein)
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131. To ask the Minister for Social Protection further to Parliamentary Questions Nos. 118 and 119 of 23 March 2017, the reason for the use of different calculation methods in calculating payments under the free travel scheme for CIE companies and private companies; the methodology used in both instances; and if he will make a statement on the matter. [21185/17]

Leo Varadkar (Dublin West, Fine Gael)
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My Department currently makes a block payment to the CIÉ Group. The apportionment of that payment between the three constituent companies, Bus Éireann, Bus Átha Cliath and Iarnród Éireann is a matter for determination by CIÉ. A discount of 40% is applied to that payment to reflect fares foregone. In the early years of the free travel scheme surveys of passenger numbers were carried out and the rate of payment was increased to take account of the survey results, fare increases and increases in numbers qualified. My Department moved away from this approach with the CIÉ Group as it was no longer practicable to conduct such surveys. Instead, as the scheme evolved, negotiations took place when there were major changes or improvements to the transport infrastructure and/or the services which free travel customers could access. Payments to CIÉ would have been adjusted to reflect some of these.

The amount my Department pays to private operators participating in the free travel scheme is determined by way of survey of their passenger numbers at a given point in time either when they apply to participate in the scheme or when they are subsequently reviewed. An average fee, which takes account of the particular operator’s fare structure and includes a 30% discount, is agreed with the operator and paid on a monthly basis.

These discounting arrangements are historical and my Department, the Department of Transport and the National Transport Authority are now engaged in a process of reviewing the payment mechanisms underpinning the free travel scheme to ensure equity, consistency and transparency in payments to all commercial bus operators participating in the scheme. The outcome of these deliberations will help to inform future funding requirements.

I hope this clarifies the matter for the Deputy.