Seanad Éireann debate -
Thursday, 11 Jun 2009

Vol. 195 No. 17

Public Transport.

Senator Shane Ross

I wish to raise the need for the Minister for Transport to instruct Dublin Bus to cease predatory activities against private operators in the Dublin region, as exemplified by the recent issues between Swords Express and Dublin Bus. The Minister for Transport will be familiar with the issue of the Dublin Bus monopoly indulging in predatory pricing. Circle Line has already claimed that it was forced to go into liquidation in June 2008 owing to unfair competition from Dublin Bus and because it was subject to route saturation from Dublin Bus immediately after it started. This is a problem no Department or Minister should tolerate and it raises questions about the attitude of the Department of Transport to competition.

I am specifically drawing attention to the situation in Swords in north Dublin because it is an especially bad case of Dublin Bus indulging in predatory pricing where it faces competition. Swords, as the Minister knows, is Ireland's largest town, but many parts of it do not have a regular express bus service to the city centre. The only choice people have is to take a circuitous route on Dublin Bus or to walk the whole way. Some parts of Swords have no service outside peak times. When a private operator offered to provide a service for the people and take on that risk, the people of Swords welcomed it. It was no surprise that Dublin Bus suddenly decided, having inadequately provided for this route, to provide adequately for it. In this case, when it saw a private operator working, it descended on the route and gave it saturation coverage. That is empire building — putting the private operator out of business then removing the fleet and going back to square one. It is unacceptable.

In this case the private operator must compete with a State subsidised service which was commenced after Swords Express started its operations. Swords Express wants to provide an all-day express bus service to north, south and west Swords but is being thwarted by the Department of Transport because for some mysterious reason the Department will not issue Swords Express with a licence. It is now 16 months since the company applied for a licence and it wants to extend that service until much later in the evening. It is not being allowed by the Department of Transport. It is obvious the Department in the issuing of licences in this case and others is giving preferential treatment to Dublin Bus.

This is not the way in the present circumstances, where small businesses are crying out for help, to assist a small business to give employment and I suspect there is more to this than just the semi-State monopoly ethos. I guess there are trade unions behind this that oppose competition at all costs. It is one example of the predatory pricing in which Dublin Bus has indulged. I ask the Minister to act now before a crisis occurs for the company and to put an end to such practices by a semi-State body for which he has full responsibility.

Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Michael Finneran)

The Senator has raised concerns about Dublin Bus engaging in predatory behaviour in the operation of its network of services in Dublin and has referred specifically to the routes operated by Swords Express between Swords and the city centre and by Dublin Bus on the 41X service from Swords to the UCD campus at Belfield via the city centre. Dublin Bus has operated for some years a range of services between Swords and the city centre and, in particular, operates six services a day on the 41X services between Swords and Belfield via the city centre. These services are provided in the morning only.

In October 2007, a licence was granted by the Department of Transport under the Road Transport Act 1932 to Swords Express to operate 91 services per day between Swords and the city centre via the Dublin Port Tunnel. Subsequently, Dublin Bus notified the Department of its intention to re-route some of its existing services, including the 41X service from Swords, through the tunnel to provide customers with a faster journey time.

In response, the Department advised Dublin Bus on 20 February 2008 and again on 20 March 2008 that its proposals in respect of the 41X services would give rise to competition with the licensed service by Swords Express. The company was accordingly advised that should it wish to pursue the introduction of the proposed service changes, it must apply for the Minister's consent under section 25 of the Transport Act 1958. Alternatively, the company was advised that it could review its proposals to avoid competition with the licensed operator.

On 5 June 2008, Dublin Bus submitted a revised proposal for the rerouting of the 41X. The Department considered the proposal and was satisfied that the changes proposed would not compete with the Swords Express service and concluded, therefore, that it did not require ministerial consent in accordance with section 25 of the Transport Act 1958. Dublin Bus was advised on the 12 June 2008 that it could proceed with the proposed changes.

That determination was the subject of a High Court challenge in October 2008 brought by the operators of the Swords Express bus service. As part of the out of court settlement of the High Court proceedings, the Department undertook to carry out an investigation under section 25(2) of the Transport Act 1958 regarding the decision in respect of the 41X service and the parties were invited to make submissions as to whether the Minister should grant consent under section 25(1) of the 1958 Act to Dublin Bus to continue to operate the 41X service on its current route.

