Written Answers Nos. 101-116
101. Deputy Peter Fitzpatrick asked the Minister for Finance if he is considering new applications from towns for entry to the living city initiative scheme; if he will consider Dundalk, County Louth, as a suitable applicant; and if he will make a statement on the matter. [22997/16]
View answerThe Living City Initiative has been in operation for just over a year. To date, take-up of the scheme has been lower than anticipated, considering up to 100% of relevant expenditure may be tax relieved. As a result, the Government is committed to introducing changes to the Initiative to make it more effective. The recently published Programme for Partnership in Government states:
"We will review the Living City Initiative and the conditions that apply to the size of properties in order to boost the attractiveness of the scheme, which will contribute to both built heritage and urban regeneration"
Prior to the introduction of the Initiative, a comprehensive, independent ex ante cost benefit analysis was undertaken by Indecon Economic Consultants.
Analysis is being undertaken, including a review of the initial up-take in order to learn more about how the Initiative could be more effective. The aim is to get the design of the Initiative right so that the Initiative can work in an effective manner. Once that has been achieved, it will then be possible to consider how, or if, the Initiative could be extended to other locations.
102. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which his Department continues to monitor the manner in which the various banks continue to accommodate customers who have found themselves in difficulty during the past number of years with particular reference to the need to ensure a positive accommodation; and if he will make a statement on the matter. [23085/16]
View answer105. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the level of mortgages arrears continues to be managed in a way that is accommodating to the circumstances of the borrower; and if he will make a statement on the matter. [23088/16]
View answerI propose to take Questions Nos. 102 and 105 together.
The Deputy will already be aware that the Government attaches great importance to addressing the issue of mortgage arrears and wants to keep families in their homes and avoid repossessions insofar as possible and in that context it will today publish the Housing Action Plan setting out the implementation strategy for the Programme for a Partnership Government commitments in respect of protecting home ownership.
I am informed by the Central Bank that as part of on-going supervision, the Central Bank, working in conjunction with the European Cental Bank (ECB) as part of the Single Supervisory Mechanism (SSM), continues to challenge the banks on their strategies, management, measurement and reporting of the resolution and restructuring of all non-performing loans (NPLs), including mortgages. In April 2015 the Central Bank wrote to each bank setting out supervisory requirements with regard to mortgage arrears resolution that conform to their published Internal Guidelines on Sustainable Mortgage Arrears Solutions.
In relation to homeowners in financial difficulties, the Code of Conduct on Mortgage Arrears (CCMA), a statutory code under Section 117 of the Central Bank Act 1989, is designed to provide appropriate and effective consumer protection measures and to ensure that borrowers are treated in a fair and transparent manner. The CCMA applies to all regulated mortgage lenders operating in the State when dealing with borrowers facing or in mortgage arrears on their primary residence, including any mortgage lending activities outsourced by these lenders. Lenders are required to comply with all aspects of the CCMA and non-compliance with the CCMA is enforceable against regulated entities by the Central Bank.
In June 2015, the Central Bank published the outcome of a themed inspection of lenders' compliance with the CCMA. As part of this theme seven lenders were inspected under 4 key areas. The Themed review found that while all of the lenders had implemented frameworks as required by the CCMA, weaknesses of varying degrees were identified across a number of lenders as well as a number of good practices. Formal supervisory requirements, with specific timelines for remediation, have been imposed on those lenders where risks to borrowers were identified and all lenders that were subject to the CCMA themed inspection have provided responses to the issues raised with them. The Central Bank of Ireland continues to engage with these lenders as part of their on-going supervisory engagement to ensure compliance with the CCMA.
The CCMA requires all regulated lenders to wait at least eight months from the date the arrears arose, before legal action can commence against a co-operating borrower. Separately, regardless of how long it takes the lender to assess a case, and provided that the borrower is co-operating, the lender must give three months' notice to the borrower before they can commence legal proceedings where the lender does not offer an alternative repayment arrangement or the borrower does not accept an alternative repayment arrangement offered by the lender. This gives co-operating borrowers time to consider other options such as a Personal Insolvency Arrangement.
In addition my Department continues to monitor and publishes Mortgage Restructures data on a monthly basis that covers mortgage accounts for the six main lenders. The figures in the latest publication for May 2016 (published on 14 July) show that Primary Dwelling Home (PDH) mortgage accounts in arrears continue to decline and now stand at 65,458 representing an improvement of 19% compared to May 2015.
