Vol. 742 No. 1
6 Deputy Barry Cowen asked the Minister for Transport, Tourism and Sport if he has carried out any studies into the effect of the 9% VAT reduction, the halving of the lower rate of PRSI and also the effect of the growth incentive scheme on tourism numbers; and if he will make a statement on the matter. [26590/11]
14 Deputy Pearse Doherty asked the Minister for Transport, Tourism and Sport the extent to which the recent jobs initiative impacted on visitor numbers to Ireland in the July to September period; and if he will make a statement on the matter. [26497/11]
217 Deputy Bernard J. Durkan asked the Minister for Transport, Tourism and Sport the extent to which the tourism sector has managed to prevail in the ongoing economic climate; the degree to which the industry is likely to expand over the next five years; and if he will make a statement on the matter. [26799/11]
I propose to take Questions Nos. 6, 14 and 217 together.
The jobs initiative introduced a 9% VAT rate from 1 July on a range of services, including hotels and restaurants. The Government also halved employers' PRSI for those on modest wages. These measures are of considerable benefit to tourism businesses, lowering their cost base and allowing them to offer a more competitive product to tourists. The industry needs to play its part in passing on these cost reductions.
At this stage it is too early to assess the impact of these measures on either tourism numbers or on employment in the sector. With regard to tourism numbers, we will need to consider the figures on an annual basis to assess properly the impact of the initiative. With regard to the impact of these measures on sustaining employment in the tourism sector, the most recent figures from the CSO relate only to quarter 2 of 2011 so do not measure the impact of the jobs initiative and it will be later this year or early next year before we can properly form a view on the effect of these measures on employment.
Based on these and other relevant figures, the VAT cut will be reviewed before the end of 2012 with a view to deciding if it should be continued. Although the CSO figures are not yet available, it should be noted that a recent survey by the Restaurant Association of Ireland showed that in July and August 490 new jobs were created in the sector and attributed this in part of the jobs initiative measures and to the change in joint labour committees, JLCs.
The growth incentive scheme, essentially a rebate scheme for airlines in return for passenger growth, is one of the three elements of an aviation package aimed at increasing tourist numbers. The package also includes a commitment to abolish the travel tax, subject to agreement on the reinstatement of routes and the restoration of lost capacity, and a more targeted co-operative marketing of new routes from key source tourism markets. The impact of the overall package can be measured only when data for the full year is available. The abolition of the travel tax has been deferred pending a further review of the situation next spring. However, I am pleased to report that overseas tourism numbers increased by 11% for the year to the end of July in comparison to the same period last year, and I have every confidence the tourism industry will exceed the targets set for this year.
The Minister stated it is too early to state what major effect this has had and I take this on board. How is the Minister monitoring this to ensure the savings are passed on? I accept a large majority of people in the hospitality sector are passing them on, but some are not.
The Minister also mentioned the operation of the growth incentive scheme. What has been the response of the airlines to this scheme?
The measures only commenced in July. Therefore, it will be a few months before we have the statistics from July, August and September. That will give us a chance to judge the effect of them then. The measures I am most interested in are jobs in the sectors concerned and tourist numbers. I am much more interested in the reduction being passed on in terms of new jobs being created than, necessarily, it being passed on directly to consumers. It was a jobs initiative after all. I am pleased to see that at least in the restaurant sector employment appears to have increased. We do not yet know about the hotel sector but we will have a good idea of that when the quarterly national household survey figures come out in a few months time.
On the airlines, the response was not what we had expected. Airlines welcomed the proposal to abolish the travel tax but were not prepared to commit to do anything unless other measures were introduced, including reductions in airport charges, which we could not manage. I will announce agreements in the next few weeks on co-operative marketing. Essentially, the money that we are continuing to draw from the travel tax will be invested in co-operative marketing with airlines and tour operators. I will announce the details of that when it is finalised in a few weeks time.
The initiative was largely welcomed by the tourism and hospitality sector. I am interested to see how many full-time jobs it will create. Like Deputy Troy, I would like to know if there is any indication of the percentage of businesses that have failed to pass on the savings. I know of a few myself, as I am sure everyone else does. Does the Government have any comeback in those instances or is it just a matter for the markets to deal with?
I do not have figures on how many of the industry players have passed on the reductions. They are required to pass it on in law in the sense that the rate is not 13.5% anymore — it is 9% — but one cannot stop them increasing their prices by 4.5% to make up the difference. There are many factors involved in price. Many say, correctly, that energy prices have gone up significantly and had it not been for this measure they would have had to increase their prices but instead they have frozen them. I am happy that the Irish Hotels Federation and the Restaurants Association of Ireland have called on their members to pass on the VAT reduction to consumers. When I travel around the country, pretty much every hotel I stay in has a little sign from the Irish Hotels Federation saying it has passed on the VAT reduction. I am not sure whether that is there for my benefit.
