Dáil Éireann Debate, Wednesday - 24 March 2021
105. Deputy Michael Lowry asked the Minister for Transport his views on Bus Éireann's plans to withdraw the Expressway services on the N7 and N8 routes in the near future (details supplied); and if he will make a statement on the matter. [1355/21]
View answerBoth the National Transport Authority (NTA) and my Department have been engaging directly with commercial bus operators (including Bus Éireann who operate Expressway as a commercial business) throughout the Covid-19 Emergency.
The public transport system in Ireland has played an essential service role over the course of the pandemic, especially in carrying essential workers and others making necessary journeys. Several targeted Government Decisions made throughout the crisis, in addition to general supports such as the wage subsidy scheme, have provided much needed support to the sector, particularly the decisions to:
- substantially increase the 2020 budget for the existing PSO system;
- introduce temporary financial support for certain licensed services provided by commercial bus operators (CBOs) for an initial period of 6-months;
- provide a higher-than-normal provision for PSO funding in the 2021 budget due to the ongoing impact of Covid-19 on the public transport sector; and
- extend the provision of temporary funding supports for the CBOs for a further 3 months, with the option to extend monthly thereafter subject to engagement with the Department of Public Expenditure and Reform.
Prior to the Covid-19 health emergency, licensed operators operated non-subvented bus services on a commercial basis. However, due to the impact of Covid-19 on passenger numbers and the associated drop in fare revenue, these services were no longer commercially viable. As such, on 25 June 2020 Government decided to introduce new temporary financial support for certain licensed services provided by commercial bus operators (one of which is Bus Éireann Expressway) to ensure the continued operation of these essential services.
These temporary supports were initially introduced for a period of 6-months, with a view to protecting capacity across the public transport sector throughout the crisis. The NTA on behalf of my Department, has entered into contracts with the licensed bus sector to provide funding for routes where a clear public interest justification supports such intervention.
As it remains the case that commercial bus operators are still under severe financial distress due to the fall in passenger numbers and associated drop in fare revenue as a result of Covid-19, on 26 January 2020, Government decided to extend the temporary funding supports to the licensed bus sector for a further period of 3 months, with an option to extend contracts on a monthly basis thereafter.
As is the case in many other sectors of the economy, despite these Government supports, Covid-19 has resulted in significant financial pressures for public transport operators. As the Deputy will be aware, Bus Éireann’s Expressway business operates on a commercial basis in competition with other, private, commercial operators in the licenced bus market.
Following extensive analysis and work within the company, the decision to consolidate its Expressway network was taken by the Board of Bus Éireann in September 2020. The decision impacts on four routes: the Dublin/Belfast service (which it ceased operating in November 2020), and services on the Dublin to Cork, Limerick and Galway routes which are also expected to cease operating. The X12 Limerick/Dublin route ceased operations with effect from Saturday 30 January 2021.
In circumstances where a commercial operator ceases operating a specific route, the NTA undertakes an examination to determine whether, with the discontinuation of the commercial service, it is necessary for a replacement public service obligation (PSO) service to be introduced to ensure no loss of connectivity to the travelling public. This process includes an assessment of the level of demand for public transport services in the affected area, an evaluation of whether existing PSO services can be reconfiguring to meet any shortfall, or whether it is necessary to competitively tender for the provision of services.
In light of the decision by Bus Éireann to cease operating the X12 route, the NTA completed a detailed assessment of the X12 corridor and have determined that, despite Expressway’s withdrawal, sufficient connectivity is provided by the remaining operators and the public service obligation is adequately met by other rail and bus services, thereby negating the need for any further intervention on the route.
Concerning the X8 Cork/Dublin route, I understand that the NTA carried out an examination of this corridor and has determined that, in order to meet the social needs of the communities affected, there is a public service obligation to continue to provide services along the Cork to Dublin corridor via Fermoy, Mitchelstown, Cahir and Cashel.
At present, the Bus Éireann Expressway X8 service is continuing to operate (albeit at a reduced level in line with the reduction in demand) under contract with the NTA following the extension to the temporary funding supports for CBOs. I also understand that the NTA are considering how best to meet that public service obligation on a continued and effective basis.
