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Free Travel Scheme Administration

Dáil Éireann Debate, Thursday - 27 September 2018

Thursday, 27 September 2018

Questions (208)

Robert Troy

Question:

208. Deputy Robert Troy asked the Minister for Employment Affairs and Social Protection the existing fare agreements with transport providers involved in the free transport scheme; the year in which these fares were agreed upon; and if she will make a statement on the matter. [39212/18]

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Written answers

Under the National Recovery Plan 2011 – 2014 funding for the Free Travel Scheme was frozen at €77m per annum, equivalent to the levels of expenditure on the scheme in 2010. Prior to this cap on expenditure the rate of payment to operators participating in the scheme was reviewed regularly and adjusted on the basis of changes in rates of fares. Funding for the scheme was increased by €3m in Budget 2016 to allow more operators join the scheme and by a further €10m in 2018, bringing the current allocation to €90m.

Payments to private travel operators participating in the free travel scheme are determined by way of a survey of their passenger numbers. An average fee is agreed on foot of surveys undertaken over a six month period and based on the operator’s own fare charges. This is then discounted by 30% to reflect the fares foregone nature of the scheme. New private operators seeking to enter the scheme or existing operators seeking an increase in their payments must engage in this survey process. At any given time, there are some private operators engaged in the survey process.

In relation to the CIÉ Group, rather than carrying out specific surveys of usage, my Department moved many years ago to a service model based on the transportation infrastructure and the introduction of new services e.g. DART, LUAS and removal of the restrictions on free travel during peak hours. At each stage, my Department has negotiated rates and discounts to reflect these developments.

My Department pays the CIÉ Group centrally in respect of transport services provided nationwide by Bus Átha Cliath, Iarnród Éireann and Bus Éireann PSO routes. Provision was made in Budget 2018 to allow for the reduction in the level of discount required from Bus Éireann Expressway from 40% to 30%, putting it on an equal footing with other commercial operators participating in the scheme.

I hope that this clarifies the matter for the Deputy.

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