Dáil Éireann díospóireacht -
Tuesday, 17 Feb 2009

Vol. 675 No. 1

Other Questions.

Air Services.

Ciaran Lynch

Ceist:

56 Deputy Ciarán Lynch asked the Minister for Transport if he will review the operation of the range of extra charges and levies that are currently imposed on airline passengers in view of the need to maintain passenger volumes in the airline sector; if he will work with the Commission on Aviation Regulation and the National Consumer Agency to review the increasing burden of excessive extra charges on airline passengers including the new €30 levy on passengers carrying a separate duty free bag that an Irish carrier has recently introduced and, if necessary, bring forward legislation specifically to protect air travellers; and if he will make a statement on the matter. [5816/09]

Deputy Noel Dempsey

As the Deputy will be aware, the air services market in the European Community was fully liberalised in 1992. The operation of the market is governed by common rules which were recently updated and are set out in a European Regulation No. 1008/2008. This regulation entered into force in November last year and has direct application in all member states. Under the common rules set out in the EU regulation, airlines can freely set fares for air services offered within the Community and this has been the case since 1992 when the market was first opened up.

The EU regulation introduces new provisions requiring greater pricing transparency. When publishing or advertising air fares, airlines must now include all applicable conditions and all applicable taxes and charges which are unavoidable and foreseeable at the time of publication. These pricing transparency provisions were introduced because the fare structure in the industry in recent years has changed significantly with many airlines now having differentiated pricing structures consisting of a basic fare with a number of optional pricing elements. The new rules require greater transparency in pricing information but airlines still have full pricing freedom. This will ensure that consumers have fuller information available to them in making their travel choices.

Side by side with the opening up of the market, a number of other consumer protection measures have been introduced at European level in recent years. These include compensation in the event of denied boarding and the rights of passengers with reduced mobility when travelling by air. The opening up of the market for air services has completely transformed air travel in Europe and has brought enormous benefits to the European economy and particularly to the Irish economy.

As an island nation Ireland is particularly reliant on air services for the maintenance and creation of business and tourism links with Europe and the rest of the world. The benefits of liberalisation are clear to see both in the context of the European market and the EU-US market which was liberalised more recently. The number of routes available into and out of Ireland has increased dramatically in the period since the market was opened up. The increased choice of destinations available to consumers and the significant decrease in fares in the years since the market was opened up clearly demonstrates the benefits that competition brings to consumers and to the wider economy.

Deputy Thomas P. Broughan

Is the Minister and the Government reconsidering the €10 departure tax? We have heard in recent days that this is the straw breaking the camel's back for operators. Michael O'Leary of Ryanair says this tax is the primary reason 200 jobs at Ryanair in Dublin Airport have been lost and we hear that Aer Lingus will have to find €30 million in 2009 to fund the losses resulting from this departure tax. Given that such a small amount of money will be collected through this tax — well under €100 million this year — is this not the case of another own goal by the Minister as is the case with the Minister for Finance, Deputy Brian Lenihan, who scored a number of sensational own goals in recent months? Is this not another own goal and a devastating attack on employment at the worst possible time?

With regard to the question, can we have legislation to introduce simplified and less complicated ticketing arrangements? I note the Ryanair website states that commuters are charged a whole range of taxes such as the payment of a handling fee, the airport check-in fee, the priority boarding fee, the infant fee, the baggage fees, fees for the first bag, second bag and third bag, the excess bag, the infant equipment, the sports equipment, the musical instrument and, lately, the €30 fee to ensure that passengers will buy duty free goods only on board the Ryanair flight. The Minister has been doing nothing about this for the past couple of years. I ask him to deal first and foremost with the departure tax.

Deputy Noel Dempsey

The Deputy is of course correct; it is an open market and people can do this if they want to. The list and litany of the various charges read out by the Deputy would lead any reasonable person to conclude that a €10 departure tax was not the straw that broke any camel's back.