Having considered those submissions, the Minister has confirmed that consent. However, as consent under section 25(1) of the 1958 Act is based on the determination that the service is in competition with the Swords Express service, Dublin Bus has been informed that State funding cannot be allocated to the operation of the 41X service. The company has, therefore, been requested to provide the Department with confirmation of compliance with that requirement. It is open to Dublin Bus to present proposals to the Department for an altered service on the 41X route that would not compete with the licensed operation. The operators of the Swords Express service are being advised of the position.

Senator Shane Ross

Dublin Bus has been told it cannot use public funds to run this service. Does that mean it can no longer run the service or must it somehow prove it is not using public funds to run the service? How does it do that?

Deputy Michael Finneran

It must either present proposals showing it is not using public funds or it must not compete with the service.

Senator Shane Ross

How does it demonstrate that it is not using public funds?

Deputy Michael Finneran

I am not in a position to say how it will be done but I will ask the Department to respond to the Senator. Subsidies are paid to Dublin Bus and under section 25(1) in such circumstances it is not allowed to compete with another operator. If it wishes to provide a service that is not subsidised, it must submit a proposal. Otherwise, there is the alternative of not going into competition. Those are the two options.

Senator Shane Ross

Will the Minister of State ask the Department to provide me with a clarification of this matter?

Deputy Michael Finneran

Yes.

Site Acquisitions.

Senator Paschal Donohoe

I thank the Minister of State, Deputy Finneran, for taking this Adjournment matter. I raised the situation of Gaelscoil Bharra in Dublin 7 on the Adjournment on a previous occasion and today I propose briefly to outline how the situation has changed in the interim. This gaelscoil, which is extremely successful and popular, has been located in temporary prefabricated buildings for 13 years. Parents in the area it serves are enormously supportive of the school which does a fantastic job of teaching and supporting its pupils.

The management committee of the school has made many efforts to progress its status and to secure its inclusion on the schools building list. Since I last raised this issue in the House some months ago, the school has concluded discussions with Naomh Fionnbarra GAA club which owns the land upon which the prefabricated accommodation is located. The club is supportive of the provision of permanent accommodation for the school on this site. The school management is now in discussions with Dublin City Council on procedures to facilitate the rezoning of the land to allow for the provision of permanent accommodation.

What is hindering the progression of this project is the most important ingredient, namely, approval and funding from the Department of Education and Science to facilitate the delivery of permanent accommodation for the school. I will continue to raise this issue until such time as the Department offers a commitment that it will do all it can to provide a permanent school building on the current site in respect of which great progress has been made in terms of zoning and acquisition. All the stakeholders are supportive of the work taking place.

Deputy Michael Finneran

I am taking this Adjournment matter on behalf of my colleague, the Minister for Education and Science, Deputy Batt O'Keeffe. I thank the Senator for raising this matter as it provides me with the opportunity to outline to the House the Government's strategy for capital investment in education projects and the current position in regard to future plans for Gaelscoil Bharra, Cabra.

Efforts to modernise facilities in the existing building stock and to respond to emerging needs in areas of rapid population growth represent a significant challenge. Such efforts are a priority for the Minister for Education and Science. The Government has dramatically increased capital investment in the schools building programme to an unprecedented level which reflects its commitment to continue its programme of sustained investment in primary and post-primary schools. This investment will underpin our particular emphasis on the delivery of additional school places in rapidly developing areas while continuing to facilitate our commitment to delivering improvements in the quality of existing primary and post-primary accommodation throughout the State.

The Office of Public Works, which acts on behalf of the Department in regard to site acquisitions generally, was requested to source a greenfield site for this gaelscoil. On foot of advertising, no proposals were received for such a site in the Cabra area. As a result, the issue of providing a permanent school on the existing temporary site then came into focus. To pursue this further, meetings have taken place between the Department and Dublin City Council regarding the potential availability of this site. The Department wrote to the council with a proposal that a lease arrangement be put in place. Officials from the Department met the city council and representatives of the GAA club to discuss the issue of entering into a lease arrangement with the council which in time will require the GAA club to surrender its interest on some of the lands required for a building project.

In February 2009, Department officials met separately representatives of Naomh Fionnbarra GAA club to discuss three potential design options to allow for the provision of an eight-classroom school on the site. The club responded by way of letter in March 2009 indicating its preferred design option based on the options presented by the Department and highlighting its concerns that car parking for its members and the school's teaching staff be addressed. On foot of this, the Department wrote to Dublin City Council advising it of the design option favoured by the GAA club and requested the council to consider a technical assessment of the site incorporating the views of the GAA. At the end of May 2009, the Department received Dublin City Council's observations on the proposed design and these are being examined. The Department will contact Naomh Fionnbarra GAA club when this exercise is completed.

