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JOINT COMMITTEE ON TRANSPORT debate -
Wednesday, 18 Nov 2009

Rail Network: Discussion with Railway Procurement Agency.

The next item is a discussion with the Railway Procurement Agency. I draw the attention of the witnesses to the fact that while members of the committee have absolute privilege the 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 an official either by name or in such a way as to make him or her identifiable.

I welcome Mr. Frank Allen, the chief executive officer, Mr. Michael Sheedy, the director of light rail, and Mr. Rory O'Connor, the director of metro north, Railway Procurement Agency. I invite Mr. Allen to make a short presentation, which will be followed by a question and answer session.

Mr. Frank Allen

As this meeting is running late, I will briefly summarise the points I wish to make. We are delighted to be here to answer the committee's questions. The context of our meeting the committee today is a little different from the context of our meeting the committee on previous occasions when public transport numbers were increasing rapidly and the question at that time was how would we respond to that trend. Public transport numbers have been declining although not so severely. We are confident that the RPA will continue to achieve a break-even position on Luas operations this year.

In terms of new projects, we plan to open the Luas extension to the docklands on 8 December, subject to some final testing and safety approval. We are pleased that will open very soon and will contribute to alleviating congestion in the city centre. Our project is coming in well within the budget and programme we had indicated when it was approved.

The two other Luas lines under construction, the lines to Cherrywood and to Citywest, are progressing very well. We are pleased that An Bord Pleanála had reviewed the additional information it requested from us in regard to metro north. It will resume the oral hearing at the end of this month.

The implementation period for the other Transport 21 projects on which we are continuing to do design and planning work, will be put back because of reduced Exchequer and private sector funding. However, we remain committed to those projects and will continue to plan and design for them and when the economy recovers, we will be in a strong position to move quickly to implement them.

With regard to the integrated ticketing project, about which I have spoken here on previous occasions, I am delighted to report there is excellent co-operation with all the transport providers and that passengers will be using a Luas-Dublin Bus smart card in the first quarter of 2010. Extending the scheme to cover a wider range of products and a wider range of operators, including Iarnród Éireann, private bus operators and Bus Éireann, will be rolled out over time into 2011.

We in the RPA are very conscious of the very high standards of corporate governance and cost control that need to be in place. We have implemented very aggressive programmes of cost control in the past year and have reduced costs substantially. We are very conscious that every penny we spend is from the taxpayer and needs to be accounted for in every way possible.

I warmly welcome Mr. Allen and his colleagues. It is time we had an update from the RPA about its vital infrastructural work. Mr. Allen said that the fall-off due to the recession was not as much as people might think. What type of passenger numbers are involved? A complaint I receive occasionally from people who use both the Red and Green Lines is that many people hop on the trams and jump off when they see an inspector coming. There is much loss of revenue due to people not having tickets. Are there any estimates of that? Should there be more strict invigilation to ensure everybody who uses the Luas is paying for the trip?

When the CIE representatives were before the committee, we discussed the big crash that occurred in O'Connell Street between the tram and the bus. Does Mr. Allen have a view on Dr. John Lynch's comments that it was not the bus driver's fault? There are ongoing investigations of the incident. At what stage are they and does Mr. Allen wish to comment on the remark by the chairperson of CIE?

My third question relates to health and safety and a complaint I heard about the independent review of the appropriateness of the maximum drive time for Luas drivers. There appears to be a feeling among the drivers that Veolia might be gambling with safety due to the fatigue and stress of drivers. There is a view that people could be driving under stressful conditions.

My fourth question is about the allegations that are made from time to time in the media about harassment, grotesque anti-social behaviour and even criminal behaviour on the Luas trams. The Donal MacIntyre programme, "Crime Capitals", on TV3 last week highlighted alleged heroin dealing and drug taking on a Luas line. It was also reported last year that the RPA had asked the Minister, Deputy Noel Dempsey, to address this ongoing problem but got the brush-off with regard to additional resources. I tried to ask the Minister about this health and safety issue last week, not just regarding the Luas but other public transport operators, including private operators. However, pending some Dáil reform which hopefully will take place, the Minister refused to address the issue of the safety of passengers and staff from misbehaving passengers on trams.

