Dáil Éireann Debate, Tuesday - 6 October 2020
195. Deputy Darren O'Rourke asked the Minister for Transport the amount of current Exchequer funding provided for 2019 and forecast to be provided for 2020 and 2021 for the provision of public transport via the National Transport Authority, NTA; and if he will make a statement on the matter. [28124/20]
View answerThe total amount paid for Public Service Obligation (PSO) services and Local Link services in 2019 was €308m. The amount allocated for 2020 was €304m. As is normal, the precise allocations to the companies are decided by the NTA in exercise of its statutory mandate and in accordance with the various contractual arrangements that it has in place with PSO service providers.
Public transport’s designation as an essential service throughout the pandemic means that, although fare revenues have collapsed, most of the cost of operations remains and must continue to be met in order to fulfil Government’s broader policy objectives. My Department began consultation with the Department of Public Expenditure & Reform from the beginning of April and, with their agreement, were able to draw down PSO funding ahead of what was profiled.
Estimates in early June suggested that continuing to fund the existing PSO system, including the cost of additional cleaning measures and adding extra services where possible, could require up to an additional €460m to year end, depending on the level of easement of social distancing measures as the phases of the Roadmap progressed. Government approval in June to enable considerable additional expenditure on PSO has provided much needed financial assurance that enables continuation of the normal and essential PSO services.
For future years, as the Deputy is aware, the Exchequer allocation for PSO public transport services is subject to the annual Budgetary process. I am engaging regularly with Ministerial colleagues as Budget 2021 is prepared, and PSO subvention is one relevant area of expenditure which forms part of this engagement. I am sure the Deputy will agree that the PSO is a large expenditure area, and one which requires careful scrutiny to ensure the taxpayer receives value for money in respect of the services delivered given the considerable expenditure incurred.
