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JOINT COMMITTEE ON TRANSPORT debate -
Wednesday, 4 Feb 2009

Bus Network: Discussion with the NBRU and SIPTU.

The next matter on our agenda is a discussion with representatives of SIPTU and the NBRU. I draw witnesses attention to the fact that members of the committee have absolute privilege, but this same privilege does not apply to witnesses appearing before the committee. Members are reminded of the parliamentary practice that they should not comment on, criticise or make charges against any person outside the House, or any official, either by name or in such a way as to make him or her identifiable.

I welcome Mr. Andrew McCarthy, Mr. Ned Condon and Mr. Willie Noone from SIPTU; and Mr. Michael Faherty, Mr. Dermot O'Leary and Mr. John Moloney from the NBRU and apologise for the delay they have experienced. They were observers at our earlier discussion, which was interesting to say the least.

Mr. Michael Faherty

I thank the committee for inviting us to appear before it. I intend to outline several points we believe to be relevant in regard to the outrageous decision to withdraw 270 buses from Bus Éireann and Bus Átha Cliath. Despite what was said in the previous presentation, we are convinced this decision is driven solely by economic considerations. The decision to withdraw buses was based on subvention issues and has nothing to do with customers or the travelling public. Responsibility for the provision of services ultimately lies at the door of the Minister for Transport, the Government and the companies' management. At the same time, however, we have strong views on the matter.

Only six months ago, this committee published a useful report which found that the full utilisation of the existing fleet of 1,182 buses during off-peak hours and the deployment of 350 additional buses within the next two years were critical requirements. Bus Átha Cliath management supported that finding at the time, despite what its representatives have said today. The Deloitte report published two weeks ago, stated that a significant expansion of the bus fleet and increased priority for buses are parts of the national development plan. Its analysis indicated that the fleet as it stands is just adequate to service current demand and favoured optimising the existing network and extracting full value from the fleet before considering fleet expansion. Today, however, we are discussing a reduction by 10% of the existing fleet. The Deloitte report also stated that the traffic management plan for Transport 21 and city centre metro and Luas construction may require a significant increase in the modal share of bus. We discussed that issue during our last appearance before the committee. Bus Átha Cliath itself reckons that a minimum of 42 additional buses will be required to augment existing services due to the massive disruptions which will inevitably result from the construction of the new Luas and metro lines, particularly in the vicinity of College Green.

Regrettably, the Minister contends that the withdrawal of 120 buses will have no adverse impact on peak services. Publicly, management has supported that contention. These utterances are clearly designed to insulate the Minister and management from the backlash which will surely follow the withdrawal of these services.

By withdrawing 120 buses, Bus Átha Cliath will revert to the fleet size of ten years ago. Bearing in mind that the workforce in this city has substantially increased since then and that parking facilities are severely curtailed, major congestion will ensue. It is insane for anybody to speak about reducing these public services. The Deloitte report predicts that buses will be the main provider of public transport for the immediate future. We want to know what happened to the policy of encouraging people to leave their cars at home and take public transport. This committee recommended a 30% increase in the number of buses on the streets.

Bus Átha Cliath claims that the fall-off in passenger numbers is only 6% or 7%. We argue that a reduction of 10% in the fleet is not warranted by that decrease in passengers. It will have a devastating effect on the public in the Dublin area. Bus Éireann's plans to curtail services across the network will affect 150 buses and result in a loss of 325 jobs across all grades. The Deloitte report stated that Bus Éireann operates a public service obligation fleet of 450 buses on a variety of rural, suburban and town routes. Since the rest of the fleet provides services on commercial routes, I assume the 150 buses they intend to withdraw are from the 450 that provide the PSO services. That is one third of that fleet withdrawn. Despite what Mr. Tim Hayes said, having done that, how would it be possible to maintain the current integrated network with only two thirds of the buses? Anybody who knows rural Ireland knows that cannot happen.

We are pleading with all members of the committee to ascertain from the Minister and Bus Éireann management a comprehensive list of the services they propose to withdraw from 1 March. Earlier today the Chairman asked that question. He wanted to know the list of routes. We do not know where they are. Once that list is published there will be a backlash from every public representative in rural Ireland. Bearing in mind that the majority of this distinguished committee represent rural constituencies, they do not need me to remind them of the devastating effect this socially retrograde development will have on the most disadvantaged in our society. The people hit will be the unemployed, the elderly and the young.

I will touch on staff issues without going too deeply into them. We wrote to both companies advising them that the proposed sacking of 270 probation drivers will be opposed. I take issue with Mr. Meagher, who, unfortunately, has left, because he described those people as "temporary drivers". There was never anything temporary about these people. They are on the probationary period, recruited into full-time positions. The only way they would have left would have been of their own free will or if the probationary period was not satisfactory. He has referred to them as temporary workers in the media before. There is no such thing as temporary drivers in Bus Átha Cliath. These drivers were recruited into the company with a guarantee of a secure and permanent job. Once their probationary period was deemed satisfactory, they had the job for life if they wished to stay in it.

A voluntary severance package has always happened in all three companies, and if a staff surplus arises as a result of any change to the network, this should be offered to the people who want to leave voluntarily. That has always happened. I am in the job 42 years and I have never seen the like of this. It never happened before. We are not saying the company must carry a surplus of staff or that some buses might be taken out of the network. We are saying if that happens, the only way to deal with it is through a voluntary severance package, as has happened at the three CIE companies for the 42 years I have been around. We had to inform management we will not engage in any negotiations on those cost recovery plans because we cannot do so until this issue is resolved. I do not like saying it but that is the position.