They know the Minister is coming.
I will check out the Ferrycarrig Hotel in Wexford tonight and we will find out. The major objective of the Government in doing it was to sustain and create jobs in the sector, not necessarily to make it 4% cheaper to go to a restaurant or stay in a hotel.
7 Deputy Michael McGrath asked the Minister for Transport, Tourism and Sport if he is continuing to meet with the airlines in relation to the abolition of the air travel tax; his plans in the event that he fails to reach any agreement on additional passenger numbers or new routes; and if he will make a statement on the matter. [26604/11]
The Minister for Finance announced the proposed suspension of the €3 travel tax as part of a three-pronged strategy aimed at increasing inbound tourism in the jobs initiative in May. This strategy involved not only the proposed suspension of the travel tax, but also the introduction of a new growth incentive scheme by the Dublin Airport Authority, DAA, and more targeted and co-operative marketing of new routes from key source tourism markets by Tourism Ireland, the DAA and airlines to encourage more tourists to fly into Ireland.
The Government made it clear from the outset that the travel tax would only be suspended if the airlines responded positively to these initiatives in terms of restoring routes and capacity. My officials and I held a number of meetings with the main airlines, Ryanair and Aer Lingus, to establish what new services they might introduce or reinstate to take advantage of the incentives on offer from the Government and DAA but their response was disappointing and the Government decided to retain the travel tax pending a further review next spring. I also wrote to more than 20 other airlines currently servicing the Irish market or who may be interested in entering the Irish market informing them of the initiative.
I am not currently in active discussions with the airlines on this initiative but I have undertaken to re-examine it if they are prepared to introduce additional routes and capacity for summer 2012 and the airlines know that I remain open to discussions with them on this basis.
In the meantime, I have the agreement of the Ministers for Finance and Public Expenditure and Reform that a significant proportion of the revenue generated from the retention of the tax will be made available for a targeted co-operative marketing effort. Tourism Ireland is finalising plans in this regard at present in conjunction with the airlines, airports, ferry companies, tour operators and others.
I thank the Minister. It is disappointing that the airlines have not taken on board what the Government wanted. It is not good news. However, it is welcome that the €3 charge is being put into a specific fund. The Minister of State, Deputy Ring, alluded to it previously when I was in the Chamber.
The Minister referred to a significant percentage. Perhaps he would state what percentage of the fund will be invested in tourism. Is it intended for a specific area of tourism such as marketing or can people seek capital funding? How long will the scheme last? The Minister referred to going back to the airlines again next year. If they do what he requests, will the €3 tax be abolished and the fund come to an end? Perhaps the Minister would elaborate a little more on what the money will be spent on and specifically how much?
I will elaborate as much as I can but nothing is finalised yet. It is not that I am holding back information but that matters have not been fully decided yet. The new Government found itself in the same boat as the previous one in the sense that the previous Government reduced the tax from €10 to €3, the airlines having complained bitterly about it, but it got nothing back from the airlines for it. We offered to reduce the tax from €3 to zero but we got very little back from them for it either. As we are not abolishing it between now and——
It is not as easy as one thinks when one goes over to the Government side of the House.
That is true.
I am pleased the Minister has admitted that.
Deputy Troy would not know about it anyway.
The approximate amount of money we will take in because we have not abolished the tax between now and the end of the year is €9 million. Half of that is being made available to Tourism Ireland for co-operative marketing and other initiatives with airlines, ferry companies, tour operators and others. Essentially, a call went out to those bodies to come in with their tourism and marketing plans. Obviously they have to contribute to them. It is not free money for an airline; it must cough up some money of its own as well. The €4 million or so will leverage more when one includes what will come from the airlines and tour operators. The key issue is companies must come back with a marketing plan, proposals and promotions that we consider will be of benefit and will increase tourism. Tourism Ireland is finalising those now with a view to agreeing some but not all within the next week or so. I will make an announcement in the House once I have the information and the agreements are signed. Who knows what will happen next year. Nothing has yet been decided for next year.
I wish to ask a brief supplementary question. It relates to an issue I raised when I spoke on the tourism Bill last week. Perhaps the Minister would consider ensuring that each county has a tourism officer. The tourism officer has been lost to Westmeath in recent weeks. I do not mean to be parochial but it is important for each individual county to have someone designated specifically to market the tourism attractions in the area, or perhaps there could even be a regional officer. It is worth considering using the fund for that purpose.