My final question is about Transport 21 and the big ticket projects. A number of committee members have a great interest in the metro north. Why did the RPA have to put back the oral hearing and put in the additional information? How close are we to a decision on the final bidder between Celtic Metro Group and Metro Express? I would like the project to move ahead post-haste but there are concerns about it in the media and elsewhere. We heard recently that some people in the Government are getting jittery about it. There have been long discussions in this committee about bus gate and traffic management and there are grave concerns. I met the Dublin City Centre Business Association and the Dublin BID committee and they made the point that the impact of the big dig will be phenomenal. How far up to speed is the agency with that to protect city centre business and the thousands of retail, banking and other jobs that could be at risk if the city centre is sterilised while installing this much needed transport?

I welcome Mr. Allen and his colleagues. It is a very impressive report. My question is also about metro north and the funding. I do not know if our guests read a report last Sunday in which an economist discussed the 2010 budget and what should be cut from it and so forth. Metro north was one of the listed items. Can our guests state categorically that metro north is not an item for the 2010 budget or even the 2011 budget? I am quite happy to have the problems of the big dig, as Deputy Broughan called it. When we have them, we will know metro north is under construction and will be in operation in four or five years. I cannot wait for the first shovel to be put into O'Connell Street, even if I must do it myself. I will be glad to help anybody to get it to that stage. With regard to the funding, I understand it will be public private partnership, PPP. Given the banking situation worldwide, can the RPA confirm that the two current bidders have their PPP funding in place and that once the contract is awarded there will be no delay in that regard?

With regard to Connolly Station, what progress has been made on the technical work of resolving the northern and Maynooth lines? That problem is restricting capacity on both rail lines at present.

What is the best timetable now for metro north? Has the agency still got its staff team in place? How will the Docklands operate in practice? Will there be constant service on that line or will it be every second Luas, that is, will one Luas go to Connolly Station and the next go to docklands?

Mr. Frank Allen

I thank the Deputies for their questions. With regard to the decline in passenger numbers, we anticipate that passenger numbers on Luas in 2009 will be 8% less than numbers in 2008. Last year there was a 3% decline on the previous year. They are significant declines, but they should be considered in the context of the extraordinarily high patronage on Luas from when it opened. In the previous years, Luas patronage had increased by 16% and 10%. There is a decline which we believe has stabilised at present.

How many million journeys are expected for 2009?

Mr. Frank Allen

We are expecting 25.3 million journeys in 2009.

Can Mr. Allen tie the decline to a time of day?

Mr. Frank Allen

Yes, it is clear that there are fewer people going shopping and going out for entertainment in the evening. One of the phenomena of Luas which attracted so much international attention and was so satisfactory from our point of view was that people were choosing to use Luas at times of the day when there were really no time savings for them. People found it was more in keeping with their lifestyle, perhaps. One might not get into town any quicker in the evening by travelling on Luas but people chose to do that. It is clear that there is far less footfall in the city centre in terms of retail and discretionary travel. The patronage is down more in the off-peak period than in the peak period.

The patronage on the Red Line is down to a greater extent than on the Green Line. We were providing substantial capacity for the large numbers of people at Heuston Station. It is a major point of interchange but the numbers of people who are getting on Luas at Heuston Station is substantially lower than was the case last year or the year before. It is probably due to fewer people coming to Dublin and fewer people on commuter rail. The decline in passenger numbers is modest in the context of the extraordinary growth that had taken place earlier and should be considered in that context. We are taking steps to work with retailers, cinemas and so forth to try to encourage people to use public transport. After discussing this matter with Dublin City Council, for example, it appears that people have gone from using public transport to the private car when the congestion on the highway has been reduced. That is a regrettable trend because we had succeeded in getting people out of the car and onto public transport. We are running promotions with shopping centres and cinemas to encourage people to continue to choose public transport over the car, not just because it gets there more quickly, but also because it is a more satisfactory way to get around.

Our passenger numbers are certainly down and we are making efforts to try to limit that decline. We are confident that we will achieve break-even or perhaps a small surplus in 2009, so it is important for the Luas that we should continue not to require a subvention from the Exchequer. We will continue to work hard to ensure that there is a limit to the decline. It is modest, but we are trying to address it both in our own interests and those of retailers and third parties who have benefited so much from having such high-quality public transport in their neighbourhood.