The Minister for Transport identified an interesting link between the company's plans and the Deloitte report. He said: "This report identifies the challenge facing both companies in developing and implementing the recovery costs." He further stated that any actions taken by Dublin Bus to deal with the difficulties should be informed by the Deloitte report and "its vision of a totally reshaped network". He seems to be saying the financial problems it has should be addressed in the context of a review of the network. As a result of that we wrote to the Minister seeking a meeting to discuss our problems and those he sees through the Deloitte report. We received an acknowledgement and hope that meeting will take place as soon as possible.

Mr. Andrew McCarthy

I was listening earlier when the Chairman referred to Mr. Michael O'Leary. The union I represent and for which I work was formed 100 years ago — we celebrate our centenary this year — to fight and oppose the type of tyranny people such as Mr. O'Leary bring to workers in this country. It would be unacceptable to us if the Chairman, the committee or the Government introduced a type of tyranny to bus workers with no security of employment or guarantee of wages, sometimes not even knowing who their employer is, but carrying out a service to the public in the name of the State and public transport. Far be it from me to criticise somebody who is deceased and is not here to defend himself, but certain conditions should have been applied to the granting of Stansted to Ryanair and the undermining of Aer Lingus at the time. Some guarantee should have been put in place to maintain decent standards for workers employed in Aer Lingus at the time. Privatisation does not hold all the fears for us provided there are decent wages and conditions for workers and security of employment. That is a basic human right to which any worker is entitled, any day of the week and at any time, regardless of the recession.

If bus transport is to be the principal provider of passenger transport throughout Ireland, how can Bus Éireann justify cutbacks? If it is to be a significant player in ensuring links between communities, how can it cut one third of its fleet? According to the Deloitte report, Bus Éireann has 700 large public transport buses. That is only a fraction of the number of large public transport buses in this country. According to the Deloitte report, Bus Éireann carried 50.2 million passengers in 2007, or 95.7 million when school numbers are included. As everybody on the committee knows, a very substantial part of the school transport is contracted out. The majority of schoolchildren in this country are transported by contractors. Bus Éireann grew its passenger numbers by 15% between 2001 and 2007. I sometimes wonder if that is because of good management or despite the management.

We are aware of scenarios, for example, on a Sunday evening where many third level students are returning to their colleges. If one leaves Tralee or Killarney to go to Limerick, one is dropped at the station in Limerick. The bus does not continue out to University of Limerick or the Limerick Institute of Technology. That is a glaring example of an unfriendly corporate decision towards a travelling public. I am not talking about having to get two tickets to go from here to Heuston Station with Bus Éireann. I am talking about a simple situation where one has a loading of perhaps 80% or 90% on a bus, one drops them outside the station in Limerick and they have to find their own way out to the accommodation in UL. That is a nice journey on a wet evening, particularly at this time of year.

In 2007 Bus Éireann received only €36.6 million under the public service obligation, equating to 12% of total revenue. This can be compared to Connexxion in the Netherlands which received a subsidy as a percentage of revenue of 49%, Can Postal-Post Auto in Switzerland which received 51%, and TEC in the Walloon region in Belgium which received 78%, according to the Deloitte report. This is compared with 12% in Ireland and we are talking about cutbacks. The Government has a responsibility here. The Deloitte report has found Bus Éireann to be as efficient as its peers. It goes on to say it will not be possible to make major cost savings on bus networks without reducing services. It also says it will be important to ensure the integrated nature of the network is maintained as far as is practicable. How can an integrated service be maintained with such severe cutbacks? Who is the miracle worker in Bus Éireann who will find the solution? Speaking to drivers and other staff grades, they cannot see it. If this report is to form the basis of what will happen, how can cuts be carried out while maintaining an integrated service?

The report also states that overall wage and engineering costs are in line with peers in the UK. The Chairman was eulogising about Mr. Branson and the trains. There are large regions in the UK with private sector transport buses yet we have costs and efficiencies on a par with it. Surely we should try to maintain that.

The report found the scheduling of buses and drivers to be efficient when the nature of each service was taken into account. It highlights that the scope for significant cost savings in Bus Éireann is limited and warns that the company should be very careful. Again, this relates to the integrated network.

In view of the report's recommendation I find it very difficult to see how Bus Éireann management can justify a proposal to reduce its staff numbers by 322 and fleet by a total of 150. There is a question continuously going through my head; the buses are approximately a maximum of five or six years old, so what will happen to them? Somebody referred to e-voting machines earlier so will there be 150 Bus Éireann buses mothballed in garages and stored until an expected upturn in the economy? I cannot see that as a practical runner, as it would tie up significant capital. It would be a significant waste of resources funded, in a large part, by the State.

There is no doubt in our mind that if the company continues along its proposed path, severe hardship will be placed on communities which have no other access to public transport. The company should be endeavouring to develop services that will be of real benefit to towns, villages and communities which will not otherwise benefit from public transport.

Along those lines, there is opportunity for the company in these times. In recent weeks, the drivers have noticed an increase in numbers on certain services. The drivers went to the trouble of inquiring about the increased numbers. As a result of the economic times we are in, many families have had to get rid of the second car and people have had to begin using public transport.

This is happening throughout the country, so it is a very dangerous time for Bus Éireann to be thinking of pulling services, not only from rural communities but cities around the country. Dublin has its commuter belt but so have Cork, Limerick, Galway, Sligo and Waterford. It is vital that consideration be given to that, although I am not sure how the mechanism can be found between this committee, the Department of Transport and the company. I am nevertheless convinced that a way should be found to deal with this issue. At a time of growing unemployment in our communities, it is vital that Bus Éireann provides transport to places of employment.

