Vol. 519 No. 2
53 Mr. Yates asked the Minister for Public Enterprise if she will clarify her proposals to split up the CIE group; if this will involve the abolition of CIE; the timescale for the implementation in this regard; the ongoing status of employees under the Transport Act, 1986; and the person or organisation, if any, which will carry out the co- ordination and planning transport role now carried out by CIE head office. [13317/00]
In April I submitted a paper to the Cabinet committee on infrastructural development and public private partnerships outlining proposals for a new institutional framework for public transport. The following are the main elements of the proposals which impact on CIE. Bus Átha Cliath and Bus Éireann should be established as separate independent companies and the existing geographical restrictions on their areas of operation should be removed. Iarnród Éireann should be divided into two independent companies, one responsible for the railway infrastructure and the other responsible for the operation of railway services. The CIE light rail project office should provide the basis for a separate function which would be responsible for the procurement of major infrastructural projects on a public private partnership basis, independent of the public transport operating companies. The CIE holding company should cease to have any operational role and should no longer own the bus and rail companies. We are considering whether its dissolution would be appropriate.
My paper identified a number of significant issues requiring further consideration, including pensions and salaries. I will also be taking into account the position of employees under the Transport Act, 1986, which provides for the transfer back to CIE of subsidiary company employees where a subsidiary is wound up. I also suggested that there should be independent regulation of public transport, covering matters such as the regulation of the bus market, allocation of State financial support for public transport services through public service contracts and other market regulation responsibilities arising from public private partnerships and EU legislation. It will be the responsibility of this independent regulatory function to procure public transport services and to ensure more effective co-ordination and integration.
The Cabinet committee to which the Taoiseach referred will this evening consider the second paper which I said a month ago I would put forward.
Additional InformationThe reforms will take a period of years to implement, requiring new legislation, a lengthy period of negotiations with CIE staff and the putting in place of new independent regulatory structures and the legal and administrative measures necessary to establish new independent bus and rail companies.
A public transport forum will shortly be established under the terms of the Programme for Prosperity and Fairness. It will have representatives from all the partnership pillars, including the trade unions. I will be asking the forum, as one of its priority tasks, to consider the proposals in the framework document. I also intend to seek early Government approval for the publication of a policy paper which will address both institutional and regulatory reform, bringing together the contents of my recent institutional paper and a separate paper on regulation of the bus market in Dublin. This will set out more detailed information on implementation priorities and an indicative timetable.
When will the Government decide on these proposals? Will it be this session? This will take a long time to resolve from an industrial relations and legislative perspective. The Minister would be better employed in considering a proper Dublin transport authority to deal with the implementation of public transport initiatives and the establishment of a tendering competition for bus services to increase capacity as soon as possible. I have been informed that six different pieces of legislation will be involved. Will the rights of CIE employees under the Transport Act, 1986, be preserved?
The Cabinet made a decision on my paper, on which there was general agreement, three or four weeks ago. The paper I will put forward at 5.30 p.m. this evening is a more detailed amplification of that and I hope there will also be agreement on it. The Cabinet infrastructural sub-committee which comprises half the Cabinet members will then go to the full Cabinet for ratification. One of our first tasks will be the establishment of a shadow regulatory authority to presage the full regulatory authority. This will be done by the introduction of legislation next year. This year, we hope to grant some of the routes requested under the licensing arrangement. There has been a large number of applications. The existing Act allows the granting of licences to routes not served by Dublin Bus. That is our immediate concern. When the shadow regulatory authority for the greater Dublin area is established after the legislation is passed, I hope by the middle of next year, it will award the franchises.
Under the 1986 Act, rather like TEAM and Aer Lingus, all employees are employees of CIE. We will take legal advice on that matter. Obviously the employees will get their rights but it may be necessary to implement a framework which will ensure that the legislative remit governing the employees will be properly fulfilled.
Is it envisaged that the four different companies, the three transport companies and the rail track company, will retain their individual boards and continue to be in State ownership? Will the Minister clarify the proposal in the document that Dublin Bus and Bus Éireann will compete against each other? Will double decker buses run to Galway?
To talk about having a double decker bus to Galway is to jump the gun. It will be fleshed out in the paper as soon as we have discussed it. We envisage doing away with the demarcation between Dublin Bus and Bus Éireann.
I asked if it would remain in State ownership.
No, that is not envisaged. However, there will be public transport.