In conclusion, I must reiterate that active engagement by indebted borrowers with their lender is key to achieving a sustainable resolution, and I would urge borrowers in arrears, who have not already done so, to take that first step by contacting their lender directly or to contact the Dedicated Mortgage Advisory Service at MABS for an independent assessment of their situation and advice on available resolution options.
103. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which the economy continues to remain competitive when compared to other competing jurisdictions within the European Union and without; and if he will make a statement on the matter. [23086/16]
View answerSignificant progress has been made in improving Ireland's competitiveness in recent years. The latest figures from EUROSTAT estimated that nominal unit labour costs (a widely used measure of competitiveness internationally) in Ireland declined by 4.2 per cent annually in 2015, the largest decline across all EU Member States for which data are available.
The decline in unit labour costs in 2015 is a continuation of the trend of substantial improvement in Ireland's economy-wide cost competitiveness since 2008 (the peak year for unit labour costs in Ireland). It is estimated that nominal unit labour costs in Ireland fell by 20 per cent between 2008 and 2015. This compares with increases of 9 per cent in the UK, in the euro area and in the European Union as a whole, over the same period.
Following the crisis, Ireland's relative competitiveness as measured by the real harmonised competitiveness index has continued to improve as a result of reductions in relative prices together with favourable exchange rate movements. In addition, relatively low consumer price inflation in recent years has contributed to the improvement in Ireland's competitiveness as Irish price levels have fallen considerably relative to those of our euro area peers. For instance, annual HICP inflation in Ireland has been below or equal that of the euro area every year since 2008.
Nevertheless, as a small regional economy in a single currency zone, Ireland is vulnerable to losses of competitiveness. The UK's vote to leave the European Union has caused some volatility in the currency market. Challenges for Irish exporters would arise should there be a prolonged period during which the sterling rate was low against the euro.
The gains in Irish competitiveness achieved since 2008 have been hard-won through productivity improvements and wage and price moderation. It is important that this competitiveness is preserved and continues to support growth and the improvement in real living standards. In this regard we must be cognisant that favourable exchange rate movements can reverse, as can be seen for example in the recent strengthening of the euro against sterling. Similarly, gains from the fall in oil prices may unwind in the future. This highlights the importance of maintaining competitiveness-oriented policies to help address emerging uncertainties.
104. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his Department continue to monitor the levels of bank charges being imposed by various banks; the basis for such charges, nationally and internationally; and if he will make a statement on the matter. [23087/16]
View answerAs I have said in my answer to the Deputy's Parliamentary Question No. 113 [7735/16] on 20 April 2016, all credit institutions in Ireland are independent commercial entities. I, as Minister for Finance, have no statutory role in relation to the charges applied by credit institutions. Section 149 of the Consumer Credit Act 1995, as amended, requires that credit institutions, prescribed credit institutions and bureaux de change must make a submission to the Central Bank if they wish to introduce any new customer charges or increase any existing customer charges in respect of certain services. Section 149 does not cover interest rates rather it applies to fees and commissions only. The Central Bank may direct the institution not to impose the new or increased charge or it may approve the charge, or approve it at a lower level than requested by the institution. Once approved, the bank is entitled to impose the charge.
My Department published a report on the review of the regulation of bank fees and charges in December 2013. This contains a detailed description of the process by which the Central Bank makes decisions on whether or not to approve proposed charges. It is available on my Department's website at www.finance.gov.ie. Among the key findings of the review was that while fee and commission income has become a more important source of income to the banks in recent years, net fee and commission income in Irish banks was well below the average of their European peers.
The European Communities (Payment Services) Regulations 2009 (the Payment Services Regulations) include requirements for banks and other payment institutions to provide information to the consumer about charges, interest and exchange rates on the accounts and these are reflected in the Central Bank's Consumer Protection Code 2012, which contains requirements in relation to the provision of information on charges to consumers. The website of the Competition and Consumer Protection Commission (CCPC) also lists the various charges imposed by the various financial institutions in Ireland for different types of transactions www.ccpc.ie.
Irish financial institutions have varying models for charges and have different regimes and conditions under which they are willing to grant transaction free banking. Individuals' use of their bank account will be specific to each individual and I would again strongly encourage people to look at this comparison site with their specific circumstances in mind in order to decide which institution offers the best product for their pattern of account usage.