There can sometimes be a disconnect with regard to timetabling. For example, one may see buses arriving at the centre of a town at 8 a.m., where people could use them to get to work if they were in at 7.30 a.m. or 7.45 a.m. because the start time may be 8 a.m. Workers could avail of the services to travel to work and there could be a corresponding scenario at the other end of the day to allow people travel home after work.

I was fascinated by one of the Deputies earlier speaking about Dublin Bus being able to use the Dublin Port tunnel in the morning but not in the evening. That must be an Irish joke. Deputy Michael Kennedy made the comment.

They did not make the application.

Mr. Andrew McCarthy

Close examination of shift-work patterns in various places of employment could be important. Where there is a large place of employment, there can be a shift from 6 a.m. to 2 p.m., 3 p.m. to 11 p.m. or 4 p.m. to 12 a.m. The company must respond to that with regard to where people can be collected and brought to work.

Another factor which should be taken into account is that clear evidence is emerging that financial institutions are increasingly reluctant to grant loans for motor vehicles, and this could lead to an increased demand for public transport, despite predictions to the contrary by the company. It was mentioned in the Dáil not too long ago that there is clear evidence that some of the financial institutions are shortening the time over which they will give loans and will not grant loans, particularly for second-hand cars. They might give a loan for a new car if the criteria are justified but with a young person who has got a job and who wants to buy a second car, there is clear evidence emerging that financial institutions will not give loans. Public transport may be needed to keep what is left in our economy alive.

This may not be about generating some kind of recovery as we are gone from the days when a financial institution would give a 100% loan for a house and the people would ask what the customer was driving. If it was older than two years they would give a loan for a new car, and if the customer's partner's car was older than two years they would give another loan for that. A customer seeking a loan for €200,000 may have come out with a loan for €280,000. We are well past that time. This will have an impact and it is the wrong time for any contemplation on the part of the Bus Éireann of reductions.

We must also remember that there has been a significant downward shift in fuel prices in recent times. According to the Deloitte report, there may have been hedging but fuel prices have come down in the past couple of months. Instead of reducing its fleet, Bus Éireann should concentrate on growing business and protecting existing revenue stream and employment.

As an aside on the response to my comment on privatisation, I am a union man and was a shop steward. I am a firm supporter in Bus Éireann and Dublin Bus providing the public transport services of this country. We need a network. We must all face some realities. The members of the witness's union and my union are the main people who travel on Ryanair today.

Which union was the Chairman in?

Was it the property developer's union?

I am a member of the ASTI.

It is the one I think the Chairman is most interested in.

The landlord's association.

Is the Chairman a landlord as well?

Aer Lingus would have gone the way of KLM, Sabena and Swissair had it not been for the competition provided by Ryanair. The reality is we now have a fine airline in Aer Lingus as a result of that competition. Whether we like it or not, the public knows a flight can be bought with Aer Lingus or Ryanair to many locations in Britain for the same price as getting the bus to the airport. The Dublin Bus and Bus Éireann management and unions must bring about reforms so an efficient bus service can be provided in this country. That is the reality.

I agree with the comments made by the unions. The proper response is not just to implement cutbacks, although the two companies must remain solvent. The proper response is to bring about reforms so that commuters, especially in this city, can get an efficient bus service. If they are not going to get it from Dublin Bus, they will demand it from somebody else.

I am not in favour of privatisation. It is a serious disappointment to us — me personally and the members of this committee — that after the report we produced to which Mr. Faherty referred, we are now going backwards. We sought expansion, greater efficiencies and the ability of buses to move freely in this city.

I wish to make two points. Is it possible that instead of these lay-offs there could be flexibility so that agreement can be reached between the union and management to maintain some of these services at lower cost during this period of economic difficulty? This would encourage more people to use buses, which is the issue we raised with management. What pressures can the unions apply — it did not provide much of a response to our report in this regard — on the need for bus gates in the city centre, for example, so that buses can run freely? Every time I get on a bus and ask the driver about his problems he says he cannot drive his bus because of congestion. What voice have the two unions added to the efforts we have made in this committee to free up the pinch points around the city and the Dublin city centre area in order to make buses run more freely and thereby increase the number of passengers using them? I believe that is the way to solve the problem we have.

I must intervene as I need to leave for a meeting.

We will let the Deputy in straight away.

Deputy Broughan needs to leave as well.

I am on the Committee of Public Accounts. We are all under time constraints.

It is important to recognise the commitment of the bus drivers and employees of Bus Éireann and Dublin Bus to their company and the lifetime of service they give. I acknowledge and agree with many of the points made, particularly with regard to planning for the future. Buses should not be tied up in a garage somewhere. Patterns do change. People are not going to work at 7 a.m. There are more people at home who will travel during what were previously off-peak periods. Obviously, dynamic interaction between the company and the unions will make a significant difference.

There are two references in the report to the issue of out-of-service driving. We are talking about a saving of something like €2 million on the Finglas route. This is not a reflection on the rights of workers to have their breaks and to be free according to regulations. The issue is that if the bus is being driven, rather than the driver being driven, this means that 20% of bus time is used to carry the driver to wherever he is having his break. The point made in the report is that in the United Kingdom, at various garages, the out-of-service mileage is typically between 3% and 10%, while on average on the Finglas route it is 20%. I am not being critical and I fully accept the right of any worker to have his break. That is sacrosanct. Would it be possible for the union, with Dublin Bus, to address these issues? We need to be practical about this. For example, drivers could be brought to places in a different type of vehicle. This would make a lot more sense and would be much less expensive. I will not be able to hear the answer as I have to leave, but I will pick it up afterwards. The meeting I must go to is at 6 p.m. in another building. I apologise for that.