Moving on to the question of fare evasion, the point made to Deputy Broughan by law-abiding, fare-paying passengers has been made to us as well.

I have seen it happening myself. When the Luas staff come on, other people are hopping off when they see them.

Mr. Frank Allen

Mr. Michael Sheedy, who is director of light-rail, and I spend time at Luas stops talking to passengers. They say they do not mind paying the fare, but it annoys them if they see fare evaders. We have a pretty intensive invigilation programme, as the Deputy described it. We consider that revenue losses to the Luas are not very large. It is typically somebody who is making a short hop in the city centre. We have carried out extensive surveying, not just by customer service officers, but also independent surveys. The rate of fare evasion among regular Luas commuters, from Monday to Friday, is minuscule. It is an honour-based system; people recognise a quality service and they pay in full.

There is a cadre of people who take the Luas for free. If it only 3% or 4%, one is still talking about a lot of trips.

Mr. Frank Allen

That is a good estimate of the range. The Deputy is also correct in saying that there is a cadre. There are such phenomena and I do not wish to malign any particular Luas stop, but there is a stop where there are many students who live in that area. If 20 students get on the tram and do not pay their fares, it is more difficult for the customer service officers to deal with that. When we note such phenomena, we ensure that the concentration of invigilation of ticket checking is concentrated on those areas and those periods. We bring people to court.

How many have been brought to court this year?

Mr. Frank Allen

It is in the dozens, I would say. It is a strange phenomenon that somebody does not pay €1.45, but ends up with a criminal conviction. We are totally mystified by that. There are a lot of people who now have criminal convictions, including students who are studying in colleges in Dublin. When they apply for a visa to travel to the United States or Australia they will be refused if they divulge that they have a criminal conviction because they have not paid €1.45. We are puzzled that people would do that. I share the Deputy's concern and we are concentrating on the matter.

The O'Connell Street accident was an extremely serious one. We sincerely regret that people were injured. Even though the injured have all been released from hospital, its seriousness cannot be underestimated. The Garda Síochána is carrying out an investigation, which I am told will be completed by the end of November. The Garda may proceed further depending on the outcome of the investigation. The railway accident investigation unit is also carrying out an investigation. Under the Railway Safety Act, it has a year in which to carry out that investigation, but I know it is under way. Members of the Garda Síochána have spoken to me personally, as well as everybody involved in that accident. They have told me that the RPA should say nothing that in any way prejudices any future action they may take. I am taking that advice.

I will move on to the Deputy's query about health and safety, and an independent review of the maximum drive time. It is a matter which is the direct responsibility of Veolia, rather than the RPA, but we work extremely closely with Veolia on this. They are our contractors. Not only does the RPA work closely with Veolia, but so does the Railway Safety Commission, which has a statutory responsibility to audit Veolia. The RSC has carried out formal audits of matters, including drive time, rostering and issues of fatigue. Those investigations have been carried out and we are provided with the independent reports that have been prepared by the Railway Safety Commission. None of those reports has indicated that Veolia is gambling on safety, as the Deputy described it. In point of fact, all those reports have given a strong endorsement of the health and safety management.

As the Deputy pointed out, reviews have been carried out. I know a review has been carried out in the context of contract negotiations between Veolia and their employees. As part of those contract negotiations, an independent review was carried out, which I presume is the one to which the Deputy referred. That independent review suggested that there should be a certain shortening in the maximum drive time. A new roster will be introduced on the Luas red and green lines to take account of the Luas extension, which we hope will be opened on 8 December. That new roster will implement those changes, to which Veolia is committed.

Of course we are always concerned about health and safety issues. From working closely with those in Veolia, I am confident that it is their highest priority also. We work both in a three-way relationship and also directly with the Railway Safety Commission. We pay a lot of attention to any reports that are prepared which suggest there is any compromise on health and safety. Health and safety has to be the highest priority in public transport. We are confident that the people who have direct responsibility for setting rosters are concerned about this. I am pleased to say that it has been confirmed to me by the managing director of Veolia Ireland that, as regards the report which recommended some modest changes, when the new roster is introduced on 8 December those changes will be implemented. It is a matter of serious concern and has been dealt with in the appropriate manner.

