Dáil Éireann Debate, Tuesday - 17 February 2009
58 Deputy Olwyn Enright asked the Minister for Transport the amount of subvention sought by Dublin Bus and Bus Éireann and the amount given by him to Dublin Bus and Bus Éireann for 2009; and if he will make a statement on the matter. [5961/09]
View answer59 Deputy Thomas P. Broughan asked the Minister for Transport his views on reviewing the public service obligation awarded to Dublin Bus and Bus Éireann for 2009 in view of the programme of cutbacks of up to 400 buses and 600 jobs planned at both public transport companies and the effect these cutbacks will have on rural and urban communities here; the meetings he has had with Bus Éireann and Dublin Bus management on the cutbacks; if he suggested the introduction of a voluntary redundancy scheme in either public company; his views on the recent Deloitte report on Dublin Bus and Bus Éireann; if he will indicate if he has accepted and will implement all of the report’s recommendations; if new legislation will be necessary to do so; if he has received proposals on changing Dublin Bus services in the context of the recent Deloitte report; if so, the proposals in relation to same; if he will implement them; and if he will make a statement on the matter. [5800/09]
View answer76 Deputy Brian Hayes asked the Minister for Transport the amount of subvention sought by CIE and the amount given by him to CIE in respect of 2009; and if he will make a statement on the matter. [5968/09]
View answer80 Deputy Brian O’Shea asked the Minister for Transport if, in view of the positive findings on the efficient operation of Bus Éireann in the recent Deloitte bus review, he will ensure that current Bus Éireann network, fleet and service levels are maintained and enhanced; and if he will make a statement on the matter. [5803/09]
View answer95 Deputy Aengus Ó Snodaigh asked the Minister for Transport the action he will take regarding the recent reductions in the Dublin Bus fleet. [5838/09]
View answer100 Deputy Arthur Morgan asked the Minister for Transport the alternatives that exist for persons dependent on bus services in view of the recent cutbacks. [5841/09]
View answer267 Deputy Richard Bruton asked the Minister for Transport his views on a rationalisation and concentration of certain bus routes in line with the recent Deloitte report; the route changes which he is currently considering; if he will provide a copy of the detailed analysis of the Finglas bus corridor carried out by Deloitte which indicates that significant cost savings could be achieved following a redesign of services throughout the bus network; the recommendations from the report which will be implemented; the timeframe for implementation of these recommendations; and if he will make a statement on the matter. [5590/09]
View answerI propose to take Questions Nos. 58, 59, 76, 80, 95, 100 and 267 together.
In the course of the 2009 Estimates process, CIE indicated that it was seeking an increase in subvention to reflect increases in cost broadly in line with the consumer price index and to meet the additional costs associated with the withdrawal of the fuel duty rebate. Following discussions with the company and its subsidiaries and taking account of the group's financial position and the overall position of the Exchequer finances, an amount of €313.279 million was provided for in the Estimates, representing an increase of €5 million on the 2008 provision.
Despite this increase in subvention and a fares increase of 10%, CIE and its subsidiary companies are facing a difficult financial outlook in 2009 due to declining demand in an increasing cost environment. In response, the CIE companies are considering a broad range of measures in the area of pay and allowances, efficiency measures and service rationalisations to restore financial stability.
While I have discussed the overall position facing CIE with the chairman, it is a matter for the CIE companies, within the resources available to them from fare revenue and Exchequer subvention, to optimise their services in the most customer-focused, efficient and effective manner, while maintaining as high a level of service as possible to the travelling public. Issues such as staff numbers, pay and the level of redundancies are matters for the companies, in consultation with their staff. It should be noted, however, that the companies have given an indication of the number of bus withdrawals that may be required, which at 270 is lower than the 400 buses referred to by the Deputy. I have requested that when the companies consider service reductions, every effort should be made to maintain peak-time services and those to developing areas. Service reductions should be a last resort in their efforts to maintain financial stability.
