Dáil Éireann Debate, Wednesday - 3 June 2020
934. Deputy John Lahart asked the Minister for Transport, Tourism and Sport the financial position regarding the CIÉ group of companies; the changes that have been made to the public service obligation as a consequence of Covid-19; and if he will make a statement on the matter. [9050/20]
Amharc ar fhreagraIn common with businesses across many sectors, the operating and business environment of the CIÉ Group of companies has been significantly impacted upon by the Covid-19 health emergency.
From mid-March onwards the Group experienced a significant reduction in passenger volumes in its transport businesses, and as a consequence, a sharp fall in fare revenues. Since the beginning of the health emergency, Government has recognised the importance of public transport and designated it as an essential service that has carried on throughout, enabling many essential journeys and bringing essential workers to their jobs. As we move forward, public transport is continuing to play an important role in supporting the Government's Roadmap for Reopening Society and Business.
Obviously, the fall in passenger numbers and the consequent fall in fare revenues, is putting acute pressure on the National Transport Authority's (NTA) Public Service Obligation (PSO) budget for this year, which we are working to address. We have enabled the NTA to drawdown the annual allocation so as to reimburse PSO contract operators - including those in the CIÉ Group - for the gap between their costs and revenues on the PSO services they provide. I have also been clear that we will ensure that the PSO is appropriately funded. To that end, my Department is working closely with the NTA to quantify the additional funding requirements for the coming months, and we are engaging positively with relevant colleagues across Government in that respect.
Most of the CIÉ Group's turnover arises from its PSO contracts, and will be covered by these measures. The Group also has several non-subvented businesses that operate commercially across a number of transport-related areas. Like other commercial businesses around the country, many of these are very adversely affected too by the Covid emergency. The Group and its subsidiaries are actively managing these businesses under the direction of their respective Boards. The Group companies are also availing of appropriate supports (notably the Temporary Wage Subsidy Scheme) that are available under the package of business assistance measures that the Government has introduced for all business.