106. Deputy Catherine Martin asked the Minister for Finance when Ireland's net contribution is made to the European Union; if Ireland's recently announced gross domestic product for 2015 figure will impact this either directly or indirectly; and if he will make a statement on the matter. [23171/16]
View answerMember State contributions to the EU Budget are based upon a formula which includes Traditional Own Resources (customs duties), a VAT-based payment and a residual balancing component paid in accordance with each Member State's share of EU Gross National Income (GNI). Payments to the EU budget are made on a twice-monthly basis over the course of the year and Ireland became a net contributor to the EU budget in 2014.
On 12 July 2016, the CSO released updated National Income and Expenditure (NIE) Accounts for 2015 which included a very significant upward revision in Ireland's GNI for 2015. As mentioned above, GNI is an important input into the calculation of Ireland's EU Budget contributions, representing c. 75% of our total contributions.
We currently estimate the impact of the CSO revision on our EU Budget contribution for 2017 as c. €380 m. However, other mitigating factors mean the overall increase in the EU budget contribution is now estimated to be in the order of €280 m when compared to the forecast underlying the Summer Economic Statement (SES).
It must be emphasised that the final impact depends on a number of variables including the size of the overall EU budget for 2017 (which is not due to be agreed until November 2016), GNI movements in other EU Member States and other EU budget operational developments.
The estimate is also premised on the likely ratification of the Own Resources Decision (ORD) by all Member States this year (it is now ratified by 27 out of 28 Member States). The ORD is required at EU level to translate political agreement on the methods for financing the EU Budget for the current Multiannual Financial Framework (MFF) 2014-20 into legal form.
107. Deputy Thomas P. Broughan asked the Minister for Finance to report to Dáil Éireann on the investments of the Ireland Strategic Investment Fund in fossil fuels; the consideration he has given to divestment in this regard; and if he will make a statement on the matter. [23257/16]
View answerThe Ireland Strategic Investment Fund (ISIF) informs me that its current investment holdings in fossil fuel companies are among legacy global investments from its predecessor the National Pensions Reserve Fund. In the absence of a globally accepted definition and list of fossil fuel companies, a company-by-company analysis of the Fund's entire holdings would be necessary to determine the full exposure. A preliminary and unaudited value of the Fund's investment in the Oil, Gas and Consumable Fuels industry group, as defined by the leading equity index provided by MSCI Inc, indicates exposure currently of approximately €50 million via both equity and fixed income investments. This figure has reduced substantially over 2014 and 2015 as global investments are being gradually sold to finance investments in Ireland, as they materialise.
These legacy investments in fossil fuel companies should be considered in the context of ISIF's Irish portfolio and its significant commitment to renewables. The ISIF investment strategy states that the Fund's energy allocation of €800 million will include a significant element of renewables investment, and in that light the Fund is committed to investing in the energy sector is a manner that is consistent with the State's commitment to make the transition to a low carbon, climate resilient and sustainable economy.
To date the Fund's investment commitments in this regard include:
- €44 million for the €500 million Dublin Waste to Energy project.
- €35 million commitment to NTR's onshore wind fund.
- Investment in the Bluebay SME credit fund which has made loans to Gaelectric and Mainstream, Irish headquartered renewable energy developers.
- Being a cornerstone investor in the Irish Infrastructure Fund (IIF) which holds a number of Irish onshore wind assets, forestry, and a designer/manufacturer of high power density high efficiency power supplies.
As part of its on-going commitment to operating to high international standards the ISIF has recently published its Sustainability and Responsible Investment Policy which is available online: http://www.isif.ie/wp-content/uploads/2016/07/SustainabilityandResponsibleInvestingPolicyJuly2016.pdf.
The Policy emphasises climate change as part of the integration of Environmental, Social and Governance (ESG) into its investment decision making.
As a responsible investor the ISIF monitors the issue of fossil fuel divestment across both its Global and Irish portfolios and is focussed on both Ireland's commitments under COP21 and national decarbonisation and energy security objectives for the Irish economy, which currently remains very highly reliant on imported fossil fuel.
