Bríd Smith (Dublin South Central, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

70. To ask the Minister for Transport, Tourism and Sport if he is aware that the company (details supplied) recently awarded a lucrative contract of over €2 billion by the NTA to install ticketless operations on Irish public transport also has lucrative contracts in Israel; if his Department has examined if the company are complicit in terms of supporting Israel's apartheid separation policies through its toll road operations; and if he will make a statement on the matter. [42068/24]

Bríd Smith (Dublin South Central, People Before Profit Alliance)
Link to this: Individually | In context | Oireachtas source

102. To ask the Minister for Transport, Tourism and Sport if he can detail the costs of the contract awarded to a company (details supplied) for the proposed ticketless public transport system; to further detail what discussion his Department has had with the NTA on this project, and its costs; to clarify if he or his officials examined free public transport as an alternative to this costly project; and if he will make a statement on the matter. [42040/24]

Eamon Ryan (Dublin Bay South, Green Party)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 70 and 102 together.

As the Deputy may be aware, the Next Generation Ticketing system was identified in the National Development Plan 2021-2030 as part of a package, including BusConnects, and other key public transport projects that would help increase the attractiveness of public transport and help encourage a modal shift away from private car use.

The Next Generation Ticketing (or NGT) project is also identified as one of the NTA’s overall key objectives in the Greater Dublin Area Transport Strategy 2022-2042. The upgraded ticketing system will implement an account-based ticketing system which will enable cashless technology, allowing for the incorporation of mobile and card-based payments using contactless credit and debit cards, all of which will be linked to a payment account.

In April of this year, the NTA entered into a multi-year framework agreement with Indra Sistemas to deliver the NGT project. Following this appointment, engagement between the NTA and Indra has been ongoing in relation to the appropriate methodology and approach for system delivery and installation across the public transport network. Furthermore, in August of this year, the NTA and Indra initiated the first call-off contract to extend NGT across all PSO services in the Greater Dublin Area. The further extension of NGT across modes and areas will be progressed by way of further call-off contracts. A reasonable level of certainty in relation to the total cost will be known after the further contracts are signed.

Indra was awarded this contract following a competitive tender process which was conducted in compliance with EU procurement rules.

In relation to the Deputy’s query on implementing free public transport as an alternative to NGT, the estimated total cost of providing the existing level of PSO services this year is around €1.14 billion. Research undertaken for the NTA in 2022 showed that a free public transport system, without accounting for any increased passenger demand, would require an additional €540 million in funding at a minimum. This would cost closer to €700 million in 2024 prices.

That same research found that any increase in public transport demand due to free fares would largely be achieved by reductions in active travel, resulting in just a 1% reduction in car travel. It also found that motorists are more likely to switch to public transport if fuel prices increase, or parking and road usage is restricted, rather than due to free fares.

PSO funding is therefore focused on continuing to support the fare initiatives, and improving service provision, to deliver maximum benefit for all passengers. In order to encourage more people to use public transport, the Government is investing in significant service and infrastructure improvements, as well as continuing to support the various fare initiatives. All of these improvements do however require significant levels of funding and we need to make sure we utilise these funds in the best way possible.