Dáil Éireann Debate, Thursday - 27 May 2004
10 Mr. Penrose asked the Minister for Transport if he will outline the contents of a report from independent consultants on the cost of privatising Bus Éireann; if the report states that Bus Éireann may face an additional cost of €24 million if competitive tendering is introduced; and if he will make a statement on the matter. [15906/04]
View answer33 Ms Lynch asked the Minister for Transport if his attention has been drawn to a copy of a report prepared for Bus Éireann on the effects of opening the bus market in the greater Dublin area to a competitive tendering process under a new transport authority; his views on the report’s findings that Bus Éireann faces insolvency should it be privatised; and if he will make a statement on the matter. [15897/04]
View answer41 Mr. Kenny asked the Minister for Transport his plans for bus deregulation; and if he will make a statement on the matter. [15807/04]
View answer45 Ms O’Sullivan asked the Minister for Transport the state of negotiations between his Department and unions on the future of CIE; when he realistically expects agreement to be reached by both sides; and if he will make a statement on the matter. [15905/04]
View answer65 Ms McManus asked the Minister for Transport if he has received a copy of the report prepared for CIE suggesting that private operators might enter the bus market by subcontracting routes from Dublin Bus, rather than via the franchise model proposed by him; the status of his plans for private companies tendering to run various routes operated by Dublin Bus in view of this report; and if he will make a statement on the matter. [15899/04]
View answer85 Mr. McGinley asked the Minister for Transport his plans for bus deregulation; and if he will make a statement on the matter. [15799/04]
View answerI propose to take Questions Nos. 10, 33, 41, 45, 65 and 85 together.
As I stated in my reply to Priority Question No. 3, I am firmly of the view that franchising is the most effective means of achieving genuine market opening in the Dublin market. International experience in cities such as London, Copenhagen, Stockholm and Helsinki is that franchising brings cost savings to public transport provision, savings which can be invested in the public transport system to ensure a better service to public transport users. A number of major studies carried out by independent consultants have supported this, including: the ISOTOPE report, carried out for the European Commission, which found that franchising generally resulted in savings of between 15% and 20% of the cost to the State of the provision of bus services, and the NERA-Tis report commissioned by the public transport partnership forum, which recommended franchising for the Dublin bus market.
I have no proposals to privatise either Bus Éireann or Dublin Bus. The Bus Éireann and CIE reports referred to by the Deputies are internal company reports prepared, I understand, for the boards of the companies. The Bus Éireann report was copied to me by the company but the internal CIE report on subcontracting has not been copied to me. CIE and its operating companies are quite naturally undertaking work to respond to my reform proposals and I expect them to present the case which they see as representing their best interests. I welcome their constructive input to this dialogue but that does not necessarily mean that I agree with their conclusions.
There are ongoing detailed discussions between officials of my Department and the CIE bus companies on my reform proposals. These discussions have covered a range of issues, including subcontracting. The companies have stated their preference for a continuation of monopoly rights using a subcontracting model. I am not convinced that such a model provides genuine market opening to new entrants or adequate value for money, transparency and accountability to the taxpayer.
With regard to the discussions between my officials and the CIE trade unions, the most recent round of talks took place over an intensive five day period between 12 and 18 May. The talks were characterised by a full and frank exchange of views. The talks have now adjourned to early June to allow each side to consider the issues raised.
It remains my intention to proceed with legislation on public transport reform in 2004.
