Dáil Éireann Debate, Wednesday - 28 March 2012
5Deputy Richard Boyd Barrett asked the Minister for Transport; Tourism and Sport if the cuts to the Luas services and previous cuts to bus services in and around Luas lines will mean that the public service obligation in terms of transport will still be met; and if he will make a statement on the matter. [16848/12]
Amharc ar fhreagraThe operation and provision of bus services is a matter for Dublin Bus in conjunction with the National Transport Authority, NTA. The operation of the Luas service is a matter for the operator, Veolia Transdev, in conjunction with the Railway Procurement Agency and the NTA.
Each year, funding is provided for socially necessary but non-commercial public transport services in Ireland. In the case of Dublin Bus, the funding of PSO services is governed by a public transport contract with the NTA, which the company entered into in December 2009. The contents of the contract, such as the level of service to be provided and the basis for maintaining it, may be reviewed at any time by the NTA in consultation with Dublin Bus.
As the Deputy is aware, there have in recent years been revisions to the network and level of services provided by Dublin Bus. Some of these revisions have increased public transport numbers and were aimed at achieving efficiencies and implementing the recommendations of the 2009 Deloitte cost and efficiency review which identified some scope for greater efficiencies in Dublin Bus. The final range of network adjustments will be completed during 2012. The objective of the redesign of the bus network was to provide current and future bus customers with a service that will be modern, accessible, integrated, easy to understand, punctual and frequent.
I am supportive of the efforts of Dublin Bus to achieve greater efficiency and effectiveness. Given the losses recorded by it in recent years and having regard to unavoidable constraints on the availability of Exchequer funds for PSO subvention, it is important that Dublin Bus continues to deliver greater efficiency and effectiveness to safeguard the overall sustainability of public transport services in the future.
No PSO subvention is paid for the operation of the Luas services. However, the level of income generated from passenger and other income has in recent times not met the cost of operation of services. As a consequence, Veolia Transdev, in consultation with the RPA and NTA, has planned for some service adjustments. I understand that the main adjustments will be in the off-peak periods on the parts of the network that are not heavily utilised.
The question revolves around the planned cuts to Luas and the spill over impact in this regard on bus services running off the Luas line. I was surprised that some of my other questions on Luas were ruled out of order. I do not understand why the Minister or Department of Transport is not directly responsible for the provision of Luas services and so on given that is the function of that Ministry.
The €1.5 million in cuts will result in seven drivers and four inspectors being taken off the new Luas extensions to Cherrywood, Sandyford, Brides Glen, Saggart and the city. The Minister of State stated the main adjustments will be during off-peak periods. Perhaps he will tell us what will be the level of reduction in services. Currently, off-peak there is a Luas every 15 minutes. I have heard from people working on the Luas that in future off-peak there will be a Luas every half hour. Perhaps the Minister of State will clarify if this is the case.
This is not good. The Government constantly speaks about the need to create the conditions for employment. Cherrywood is a strategic development zone in which there has been significant public investment.
The fact that Luas services will be cut will hardly encourage people to invest in the Cherrywood strategic development zone. Ticket inspectors have told me that it is really ludicrous to cut their jobs because money will be lost as a result. Just 85% of people currently pay their fares on the Luas. The rate of non-payment of approximately 15% will increase if we do not retain the current number of inspectors. The inspectors argue that their jobs are self-financing. I ask the Minister of State to do something about these unnecessary service cuts and stupid job cuts.
The Luas opened in 2004 and operated at a profit without a subvention every year until 2011, when it operated at a deficit of €3.1 million as a result of the economic downturn. That is why changes and cost savings are now required in addition to the fare increases that have been implemented. Deputy Boyd Barrett is well aware that the Luas lines were extended into the Cherrywood and Citywest areas. Unfortunately, the planned residential developments in those areas have not materialised. As a result, the projected passenger numbers have not materialised. The Railway Procurement Agency is working with Veolia on a new service level agreement that will ensure cost savings are made in the future. Obviously, we do not want this service to continue at the same level of loss. As part of that, a number of people will lose their current roles. The company is examining its wider operations to see whether these people can be facilitated in its broader areas of work. The changes in service levels mentioned by the Deputy will relate mainly to off-peak periods - early in the morning and very late at night. There are no plans to provide for half-hour gaps in service as suggested by the Deputy. In some cases, we are talking about increases of four or five minutes. The service levels and the frequencies that are changing will mainly affect those areas where planned extensions took place. We need to be able to deliver a service at a frequency level that continues to work for the majority of passengers.
Any reduction in service is hardly a good signal to send to potential investors in areas like the strategic development zone at Cherrywood, which is supposed to be a hub. Given that it was projected that 5,000 jobs might be created there, it is a very bad signal indeed. The Minister of State did not respond on the question of whether the inspectors are self-financing. According to the inspectors, there is an absolute connection between their presence on Luas services and the revenue that generates, in terms of the fines they issue and their role in encouraging people to pay their fares. Following a change that was made last year, the 63 bus service from Kilternan no longer goes to the city centre. That change was justified on the basis that the presence of the extended Luas line offers an alternative way into the city centre. The retrograde cut in off-peak services will affect the ability of pensioners, the unemployed and others who depend on such services to avail of public transport links.
If the Deputy knows a way of getting another 5,000 people employed in that area, I am sure the operators of the Luas will consider providing more frequent Luas services to the area. Obviously, that would be a huge development. The operators are working in conjunction with the National Transport Authority to ensure the level of service that is provided meets the demand for that service. I believe they are doing that successfully. The changes that are being made at the moment will be customised in accordance with passenger numbers and where it looks like passengers are travelling. I think the frequency level will meet the demand. As part of an integrated approach, the areas mentioned by the Deputy will be served by the Luas working with Dublin Bus.