The National Treasury Management Agency (Amendment) Act 2014, which established the ISIF on a statutory basis provides that the ISIF shall review its investment strategy after 18 months of operation and that in reviewing its investment strategy shall consult with the Minister for Finance and the Minister for Public Expenditure and Reform, and that the Minister for Finance may consult with other Government Ministers, as appropriate. This review will be conducted in the second half of 2016 and the issue of Fossil Fuel divestment may be considered as part of this process. However, to date, any exclusions from the ISIF on the basis of non-financial considerations are those mandated by legislation. In this regard the only relevant legislation impacting on the ISIF's investments is the Cluster Munitions and Anti-Personnel Mines Act 2008.
108. Deputy Thomas P. Broughan asked the Minister for Finance to report to Dáil Éireann on the investments of the Ireland Strategic Investment Fund in renewable energy sources; and if he will make a statement on the matter. [23258/16]
View answerThe Ireland Strategic Investment Fund (ISIF) has informed me that it has a close working relationship with the Department of Communications, Climate Change and Natural Resources and is committed to investing in the energy sector in a manner that is consistent with the State's commitment to make the transition to a low carbon, climate resilient and sustainable economy. The ISIF investment strategy states that the Fund's energy allocation of €800 million will include a significant element of renewables investment, and in that light the Fund has been seeking investments that are consistent with broader Government policy and, in particular, the theme of decarbonisation.
To date the Fund's investment commitments in this regard include:
- €44 million for the €500 million Dublin Waste to Energy project. This project will not only assist Ireland in meeting EU waste management targets, but the waste processed will be utilised for energy recovery and development of a district heating scheme. The facility will have capacity to process up to 600,000 tonnes of waste when complete and generate clean renewable energy for up to 80,000 homes.
- €35 million commitment to NTR's onshore wind fund. NTR Wind Fund is a €250 million private investment fund, facilitating the development of onshore wind energy generation through direct investments in onshore wind projects in the UK and Ireland.
- Investment in the Bluebay SME credit fund and this fund has made loans to Gaelectric and Mainstream who are both Irish headquartered renewable energy developers.
- Cornerstone investor in the Irish Infrastructure Fund (IIF) managed by AMP Capital. The IIF hold a position in a portfolio of Irish onshore wind assets, forestry; and a designer and manufacturer of high power density high efficiency power supplies.
The ISIF will continue to seek out further investments for the Fund that are consistent with its mandate and are aligned with national decarbonisation and energy security objectives and with the Government's broader energy policy. The current investment pipeline for the Fund currently includes possible opportunities in the areas of biomass, wind, waste management and solar.
The ISIF commits to operating to high international standards, investing in line with both the Principles for Responsible Investment (PRI), which focus on the management of environmental, social and governance (ESG) factors to improve sustainability of investment returns, and the Santiago Principles, which are the globally accepted best practice principles for sovereign investment funds such as ISIF. The National Treasury Management Agency (NTMA) Board has recently approved the ISIF Sustainability and Responsibility Policy. This has been published online at:
http://www.isif.ie/wp-content/uploads/2016/07/SustainabilityandResponsibleInvestingPolicyJuly2016.pdf and has a stated emphasis on Climate Change as part of the integration of ESG into its investment decision making.
109. Deputy Thomas P. Broughan asked the Minister for Finance the most up-to-date gross domestic product and gross national product to debt ratios following the recent Central Statistics Office revisions to growth figures for 2014 and 2015; and if he will make a statement on the matter. [23259/16]
View answerThe most up-to-date general government debt (GGD) to Gross Domestic Product (GDP) and Gross National Product (GNP) ratios are set out as follows:
|
|
2014 |
2015 |
|
GGD (% GDP) |
105.2% |
78.7% |
|
GGD (% GNP) |
124.4% |
99.3% |
Source: EUROSTAT, CSO, Department of Finance
The historical debt, GDP and GNP data included within the table is published by the Central Statistics Office on its website (www.cso.ie). Updated general government debt figures will be issued by the CSO in mid-October following the submission of the end-September EDP return to EUROSTAT.
110. Deputy Thomas P. Broughan asked the Minister for Finance his views on the recent gross domestic product statistics from the Central Statistics Office; if the revisions to previous lower estimates will be maintained in upcoming quarters; if he is satisfied that there are no further major unknowns in the compilation of national output going forward; and if he will make a statement on the matter. [23260/16]
View answerThe Central Statistics Office (CSO) last week published national income and expenditure results for 2015. These figures indicate that real GDP grew by some 26 per cent last year. This is significantly stronger than the previous estimate of 7.8 per cent.