I will now move on to the issue of harassment of passengers and staff, and anti-social behaviour. It is a serious matter, which the RPA discussed regularly with Veolia and the Garda Síochána. When we speak directly to passengers, that matter is brought to our attention. Mr. Michael Sheedy and I participate in safety forums with drivers and customer service officers who express concern about anti-social behaviour on the trams. I would like to take a few moments to distinguish between various aspects of this. Certain activity would be regarded as unpleasant. The Luas, particularly the red line, runs past several drug clinics. People who attend drug clinics use the tram to get from place to place. Passengers tell us that they feel uncomfortable. My response to that is that people who use drug clinics are citizens, too, and they have the same right as anyone else to travel on public transport. While that category is sometimes described as anti-social behaviour, it is not.

There is a feeling of unease among seniors or young people on their own, however. We had this problem on the DART as well and, to some extent, we have it on an ongoing basis. There have been many allegations recently by people who feel intimidated in a fairly empty carriage.

Mr. Frank Allen

Absolutely. That is why I am separating the different categories. It is unacceptable for people, whether coming from drug clinics, colleges, offices, banks or otherwise, to behave in an inappropriate manner. There has been a substantial increase in security on Luas in the past year. Every night there is a dedicated team of security people which we have met and with whom I am very impressed. They take firm action but they operate within the law because that is an important balance to strike. Action needs to be taken in response to people from all walks of life and classes who misbehave, drink and shout on Luas. The RPA ensures properly equipped security men travel on Luas to supplement the efforts of the customer services officers. Investment in that has increased because we need to respond to customers' demands and requirements.

Begging is another phenomena people find unsettling and even intimidating and it occurs at stops, in particular busy stops in the city centre. People begging at stops in places like Abbey Street and Jervis Street is unpleasant for the passengers standing there but it is a legal activity. If it becomes intimidating, then the security men are asked to move in. However, it is very difficult to police because we have so many trams, stops and passengers but it is receiving much attention.

On the point about heroin dealing on trams — I have seen this in the media — there is a phenomena of anti-social behaviour but sometimes it is talked up more than is warranted. We have no evidence of something as serious as heroin dealing on the trams. It would be exceptional. However, we do not underestimate the concern of our passengers in regard to health and safety.

On Transport 21, I appreciate the positive and strong support from Deputies Noel Ahern and Kennedy here and elsewhere. The oral hearing was adjourned by An Bord Pleanála because it requested us to provide further information. That required archaeological surveying and invasive survey. We did that and delivered it on 1 October. That required a major effort but it was delivered within the time requested. We are very pleased that it has responded quickly and that it will resume the oral hearing. We are very well equipped to respond to any queries which may emerge as part of that. We want to move ahead with this as quickly as possible.

In regard to the 2010 budget, RPA would hope to receive an enforceable railway order by summer 2010. We have gone from four bidders to two. Those two bidders will be invited to present their best and final offers. They have told us they are committed to continuing with that process. We would be concerned about any delay because it is very clear that with stimulus programmes in place in other major markets — European countries, North America and Australia — the choices available for the limited pool of competent and well-qualified infrastructure companies are much wider today than this time last year. Many more public transport infrastructure projects, including roads, are at an advanced stage of procurement.

RPA, metro north, is operating in an international market and it is essential we continue with the process. Either of those two bidders could do an excellent job in building this. It is absolutely essential that we maintain our programme in order that they remain interested and that there is no delay which would result in either of those bidders deciding there are more interesting opportunities elsewhere.

Is there any danger there could be any collusion between those two bidders in the bidding process?

Mr. Frank Allen

If they were to collude, it would be an illegal activity and they could suffer very serious consequences. We have no reason to believe they would. The challenge for us is to ensure that there is an intense competitive process in place in order that we get the best price.

I presume narrowing it down from four bidders to two was based on competency and on price.

Mr. Frank Allen

Very much so.

Current tendering is down 25% to 30%. I presume that type of value is available.

Mr. Frank Allen

Now is the time to move ahead and to lock in——

Is Mr. Allen familiar with the Gluas project for Galway city? If so, what is his view on it? Is he in a position to help?

We have been given various figures for ultra light rail. Will Mr. Allen comment on what is the minimum cost? If one spends €30 million per kilometre for Luas in Dublin and we can do it for €8 million in Galway, something is wrong somewhere. Will Mr. Allen give us a realistic minimum cost for what is described as "ultra light rail" if there is such a thing?