I would rather not do that because it is just a one-off fund. It will not be there forever so one might be able to hire someone for three or four months and then they would be gone. I do not know what the benefits from that would be.
I welcome the fact that local authorities take an interest in tourism. I particularly welcome the fact that local communities and chambers of commerce take an interest in tourism and promoting their own towns and villages but there are too many players in the tourism market and I would prefer that local authorities, by and large, would concentrate on keeping towns and villages clean rather than trying to duplicate the work of Fáilte Ireland and the existing bodies.
We will now take Parliamentary Question No. 8 in the name of Deputy Jerry Buttimer.
A Leas-Cheann Comhairle——
I am sorry. I did not spot Deputy McLellan. I am out of time. I will get back to her. I cannot take her on this question now as I have called the Minister of State.
8 Deputy Alan Kelly asked the Minister for Transport, Tourism and Sport his plans to roll out real time passenger information systems for bus users outside of Dublin; and if he will make a statement on the matter. [26433/11]
Following the establishment of the National Transport Authority, NTA, on 1 December 2009, the implementation of infrastructure projects in the greater Dublin area, such as the real time passenger information, RTPI, now comes under the remit of the NTA. The authority's functions were subsequently extended by ministerial order to include provision of RTPI to the four major regional cities of Cork, Galway, Limerick and Waterford and the contiguous areas of those counties.
I have been advised by the NTA that the RTPI programme is to deliver 50 signs in Cork city by the end of this year. The other regional cities of Waterford, Limerick and Galway will follow next year. The achievement of this target date is subject to the delivery of the interfaces which allow data from automatic vehicle location systems operated by Bus Éireann to be received by the real time system developed by ACIS technology for the NTA and its agent, Dublin City Council.
Work is proceeding on testing data from Bus Éireann's AVL system for the required level of accuracy to build the confidence of customers in the system. The authority plans to have a test sign available in October and have all signs lit in December 2011.
As Cork is the first city for the RTPI system with Bus Éireann data, the resolution of the data and interface issues will result in a faster roll-out in the other regional cities next year. The authority is also developing a solution which will be delivered in 2012 to allow private transport operators to relay their positional data to the RTPI system.
9 Deputy Robert Troy asked the Minister for Transport, Tourism and Sport if he will confirm his position on the sale of the Government’s share in Aer Lingus; and if he will make a statement on the matter. [26615/11]
11 Deputy Pearse Doherty asked the Minister for Transport, Tourism and Sport his plans for the State stake in Aer Lingus and the rationale for these plans. [26569/11]
I propose to take Questions Nos. 9 and 11 together.
These questions relate to the sale of the Government's stake in Aer Lingus. The Government recently considered the various options open to it in terms of generating revenue from the sale of State assets, including the recommendations of the State assets review group in the McCarthy report. That report recommended that the Government dispose of its shareholding in Aer Lingus "as soon as is opportune" but no decision has yet been made by the Government on a disposal of the State's shareholding in the company.
In addition to the Government's recent decision to sell a minority stake in the ESB, the Government also agreed that it is prepared, in principle, to undertake further asset sales. A process has been initiated to consider a number of potential assets in this context. The State's shareholding in Aer Lingus will be considered as part of this process.
A group, led by the Department of Public Expenditure and Reform, and including my Department, other relevant Departments and the NTMA, will consider possibilities in this regard and advise the Government on the appropriate valuations to be placed on the assets in question. The group will also advise on the most appropriate method of disposal, the likely timeframe and economic impact of any such disposal, in order to inform any further decisions that the Government may wish to make in this regard.
We still do not know what the Government's position is on this matter. That is the fundamental point. If the sale goes ahead, will the money be reinvested in the economy or will it be used to bring down our debt?
The only definite decision that has been made by the Government on the sale of State assets is the sale of a minority stake in the ESB but there are a lot of other candidates for further State asset sales, including Aer Lingus. A lot of work must be done first, before the Government comes to the point where it is willing to sell that stake, both in terms of scoping out potential buyers, seeing what terms and conditions they may be willing to accept as part of the sale, and also sorting out the pension deficit which is the main issue now devaluing the company. The company would be worth a lot more if the pension deficit could be sorted out by the end of the year. All those things have to be done first before a final decision can be made on the sale of the State's stake.
Discussions are now under way between the troika and the Government on whether we will be allowed to reinvest the money in the economy. It is the Government's view, and very much my view, that at least some or most of the money that can be raised from State asset sales should be reinvested in the economy — in infrastructure and jobs. There would be a lot more enthusiasm in the Government for going ahead with State asset sales if that were the case.