This substantial upward revision is largely related to the activities of a small number of large multinational firms and reflects a number of exceptional factors which have limited impact on actual activity in the Irish economy.
The main channels through which these factors affect Irish GDP figures include:
- The effect of 'contract manufacturing' where Irish headquartered multinationals contract the production of goods to third party companies abroad but these products are recorded in Ireland's trade balance;
- The relocation of intellectual property-related assets or patents to Ireland. Ceteris paribus, this will reduce the level of royalty imports and as result increase Irish GDP;
- An increase in new aircraft imports to Ireland for international leasing activities generating substantial fee income without significant employment effects;
It is important to note that these factors do not reflect activity levels we are seeing on the ground. Although these revisions have significantly boosted investment and net export growth, they do not have a direct bearing on employment and wealth creation for Irish citizens.
It is important to stress that whilst these headline GDP figures have clearly been distorted and are exaggerated in an Irish context, more concrete indicators of the underlying levels of economic activity point to a continuation of a now firmly-rooted recovery. Specifically, indicators such as consumer spending, tax trends and labour market developments all confirm that Ireland's economic fundamentals remain strong.
It is also important to stress that the figures published by the CSO are compiled in accordance with best international practice and statistical standards. They measure what they are supposed to measure. However, in a small, open and very globalised economy such as Ireland, it is clear that relevance of these figures as a metric by which underlying economic trends and changes in living standards can be assessed is considerably less than elsewhere.
With this in mind, the Central Statistics Office is to put together a group of experts to provide guidance on how a more relevant indicator could be produced and published alongside these figures in the future. My Department will be represented on this group.
The national income and expenditure results are the definitive measure of Irish national output and reflect all available information at the time at which they are published. However, GDP in all countries, but especially in Ireland, is always subject to revision.
Irish GDP is volatile by comparative standards due to the small open nature of the Irish economy. The best way to mitigate risks associated with this volatility is through prudent management of the public finances and competiveness-oriented policies. That is what the Government will continue to do.
In light of the exceptional nature of these growth figures I also wish to make clear that the Government will not formulate policy on the basis of these inflated figures. Rather, policy will continue to be designed on the basis of more normal growth rates in the region of 3½ to 4 per cent per annum over the coming years.
So, in other words, these upward revisions to GDP for largely technical reasons are not being used to formulate policy. Similarly, in the event of a downward revision for purely technical reasons, there would be no reason to react from a policy perspective.
In summary, the figures for last year greatly overstate the "true" level of economic activity here. The figures measure what they are supposed to measure, but for a small, open and globalised economy, GDP must be interpreted with caution. However, it is clear that the economy is growing solidly and the Government will form policy on the basis of "normal" growth rates.
111. Deputy Robert Troy asked the Minister for Finance if his Department or a body under its aegis has undertaken any analysis of the return on investment to the Exchequer of the introduction of the special 9% VAT rate; if so, the analysis undertaken and its findings; and if his Department has estimates for the direct loss in revenues as a result of the reduced VAT rate on these services. [23264/16]
View answerThe 9% reduced VAT rate was introduced as part of the Government Jobs Initiative, for the period 1 July 2011 to 31 December 2013 in respect of tourism related services, including hotel and holiday accommodation; various entertainment services; the use of sporting facilities; hairdressing services; and printed matter such as maps, brochures and newspapers.
The tourism sector is a key sector in the Irish Economy and the measure was aimed at reducing costs during a very challenging time for the sector. The objective was to boost tourism and create additional jobs. While the VAT rate was due to revert to 13.5% in 2014, it was decided to retain the 9% rate on tourism activity in Budget 2014 because the initiative had proved to be a major success, helping create over 15,000 new jobs at that time, as well as protecting existing jobs. This decision was informed by statistics on VAT and tourism by the Revenue Commissioners and the Central Statistics Office, as well as a Report undertaken by my Department entitled "Measuring the impact of the Jobs Initiative: Was the VAT reduction passed on and were jobs created?", published by the Department of Finance in November 2012 with the Department's Medium-Term Fiscal Statement.
In my last Budget I did not make any changes to the rate, stating that while the case for retaining the measure for the hotel sector in Dublin is diminishing each year, with room rates rising particularly during major events, the case for retention of the measure for the rest of the country remains. The Government, in the Programme for Partnership Government, has committed to increasing revenue from overseas visitors, growing employment in the tourism sector and increasing the number of visits to Ireland, through the retention of the 9% VAT rate on tourism related services, among other measures, providing that prices remain competitive.