Unfortunately, I am in the same boat as the Committee of Public Accounts has been meeting since 5.30 p.m. It is a very small committee of which I am a member, so I will have to go to the meeting. I warmly welcome Mr. Faherty and his colleagues from the NBRU and Mr. McCarthy and his colleagues from SIPTU. How much information do they have about the cutbacks in routes? In the case of Dublin Bus, I gave a list of routes that are being cut, as we are hearing from our constituents who are drivers: for example, the Tallaght routes — the 77 and 77A — the Clondalkin routes, the 13 and 13A, the 7, the 8 and the 11. Mr. Meagher said it would only be a couple of minutes more between buses and would not have much of an impact on anybody, but we are fearful for the workers and commuters who are coming in each day.

In addition, I ask Mr. McCarthy whether he knows what the situation is with Bus Éireann. The CEO of Bus Éireann has always made the point — he made it powerfully to this committee — that the most important thing Bus Éireann has is its network. As it faithfully serves so many districts and parishes of this whole island, that is its raison d’être, and he wants to fight to preserve that network at all costs. Will the network be seriously damaged?

The possibility of job losses is a sword hanging over many young men, many of whom have contacted us and are very upset. One chap is to finish his year on the 25th of this month, and the axe is hovering over his head in his garage. He is very upset. He gave up a job in the public service, in which he was stuck in a particular role and could not get promotion, because he wanted to advance himself. He went into driving and is doing very well. He is an excellent worker and an excellent driver, but he is now faced with this horrendous situation. Will both unions now be insisting, as Mr. Faherty made clear, that staff efficiency measures will have to be on the traditional voluntary basis and that we cannot attack vulnerable younger workers in this manner, particularly men and women who are on the verge of finishing their year's training? They are full-time drivers.

My colleagues made points about Euro-buses and so on. Do the unions have any basic opposition to the kind of improvements mentioned earlier, such as real-time information and smaller buses ferrying workers to particular points where they are needed? Deputy Cuffe mentioned this earlier. As the witnesses know, the Dáil is today discussing the incredible plan launched by the Taoiseach yesterday which means that everyone in this building, starting with ourselves, and all our workers and colleagues throughout this building and related buildings, will have their pay dramatically slashed, including very low paid workers. I commend the two trade unions for not going along with this — for walking out the other day and saying they would not put up with it. There are other ways to do this. We could have a progressive taxation system, as Jack O'Connor and his colleagues at SIPTU vehemently argued. Most other countries have such a system, but it was deliberately dismantled in this country 30 years ago.

I apologise as I must leave the meeting.

Given this fact, if people come to the unions and say there is another way of doing something — effectively, in commercial State bodies people's pay could be cut and we could keep the jobs — would they consider this? I do not think they would, but that is more or less what is happening in the public service. These are momentous days. The bulk of public service workers will not accept these measures and there will be serious repercussions in the months ahead. There is no question about that. What is happening in the two national bus companies is a pointer in this direction.

I will let Mr. Faherty speak first. I know some of the others want to say something——

Mr. Andrew McCarthy

I would like to talk about Dublin Bus and SIPTU.

We will allow Mr. McCarthy to come in afterwards.

Mr. Michael Faherty

The issue of competitors is a difficult one for us. According to Deloitte, 8,500 large public service vehicles were registered in the private sector in 2007. Bus Éireann and Dublin Bus between them have only 1,900. Anybody who knows Bus Éireann and the country in general will know that there are private operators working for Bus Éireann and on some of the routes operated by Bus Éireann on a daily basis. This is something that has been going on for years. The contention that private and public do not operate in the same areas is not true. It is all over the country. If the question is about Dublin Bus, it is a different matter. The Chairman is familiar with the various plans that were produced. The former Minister for Transport, the late Deputy Séamus Brennan, Lord have mercy on him, produced a plan around 2002. Several proposals and ideas were put on the table, although we never finalised them. However, outside Dublin, competitors are working alongside Bus Éireann every day, and, in some cases, working for it. If I remember correctly, the Dublin Bus annual report from two or three years ago stated that approximately €20 million was paid to private operators who were under contract. That is an ongoing thing. Nobody has put anything to us about reform recently. The most recent reform of Bus Átha Cliath took place when the total network was reviewed 15 years ago. At the time there was full co-operation and the entire network was restructured. That was the last time there was major change to the network. Deloitte seems to suggest that should happen again.

I do not know if there are alternatives to the present plan. We cannot even get off the starting blocks to start negotiations within the company because of the sacking of 270 probationary drivers. Until that matter is resolved, we will not be able to explore other ideas people might have. I am at pains to point out that this issue must be addressed.

It is clear to those of us who know Bus Éireann that of the 450 buses used to provide public service obligation services, 150 have been taken away. It had a very efficient and integrated service, as Deloitte commented, but that will not happen in the new environment.

We were given a long list of duties, as we call them, on the job, that would be discontinued but we do not know precisely what impact this will have on any area. When these duties are taken from the system, new structures will be required. It is not possible to take three or four buses off a route. The service has to be rescheduled with new rosters and a new system. It will take some time to do this and until then we do not know how it will affect any area. We have no information on Bus Éireann, apart from that on the removal of 150 buses from the system.

