Dáil Éireann Debate, Tuesday - 10 February 2015
495. Deputy Brendan Griffin asked the Minister for Education and Skills the way in which Bus Éireann calculates depreciation of school buses in its school bus fleet; if there is a maximum amount that it can depreciate on an annual basis per bus; and the way same is calculated. [5730/15]
Amharc ar fhreagraBus Éireann has advised that depreciation is charged as a direct cost to the Department of Education and Skills in relation to Bus Éireann School Transport vehicles.
Depreciation in this context relates to the amortisation of the capital cost of the vehicles and for the purposes of the direct cost is calculated on the replacement costs, which is in line with the approach agreed with the Department for each vehicle type and its useful operating life. This is the maximum charge that can arise in respect of any vehicle.
Once the vehicle is fully depreciated no further charges arise.
At present the school transport fleet consists of a small number of buses purchased by the Department of Education and Skills but the majority of the fleet was purchased by Bus Éireann. The School Transport Scheme is not charged depreciation in respect of any vehicles fully funded by the Department of Education and Skills.
Vehicles are transferred from road passenger services to school transport services on a planned cascade basis when they are available in order to improve the age profile and quality of the school bus fleet. The depreciation charge takes account of the net book value of the vehicles cascaded to school transport and the date the vehicle was cascaded. The depreciation charge also takes account of any school vehicles scrapped and the date of scrapping.
The depreciation charge is independently reviewed by PricewaterhouseCoopers each year as part of the annual audit process.
