Written answers

Tuesday, 5 July 2022

Department of Transport, Tourism and Sport

Bus Services

Photo of Sorca ClarkeSorca Clarke (Longford-Westmeath, Sinn Fein)
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150. To ask the Minister for Transport, Tourism and Sport the action he has taken to ensure a more fair treatment of customers of commercial bus companies, particularly in rural communities, to ensure all persons, regardless of where they live, can avail of the fair reduction scheme on all bus transport services. [36075/22]

Photo of Eamon RyanEamon Ryan (Dublin Bay South, Green Party)
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As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; I am not involved in the day-to-day operations of public transport, nor decisions on fares. It is the National Transport Authority (NTA) that has responsibility for the regulation of fares charged to passengers in respect of public transport services, provided under public service obligation (PSO) contracts.

Licensed bus and coach operators are an integral part of the overall public transport system, particularly in areas around the country which are not covered by existing public service bus and rail services.  In recognition of the important role these operators play, the Government has continued to provide temporary financial supports throughout the Covid-19 pandemic for certain licensed commercial services, with a view to protecting capacity across the public transport sector throughout the crisis.

In acknowledgment of the continuing difficulties facing this sector, earlier this year, these supports for the commercial sector were further extended up to the 30th of June 2022. To date over €65m has been provided to support the Commercial Bus Operators during this challenging time.

As the Deputy will be aware a 20% average reduction is being introduced on PSO services as part of a suite of Government measures to help combat the rising cost of living. This fare reduction was applied to all services outside the Greater Dublin Area (GDA) from the 11th of April and nationwide from the 9th of May. The fare reduction will be in place until the end of the year and €54m in Exchequer funding has been secured to allow for the introduction of these discounted fares, this is in addition to the REV22 allocations. The Government decision did not include broadening this initiative to include commercial bus operators.

I would like to see the 20% fare reduction continue into 2023; however, I am acutely aware of the competing pressures across the system and the finite Exchequer resources. The funding implications of all measures must be considered in the round so I will work closely with Minister McGrath and other Government colleagues in the context of the 2023 Estimates process to see what we can do with regard to supporting public transport services. 

In view of the importance of incentivising young people to use public transport, as part of Budget 2022 I secured €25m of funding to provide for the introduction of a young adult card (YAC). The Young Adult Card was launched on PSO services on the 9th of May. It is envisaged that the YAC will be broadened to include commercial operators at a later date. However, it is important to note that it is technically more challenging to roll-out fare initiatives such as the Young Adult Card on the commercial bus network than it is on the LEAP enabled PSO network. As such, it will take longer to make this fare discount available to Commercial Bus Operators.  The NTA is in detailed discussions with transport operators and the Department of Transport regarding the range of issues that need to be addressed.  To assist with this process, the NTA has established a joint working group with commercial bus operators to consider options and develop a plan to implement the Young Adult Card on Commercial Bus Operators in as timely a manner as possible, taking account of current ticketing capabilities to ensure a viable scheme is implemented.

The PSO programme represents a significant expenditure of taxpayers' money, and funding has increased in recent years to cater for additional services and growing capacity.  Any assessment of a proposed change to public transport fare structures would be a matter for the NTA to consider in the first instance.  Therefore, in light of the Authority's responsibility in this area I have forwarded the Deputy's specific question in relation to the fair reduction scheme and commercial bus companies, particularly in rural communities to, to the NTA for direct reply.  Please advise my private office if you do not receive a response within ten working days.

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