Deputy Thomas P. Broughan

That is exactly what it is.

Deputy Noel Dempsey

It is very instructive that Deputy Broughan, who has frequently stood up in the House and attacked and ranted and raved about Ryanair and Michael O'Leary and about the manner in which he does his business, is now a firm believer of the gospel according to Michael. There is no sane person in this country——

Deputy Thomas P. Broughan

We are losing jobs.

Deputy Noel Dempsey

——who believes for one minute that Ryanair decided to reduce the number of flights out of Shannon or out of Dublin because of the €10 departure tax. Ryanair reduced those flights because it estimates the number of passengers flying out of Shannon and Dublin in 2009 will be less than it was in 2008. Ryanair has moved its operations to places where it thinks it will get these passengers.

Deputy Thomas P. Broughan

Where there is no travel tax and no departure tax.

Deputy Noel Dempsey

The €10 departure tax is the usual tactic from that same source.

Deputy Thomas P. Broughan

He might be right about some things.

An Leas-Cheann Comhairle

Allow the Minister to continue.

Deputy Noel Dempsey

An old football coach of mine used to say that attack was the best form of defence. When one is doing something that is not popular, one should find someone else to attack. The Deputy has fallen for it.

Deputy Thomas P. Broughan

That is what the Government does.

Deputy Fergus O’Dowd

The Minister for Foreign Affairs, Deputy Martin, is on his way to Cuba. He will pay an entry and departure tax of €25 to visit poor old Fidel's country. The departure tax is a penalty that should not be in place.

Ryanair and Aer Lingus both have weight limits of so many kilograms. Once one exceeds a limit of 8 kg, 10 kg or whatever it may be, one pays a penalty. Is anyone checking the readings from the weighing machines? Recently, I acquired clear evidence of a bag's weight differing by 2 kg or 3 kg when weighed by two different companies. Who is policing the charges? Does the Department have a nominated person to check whether the weighing scales are correct? In many cases, they are not.

Deputy Noel Dempsey

It is not a matter for my Department. Rather, it may be a matter for the weights and measures group in the Department of Enterprise, Trade and Employment.

Deputy Fergus O’Dowd

It is a real issue.

Deputy Noel Dempsey

I am aware of that. If the Deputy has evidence, he should make it available, as it is important that such situations not occur. In some airlines, a commission acts as an incentive to make the charge.

The projected income accruing from the tax will be €150 million.

Deputy Thomas P. Broughan

That is for 2010. I remember the unfortunate budget.

Deputy Noel Dempsey

If the Deputy has any bright ideas on how else to get that much money, he should let me know.

Deputy Thomas P. Broughan

The figure for this year will be €95 million.

Deputy Noel Dempsey

Some €150 million in a full year.

Cycle Facilities.

Damien English

Ceist:

57 Deputy Damien English asked the Minister for Transport the position regarding a national cycle route as promised in the programme for Government; and if he will make a statement on the matter. [5958/09]

Deputy Noel Dempsey

The policy document, Smarter Travel — A Sustainable Transport Future, I launched last week commits to creating a strong culture of cycling to the extent that modal share of cycling will increase from 2% in 2006 to 10% by 2020. This equates to a rise in daily cycle commuting from 35,000 to 160,000 by 2020.

Action 15 of the policy commits to the publication of a national cycle policy framework, which I will do shortly. The framework will not only be a comprehensive response to current difficulties faced by the cycling community in terms of road priority and safety issues, but will also prove to be a springboard to creating a culture of cycling. Among the issues to be addressed are the creation of traffic-free urban centres to facilitate cycling, cycle training for schoolchildren, the integration of cycling with other transport modes and investment in a national cycle network with urban networks given priority.

Some progress is already being made on cycling networks. Fáilte Ireland assists in the development of cycling trails and I am committed to progressing a flagship project, such as the Sutton-Sandycove route. The development of an integrated national network will take place over a longer period of time and the proposed national cycle policy framework will address the issue further.

