Dáil Éireann Debate, Thursday - 23 March 2017
118. Deputy Imelda Munster asked the Minister for Social Protection the estimated cost of increasing the subsidy to public bus operators for the free travel pass to the equivalent of that for private bus operators. [14618/17]
View answer119. Deputy Imelda Munster asked the Minister for Social Protection the estimated cost of increasing the subsidy for the free travel pass to ensure it pays for the entire cost of travel for free travel pass holders on each of the three CIE companies, Dublin Bus, Bus Éireann and Iarnród Éireann, rather than the percentage of the fare that is currently covered by his Department. [14619/17]
View answerI propose to take Questions Nos. 118 and 119 together.
Transport companies are paid on the basis of fares foregone and payments are not made on a per passenger basis. Fares foregone refers to excess or spare capacity an operator might have. These are paid at a reduced rate to take account of travel generated by the Free Travel scheme.
My Department currently makes a block payment to the CIÉ Group and the apportionment of payment between the three constituent companies, Bus Éireann, Bus Átha Cliath and Iarnród Éireann is a matter for the CIE Group to determine. This block payment to the CIE group is a service charge that has been negotiated over the years based on a range of factors including passenger numbers, fares levels, availability and frequency of services, peak time access, service improvements and enhancements. On the other hand, payments to private operators are based on surveys. Therefore the discount rates applied to the CIÉ Group and to private operators do not refer to the same calculation methods and, as a result, are not comparable.
My Department, the Department of Transport and the National Transport Authority are currently reviewing the funding level for the scheme which was set in 2010. We are also reviewing the payment mechanisms underpinning the free travel scheme. The outcome of these deliberations will help to inform future funding requirements for the scheme.
I hope this clarifies the matter for the Deputy.