We cannot get away from the issue of probationary drivers and it must be addressed. It is hard for a trade unionist to watch people lose their jobs every day and we all feel for them but management has decided, for whatever reason, to draw a line through the names of over 300 drivers and terminate their employment. That would not have happened in the 1940s and 1950s. In a republic we cannot allow this to happen. Management will have to come up with a solution.

The provision of real-time information is a matter for management, one about which Mr. Meagher spoke.

Deloitte is a professional organisation and picked an area that was easy for it to examine, Finglas, from where there was only one corridor to town. I worked on the buses to Finglas 40 years ago when a number of routes served the area — the 40, 40A, 40B and 35. Today there are one or two extra routes. Buses on one main corridor serve Finglas village but it is a massive area which in recent years has extended in every direction. Our understanding is that Deloitte recommends providing feeder services to the various parts of Finglas to bring people into the village, dump them there where they can board another bus to the city centre and do the same in the opposite direction. In theory, that sounds great but Bus Átha Cliath has done a very poor job in explaining what it did in the past. It tried the same system in Tallaght, another massive area, where it introduced feeder services which it had to discontinue because nobody used them. People are not prepared to get onto a minibus or feeder bus, get off in the village in the rain and wait for another bus to come and do the same in the opposite direction. Politicians in all these areas — county councillors — made representations to ensure it did not happen because their constituents did not want it.

It is easy for Deloitte to produce a report and state this system would result in a saving of €2.1 million. How did it arrive at this sum? It adds that the system could be replicated on nine or ten other corridors but Bus Átha Cliath will not be allowed to put it into practice. That is not to say the network does not need to be reviewed, restructured and modernised. That is possibly required but what Deloitte has put forward will not work in practice.

I agree with everything Mr. Faherty is saying. I went out to Finglas one morning and the place was chock a block with cars. Why do more people not use buses?

Mr. Michael Faherty

That is a good question. The service to Finglas is good. Deloitte referred to this. I do not know why Bus Átha Cliath is not carrying more passengers there. The problem may be the fare structure. I do not know the answer.

Neither does management. It gave us material indicating it had the highest ratio and so on, which I do not accept. Dublin Bus should be able to increase the number of passengers. Its buses are driving into and out of the city centre; that is why it takes an hour or an hour and a half to get out of the city. The challenge for the unions and management is to get people out of their cars and onto buses. We can do this and have an efficient and profitable bus service. That is why, having heard the union representatives, management and everybody else, we recommended the provision of extra buses at peak times. To be fair to the unions, they went along with the idea of the direct award subcontract to introduce extra buses at peak times.

From my study of the subject in the past 18 months I believe it is possible to bring about change. The total number of passengers has dropped significantly — 148 million — but it is possible to bring it up to 200 million by achieving such change and particularly getting buses to move.

Mr. Willie O’Donohoe

I thank the Chairman. I do not want to repeat what my colleagues have said, rather I will concentrate on Dublin Bus and answer Deputy Broughan. The first thing that stands out from the Deloitte report is that it states Dublin Bus has enough buses in its fleet to meet demand but that it will not if it removes 120 buses. It beggars belief people think Dublin Bus and its workers can increase the numbers travelling on bus services with a reduction of 120 buses and 230 staff. That is pie in the sky theoretics. One cannot increase the numbers travelling on buses when one removes 120 buses from the fleet.

I support the Deputy who spoke about letting the Government off the hook. The decision on the fuel rebate took €12 million from the coffers of Dublin Bus. The company does not have the capacity to withstand such a financial hit. The unions cannot deal with such an issue.

I refer to the other cuts sought by Dublin Bus. In some respects they all seem to be linked to the Deloitte report. I allude to Deputy Broughan's question. The trade unions can deal with some of these cuts, such as the amount of money that would be saved by a pay pause. We can deal with those issues and there was provision for that in the 2016 agreement. We can deal with every issue in the Deloitte report. That must be put on record. As a trade union involved in Dublin Bus, SIPTU is not running away from any recommendations in the report. We question the validity of some of the proposals. For example, I question how Deloitte can put forward proposals relating to the Finglas route. The report states more than €2 million in efficiency savings could be generated. However, earlier Dublin Bus management stated that it tried to do this already and it failed. The management of Dublin Bus stated today that it could introduce these efficiencies and that it believed the proposal could work. The same management states out of the other side of its mouth that it has tried to do this already and it has failed.

I refer to a particular matter which is a main element of the Deloitte report. The report advocates a strong main corridor for buses and certain elements feed into that. The unions, the management and the workers of Dublin Bus management have stated they will implement this if it is what people want. It makes absolutely no difference to our members. If that is what people seek, that is what we will do. Every politician in Dublin city will be in contact with their leaders, Dublin Bus, the political parties and other public representatives making the case that they do not wish to see the implementation of this proposal. This is what SIPTU expects. We are aware of the position. We are going through the process of explaining to the public exactly what these cuts will mean. It is one thing to say to a member of the travelling public that two buses will be taken off a certain route. However, it is a different matter to explain that one was waiting for half an hour or three quarters of an hour for a bus rather than the two minute wait suggested by the media. That is the reality.

Many of the 120 buses to be withdrawn are termed universal buses. They are in use during peak demand and extra buses are put on certain routes. If these universal buses are withdrawn from these routes, people will be waiting at the bus stops. Earlier I heard a comment from a Deputy to the effect that central to the Deloitte report was that it would be led by the requirements of the passengers. The report should be led by these rather than by economics. That is the purpose of public services. However, it appears that economics will drive this matter.

