Vol. 524 No. 4
5 Ms O. Mitchell asked the Minister for Public Enterprise the reason she considers it necessary for the State to divest itself of ownership of Bus Átha Cliath in advance of the commencement of franchising of the core bus network in Dublin. [20070/00]
My Department's review of the bus market in the greater Dublin area, which I submitted to the Cabinet committee in May, dealt in some detail with the question of ownership of the State bus companies in a franchised market.
One of the key recommendations of the review was that both Bus Átha Cliath and Bus Éireann should be free to compete with each other in an effective way in a franchised market. In circumstances where both companies competed aggressively with each other for market share, it could be a zero sum game, or worse, for a single owner. Another concern was that a prudent common shareholder might discourage both companies from competing too aggressively with each other.
The review concluded that at least one of the State companies should be examined for transference to private ownership. These and other regulatory proposals are currently the subject of public consultation and I welcome any comments which interested parties wish to make.
I am still none the wiser as to why we have to wait at least ten years for competition. If we proceed along the lines suggested we will have to wait three years for legislation to break up CIE's subsidiary companies into independent companies. We will then proceed to privatisation with its attendant problems involving industrial relations, property, pensions and the promise to return workers in CIE's subsidiary companies to the CIE holding company if the companies were broken up. This will mean it will be ten years before we have competition. We will be lucky if we get ten months before there is total gridlock.
A question please, Deputy.
Does the Minister realise she is the only person who can prevent gridlock in Dublin in the very near future and that this can only be done by using buses? The Minister has spoken about the 273 extra buses but that is a drop in the ocean in terms of what is required. Every day Dublin is getting closer to not being viable.
Is the Minister also aware that Dublin Bus is not just taking buses off routes but is closing down routes to prop up the capacity on the quality bus corridors? Is she further aware that five QBCs are supposed to open by Christmas and that, if that happens, it will be at the expense of existing routes?
I am assured by Bus Átha Cliath that the opening of the QBCs will not be at the expense of existing routes. The Deputy does not seem to be aware that there have been almost 400 new buses between last year and this year.
I am aware of that but I am talking about new buses.
New buses have not been purchased for ten or 12 years. I am aware and agree that, in addition to competition, the provision of buses is the immediate, but not the long-term, solution to tackling gridlock. We have already issued eleven licences and a range of new licences will be issued at the end of this month for orbital routes.
We are confined by the 1932 Act under which services can only be provided on routes not serviced by public transport companies. I can only overturn that Act by new legislation. Plans for such legislation are being drawn up but it will not take ten years.
One of the short-term measures recommended is that Dublin Bus be encouraged to sub-contract services. Is the Minister aware that this policy is doomed to failure? It has already been tried by Dublin Bus but it cannot get anyone to work for it. The idea is a non-runner.
I welcome the issuing of licences. It is good for the consumer and Dublin Bus. I ask the Minister to take a more proactive approach. I accept, as she says, that she is constrained by the legislation, but surely the legislation only states that they must have regard for services given by CIE? Surely that, in itself, is a reason to provide additional licences? Would she not now look at providing licences for late-night and weekend services, particularly now that Dublin Corporation is introducing a new parking regime for the city centre? The bus service at the weekend is about 20% of the inadequate service during the week. She should look at the most congested areas.
Deputy Mitchell, you have asked your question. I would like to give the Minister time to reply. The six minutes has concluded.
I would ask the Minister to look at the very congested areas in Dublin. In some parts of Dublin a seven mile journey is now a two-hour commute.
That is a statement.
The question is whether she will franchise out those routes.
I have stated clearly that we must operate within the 1932 Act, which is being changed.
When?
Dublin Bus has told me that sub-contracting is proceeding well. That was part of the settlement. I can only go on what I am told. Much as I would like to, I cannot go on what the Deputy tells me. They tell me that it is proceeding very satisfactorily.
Would she check it?
Management and the trade unions tell me that. That is not just a one-sided view.