Was a cost of €200 million put on the project?

It was approximately €8 million per kilometre.

I think it was €150 million altogether with some private investors involved. I am keen to hear Mr. Allen's view.

Mr. Frank Allen

I am familiar with Gluas and we would be willing to support it. We have had meetings with the group promoting it, which is very enthusiastic, committed and includes people with technical competence, business acumen and the professor of civil engineering in NUI, Galway. We told the group we are keen to provide support.

In terms of providing support, we said we are not in the business of promoting light rail as such. We want a group such as that to get the best possible advice we can provide. One of the points I made to the group was that there are people who will say they will build light rail and various other things for two and sixpence but that they should ask the people quoting those lower amounts of money whether they have built light rail for two and sixpence some place else. We have had excellent engagement with the Gluas group in Galway.

I refer to some of what the group said in terms of how things might be done more cheaply in Galway. In regard to a corridor being available, the people involved in this may have title to land and an area that could be used as a park and ride facility and they are willing to contribute that. That clearly brings down the price substantially.

If people state they are going to build light rail, ultra light rail, mini light rail or otherwise for €8 million per kilometre, they will not do it. There is absolutely no prospect of that. There are aspects of light rail which cost more in Ireland than elsewhere. For example, the amount we pay for land in urban areas is way beyond what people in similar positions to us tell us they pay, even in the UK.

One would not have to pay for land in Galway.

Mr. Frank Allen

In some cases, the cost of building projects in Ireland can be more expensive.

I refer to trams. In most cases, there is an international competitive market for vehicles and what is paid in Ireland is almost the same as what is paid in most other places.

In terms of the systems——

What is the minimum rate per kilometre for this form of light rail proposed for Galway? What type of figure is involved?

Mr. Frank Allen

The Gluas group has stated that it would not divert underground services. When we put Luas on the streets here, we took the view that once it was put down, it could not be closed on a regular basis when somebody wanted to change the ESB. The Gluas group stated that it would not divert the utilities. If one makes the decision not to divert utilities, one is taking the view that one will not provide a continuous service afterwards because when somebody wants to make changes, one would have to close down the service and that compromises it in a serious way. If one takes out the cost of those diversions,——

Mr. Rory O’Connor

Infrastructure is approximately €20 million.

Mr. Frank Allen

——it is approximately €20 million.

Is that €20 million per kilometre?

Mr. Frank Allen

Yes.

Mr. Allen mentioned that he was prepared to give support. What does that involve, other than advice?

Mr. Frank Allen

At this stage, that is exclusively what we are providing. When I say we are providing that advice, when people contact us — this is true for Cork, anybody else, or for any of the other countries from which people sometimes come to us — we say that we can give them our time. We have accumulated knowledge from our experience here, they can come to pick our brains and if somebody comes to them with ideas, we can tell them what sort of questions to ask. We are pleased to provide such informal assistance. We have no mandate to go any further than that. Light rail schemes for any of the provincial cities were not included in Transport 21 and we do not have any mandate. We feel that the assistance we can provide is that we have learned a great deal at the expense of the Irish taxpayer and that such advice should be available free of charge to any other city or scheme.

That is welcome. We all have great goodwill for the Gluas group, its great enthusiasm and the work it has done, but it is important to be realistic. I suppose my two comments would be that it is almost impossible to put down a light rail system if one is not going to take up the services because if a water pipe bursts, one must stop the service. However, Mr. Allen stated that even if that were not done, it costs €20 million per kilometre.

Mr. Frank Allen

I ask my colleague, Mr. Michael Sheedy, to contribute.

Mr. Michael Sheedy

We are a little circumspect. I remember approximately five years ago the Department coming to us and stating that a major multinational group would build a Dublin metro for €100 million. I told the Department to embrace the group as fast as it could and seal that deal. It was just cheap talk.

The Galway group comprises very competent people; I have met them. Sometimes there is a lack of appreciation of all of the nuances and complexities of what a modern day light rail system entails. Some people say that they can get the track — the rails — in the ground relatively cheap. As Mr. Allen stated, what is costly is preparing the ground, diverting the utilities and buying the land, which may not be a particular issue in Galway. The systems themselves are quite expensive and very high standards are required by the Railway Safety Commission. It is not a question of just getting in something that is very minimalist.