Various reports on the 9% rate have been undertaken by third parties since its introduced, these have been analysed by my Department, in addition to updated statistics on VAT receipts, tourism related employment levels, hotel occupancy and international and EU comparisons, among other indicators.
The Revenue Commissioners most recent estimated cost to the Exchequer of the reduced 9% VAT rate, since its introduction in 2011 to end 2015 is €2.1 billion.
112. Deputy Billy Kelleher asked the Minister for Finance the number of persons about whom the Revenue Commissioners provided data to the Health Service Executive under section 8 of the Health (Alteration of Criteria for Eligibility) Act 2013 for 2015 and in 2016 to date in tabular form. [23276/16]
View answerI am advised by Revenue that the number of individuals about whom data has been provided, on request, to the Health Service Executive (HSE) under section 8 of the Health (Alteration of Criteria for Eligibility) Act 2013 is as follows:
|
Year |
No. |
|
2015 |
1,236,788 |
|
2016 to date |
562,537 |
The data supplied by Revenue to the HSE reflect income details returned by self employed taxpayers in their tax return to Revenue or by employers in the P35 return in respect of PAYE employees.
I am advised by Revenue a data exchange agreement is in place with the HSE which sets out the respective roles and responsibilities in connection with data exchanges.
113. Deputy Michael McGrath asked the Minister for Finance when he expects to publish revised growth projections and estimates for the fiscal space following the Brexit referendum result; and if he will make a statement on the matter. [23296/16]
View answerMy Department will prepare a full macroeconomic projection in advance of Budget 2017 in October. Officials from my Department will then go through the normal procedural steps with the Irish Fiscal Advisory Council as part of the endorsement exercise.
The Budget day publication will include updated projections for economic growth, the public finances and the fiscal space, taking account of developments up to that time, including both the UK's decision on the EU in June and the GDP revisions published in the context of last week's National Income and Expenditure Accounts for 2015.
Having said that, it is not envisaged that estimates of fiscal space in 2017 will change significantly from those already published in the Summer Economic Statement, given that most of the inputs needed to calculate the available space under the expenditure benchmark have been fixed following the publication of the European Commission's spring forecasts.
114. Deputy Michael McGrath asked the Minister for Finance the additional fiscal space as a result of the non-indexation of tax bands per annum from 2017-2021; and if he will make a statement on the matter. [23298/16]
View answerThe Programme for Partnership Government 2016 sets out its strategy that the income tax system will not be indexed. As part of the preparations for the recent Summer Economic Statement 2016, it was estimated that a Government policy decision not to index the income tax system would contribute approximately a cumulative €2 billion to the level of fiscal space over the period 2017 to 2021, resulting in an estimated total of €11.3 billion of fiscal space over the corresponding period. This is a policy decision which will need to be confirmed by the Government in advance of each Budget.
115. Deputy Niamh Smyth asked the Minister for Finance when or if his Department will utilise section 6(1) of the Ministers and Secretaries (Amendment) Act 1939 to confirm a new title for his Department; and if he will make a statement on the matter. [23348/16]
View answerIn response to the Deputy's question, I have no cause at present to utilise section 6(1) of the Ministers and Secretaries (Amendment) Act 1939 to confirm a new title for my Department.
116. Deputy Clare Daly asked the Minister for Education and Skills to clarify what is meant when Bus Éireann states that the Expressway and other businesses of Bus Éireann are kept in separate accounts; what is further meant when the company states that the school transport funds are kept in a separate account; and similarly when it states, as an official from the organisation stated at a recent meeting of the Joint Committee on Transport and Communications, that the school transport funds are hermetically sealed. [22976/16]
View answerBus Éireann is a transport management company, whose principal activities are the management and planning of an integrated network of services, using its own and sub-contracted resources.
This integrated network covers long distance coach services, local, rural, commuter, provincial city and town bus services. The company is also responsible for the management and provision of the School Transport Scheme on behalf of my Department.
The company accounts for the revenue and expenditure of its three principal activities, Commercial Services, PSO Services and School Transport Services and that is what is meant by the above statement.
The phrase "hermetically sealed" means that any surplus arising in any one year in relation to school transport can only be used on school transport activities.