A Fine Gael Deputy advocated competition, and stated there is no choice, but that there should be choice in the market. The case is made that there should be competition for providers, but passengers will have no choice in Finglas. They will be told the service will be provided in a certain way and they can like it or leave it. The services provided so far by Dublin Bus and its workers have provided a choice for passengers. There is variation in where people may travel, where they stop and how they travel to the city centre. Passengers do not wish to get two buses or change buses when travelling into town from Finglas. Perhaps Deloitte believes this is what the people of Finglas seek. However, I believe when the people in Finglas are told they will need two buses to get into town, they will tell their public representatives something different.

The report criticised the complexity of the bus schedules. They are complex because of the services people seek. There is also an absence of a land use policy.

Is Mr. O'Donohoe referring to the complexity of the buses?

Mr. Willie O’Donohoe

The complexity of the bus schedules is criticised in the report. The point made by SIPTU is that they are complex because that is what is demanded by public representatives and the public. They seek a service at certain times and the complexity is largely driven by this. If we ensure there are strong routes or lanes into the city centre, that will not find favour with the travelling public.

There is criticism of the land use policy, which has been driven by different Departments throughout the years. It has allowed low density housing to develop which results in complex bus scheduling. The Deloitte report advocated cutting certain legs. These legs were not included in routes for the personal satisfaction of drivers. They were included to provide a service to people in those areas and to bring them into the city.

Some buses may not have a full load. They may not even be half full, but they provide a service. I refer to the analogy used earlier concerning Ryanair. It will cancel a route if it does not have an 80% load. If we are told there cannot be a service unless a bus is at least 80% full, we will tell the general public as much. This raises a question concerning the public service obligation. Buses will have a peak load at certain times of the day. That is not the case for 75% of the time during which buses operate. If a bus is not achieving a certain load and buses are not making money at certain times of the day and services are cancelled as a result, I believe public representatives will hear about it from constituents.

Why do people use the Luas at off-peak times, but not the buses?

Mr. Willie O’Donohoe

It is because of the complexity of the travelling public, there are nuances everywhere. A question was put concerning the reasons people park cars. An issue largely forgotten in this discussion is the matter of congestion.

Can Mr. O'Donohoe answer my question? If the Luas is travelling at 11 a.m., 3 p.m. or 4 p.m. in the afternoon, there are many passengers on board. One sees very few buses and passengers on buses at these times.

Mr. Willie O’Donohoe

The Luas has no obstructions on its journey. A bus must deal with congestion a good deal of the time. That is the reason some people travel by car. Such people say if they travel by bus, it may or may not be there and that one cannot be 100% accurate about when exactly it will arrive at the end of the journey. Some people will travel by car, because they believe they cannot rely on the bus. To a large extent, congestion is responsible.

The committee should note that all the evidence throughout the years has shown that if one schedules buses frequently and they arrive on time, people will use them. We are now going the opposite direction. There are plans to reduce the frequency and the number of buses. However, there is an expectation to overturn the evidence of the past 200 years. There is a belief that this will increase the number of people travelling on buses. It is a nonsense.

I wish to refer to some other points. My colleagues in the NBRU referred to the plans going forward. Such plans have been put to workers in Dublin Bus. To answer Deputy Broughan's points, SIPTU will not be found wanting in terms of the flexibility required. We have never been found wanting in the past and we will not be found wanting this time. I refer to out-of-time driving. If that is an issue and if it becomes a cost, we will not be found wanting at the table when it is put in front of us. I refer to the routes and the cutbacks. We intend to go to each of the garages and, in layman's terms, write out the implications of these cuts for the public.

Our members know the travelling public does not really care if 200, 300 or 400 people lose their jobs in CIE, because they have other problems. However, they will care when they are told routes will be withdrawn and they will not be able to go where they wish.

I refer to voluntary severances in Dublin Bus. It should be put on record that, at present, SIPTU is the only union representing all categories in Dublin Bus. I have on occasion met management and they have told us that under no circumstances will voluntary severance be available to drivers as there is no money available. I could walk out one door and walk in another and the same management will say there is voluntary severance, which I cannot fathom. Some employees in the same company are being told there will be voluntary severance. I am not only referring to permanent employees, but temporary employees also. Some temporary employees, who have worked for four or five months, have been told if they request voluntary severance, it will be available. However, there are other drivers with perhaps nine, ten or 11 months' service who are told it will not be available. That is no way to treat staff. Questions should be asked in that regard.

Part of the plans and proposals put to us include the introduction of part-time workers. We envisage a scenario in future where routes are cut and buses are taken off the road. We may come a point where we will have to tell our people to work 20 hours per week as a driver and that they might also get 20 hours part time work as a taxi driver or a Luas driver. Who is competing against whom there? That is the reality we are facing and the stupidity of the road we are going down.

We are quite clearly saying that if a pilot scheme is being put forward by the Deloitte report, which there is, why not try it and see if it works? We will not be found wanting on that. One can put it out there, give the travelling public a choice and let the travelling public decide on what it wants. There are buses and drivers at the moment. Why not try it? If one tries it and it works, it can be used as a template for somewhere else. That is the main point I want to put across.

I take some confidence from was said. Mr. McCarthy spoke about opportunity, as did Mr. Faherty. In the future perhaps what we will have to do is look at the opportunities.

