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Rural Transport Services

Dáil Éireann Debate, Tuesday - 2 April 2019

Tuesday, 2 April 2019

Ceisteanna (4)

Michael Harty

Ceist:

4. Deputy Michael Harty asked the Minister for Transport, Tourism and Sport if the tendering process used by the National Transport Authority in awarding contracts for rural transport to companies which are for-profit transport companies as opposed to non-profit community based companies (details supplied) will be examined; and if he will make a statement on the matter. [15436/19]

Amharc ar fhreagra

Freagraí ó Béal (6 píosaí cainte)

My question relates to the awarding of tenders for rural transport to rural transport companies and whether the Minister will examine the tendering process to distinguish between companies which are for profit as opposed to those which are community based and not-for-profit, in particular, companies subcontracting their work out to for-profit providers.

As Minister for Transport, Tourism and Sport, I have responsibility for policy and overall funding in relation to public transport.

The National Transport Authority, NTA, has statutory responsibility for securing the provision of public passenger transport services nationally. It also has national responsibility for integrated local and rural transport, including management of the Rural Transport Programme, RTP, which now operates under the Local Link brand.

The NTA has advised that in 2018 it embarked on a process to procure transport co-ordination units, TCUs, branded as Local Link offices, to manage the contracted bus services funded under the RTP. The NTA's objective was to establish a process for the procurement of TCUs which is fully in line with all EU and national procurement requirements. The Deputy will appreciate that the procurement of TCU's was run by the NTA and I have no role in the process.

I understand that the existing TCU agreements were due to expire on 31 December 2018 and that the NTA concluded that new TCU agreements must be awarded pursuant to a competitive contract process. Under the procurement process, tenderers were permitted to tender for up to four lots out of a total of 20 lots.

The NTA has confirmed that it intends entering into funding agreements for the provision of transport co-ordination unit services to the preferred tenderers.

The NTA has also confirmed that this procurement process will cause no reduction or change in transport services. The impact of the process will be a change in the local level management of the services but not a change in the services themselves. The outcome will allow TCUs to plan for the longer term with greater certainty, as well as ensuring best value for money for public funds. Moreover, it will allow the NTA to define services required and continue to monitor performance in the delivery of those services, as well as protecting the NTA and the TCUs from any potential state aid issues.

The Deputy has specifically referred to for-profit and non-profit companies in his question. The NTA has confirmed that all companies performing TCU duties on behalf of the NTA over the 2014 to 2018 period were registered charities. The NTA has also advised that all the preferred tenderers to perform TCU duties on behalf of the NTA over the 2019 to 2022 period are also registered charities.

The issue of one of quality. Following the tendering process, Clare Accessible Transport has lost the contract and the transport co-ordination unit will now be transferred to west Limerick. The National Transport Authority has responsibility in this regard but my question relates to quality. As a result of awarding the tender to a Limerick company, a very successful model will be broken up; it is demonstrated as one of the most efficient in the country, according to the NTA's report from 2018. The transfer of the co-ordination unit to Limerick will reduce the quality of the service as it was a bespoke service that operated six days per week. A person could book transport one hour in advance and the system was very flexible, allowing buses to go to people's homes to pick them up. The service is 100% disabled-accessible but we are concerned that the transfer of the unit from Clare to Limerick will reduce the quality of the service and interfere with its flexibility. It will not lead to the betterment of patients and people in County Clare.

I thank the Deputy for his intervention. As a human being, I am absolutely sympathetic to what he says and as a representative I can understand his point of view. If he says quality has suffered, particularly with respect to accessibility with some of the buses, I regret that on a personal level. My understanding is this process is carried out by the NTA under European Union rules. As the Deputy knows, this procurement is something in which I cannot and will not interfere under any circumstances. On the other hand, I am perfectly happy to convey what he said to the appropriate quarters so they can be aware of it. As far as I know, the Deputy is not querying the process but rather the result. If he is querying the result, it is a somewhat different area.

I thank the Minister. If Clare Accessible Transport wishes to challenge the decision, it must go to the High Court. These are not-for-profit companies that do not have the resources to go to the High Court if they feel a service is going to be reduced. As I said, Clare Accessible Transport has integrated its transport co-ordination unit with the provision of service through its drivers. The quality of service provided by Clare Accessible Transport is above the national standard but the tendering process does not recognise that fact or that this integrated service is flexible and a community-based service that links with the HSE, disability services, hospitals and the people it transports. This delivers the bespoke service that is required but which is not being picked up in a tendering process. The flexibility and integration elements were not picked up in a tendering process, which is the difficulty for Clare Accessible Transport. It is also restricted in expanding its services. Although it has applied to the NTA to expand and develop new routes, it has had no response from the NTA in that regard. The quality of service and the expansion that it would like to bring about has not been recognised with the tendering process.

My understanding is the impact of the procurement process is not necessarily what the Deputy has said it is, although I do not doubt for a moment his bona fides. My understanding is that as a result of the procurement process, there is no change in the transport services, although there is a change in the management of services at a local level. The procurement service allows TCUs to plan for the longer term with greater certainty and it ensures best value for money for the public purse. It also allows the NTA to define services that are required and properly monitor performance and delivery of the service. It protects the NTA and the TCUs from potential state aid issues. It is an EU-specified procurement process and it must be respected as such. It should be pointed out as well that all the applicants were from not-for-profit companies but they could have come from for-profit companies as well.

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