Vol. 507 No. 2
2 Mr. Yates asked the Minister for Public Enterprise if she has concluded the necessary preparatory work for the introduction of public service contracts in relation to the CIE subvention; the timetable for the implementation of these contracts; if this issue is linked to her approval of a fare increase to CIE companies; if she has concluded her consideration of the application for fare increases; and, if so, the outcome in this regard. [16279/99]
The preparatory work for the introduction of public service contracts is well advanced. I hope to be in a position shortly to circulate a draft memorandum seeking Government approval for a contract in respect of services provided by Bus Átha Cliath. Significant progress has been made on three Iarnród Éireann contracts covering railway infrastructure, mainline rail and suburban rail services, and on a contract covering Bus Éireann services. I hope to bring proposals to Government in relation to these contracts later this year.
I will shortly complete my consideration of applications from the three CIE operating subsidiaries for fares increases. There has been no general round of fares increases for CIE since 1991. I met the CIE unions some time ago to discuss a number of issues. During that meeting the unions urged me to approve an increase in CIE fares. I also recently met the CIE chairman and he too strongly argued the case for an early increase in fares.
Will the Minister outline the level of fare increases proposed by the three CIE companies? Is it 16 per cent? Will she assure the House that she would be slow to go beyond a single digit percentage increase, in view of the overriding policy objective of encouraging commuters to move out of private cars onto public transport? A massive fare hike would be contrary to this policy.
I have no disagreement with the Deputy's tenet that buses and trains should be made attractive in every way in order to encourage people to use them. The proposed increases vary according to the fares, ranging up to 12 per cent. There is no standard increase. I will take on board the Deputy's suggestion that I consider limiting the increases to a single digit percentage.
Will the Minister clarify the position regarding public service contracts? This has been in gestation for four years – what is the delay? Is a fare increase linked to a conclusive agreement between the Department and CIE on public service contracts? During the recent controversy I suggested the fare increase was being postponed until after the local elections, but a Department spokesman said the sole reason for the deferral was connected with those contracts and the two issues were being taken together. Is that correct or was it merely a cynical device to wait until after 11 June before lashing the increase onto the long-suffering commuter?
There was no cynical device to lash anything to anyone. It will still be some time—
Was the Minister's spokesman correct?
At this point the two matters are moving together. The method behind the public service contracts is interesting. The Bus Átha Cliath contract is almost ready. It provides that the company will provide all services within its timetable, as amended from time to time, and the Exchequer payment is to be linked to the operation of those buses at peak times on weekdays. The contract specifies the minimum number of buses to be in operation at peak times during different periods of the year. Penalties are to apply if Bus Átha Cliath falls below a threshold of 99 per cent compliance with the provision of the minimum number of buses in peak times. It goes on to outline the further ramifications of that. It is really a case of us providing the money and Bus Átha Cliath providing the services which will be enunciated. I agree with the Deputy that it is taking a long time. They had not been implemented when I came into office two years ago but I believe they are nearing completion. That is probably what the spokesperson was alluding to. There is much contact with Finance on the public service contract obligations as well as with the transport operators.
Is the Minister aware that Dublin Bus receives the lowest subvention from Government of any capital city in Europe? Instead of a fare increase in Dublin Bus, will she consider increasing the subvention to meet CIE's revenue needs?
This year, for the first time in its history, Bus Átha Cliath has 150 new buses which it did not have to provide from its own revenue. We have not worked out the implications but that is equal to a large subvention. We are including in the national development plan yearly increases in the provision of buses for Bus Átha Cliath and others which in turn will be equal to a subvention.