Deputy Fergus O’Dowd

I thank the Minister for his reply. Between 2002 and 2006, 427 cycling collisions were reported to the Garda. Sadly, 11 were fatalities. Of those, eight cyclists were killed by left-turning lorries. We must address this serious issue. Of the other three, one involved a vehicle hitting a cyclist while changing lanes, another involved a vehicle rear-ending a cyclist while the third was caused by a stolen car driving into a cyclist head on. We must address these issues and the Minister must ensure that cyclists are secure. There should be a solution to the problem of left-turning lorries killing cyclists.

Will the Minister consider cycling routes along canals, bus lanes, DART lines and old national primary routes. While we must radically change the way in which we think, we must protect the cyclist above all else. We are not doing so effectively.

Deputy Noel Dempsey

I agree. Many of the Deputy's suggestions will be included in the framework. A number of old railway lines are being actively considered. The Ministers for Arts, Sport and Tourism and Community, Rural and Gaeltacht Affairs have been active in that regard.

To some extent, the difficulty in terms of left-turning lorries has been addressed in the past 12 months. We passed regulations that require an extra mirror to provide more visibility, which should help to reduce the accident rate. However, the Deputy is correct. If we want to change attitudes and everything else, we must prioritise bicycles and pedestrians instead of cars. This will be a central theme of the document to be published in a few weeks' time.

Interestingly, the Deputy mentioned old national primary roads. We have a significant opportunity to capture some of them for use as good cycling routes. We should narrow them down to one lane of traffic in both directions while using the remainder for cycling lanes.

Deputy Thomas P. Broughan

It sounds like a good idea. However, the problem with cycling provision is that the Government is not prepared to spend any money on it. While I welcome the Minister's comments on the Sutton-Sandycove route, the Australian Labour Party Prime Minister, Kevin Rudd, will this year introduce a cycling programme with a value of 40 million Australian dollars. By contrast, we seem to be doing almost nothing. Will the Government take any major initiatives? For example, would it be possible to get Ministers on their bikes? The Minister of State beside the Minister could use a number of cycle lanes on his way in from the north side. Could the new cycling programme for Dublin city be extended to include Ministers, Deputies and Senators travelling between their various offices?

Concerning the injuries mentioned by Deputy O'Dowd, I welcome the report compiled by Dublin City Council's road and traffic department. Why is the Minister discussing cyclops mirrors instead of doing something about them?

Deputy Noel Dempsey

The Deputy misheard me, as that measure has already been taken.

Deputy Thomas P. Broughan

We are still waiting.

Deputy Noel Dempsey

The Deputy will be aware of the fact that at least two Ministers are on their bikes.

Deputy Fergus O’Dowd

They will be on them for a long time.

Deputy Denis Naughten

There will be many more Ministers on them in a couple of weeks' time.

Deputy Noel Dempsey

Deputy Broughan mentioned that he was involved in introducing the first cycling lane while he was a member of Dublin City Council. I was on my bike at the time because I launched the initiative on the quays.

We have a considerable opportunity to change our habits. If people felt that cycling had become safer, many, including Senators, Deputies and Ministers, would travel by bicycle.

Deputy Fergus O’Dowd

Ministers would not be safe on their bikes.

Deputy Noel Dempsey

My colleagues who cycle claim that it is safe, healthy and so on, but people remain to be convinced. The only way to do so is to put safe cycle lanes in place.

Public Transport.