It seems fairly clear that there is an intent to sell the rest of the Government's stake in Aer Lingus. That is a shame because Aer Lingus has served the country well as the flagship airline for many years. In addition, it has delivered a profitable organisation. What is probably holding up the sale of Aer Lingus at the moment is the pension fund. That is another issue we will have to deal with but it is a shame that we are going down this road.
We are blaming the troika and Europe for the fact that we have to get money. The Minister said he does not even know whether, in selling the rest of Aer Lingus, we will be able to invest that money in other projects to create jobs. We will possibly end up with Ryanair in control of our main airline, which is a shame. A private company will be in charge of our national airline. We saw what happened over the years when private companies took over. They cut jobs and tended to pay a lot less to the remaining workers. We are heading down that road now. We had a profitable State-run institution in Aer Lingus. It is not fully State-owned, although it should be. I appeal to the Minister not to sell of the rest of the State's stake in Aer Lingus. It would be a shame and should not happen.
Aer Lingus is a private limited company and is traded on the stock market. It is not a State-run company by any means. It just happens to be a private company in which the State has a 25% stake.
That is right.
There is no question of Ryanair taking over Aer Lingus. The European Commission has ruled that it may not do so on competitive grounds, and I support that. In fact, Ryanair has expressed a willingness to sell its stake. The Ryanair and Government stakes together make up 54% of the company, which could be very valuable and potentially of great interest to a buyer.
The key question we have to ask ourselves about the 25% stake is what is the value to the State in retaining it. Do we get a dividend from it? No, we do not. Does it give us any control of the company? No, it does not. We saw that when Aer Lingus pulled out of Shannon. For example, does it allow us to hold on to the Heathrow slots? No, it does not because one needs a 30% vote at an extraordinary general meeting to do that.
The issue of leave and return of employees arose in Aer Lingus where the company found itself paying a lot of money to the Revenue Commissioners because of this strange arrangement it had concerning leave and return. I met the three Government-appointed directors of Aer Lingus on this issue and they could not tell me about it because it is a secret, even though we own 25% of the company. That gives the Deputy an idea of how valuable the stake is.
The Minister said he was in negotiations with the troika in terms, and I agree with him, that any capital raised should be put back into the economy. Does the Minister have any timeframe as to when we will know whether or not it is agreeable tothat?
That is probably more a question for the Minister for Public Expenditure and Reform, Deputy Howlin, or the Minister for Finance, Deputy Noonan, than for myself. In the programme for Government, however, we are supposed to agree a list of assets to be sold in October-November, so I imagine it will be in that kind of timeframe.
I acknowledge that we have 25% of Aer Lingus but we should have full ownership. We should not have got to this point where we have allowed a private company to have more than the State's stake in what was a State-run company. I do not think we should be selling off the rest of our State assets. It is short-term thinking. We have a profitable airline which has delivered great value to the Irish people, not just in terms of jobs but also in tourism and what it has given to the nation.
It will be a great surprise to people that the State's 25% stake in Aer Lingus is what the Minister says it is. It was sold on the basis that the 25% would protect the airline and keep it in State control. The key benefit of having that control — I would like to hear the Minister's opinion on this — is that as an island nation we will not have to depend on a private business to run our airlines. We need those strategic assets to run our country and should not sell them off to the highest bidder.
Aer Lingus is a private company and so is Ryanair. Therefore we do have private companies that control air access to Ireland. That is already the case. It is also the case for Britain, for example, where British Airways and British Midland are not owned by the State. It is not that unusual and I am sure it is also the case for other island nations.
It may well have been the case that at the time of the sale of the 75% stake in Aer Lingus, the remaining 25% stake was held for strategic reasons but it did not turn out that way. We saw that when Aer Lingus pulled out of Shannon some years ago and there was nothing the then Government could do about it. As regards the Heathrow slots, we know now that the 25% stake is not enough to block sales. One would have to form an alliance with other shareholders to do so. In addition, the slots are not as important as they were in the past.
In terms of getting information from the company, although we own a 25% stake we cannot even see the report on leave and return of employees because it is a secret which the board is keeping to itself. That gives the Deputy a rough idea of the value of holding that stake.
10 Deputy Mick Wallace asked the Minister for Transport, Tourism and Sport if he has been notified of an application by Wexford County Council for an additional €3 million in funding for the Oilgate to Rosslare motorway project, County Wexford; the action he will take regarding such an application; and if he will make a statement on the matter. [26565/11]
As Minister for Transport, Tourism and Sport, I have responsibility for overall policy and funding of the national roads programme. The planning, design and implementation of individual road projects is a matter for the National Roads Authority under the Roads Acts 1993 to 2007, in conjunction with the local authorities concerned.