Mr. Ned Conlon

If I understand Deputy Broughan's question correctly, he asked if we had any idea where Bus Éireann were taking out the buses around the country. What it is talking about is taking out 25 buses in Dublin. It has not put numbers of people on this for us out of the various places. It talked about taking 12 buses out of Dundalk, 30 out of Cork, 15 out of Waterford, four out of Tralee, 15 out of Galway, three out of Athlone, four out of Sligo, one out of Ballina, two out of Stranorlar and demand trend for Q1 2009 being 15 buses, a total of 150 buses. That is the way it has been given to us.

I have been a trade union official for a very long time, dealing with different industries and different types of work. I have dealt across a fairly wide range of areas. I have dealt with Bus Éireann for a long time as well. I have not ever walked away from the table on perceived necessary changes to bring about efficiencies. However, the one thing I will walk away from the table on is forced lay-offs or redundancies without trying the voluntary route first.

It is essential that a message is sent quite clearly to the company from this union that if an absolute need can be established for cutbacks — I am not convinced that there is there yet — we are prepared to talk about cut-backs on a voluntary basis first. There cannot be a compulsory route first and then a voluntary one afterwards. We do not want to see a situation where certain grades will get golden handshakes and people who, as Deputy Broughan said earlier, left jobs to go to more secure jobs with better pay will be forced out and will be unable to pay a mortgage or whatever.

These people have done nothing but turn up for work, contract their labour to the company and work faithfully for it since they joined. It is not acceptable that they could then be turfed out as if they had made off with the millions some of the bankers have made off with. We need to protect communities where there will be growing and serious unemployment. All of us must ensure that a public service transport——

Could I ask the delegation a straight question? We heard today that Dublin Bus has a €31 million deficit and Bus Éireann has a €22 million deficit. How does it propose to tackle that issue? Can it give us some idea as to how it sees the situation? That obviously cannot go on. I will allow Mr. McCarthy to come in.

Mr. Andrew McCarthy

One point on that issue is that we want the company to engage with us in a proper manner and let us identify where the deficit arises. It is one thing to say there is a €30 million deficit but there is the whole question of where it is coming from, how it arises and where it happens which will take some detailed examination. If we have that information at least we can look at it, but this is all we have.

It has said today that it did not want to give the committee details and that it would discuss them with the delegation.

Mr. John Moloney

To pick up a point Mr. McCarthy talked about, the details the company has given are just overviews. Mr. Faherty said, correctly, that Mr. Hayes is holding the integration of the network in place. If he is holding it in place, why does he not come out and tell the workers and the people what he proposes? I will tell the committee why. He is afraid of the reaction because he is unable to keep integration there. Mr. McCarthy talked about buses. Some of them have one driver and some have one and a half drivers, depending on where they are located. The impact of this will be quite dramatic and that is why the company will not come out and give the details. It knows the impact of it.

I sit on the board and we have not received the details. I know there has been a significant economic change herd and right throughout the world, but it was only last year we discussed development through the Transport 21 initiative. Bus Éireann and Dublin Bus recruited drivers based on it and the forecast developments. It is not the fault of these people that the economy has turned down like it has.

The companies now have no loyalty to them at all. They are seeking a reduction in staff of 10%. All we are saying is that whether they can achieve the 10% reduction, it should at least be investigated through the voluntary severance option. It has to be investigated. Otherwise we cannot even sit down to talk about it.

Mr. Michael Faherty

Coming back to the Chairman's question, Deputy O'Dowd, when Bus Éireann and Dublin Bus made their presentations, struggled manfully to find something in the Deloitte report that would support his view on life and his policy, which, as we know, is privatisation. He ignored at all times what it said was good about the company.

To return to the Chairman's question, it will be extremely difficult to bridge the gap of €31 million or €28 million in the other company because one of the main areas here is the cost base. The Deloitte report was done on behalf of the Minister. If Dublin Bus itself commissioned this report, one would say "of course it would do that" but it was done on behalf of the Minister.

The cost base indicates they are sufficient as comparable organisations. The cost base, to which everybody looks to see how the company is performing, is correct. The current funding, which is where the problem arises is low by comparison, which we all know. The report goes on to give several examples.

The Chairman knows the last time we were here people talked about the London model which has been held up as a panacea for all these things. Even London, we were told, counted its figures — our figures would be higher — and they were 10% higher than Dublin Bus. When we go on to efficiencies, the report says it is as efficient as its peers.

The wage situation is described as being similar to the industry average. There is nothing out of the ordinary there. The scheduling of drivers and buses was mentioned. Deputy Broughan referred to 20%. The report says it is generally sufficient compared with international benchmarks. As workers, what are we doing that is wrong? Our members, who are the staff, are doing their job. I am no expert, but if there is a problem maybe we are unable, for whatever reason, to get enough people out of their cars and on to buses to give us the additional revenue we need. Perhaps that is where the problem is.

Alternatively, there is an issue with the State and the funding of the company. It is a combination of both of those issues. Where does one come up with ideas to save €31 million? The only thing I can say is that we have been confronted with many challenges in the past in the three companies. We worked our way through them. We have never been involved in anything as serious as this on a national scale. We appreciate the situation the country is in. Once we can get over the hurdle of the sackings, with which we cannot get involved, and into negotiations, who knows what ideas, such as network changes, people will suggest? Unless we get into negotiations there is no prospect of addressing this issue.

