Dáil Éireann Debate, Tuesday - 7 March 2017
285. Deputy Mattie McGrath asked the Minister for Social Protection the position of Irish and EU law with respect to State subventions for the free travel pass scheme being paid to private transport operators; if there are any cut-off dates before which or after which the subvention must be paid; if any changes are being proposed for new private transport operators; and if he will make a statement on the matter. [11465/17]
View answerThe free travel scheme provides free travel on the main public and private transport services for those eligible under the scheme. These include road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann and Iarnród Éireann, as well as Luas and services provided by over 80 private transport operators. There are currently approx. 874,000 customers with direct eligibility with an annual allocation of €80 million.
The free travel scheme was introduced in 1967. It is not operated as a public service obligation (PSO) and it does not confer any financial advantage on participating transport undertakings or place participating transport undertakings in a more favourable competitive position as regards non-participants. The scheme operates in an objective and transparent manner and on the basic premise that participants should be left no better or worse off as a result of the existence of the scheme. To this end, compensation under the scheme is calculated on the basis of fares foregone at a reduced rate to take account of travel generated by the free travel scheme. Those operators which participate in the scheme receive a payment from my Department significantly below the standard fare whereas those operators which do not participate in the scheme are free to charge full fare for all passengers. Operators and routes have to be commercially viable in their own right and cannot rely on payment from the free travel scheme as some form of subvention. Many countries including United Kingdom, Germany and France have concessionary travel for the elderly, and it is a feature of supports for older people in many EU member states. I am satisfied that the arrangements which apply in Ireland under our Free Travel scheme are consistent with EU law.
Payments to private transport operators who participate in the free travel scheme are made on the 7th of each month in respect of the previous month. The amount each operator receives is agreed following the survey of their route.
There are no new changes or conditions proposed for accepting new private transport operators into the free travel scheme at this time.
I hope this clarifies the matter for the Deputy.