Within its capital budget, the assessment and prioritisation of individual projects including the N11-N25 Oilgate to Rosslare Harbour scheme is a matter for the NRA in accordance with section 19 of the Roads Act.
In the overall context, the Deputy will be aware that a comprehensive review of capital spending is now under way, the results of which will form the basis for a new national development plan. The review will also take account of new funding realities. A major priority will be to ensure funding to protect and maintain the investment made to date and to maintain safety standards. It is clear there will be little scope to advance, in the short to medium term, many of the infrastructural projects currently in planning.
Given that the allocation of the funding referred to by the Deputy is statutorily a matter for the NRA, I will refer the Deputy's question to the NRA for direct reply. I ask him please to advise my private office if he does not receive a reply within ten working days.
The Minister will know that €2 million of taxpayers' money has been expended on choosing the route for a road we cannot afford to build. A 300 m corridor is currently in place. In the parish of Crossabeg alone, on the north side of Wexford town, 60 houses and 30 landowners are not in a position to move or sell their properties because of the proposed motorway. That 300 m corridor, for all practical purposes, is sterilised and it is impossible for the people concerned to sell anything. This is a significant problem, given that the motorway, if it is ever built, is a long time away.
As regards the matter of the €3 million, Mott MacDonald were the consultants hired to report on the viability of building stage three of the project to reduce the corridor and they will also be doing the work. These guys were given the €2 million in the first place and they will get the €3 million next time. If any area is to be sterilised, the locals would prefer an area of 60 m rather than 300 m but the most favourable option would be to have no sterilisation.
I understand the point made by the Minister and I agree that a shopping centre should not be permitted within this 300 m corridor — that is fair enough — but the notion that houses and land are sterilised and frozen in this chosen area is a bit outrageous when it is probable the motorway will never be built.
I am conscious of the difficulties that arise in this case. This is a very wide corridor of 300 m to 400 m, which if narrowed down to a more precise corridor would make life easier for many of the landowners in the area. I can understand their predicament. Unfortunately, there are about 20 other roads in a similar position and if I spend €3 million to narrow a corridor on each of these roads, this would cost €30 million or €40 million. I question if this money would be well spent in narrowing a big corridor down to a smaller corridor or whether that money would be better spent building a bypass which would make life better for a whole town or whether it should be spent on road maintenance. We will struggle to afford the maintenance costs in the coming years. It is my judgment call whether to spend €20 million to €40 million in the next number of years to employ architects, planners and consultants to narrow corridors or to spend it on maintaining roads and building bypasses.
I would not blame the Minister for not spending €3 million in narrowing the corridor but to be fair to the people who live in the 300 m corridor, will he agree this land should not be sterilised? It is very unfair to leave it sterilised for such a long period of time. There are too many citizens involved, with 60 houses and 30 landowners in this one parish and a great number of people are affected. It is unfair to them. This is an NRA project and the Government should decide that none of the land should be sterilised. I would not blame the Minister for not spending €3 million.
I do not think the area should be sterilised. In my view, the NRA and the local authorities need to be pragmatic when it comes to planning applications in cases such as this. Both my Department and I will need to study this aspect more closely. It is the case in the UK that the rules are quite different and people can claim planning blight and say that the authorities there cannot hold reservations of land for such a long period, that they must either buy the land or leave the landowner alone. We will need to do some work in that regard to see what options exist.
Question No. 11 answered with Question No. 9.
12 Deputy Aengus Ó Snodaigh asked the Minister for Transport, Tourism and Sport the way he will ensure sports funding will prioritise projects which increase participation in sport on a local and national level; and if he will make a statement on the matter. [26501/11]
The programme for Government provides that "In future sports funding should prioritise projects which further greater participation in sport on a local and national level". I will be keeping this commitment in mind in the context of the allocation of any future sports funding.
The sports capital programme has transformed the sporting landscape of Ireland with improved facilities in virtually every village, town and city around the country. The facilities funded range from new equipment for the smallest clubs, to regional multi-sport centres and national centres of sporting excellence. Almost 7,500 allocations have been made since 1998, bringing the total allocations in that time to over €743 million. These grants continue to play a pivotal role in ensuring the provision of modern, high quality facilities around Ireland which attract more people to participate in sporting activities.
Regarding the current expenditure funding for sports programmes, I can inform the Deputy that the Irish Sports Council has a statutory responsibility for the promotion and development of sport in Ireland. One of the central functions of the council, and a key pillar in its statement of strategy, is to increase participation rates in sport. Since its establishment in 1999, funding of almost €416 million has been provided to the Irish Sports Council towards initiating, developing and enhancing a wide range of programmes aimed at increasing participation and raising standards in Irish sport. A further amount of €46.8 million has been provided this year. The allocation for this year will allow the Irish Sports Council to implement the commitments in its strategic plan to increase participation in sport and to improve the levels of performance by our elite athletes in world-class competition.
