Dáil Éireann Debate, Tuesday - 29 May 2018
535. Deputy Imelda Munster asked the Minister for Transport, Tourism and Sport the estimated cost of both current and capital investment needed to put Iarnród Éireann on an economically sustainable footing. [23385/18]
Amharc ar fhreagra536. Deputy Imelda Munster asked the Minister for Transport, Tourism and Sport the estimated cost of both current and capital investment needed to put Bus Éireann on an economically sustainable footing. [23386/18]
Amharc ar fhreagraI propose to take Questions Nos. 535 and 536 together.
The Deputy is aware that the taxpayer makes a significant and recurring contribution each year to both Iarnród Éireann and Bus Éireann. This contribution takes the form of both current, Public Service obligation (PSO), funding and also capital funding.
The Public Service Obligation (PSO) funding to transport operators for providing subvented public transport (i.e. bus and rail) services is paid by the National Transport Authority from the current expenditure monies that are made available to the Department's Vote annually as part of the Estimates process. Decisions on the PSO allocations to particular operators are made annually by the NTA having regard to the Authority's statutory role and the PSO contracts that it has in place with each of the individual providers.
I am committed to the public transport system continuing to provide and develop services that are essential for local communities. That commitment is evidenced by the 8% increase secured in Budget 2018 for PSO services across both the bus and rail networks. That means that a total of over €285 million will be allocated in 2018 to support the delivery of these socially necessary but financially unviable services across the public transport companies. Budget 2018 also provided for an increase in the multi-annual capital investment for public transport with a four-year capital envelope of €2.7 billion over the period 2018-2021. This represents a 30% increase over the original Capital Plan allocations for 2018-2021 and includes investment of over €1 billion in heavy rail maintenance and infrastructure.
The Rail Review Report was undertaken jointly by the National Transport Authority (NTA) and Iarnród Éireann and was published in 2016. The purpose of the Review was:
- to look at the existing rail network;
- to identify the funding required both to maintain the network and to provide for necessary capital works;
- and to consider the gap in funding.
Since the Rail Review was published, there have been significant developments in relation to the level of funding available for rail investment and services. The public consultation process held by the NTA following the publication of the Rail Review in 2016 helped to begin an informed discussion about the current and future role of rail transport in Ireland. Over 300 submissions were received in response to that consultation process. The NTA has prepared a report of those submissions, which it recently updated to reflect the increased funding made available in Budget 2018 for both current subvention and, in particular, the Capital Plan 2018 to 2021.
The NTA’s updated report on the consultation was received by my Department in February. I intend to bring the updated consultation report to Government shortly and I would expect that the consultation report would then be published thereafter by the NTA.
In relation to Bus Éireann specifically, capital investment of over €44 million has been provided in the last two years for PSO bus fleet replacement and refurbishment and accessibility projects. In addition, current PSO subvention in 2017 was over €52 million, an increase of 28% on 2016. The Deputy is aware that implementation of last year’s Labour Court's Recommendation is now complete and a review is currently underway between the Company and its employees. I believe implementation of that recommendation can provide for a successful and sustainable future for Bus Éireann.
