Dáil Éireann debate -
Wednesday, 1 Oct 1997

Vol. 480 No. 7

Written Answers. - Dublin Bus Subvention.

Pat Rabbitte

Question:

44 Mr. Rabbitte asked the Minister for Public Enterprise if she will give a level of public subvention to Dublin Bus on a comparable level with similar European cities; and if she will make a statement on the matter. [14918/97]

Minister for Public Enterprise (Mrs. O'Rourke)

The Exchequer subvention to CIE in respect of the provision of socially necessary noncommercial public transport services amounts to £105 million in 1997, an increase of just over 5 per cent on the 1996 figure. The allocation of the subvention between the three subsidiary companies is entirely a matter for the CIE board. I understand that the board's 1997 allocation to Dublin Bus is £7 million. The system of public service contracts which I intend to introduce in place of the current global subvention will facilitate a more focused consideration of the standard of service the CIE companies are expected to provide in return for the subsidy they receive from the State.

In determining the level of subvention to be paid to CIE each year the Government has to find the right balance between a range of competing demands across all sectors of the economy and no organisation can afford to operate on the basis that the taxpayer has a bottomless purse. In any event, the ability of the CIE companies to offer a satisfactory service to their customers is not determined solely by the availability of Exchequer subvention. Management and staff in Dublin Bus have made very real efforts in recent years to improve the range and quality of services available to the public and to improve the efficiency with which those services are delivered. I welcome these efforts which reflect a realistic awareness of the increasingly competitive environment in which CIE must operate if customer loyalty is to be maintained and developed.

I am aware that comparisons tend to be made between the level of State subsidy paid to Dublin Bus and that which is available to transport operators in other cities in Europe. Such comparisons can, however, be misleading. For example, payments from the Department of Social, Family and Community Affairs in respect of free travel services provided by the CIE companies are shown as general revenue rather than as State payments, which is what in fact they are. In any event, I consider that if additional subvention was to be made available to the CIE companies generally, it could only be in respect of new services to be provided by them. More generally, Deputies will be aware of a range of ongoing and proposed measures under the Dublin Transportation Initiative (DTI) to improve public transport services in the city. These include the introduction of a series of quality bus corridors which are intended to provide fast, frequent, direct, reliable and comfortable bus services in areas of high demand. Implementation of quality bus corridors is being pursued by Dublin Bus and the local authorities under the aegis of the Dublin Transportation Office (DTO) which is also providing the necessary funding. The DTO is committed to implementing all 11 quality bus corridors recommended by the DTI by the end of 1998.