Olwyn Enright

Ceist:

58 Deputy Olwyn Enright asked the Minister for Transport the amount of subvention sought by Dublin Bus and Bus Éireann and the amount given by him to Dublin Bus and Bus Éireann for 2009; and if he will make a statement on the matter. [5961/09]

Thomas P. Broughan

Ceist:

59 Deputy Thomas P. Broughan asked the Minister for Transport his views on reviewing the public service obligation awarded to Dublin Bus and Bus Éireann for 2009 in view of the programme of cutbacks of up to 400 buses and 600 jobs planned at both public transport companies and the effect these cutbacks will have on rural and urban communities here; the meetings he has had with Bus Éireann and Dublin Bus management on the cutbacks; if he suggested the introduction of a voluntary redundancy scheme in either public company; his views on the recent Deloitte report on Dublin Bus and Bus Éireann; if he will indicate if he has accepted and will implement all of the report’s recommendations; if new legislation will be necessary to do so; if he has received proposals on changing Dublin Bus services in the context of the recent Deloitte report; if so, the proposals in relation to same; if he will implement them; and if he will make a statement on the matter. [5800/09]

Brian Hayes

Ceist:

76 Deputy Brian Hayes asked the Minister for Transport the amount of subvention sought by CIE and the amount given by him to CIE in respect of 2009; and if he will make a statement on the matter. [5968/09]

Brian O'Shea

Ceist:

80 Deputy Brian O’Shea asked the Minister for Transport if, in view of the positive findings on the efficient operation of Bus Éireann in the recent Deloitte bus review, he will ensure that current Bus Éireann network, fleet and service levels are maintained and enhanced; and if he will make a statement on the matter. [5803/09]

Aengus Ó Snodaigh

Ceist:

95 Deputy Aengus Ó Snodaigh asked the Minister for Transport the action he will take regarding the recent reductions in the Dublin Bus fleet. [5838/09]

Arthur Morgan

Ceist:

100 Deputy Arthur Morgan asked the Minister for Transport the alternatives that exist for persons dependent on bus services in view of the recent cutbacks. [5841/09]

Richard Bruton

Ceist:

267 Deputy Richard Bruton asked the Minister for Transport his views on a rationalisation and concentration of certain bus routes in line with the recent Deloitte report; the route changes which he is currently considering; if he will provide a copy of the detailed analysis of the Finglas bus corridor carried out by Deloitte which indicates that significant cost savings could be achieved following a redesign of services throughout the bus network; the recommendations from the report which will be implemented; the timeframe for implementation of these recommendations; and if he will make a statement on the matter. [5590/09]

Deputy Noel Dempsey

I propose to take Questions Nos. 58, 59, 76, 80, 95, 100 and 267 together.

In the course of the 2009 Estimates process, CIE indicated that it was seeking an increase in subvention to reflect increases in cost broadly in line with the consumer price index and to meet the additional costs associated with the withdrawal of the fuel duty rebate. Following discussions with the company and its subsidiaries and taking account of the group's financial position and the overall position of the Exchequer finances, an amount of €313.279 million was provided for in the Estimates, representing an increase of €5 million on the 2008 provision.

Despite this increase in subvention and a fares increase of 10%, CIE and its subsidiary companies are facing a difficult financial outlook in 2009 due to declining demand in an increasing cost environment. In response, the CIE companies are considering a broad range of measures in the area of pay and allowances, efficiency measures and service rationalisations to restore financial stability.

While I have discussed the overall position facing CIE with the chairman, it is a matter for the CIE companies, within the resources available to them from fare revenue and Exchequer subvention, to optimise their services in the most customer-focused, efficient and effective manner, while maintaining as high a level of service as possible to the travelling public. Issues such as staff numbers, pay and the level of redundancies are matters for the companies, in consultation with their staff. It should be noted, however, that the companies have given an indication of the number of bus withdrawals that may be required, which at 270 is lower than the 400 buses referred to by the Deputy. I have requested that when the companies consider service reductions, every effort should be made to maintain peak-time services and those to developing areas. Service reductions should be a last resort in their efforts to maintain financial stability.

The aforementioned Deloitte report, the recommendations of which I accept in full, sets out a series of measures that are designed to enhance the role of the bus. In my statement that accompanied the report's release on 26 January, I indicated areas in which the report had identified considerable scope within Dublin Bus to improve its services to customers, increase efficiencies and save money through, for example, redesigning the network, eliminating unnecessary service duplication and improving information to the customer. In the case of Bus Éireann, I identified areas in which it could explore opportunities to further reduce costs and pursue new business opportunities.

