Vol. 470 No. 6
3 Mr. Molloy asked the Minister for Transport, Energy and Communications the steps, if any, being taken to meet the requirements of EU transport directives as they affect the public transport service; and if he will make a statement on the matter. [19568/96]
All requirements arising in relation to EU directives currently in force in the public transport area are being met. The most recent of these, and one of the most important directives in the public transport area in many years, is EU Directive 91/440 on the development of the Union's railways. The railways share of the passenger and freight transport market throughout Europe has been in decline for many years. EU Directive 91/440 was a first step towards arresting and reversing that decline. It also marked a first step toward a liberalised single market for rail services in the European Union.
Transposition into Irish law was completed with the making of the appropriate regulations under statutory instrument 204 of 1996. These regulations gave formal and positive legal force to the access provisions contained in the directive. Those provisions give railway companies throughout the European Union specific rights of access to the networks of other member states, albeit under restrictive conditions. The other requirements of the directive, including management independence and greater commercial freedom for railways, were implemented in Ireland under the Transport (Reorganisation of Coras Iompair Éireann Act, 1986.
Two further directives in this area which clarify the conditions under which access to railway infrastructure must be granted have yet to come into force. I am anxious to ensure that these directives are speedily given effect in Irish law. The mechanics of their transposal is being examined in my Department, in consultation with the office of the Attorney General. Once that examination has been concluded, I intend to proceed as quickly as possible with the transposal.
Do the EU transport directives provide for competition in urban bus services?
I understand the Minister of State, Deputy Stagg, has that hot potato.
The directives provide for limited competition in this area. As Deputy Brennan correctly stated, the Minister of State, Deputy Stagg, is engaged in detailed discussions with all interested parties. The extent to which competition is allowed in this sector under the directives is being fully examined and explored. I look forward to receiving his proposals at an early date.
When the directives are given effect will private urban bus service providers be in a position to compete with the proposed Luas system?
The declared aim of the European Commission is to press ahead with liberalisation in the bus sector. Member states, including Ireland, have insisted on a cautious step by step approach which is carefully managed. There are proposals before the Council of Transport Ministers to provide for limited liberalisation in two specific areas, the international carriage of passengers by bus and coach and cabotage in the course an international bus journey. As the Deputy is aware, cabotage means that a foreign operator on a journey from another member state can pick up and set down Irish passengers in Ireland. This has implications for the domestic bus sector.
It is clear from repeated statements by the European Commission that we are embarked on a gradual process of liberalisation in the public transport sector throughout Europe. Member states will, to some extent, be able to set the pace. With the adoption and transposal of existing directives, market forces and competition will play a far greater role than they have up to now. It is up to CIE in particular to place itself in a position where it will be able to respond to this development.
Will the Minister comment on the effect private urban bus service providers had on the financial projections for the light rail system in Sheffield, which was destroyed because the commuting public did not move to it as more attractive fares and services were available from private bus operators?
I am not aware of the details but after the initial phase when much concern was expressed the Sheffield light rail system is now operating satisfactorily and efficiently with an improved rate of passenger throughput.
It had to be sold off at one third of the cost.
Public transport networks throughout Europe, including Ireland, will face increased competition from the private sector. They will only be able to compete if they are lean and efficient and offer an alternative attractive mode of transport to those using private cars and buses. Unless they are cost effective and the customer is offered value for money they will continue to lose business to the private operators.
Questions Nos. 4 and 5 may be taken in ordinary time.