I thank the Minister of State for his reply. I was struck by the simplicity of the Sport England plan to deliver an additional 1 million people doing at least 30 minutes of sport three times a week by March 2013. This is a target which people understand and to which they can relate. Naturally, such a target requires a substantial plan. Does the Minister of State think the Irish Sports Council could have a similar strategy? Would funding be available as well as strategic and delivery timetables for increasing participation levels in sports? What level of co-operation would be put in place with primary and secondary schools and colleges?
Since this Government came into office, this Department has introduced initiatives to allocate funding to local authorities in particular. I refer to initiatives under the sports capital programme which are to help local authorities to provide facilities in areas where sporting organisations are not established. I refer to Mugga Parks where children can play volleyball or basketball. The Department allocated €1.2 million to the Irish Amateur Boxing Association. This association has provided facilities to young people over many years and may not have received sufficient funds from other sources and the sports capital programme. The association will administer the fund.
The swimming pools initiative is an upgrading of swimming pools in order to encourage more people, in particular people with disabilities, to avail of them. The local authorities have made the applications and we have spread that funding around the country. In all fairness to the Department, we have looked at areas which in the past may not have received the required funding. We are targeting areas where the facilities may not exist and to which they are entitled.
It is hoped to publish a new strategy to outline the Government position regarding the targeting of sport so more people will be encouraged to participate. A recent survey showed that 15% of the population do not take part in any kind of sport. This is bad for themselves and for their health. We would not need as many doctors, hospitals or surgeons if people would do the simple things, such as walking, cycling or such like. We are targeting these areas.
Does Deputy McLellan wish to ask a supplementary question?
No, I thank the Minister of State.
13 Deputy Brian Stanley asked the Minister for Transport, Tourism and Sport his views on public transport and the State’s role in its provision; and if he will make a statement on the matter. [26573/11]
In accordance with the programme for Government, I recognise the need to rebalance transport policy to favour public transport. The public transport system will play a critical role in supporting a return to sustainable economic growth, the maintenance of a competitive environment for investment and addressing the challenge of climate change.
The Dublin Transport Authority Act 2008 enabled the granting of contracts for public service obligation, PSO, services on a direct award basis to Dublin Bus, Bus Éireann and Iarnród Éireann in respect of existing services and on a public tender basis for new services. The direct award contracts with the bus companies apply for five years and ten years in the case of rail. At the end of the five or ten year period, the NTA has discretion to renew, modify or terminate the direct award provision of services following a consultation process with interested parties under which the NTA is obliged to justify its approach. In November 2010, the NTA published new guidelines for the licensing of public bus services which set out the basis for a reformed licensing system for commercial bus passenger services in the State. The guidelines identify commercial bus passenger services as a key part of public transport services in the State.
In accordance with the commitment in the programme for Government to explore the benefit to the public transport passenger of more diverse bus service provision, I will consult with my ministerial colleagues on the future options for procurement of PSO bus services once I have completed my examination of the options.
Ideologically, I am opposed to the way the Government handles public transport. I believe it should be run by the State and the companies. Up to not long ago, that was the case but, unfortunately, we have seen a drive towards privatisation, which is a problem for citizens across the board. It is clear also that public transport has suffered badly in terms of Government subsidies and Dublin Bus is the least subsidised service in Europe. The Minister of State has acknowledged in the past that we are under-subsidised significantly in this area.
Recently, there have been cuts in various routes in Dublin Bus. Has the Minister intervened in any way to stop the cuts that have been taking place in Dublin Bus? This is a significant issue. Communities all over the north west of Dublin and across the city have seen huge cuts in their services. We keep kicking the blame around and blame the transport authority and others, but the Minister of State should demand a proper transport system is delivered and not allow Dublin Bus shut down services.
It is a benefit that the Labour Party is in government and that a Labour Party Minister of State has responsibility for public transport. We are fully committed to public transport and maintaining public services. This is the bedrock of what the Labour Party stands for and I hope the Deputy appreciates that.
With regard to Dublin Bus, as I have said previously, we are looking for efficiencies and because of this there will be an issue with the PSO over the next few years. That said, we will try to maintain services as much as possible. No doubt there will be issues, but there are some good news stories. There is good news with regard to technology, passenger numbers and interconnections with services like the DART. These good news stories will help push up passenger numbers and ensure the change in the level of subvention that must take place in the next few years will be minimised. The problem is we are facing a difficult position.