The further progression of the acquisition of this site and the accompanying building project will be considered in the context of the capital budget available to the Department for school buildings generally. I thank the Senator once again for affording me the opportunity to outline to the House the current position in regard to future plans for Gaelscoil Bharra in Cabra.

Senator Paschal Donohoe

I thank the Minister of State for his response which has provided an up-to-date summary of the current situation. However, it included the ominous phrase that progress will be dependent on the "capital budget available to the Department for school buildings generally". I will continue to raise this matter here and elsewhere to ensure the project is steered to a conclusion.

Health Services.

Senator Eugene Regan

The issue I am raising is a specific one but it arises in the context of a more general problem in the health service, namely, that hospital beds are being occupied by persons who do not require hospital care but rather nursing care or special assistance. A gentleman whom I will not name who suffers from Parkinson's disease and is confined to a wheelchair has been cared for in an acute surgical ward in St. Columcille's Hospital, Loughlinstown, for some time. The medical advice and the advice of social workers is that it is inappropriate for him to remain thus as there is no specific medical need for him to be in hospital at this juncture. It is intimated that 50% of hospital beds in St. Columcille's Hospital are inappropriately used. In other words, beds are being allocated to people who do not require hospital treatment but instead require some type of home or nursing facility care.

There is a vacancy available for the person in question in the Cheshire Home in Blackrock, which is the type of facility most suited to his condition. However, the problem is that, although this unit can provide all the facilities he requires, funding is needed for a carer or personal assistant. The cost of providing such assistance would be far less than the cost of keeping this person in hospital. The quality of life of the person would be immeasurably enhanced if he were cared for in a residential unit such as that provided at the Cheshire Home rather than in a hospital. Serious costs are being incurred as a result of this individual's occupying a hospital bed. I accept that it is the sympathy attracted by people who find themselves in this position which leads to the overall problem of their being kept in hospital when they should be cared for elsewhere.

A solution could be provided in the case to which I refer by the person in question being offered a place in the Blackrock Cheshire Home. The costs relating thereto would be far less than those incurred by his occupying a public bed in Loughlinstown Hospital. When would funding be made available to employ a carer for this individual if we were given a place in the Blackrock Cheshire Home?

Deputy Michael Finneran

I am replying to this matter on behalf of the Minister for Health and Children, Deputy Harney. The Health Service Executive will undertake a case review in respect of the person named by the Senator to establish how his needs can be met. The accommodation at the Cheshire Home in Blackrock is not designed to meet the needs of the individual referred to by the Senator. It is not, therefore, appropriate that this individual be transferred from Loughlinstown Hospital to the Cheshire Home in Blackrock.

The HSE has a list of individuals who require personal assistant supports and will review this case in line with other competing priorities. The Cheshire Home in Blackrock was developed to provide accommodation for a number of individuals with physical disabilities who require minimal or no additional supports. At this time a vacancy exists at the Cheshire Home but the HSE, in discussion with those in charge at the home, have agreed that, in light of the greatest current need, this place should be utilised for respite because this will address the priority needs of a number of individuals.

Where an individual requires the support of a personal assistant, the facility at Blackrock is not the appropriate place to meet his or her need. The Government has invested heavily in health and personal social services for people with disabilities. Additional funding and services have been provided under the Government's multi-annual investment programme. For each additional personal assistant appointed in recent years, individuals with disabilities received the appropriate supports they require in their daily lives. In this context, an additional 900,000 personal assistance-home support hours were provided between 2005 and 2008 for people with physical and sensory disabilities. This year, the HSE plans to deliver 3.2 million hours of personal assistance-home support. Despite the substantial increase in service provision, the Government acknowledges the significant demand for new services and recognises that there is a growing requirement to enhance existing services. The Government has continued its commitment to develop public health services in line with its budgetary strategy in order to provide a sustainable and significant level of funding for public health services in line with economic circumstances.

Senator Eugene Regan

I thank the Minister of State for his reply and I welcome the HSE's undertaking to engage in a case review in respect of the person in question. I hope the statement to the effect that the Cheshire Home in Blackrock is not suitable is not an indication that the case review is being prejudged. However, I again welcome the commitment to review the needs of the individual to whom I refer.

Deputy Michael Finneran

The Senator may wish to take into account that the Cheshire Home is of the same opinion as the HSE in respect of this matter.

Senator Eugene Regan

I accept that.

The Seanad adjourned at 4.05 p.m. until 2.30 p.m. on Tuesday, 16 June 2009.