Vol. 496 No. 3
91 Mr. Callely asked the Minister for Public Enterprise if the annual subvention from the Exchequer to CIE has a condition for the provision of socially necessary services; and if she will make a statement on the matter. [19980/98]
The Exchequer makes an annual subvention available to CIE to help defray the cost of socially necessary transport services which cannot be provided on a commercial basis. The allocation of the subvention to the individual companies — Bus Átha Cliath, Bus Éireann and Iarnród Éireann — is currently a matter for the board of CIE.
It is planned to replace these arrangements with a number of multi-annual public service transport contracts to be agreed with the individual CIE companies. The contracts will specify the quantity and quality of services to be provided by the company concerned in return for direct payment by the State.
The public service contract approach should act as a spur to the identification of the specific costs associated with the non-commercial services and should also create the conditions for the companies to operate with more commercial freedom in those parts of their business where the contracts do not apply. In addition, by linking Exchequer payments to performance, the contracts shold provide for a more efficient customer approach to the provision of public transport services.