I acknowledge the good news with regard to the DART. There is no doubt that there has been a big increase in passengers but I have noticed that since the changes have taken place in Dublin Bus, traffic has multiplied in some areas. This morning the traffic queues on the back roads into Finglas were very long. This is because of the cutbacks. Ordinary areas have been cut out of the Dublin Bus service area and people are now using their cars. This is a negative development. The Minister of State should talk with Dublin Bus to prevent this. The same issue has arisen at public meetings I have attended.
I will mention a statistic brought to my attention recently by Dublin Bus and the National Transport Authority. The changes that have taken place with regard to the network and many of the routes have seen a significant increase in passenger numbers. There may be issues in some areas, but in others we have seen increases in passenger numbers. We will use every avenue we can to try and get more people to use the Dublin Bus service because it is one of the most beneficial and efficient ways to travel.
Question No. 14 answered with Question No. 6.
15 Deputy Michael Colreavy asked the Minister for Transport, Tourism and Sport his views on providing public house owners in isolated rural areas with taxi licences; and his plans in relation to same. [26575/11]
35 Deputy Gerry Adams asked the Minister for Transport, Tourism and Sport when the findings of the taxi review group will be published; and if he will make a statement on the matter. [26566/11]
43 Deputy Michael Creed asked the Minister for Transport, Tourism and Sport his views on whether it is fair and equitable that, based on an arbitratory criterion, that is, taxi licence number, that some licenceholders are not allowed to drive a taxi that is more than nine years old notwithstanding the fact that it can pass all of the relevant road safety tests; regardless of the review under way into the taxi business, if he will immediately end this arbitratory practice; and if he will make a statement on the matter. [26432/11]
I propose to take Questions Nos. 15, 35 and 43 together.
Specific proposals such as providing taxi licences to public house owners in rural areas or determining vehicle standards that apply to taxi licences are currently matters which fall within the responsibility of the National Transport Authority, NTA, which regulates taxi services under the Taxi Regulation Act 2003.
The NTA revoked the "nine-year rule" relating to those renewing their standard taxi and hackney licences in 2011 who had applied for their first vehicle licences prior to 1 January 2009. The NTA also undertook a review of relevant vehicle standards for SPSVs, which has included a public consultation process. The aim of the NTA reform proposal is to improve the quality of service, comfort and safety of all passengers and drivers and its conclusions when finalised by the NTA will, in turn, also be considered by the taxi regulation review, which I chair.
The review of taxi regulation is examining all aspects of taxi regulation and will make specific recommendations on matters such as licensing, enforcement, vehicles standards, supply issues in rural and urban areas and future dialogue with the taxi sector. The review will enable the necessary further reforms of the sector to allow consumers to have confidence in the taxi system, while also ensuring that legitimate and competent operators and drivers will be rewarded for operating fairly under a regulatory framework that is adequately enforced. Good progress is being made by the review steering group and I hope to report to Government on the recommendations of the review in November. Subject to necessary approval of the review recommendations by Government, I then expect to make an early announcement of the outcome of the review
I am glad to hear we will have some information from the taxi review group in November. This is an important issue in terms of rural communities and how they operate and I will attend the Oireachtas committee to hear what is said. I hope the Minister of State will give specific consideration to the issue of the problem in country areas. I am aware there are significant problems with regard to taxi regulation and I have made a submission to the review group which I hope the Minister of State will take on board.
I thank the Deputy for his comments. There are specific issues with regard to rural Ireland. The issues that relate to the taxi and hackney industry in Dublin, Cork, Limerick or Waterford do not relate to the area from which I come, where there are no taxis. This issue is completely different. It is about creating a service that will work in both urban and rural areas and in order to do that we must look at the whole licensing process. We are doing that.
16 Deputy Richard Boyd Barrett asked the Minister for Transport, Tourism and Sport if his attention has been drawn to the significant threat to jobs, pay and conditions among a company (details supplied) and Dún Laoghaire Harbour Company employees at Dún Laoghaire Harbour, as a result of the decision by the company to downgrade its ferry service at the port to seasonal status and cost cutting measures being sought by Dún Laoghaire Harbour Company; and if he will make a statement on the matter. [26618/11]
204 Deputy Clare Daly asked the Minister for Transport, Tourism and Sport if his attention has been drawn to the significant threat to jobs, pay and conditions among a company (details supplied) and Dún Laoghaire Harbour Company employees at Dún Laoghaire Harbour, as a result of the decision by the company to downgrade its ferry service at the port to seasonal status and cost cutting measures being sought by Dún Laoghaire Harbour Company; and if he will make a statement on the matter. [26723/11]
I propose to take Questions Nos. 16 and 204 together.