One must look at the demand as well. The issue of horses for courses comes to mind and whether there is sufficient demand to warrant the capital investment. However, I would be reluctant to talk it down to the region of €8 million per kilometre because we are up around the €30 million per kilometre mark.

I note in the international transport literature references to the new system in Edinburgh which is coming on stream. The costs seem to be of a different order from the stratospheric costs we would incur.

We had many discussions. Without being political, I do not know where the Green Party has gone. I thought we were to have some real action in Cork and there was a proposal for Limerick. I met the Gluas group and it is incredibly enthusiastic. It seems a very viable and progressive project for a growing city, our western capital.

Is there still a problem? Do the RPA representatives recall in the old days before the RPA started that there were comparisons to the Spanish and the Portuguese? The Portuguese could build a brilliant city-wide metro for the cost of our single line. This issue seems to arise continuously.

Mr. Michael Sheedy

On the Edinburgh example Deputy Broughan mentioned, I visited them a few times this year. They are in a major crisis at present. It will be at least a year behind schedule and the costs will be at least on a par with Dublin, if not more.

The minimum, even without taking out services, would be €20 million per kilometre.

On another aspect, there is a perception in Galway that the private sector would be able to fund this and make a return. Is that possible?

Mr. Frank Allen

On the number of times that private sector parties have come to the RPA and have issued press releases stating that they will do the devil and all, it is one thing to issue press releases to say that it can be done but it is a different matter when people become aware of the full associated costs. I would have a concern — I had this concern in Dublin — that people enter into discussions in the promise or the hope that it would be delivered by the private sector and then do not deliver afterwards. However, I will say to the credit of partners we have in Dublin that, for example, more than half of the cost of the CityWest line is being provided by private sector parties and that is robust. People involved in property are not doing well at present, as everybody knows, but the arrangements for more than half of the funding of that Citywest line coming from private sector parties, where we have locked in the real commitments, are robust. On the commitments, in terms of the provision of land, property and works, for the Cherrywood line, it does not pay——

Would it be realistic for a private sector party to come in, build this full system, make it work and make it profitable in a place like Galway?

Mr. Frank Allen

It is not.

On a final point, based on Mr. Allen's knowledge of the Gluas project in Galway and the expertise, enthusiasm and positivity around it, would he recommend it?

Mr. Frank Allen

What precisely?

Based on what has been presented to Mr. Allen regarding Gluas's financial plan, technical expertise and the value added for Galway, would he recommend the system for Galway?

Mr. Frank Allen

The proposal I have seen is at a very high level. However, it is not at a level that anybody could say "Yes" or "No" to it at this stage.

I am calling it a day at that.

We rarely see this group. This is a major national body.

I have given more than a great deal of latitude.

The Chairman should chair the meetings properly.

There are several people here who have waited all day.

One member spent approximately an hour on one issue and the rest of us hardly got a chance to get in previously.

I have given Deputy Broughan two opportunities.

We hardly ever meet the RPA.

I am not allowing Deputy Broughan in again.

What about BX line? What about the metro west? What about Lucan Luas? We rarely get a chance to say this to these officials face to face.

Deputy Broughan was given an opportunity.

The Chairman mismanaged the meeting.

There is a number of people waiting outside. I have had a number of requests from people who are here to——

Why did the Chairman not manage the meeting and provide one hour for the RPA and one hour for this body?

Deputy Broughan said to me earlier that he wanted to get out of here as quickly as possible.

Yes, but this is an important issue.

I gave Deputy Broughan more latitude than anybody else. I would suggest that he have a chat with the people outside and that we bring in the next group which is due to come in.

This is a national body.

I thank the delegation for coming. I am sorry that we have not as much time as we would like to spend with them. However, I appreciate the good work that is being done and I would appreciate if they would facilitate Deputy Broughan on the questions he asked at the end.

Mr. Frank Allen

I thank the Chairman. Our visit is brief. I ask members who have queries about any of these matters to come back to me and I will deal with them promptly and comprehensively. I will speak to Deputy Broughan afterwards.

We will suspend the meeting to bring in the representatives of Citylink.

Sitting suspended at 6.40 p.m. and resumed at 6.45 p.m.
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