Vol. 505 No. 1
13 Ms O. Mitchell asked the Minister for Public Enterprise when legislation will be brought forward conferring powers on CIE to delegate to a private sector operator some of its operating functions under the Transport (Dublin Light Rail) Act, 1996. [11692/99]
In December last, the Department commissioned a study on a public private partnership approach for the Dublin light rail project. The consultants' report was published recently. It indicated that, if their proposed approach to a PPP for the project was accepted, changes to the Transport (Dublin Light Rail) Act, 1996, would be required.
The recommendations in the report are being studied by my Department and I am consulting again with interested parties. I am anxious that all interested parties will be given an opportunity to study the report and respond. When that con sultation has been completed, I will bring a report to Cabinet. The requirement, if needed, for amending legislation will be addressed in this context.
Perhaps I should have asked the Minister if the consultants report would be accepted and whether CIE or its subsidiaries would continue to be the client for the purposes of procuring a private operator. Is the Minister aware of CIE's attitude to the Luas project? I am sure she is aware of rumours and media reports which suggest a divergence of opinion on the value of this project. Has she detected a change of attitude in CIE since it has become known that it may not operate Luas? Is she satisfied there will not be a major conflict of interest if CIE continues as the client but in competition with the operator of Luas?
I received an interesting letter from the chairman of CIE three or four days after I published the PPP report we had commissioned. The Deputy asked if I was aware of a change of attitude following the publication of the report. That was the first inclination I had that the sponsor of Luas, which is CIE, might consider changing gear. However, it did not change gear.
The Minister is going to abort Luas and blame CIE. That is good footwork.
I do not know what the Deputy is talking about. Deputy Olivia Mitchell asked me a question and I am sure she is annoyed with the Deputy.
That is a clever move.
I did not think it was a clever move by CIE.
It is a clever move by the Minister.
The £400 million plus has now increased to £1,000 million plus.
Because it got the report from me.
The Minister will scupper the project and blame CIE.
Someone saw the Deputy on television last night and they asked me if he was an ass. I said he was a clever person.
I am glad for that reassurance.
The Deputy is rude. Deputy Olivia Mitchell asked this question.
I accept that.
I got a letter from the chairman of CIE three or four days after the report was published. Meanwhile, CIE is giving evidence before Judge O'Leary about the second line. We have pointed out to CIE that it is the sponsor of Luas, so what is the purpose of the letter? I presume no one disagrees with the public/private partnership building a portion of Luas. The report advised that CIE should consider contracting out to private operators the running of Luas. The Deputy asked if there would be a conflict of interests if there was competition. I hope to meet the unions and the board of CIE shortly and I hope to receive a correctly worded and evaluated proposal for the building of Luas. I found the change of tack extremely interesting – I would not say alarming – four days after the report was published.
I thank the Minister for her honest and open reply. Is it her intention to implement the recommendations of the Behan report? Will CIE remain the sponsor of this project?
I do not know because I am only beginning to talk to people about it. The note I received with the report stated that those proposals should be considered. The first meeting of the Cabinet subcommittee on the national development plan will take place tomorrow and those issues will be aired informally there. I will go back to Cabinet with proposals in that regard.
