Dáil Éireann Debate, Wednesday - 9 May 2012
3Deputy Joan Collins asked the Minister for Transport; Tourism and Sport his views on whether the National Transport Authority licensing regime and the issuing of licences that introduce head to head running of services on inter-urban routes will have a negative impact on Bus Éireann’s commercial revenue and its attendant ability to fund loss making services. [23346/12]
Amharc ar fhreagraThe Deputy's question relates to commercial bus service licensing by the National Transport Authority and the impact on Bus Éireann services. I have no function in this matter. The responsibility for the licensing of public bus passenger services was transferred under Statutory Instrument No. 566 of 2010 from my Department to the National Transport Authority with effect from 1 December 2010.
The NTA published, in November 2010, 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. These guidelines are available on the NTA's website and include details of the objectives and factors taken into account in considering an application for a licence.
Bus Éireann's Expressway services are subject to this licensing regime. It is important that the company responds to the challenge of increased competition and the drop in demand for public transport services by continuing to enhance the passenger experience including through service improvements, such as the introduction of new and modern Wi-Fi enabled vehicle and improved customer information.
I am raising the issue owing to the concerns of Dublin Bus and Bus Éireann workers who are members of the NBRU who see an increasing privatisation of public transport. The concern is the issuing of licences by the National Transport Authority to the private operators to compete with Bus Éireann on intercity routes, including Dublin to Cork etc., and the commercially viable routes upon which Bus Éireann depends to help subsidise loss-making routes.
The Government's action plan for jobs proposed to examine opening public service obligation routes after 2014. Does the Minister agree this contravenes section 10 of the Public Transportation Regulation Act 2009, which states that consideration be given to the impact proposed new services would have on existing PSO services?
I will first answer about Expressway. As the Deputy is aware Expressway covers interurban services. It is already deregulated and is fully competitive. Bus Éireann has made profits out of its Expressway services in the past. While Expressway is not currently profitable, it could become profitable again. The NTA adjudicates on whether licences are given on those routes. Bus Éireann has expressed concern to me and to the Minister of State regarding the number of licences granted on some of those routes. At the same time the NTA is the regulator making that decision on Expressway and decides the number of routes that are viable. There are differing views among Bus Éireann, the private operators and consumers as to what the appropriate number of services should be.
The Minister should take into consideration the impact of this on the revenue, jobs and service of Dublin Bus and Bus Éireann. It would lead to increased fares, increased subvention, less service and fewer jobs. That needs to be taken into consideration before any further licensing that is granted.
I agree that needs to be taken into consideration. CIE and the CIE companies are State-owned companies. We always take in mind that we want State-owned companies to be successful. It is also important to bear in mind that some of the new intercity private bus services are very popular. Passengers like the quality of service to be very good and find them relatively inexpensive. Of course jobs are created by those services, which means the net number or people employed may be much the same.
On the Deputy's other question, while I do not know that particular section of the Act, the PSO licences for Dublin Bus and Bus Éireann expire at the end of 2014. In line with the action plan for jobs and the programme for Government, the NTA, in conjunction with the Government, is exploring options for offering out those contracts or parts of those contracts to tender, but no decisions have been made in that regard.