The aforementioned Deloitte report, the recommendations of which I accept in full, sets out a series of measures that are designed to enhance the role of the bus. In my statement that accompanied the report's release on 26 January, I indicated areas in which the report had identified considerable scope within Dublin Bus to improve its services to customers, increase efficiencies and save money through, for example, redesigning the network, eliminating unnecessary service duplication and improving information to the customer. In the case of Bus Éireann, I identified areas in which it could explore opportunities to further reduce costs and pursue new business opportunities.
The Deloitte report should, therefore, be seen as supporting the actions being taken by both companies to turn around their financial position, which is not sustainable in the current environment. I have asked the companies to present to me their plans for the implementation of the report's recommendations at an early date.
I do not envisage that new legislation will be necessary to facilitate the implementation of the findings of the Deloitte report. Details of the Finglas corridor case study are available in the appendix to the Deloitte report, a copy of which is available in the Oireachtas Library. As I stated in answer to Parliamentary Questions Nos. 245 and 246 of 3 February last, I am in regular contact with my Cabinet colleagues in the Green Party regarding developments in public transport and the sustainability agenda.
In the past five years, €1.5 billion has been spent in a taxpayers' subsidy to CIE. The Minister has stated that while he has again increased the subvention this year to Dublin Bus, the service will worsen, jobs will be lost and there will be fewer buses on the road. In 2000, the Minister was part of a Cabinet that proposed the opening up to competition of Dublin's bus routes. The report, on which the Minister signed off, noted that the opening up of bus routes to competition in other countries, such as Sweden and so on, resulted in more buses, more passengers, lower costs to the taxpayer and a fall in fares. However, the Minister has absolutely failed to do this. In this critical year, with so many job losses in transport, the Minister has a golden opportunity to insist on basic fundamental measures, such as giving buses priority at traffic lights. He should insist on radical change and not simply leave it up to the unions and Dublin Bus, but should insist that such change happens now.
I wish to facilitate a brief supplementary question from Deputy Broughan before the Minister responds.
The Minister should confirm that one of the key findings of the Deloitte report was that subsidies to public transport and specifically to buses in most other European cities are far higher than in Dublin, which is something that Fine Gael conveniently forgets. For example, subsidies of 68%, 79%, 57% and 62% obtain in Brussels, Lyon, Zürich and Amsterdam, respectively, while Dublin of course is bottom of the league at only 29%. Bus Éireann, which received a clean bill of health in this report enjoys a subsidy of a mere 12%.
The key point is that workers have voted to go on strike, if necessary, because of the manner in which the Minister is handling bus transport. As the responsible Minister, is it not time that he rolled up his sleeves to ensure that commuters will not be left without a public transport service and that young workers will not be victimised by the outcome of the public transport policies he is pursuing? He should roll up his sleeves, engage with the companies concerned and come up with a fair resolution of this matter. For example, as I asked in the previous question——
Go raibh maith agat. I must revert to the Minister.
——why is there no voluntary redundancy in this matter? Is the Minister not the responsible person in this regard?
I am afraid the Minister only has one minute in which to respond.
In the current economic climate, I secured subvention, or investment as the unions like to call it, of more than €313 million for the bus and train services. That is a lot of money and we do not have any more to give to the companies. We have a blueprint in respect of Bus Átha Cliath and Bus Éireann as to how we can encourage a greater number of passengers, which is what I desire. I seek an efficient and effective service that meets the needs of customers. Capacity already exists in the system and we must get passengers to use it. I am focused on doing this, both through the companies themselves and by trying to eliminate pinch points around the city and trying to ensure the implementation of integrated ticketing, real-time information and an understandable network. I am trying to ensure that people can get a bus when they need one and not have three buses when they do not. This is what I intend to try to do and the way to succeed is to try to ensure the implementation of the Deloitte report. I will devote all my efforts to this end in the future.
Written Answers follow Adjournment Debate.
