I propose to take Questions Nos. 551 to 557, inclusive, and 570 together.
The objective of Government is to ensure a system of public transport throughout the country that is as efficient and as widespread as possible and the National Transport Authority has a key role in realising this objective. The award of Public Service Obligation (PSO) contracts for the bus market falls under the independent statutory remit of the National Transport Authority (NTA), which has direct responsibility for this area. The direct award contracts for the provision of PSO bus market services held by Dublin Bus and Bus Éireann expire late next year. The awarding of the licences for the services thereafter is a matter for the NTA and not for Government, but I have kept the Cabinet updated on the process. Both Minister Kelly and I met with trade unions representing workers in Dublin Bus and Bus Éireann on 21st November last in relation to the proposals outlined by the NTA in the recent consultation process. On the 5th of December, in accordance with the provisions of the Dublin Transport Authority Act 2008, the NTA announced that about 10% of publicly subvented (PSO) bus services will be tendered out with the new services commencing in the summer of 2016.
It is recognised that there are a number of concerns in relation to potential tendering for PSO services. These include the impact on industrial relations and cost savings measures within CIE at a general level and the specific implications of Transfer of Undertakings legislation (TUPE) and related issues. However, it must be recognised that the proposals outlined in the consultation process are relatively modest and there will be a long lead-in before any tendering takes effect. Furthermore, it is of course open to the two incumbent companies to compete for any tendered routes, so it should not be assumed that there will be any reductions in staff numbers or that TUPE will even arise.
Following the announcement by the NTA on 5th December, these issues need to be addressed by it and the bus companies through constructive engagement with the unions in the course of the procurement process over the next two years. I undertook to the trade unions at our meeting that I would contact the NTA to seek to have such a structured engagement put in place and I wrote to the Chairman of the NTA on 26th November to that end. It is important to remember that it will be open to Bus Éireann and Dublin Bus to tender for these contracts. The winning tenderer will be required to deliver a specified service under which the timetables, fares and standards of service will be set down by the NTA. The intention is that a better service can be procured for the same PSO subvention that is currently provided, or that the same service can be provided for a lesser cost to the tax-payer.