We in the House have been involved in the workplace planning initiative under the Dublin Transportation Office whereby everybody has been polled to see if they would leave their cars at home one or two days a week. Is there any possibility of curtailing the number of cars that come through the canal cordon as a short-term measure? This would involve Dublin Bus, the unions, the city council and politicians and would prevent the need to lose these buses and drivers.

Mr. Andrew McCarthy

The question is more appropriate to Dublin Bus than to Bus Éireann but people are looking for certainty. The Chairman gave the example of someone getting off the train at Heuston Station and boarding the Luas. Everybody knows where the Luas is going and the notice board displays the next three trains due. A bus from Heuston might drop one at the other side of O'Connell Street one day and at a different place the next day. One is not exactly sure where one is. There is at least absolute certainty on the Luas.

Some cities are not designed——

I am talking about Dublin.

Mr. Andrew McCarthy

It is necessary to bring certainty into the system. If one is working in Clerys, O'Connell Street at 9 a.m. one has to be there.

My point is that because of the improvements on the Stillorgan and Malahide QBCs, and the famous No. 92 that I take, there is certainty. There is an excellent service with buses every few minutes and many more extra passengers but there are still many whose mindset prevents them getting on a bus. I am a convert. I would not have dreamt of getting on a bus until I got this job. Now I take buses all over the place and it is a good and pleasant and cheaper experience. That is the biggest opportunity.

Mr. McCarthy and Mr. Faherty have spoken about opportunities, particularly for Dublin Bus in our present crisis. Their responses to our points about the expansion of Dublin Bus have been positive but that is an opportunity that should be considered. It will involve some radical thinking about how in the short term we can get people to leave the car and take the bus on the radial routes into Dublin. That will have an impact on congestion and on Dublin Bus. This applies equally but in a more difficult way to Bus Éireann. in Galway a bus lane and new buses were put on the route from Deoch Uisce to the city which contributes one third of the total city revenue of Bus Éireann in Galway. This can be done. That happened as a result of a good initiative on the part of the union and Bus Éireann management in Galway, and the fact that a bus lane was put in.

Mr. Andrew McCarthy

In Limerick a bus lane was put in from the Fr. Russell Road roundabout to the Crescent Shopping Centre roundabout but it is ignored and is not in——

I know.

Mr. Michael Faherty

As a former driver and daily bus user for the past ten years, I ask what would make someone standing at a bus stop go back to his or her house to get the car. If one stands at a bus stop in the cold and wind and rain one will decide to bring the car the next day. The answer is reliability and frequency. Irrespective of who the manager or management team are at Dublin Bus, it is not possible to keep the buses running to timetable except on the 50% of routes that have a quality bus corridor. That is the same as the Luas or a metro. The problem starts when one runs out of QBC. The 20B bus that leaves Beaumont Hospital gate runs on a QBC for half the journey. At peak time, 8 a.m., it takes 40 or 45 minutes to do the first half of that trip to the Malahide Road where it joins the QBC at Donnycarney church and does the other half of the trip in 15 minutes. That sums up the problem.

Our report emphasised speeding up the QBCs but until that happens we need to change the mindset of those drivers whose cars clog up that section and get them onto the bus.

Mr. Michael Faherty

We would like the Chairman to bring the message to the Minister that while we wait for the metro and the rest of the QBCs the bus is the only answer. The Minister is going down the wrong road. He should at least leave what is available and not reduce the service. Somebody is making a huge mistake.

It is not possible to sustain the current losses. There has been a significant downturn in passenger numbers because people are not going to work. I hope that before action is taken the witnesses will consider some of the opportunities available such as people using buses again because they no longer have a second car. I wish the best of luck to Mr. McCarthy and Mr. Faherty and the management of Dublin Bus and Bus Éireann in trying to find those alternatives and reforms, instead of letting people go.

Mr. John Moloney

People must realise that a public transport system costs money.

Mr. Andrew McCarthy

Somebody spoke earlier about the increase in school bus tickets. As a parent of three children using the bus I can assure the Chairman that is a significant hit. While Bus Éireann issues the tickets and collects the revenue, my children are travelling on a contractor's bus.

That is a topic for another day. I thank the witnesses for their submissions. I am a firm believer in Dublin Bus and Bus Éireann providing services but I genuinely am concerned that if they continue as they are it will be difficult to convince the public that someone else should not be given the opportunity to provide the service. Everyone has a responsibility——

Mr. Dermot O’Leary

I will not answer the Ryanair question because my colleagues have covered that. Regarding the Virgin example, was the Chairman relying on anecdotal evidence or did he do some research on Virgin? I did not do any research but from my experience of travelling in the United Kingdom, I am aware that Virgin has a very successful service. It has lines into densely populated areas and charges very high fares. I use lightly used lines in the UK which provide a poor service using very poor trains. That is because the operators are trying to drive down costs to make a profit. That is my example.

I do not agree with the privatisation of the bus service in London. We have studied that carefully but some of my colleagues in the British Parliament, and they are not Tories, gave me the example of the way Virgin has turned around the rail service in Britain, after experiencing many problems. I am not saying that is the way we should proceed.

As was pointed out earlier, Iarnród Éireann has not had a loss in its passenger numbers because it is providing an excellent service. If we can get our act together on this issue — unions, management and Government — we can turn around this service. Mr. Faherty is correct. We need a good bus service in Dublin in the next five or six years if we are to face all the disruption caused by construction and so on. That is why the first report we produced was the two-year action plan for Dublin Bus, which spells out what needs to be done. I thank the representatives for attending.

The joint committee adjourned at 6.45 p.m. until 3.45 p.m. on Wednesday, 11 February 2009.
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