Officials from my Department maintain regular contact with the ports and various shipping companies and have been kept apprised of Stena Line's most recent adjustments to its services. Stena Line, as a commercial company, has taken a decision to introduce greater efficiencies and reduce its overall operating overheads in order to continue to provide services from Dún Laoghaire. The HSS Stena Explorer, operating on the Dún Laoghaire-Holyhead route, generates most of its turnover between May and September. This coupled with high fuel costs leaves the remaining months unsustainable. The company will continue to operate the route on a seasonal basis and services on the route are scheduled to resume in April 2012. Passengers and freight customers can still avail of the company’s route between Dublin Port and Holyhead. This route is served by two vessels and the company operates a year round schedule.
As the HSS Stena Explorer is a UK flagged vessel, I have no function in regard to employment on board the vessel but I understand that the company has commenced consultations with its staff on board the vessel and those on shore in Dún Laoghaire and their trade union representatives.
Over recent years the Dún Laoghaire Harbour Company has been restructuring its business to keep it on a sustainable financial footing and to enable the harbour to develop and operate on a commercial basis into the future. This has inevitably led to job losses. The company has also over the past number of years pursued a twin strategy of developing alternative income streams from marine leisure and tourism related business, while also reducing its high cost base. The company has recently published a draft masterplan for public consultation for the future development of the harbour.
I appeal to the Minister to put as much as pressure as he can on Stena Line to pull back from downgrading to a seasonal service from Dún Laoghaire because the Government has committed itself to developing tourism infrastructure and if we do not have a proper year round service in Dún Laoghaire, it will make a mockery of efforts to improve the such infrastructure. It has always been a vital route in and out of the country and I do not believe for a minute that it is unviable. Fuel costs could be reduced by using a different ship. The ship being used currently has particularly high fuel costs.
There are also questions relating to the workforce. The negotiations referred to by the Minister followed the company telling the entire workforce that it would be made redundant, despite saying it would maintain a service. The workers should get a commitment that in so far as services are maintained, their jobs, pay and conditions will be maintained.
With regard to the harbour company, all the cost cutting is being inflicted on the workforce via job losses and demands for swingeing pay cuts. On the other hand, there is seriously milking and abuse of expenses by harbour board directors. I do not have time to go through the figures but I ask the Minister to look into this. It is the subject of a later question that we will not reach but there are serious questions to be answered about board directors abusing travel expenses. For example, one claim was for €1,300 to travel to a meeting in Dún Laoghaire from Cork. There are eight meetings a year and now someone is claiming expenses from Dubai.
I have not yet met representatives of Stena Line but I will make contact with them to put whatever pressure I can on them regarding this route but a service is provided all year round from Dublin Port, which is 20 minutes up the road. Stena Line is withdrawing the service from Dún Laoghaire because there are not enough passengers to sustain the route, given the costs associated with operating a fast boat with high fuel costs while carrying few paying passengers.
I was only made aware of the other issue raised by the Deputy in the past few days by his constituency colleague, Deputy Mary Mitchell O'Connor, and I was in touch with the chairman of the harbour company yesterday about it. I understand that expenses for attending board meetings from overseas are being repaid.
There is more to it than that. This person is still on the board. For example, according to the profit and loss account, in 2007, when the same director was living in Dalkey, he claimed €458 in expenses to travel to Dún Laoghaire eight times a year. In 2008, when he was living in Cork, he claimed €1,300 per meeting to travel from there. The fare for a return train journey to Cork is €71 and it costs €25 for a taxi from Heuston Station to Dún Laoghaire and probably a similar amount for a taxi in Cork. That totals approximately €170, yet he claimed €1,300. In February 2009, the chief executive officer used the company credit card to pay for dinner and accommodation in the Royal Marine Hotel for guests, partners and so on, even though most of them lived in the Dún Laoghaire area. A sum of €450,000 was paid to consultants for fantastic, unrealisable plans. This equated to a cost of €10,000 per day to a company that is losing the same amount per day but the workers are being asked to take swingeing pay cuts. Will the Minister look into this? It is unacceptable. Jobs are being slaughtered while people at the top are abusing expenses.
Deputies would not claim expenses like that.
It is incorrect to state the company is losing €10,000 a day. However, I would like the Deputy to send me the information he has and I will look into it because we cannot have a situation where the board of a company is behaving in one way when it expects its staff and others to make sacrifices to save the company. I had to deal with a similar issue in the Dublin Airport Authority and I will deal with it as well in Dún Laoghaire if need be. I ask the Deputy to forward the information because I want to know it.
The Deputy claims €12,000 a year to travel between Dún Laoghaire and Dublin. I am not sure how much the train costs but it is much less than that.
I do not use that money; it goes into a campaign fund.
Written Answers follow Adjournment.
