Written answers

Wednesday, 24 March 2021

Department of Transport, Tourism and Sport

Covid-19 Pandemic Supports

Photo of Anne RabbitteAnne Rabbitte (Galway East, Fianna Fail)
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327. To ask the Minister for Transport, Tourism and Sport the business supports in place to assist a private bus operator that has been unable to operate since March 2020 as a result of Covid-19; the financial assistance open to the operators in cases in which they are unable to access the employment wage subsidy scheme or Covid restrictions support scheme and do not pay rates; and if he will make a statement on the matter. [15087/21]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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Both the National Transport Authority (NTA) and my Department have been engaging directly with commercial bus operators throughout the Covid-19 Emergency. The public transport system in Ireland has played an essential service role over the course of the pandemic, especially in carrying essential workers and others making necessary journeys.

Several targeted Government Decisions made throughout the crisis, in addition to general supports such as the wage subsidy scheme, have provided much needed support to the sector, particularly the decisions to:

- substantially increase the 2020 budget for the existing PSO system;

- introduce temporary financial support for certain licensed services provided by commercial bus operators (CBOs) for an initial period of 6-months;

- provide a higher-than-normal provision for PSO funding in the 2021 budget due to the ongoing impact of Covid-19 on the public transport sector; and

- extend the provision of temporary funding supports for the CBOs for a further 3 months, with the option to extend monthly thereafter subject to engagement  with the Department of Public Expenditure and Reform. 

Prior to the Covid-19 health emergency, licensed operators operated non-subvented bus services on a commercial basis. However, due to the impact of Covid-19 on passenger numbers and the associated drop in fare revenue, these services were no longer commercially viable.  As such, on 25 June 2020 Government decided to introduce new temporary financial support for certain licensed services provided by commercial bus operators to ensure the continued operation of these essential services. These temporary supports were initially introduced for a period of 6-months, with a view to protecting capacity across the public transport sector throughout the crisis. The NTA on behalf of my Department, has entered into contracts with the licensed bus sector to provide funding for routes where a clear public interest justification supports such intervention.

As it remains the case that commercial bus operators are still under severe financial distress due to the fall in passenger numbers and associated drop in fare revenue as a result of Covid-19, on 26 January 2021, Government decided to extend the temporary funding supports to the licensed bus sector for a further period of 3 months, with an option to extend contracts on a monthly basis thereafter.

Further, as part of the July stimulus package, and in response to the challenges being experienced by the Coach Tourism sector, the Government provided €10m to fund the Coach Tourism Business Continuity Scheme. The scheme which is being administered by Fáilte Ireland is under the remit of my colleague, Catherine Martin, Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht.

The above supports are in addition to the suite of other financial support measures that the Government has introduced to help mitigate the impact of Covid-19, which includes the Wage Subsidy Scheme extended through 2021, the Pandemic Unemployment Payment extended to end June 2021, the COVID-19 Restrictions Support Scheme (CRSS), grants, low-cost loans, write-off of commercial rates and deferred tax liabilities, all of which will help to improve cashflow.

Furthermore, on 11 March 2021, the Minister for Business, Trade and Employment announced that applications are now open for Phase 1 of the Small Business Assistance Scheme (SBASC). The aim of this new €60m business assistance scheme is to provide grants to businesses ineligible for the Government’s other existing schemes such as CRSS and is designed to help with fixed costs. Further details of this scheme and other business supports are available at .

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