The Deloitte report should, therefore, be seen as supporting the actions being taken by both companies to turn around their financial position, which is not sustainable in the current environment. I have asked the companies to present to me their plans for the implementation of the report's recommendations at an early date.

I do not envisage that new legislation will be necessary to facilitate the implementation of the findings of the Deloitte report. Details of the Finglas corridor case study are available in the appendix to the Deloitte report, a copy of which is available in the Oireachtas Library. As I stated in answer to Parliamentary Questions Nos. 245 and 246 of 3 February last, I am in regular contact with my Cabinet colleagues in the Green Party regarding developments in public transport and the sustainability agenda.

Deputy Fergus O’Dowd

In the past five years, €1.5 billion has been spent in a taxpayers' subsidy to CIE. The Minister has stated that while he has again increased the subvention this year to Dublin Bus, the service will worsen, jobs will be lost and there will be fewer buses on the road. In 2000, the Minister was part of a Cabinet that proposed the opening up to competition of Dublin's bus routes. The report, on which the Minister signed off, noted that the opening up of bus routes to competition in other countries, such as Sweden and so on, resulted in more buses, more passengers, lower costs to the taxpayer and a fall in fares. However, the Minister has absolutely failed to do this. In this critical year, with so many job losses in transport, the Minister has a golden opportunity to insist on basic fundamental measures, such as giving buses priority at traffic lights. He should insist on radical change and not simply leave it up to the unions and Dublin Bus, but should insist that such change happens now.

An Leas-Cheann Comhairle

I wish to facilitate a brief supplementary question from Deputy Broughan before the Minister responds.

Deputy Thomas P. Broughan

The Minister should confirm that one of the key findings of the Deloitte report was that subsidies to public transport and specifically to buses in most other European cities are far higher than in Dublin, which is something that Fine Gael conveniently forgets. For example, subsidies of 68%, 79%, 57% and 62% obtain in Brussels, Lyon, Zürich and Amsterdam, respectively, while Dublin of course is bottom of the league at only 29%. Bus Éireann, which received a clean bill of health in this report enjoys a subsidy of a mere 12%.

The key point is that workers have voted to go on strike, if necessary, because of the manner in which the Minister is handling bus transport. As the responsible Minister, is it not time that he rolled up his sleeves to ensure that commuters will not be left without a public transport service and that young workers will not be victimised by the outcome of the public transport policies he is pursuing? He should roll up his sleeves, engage with the companies concerned and come up with a fair resolution of this matter. For example, as I asked in the previous question——

An Leas-Cheann Comhairle

Go raibh maith agat. I must revert to the Minister.

Deputy Thomas P. Broughan

——why is there no voluntary redundancy in this matter? Is the Minister not the responsible person in this regard?

An Leas-Cheann Comhairle

I am afraid the Minister only has one minute in which to respond.

Deputy Noel Dempsey

In the current economic climate, I secured subvention, or investment as the unions like to call it, of more than €313 million for the bus and train services. That is a lot of money and we do not have any more to give to the companies. We have a blueprint in respect of Bus Átha Cliath and Bus Éireann as to how we can encourage a greater number of passengers, which is what I desire. I seek an efficient and effective service that meets the needs of customers. Capacity already exists in the system and we must get passengers to use it. I am focused on doing this, both through the companies themselves and by trying to eliminate pinch points around the city and trying to ensure the implementation of integrated ticketing, real-time information and an understandable network. I am trying to ensure that people can get a bus when they need one and not have three buses when they do not. This is what I intend to try to do and the way to succeed is to try to ensure the implementation of the Deloitte report. I will devote all my efforts to this end in the future.

Written Answers follow Adjournment Debate.