Dáil Éireann Debate, Wednesday - 22 July 2020
81. Deputy Alan Kelly asked the Minister for Transport, Tourism and Sport if his Department has estimated the economic implications of using 50% of passenger capacity in the fleet of private coach operators in terms of the viability of those companies in view of the level of employment they are likely to provide in future; and if he will make a statement on the matter. [17573/20]
Amharc ar fhreagraOver the course of the COVID-19 crisis, my Department has been working closely with the National Transport Authority (NTA) to ensure public transport services continue safety and to plan for capacity as demand for public transport services changes along the course of the Government's Roadmap for Reopening Society and Business.
While the majority of public transport in Ireland is provided by the publicly-subvented bus and rail services funded through National Transport Authority's (NTA) public service obligation (PSO) programme, the public transport system also includes non-subvented bus services provided on a commercial basis by bus and coach businesses of varying size. I understand that about 90% of the commercial bus operators have suspended their services or are providing significantly reduced services at present. My Department has engaged with the Coach Tourism & Transport Council of Ireland (CTTC) on a regular basis in relation to the impact of Covid-19 on licensed bus operators.
The sharp decline in passenger numbers since mid-March this year as a result of the Covid-19 health emergency has caused an unprecedented fall in fare revenues, thus creating a wide gap between the operators' costs and actual revenues. From my Department's engagement with their representatives, and indeed from the NTA's regular engagement with them throughout the crisis, I understand the very difficult business environment that the commercial operators have been facing. Indeed, across Government we are acutely aware that the Covid-19 situation presents huge challenges for many business sectors.
It is critical for the public transport sector to be functioning so that it can carry the passengers that we need to return to work and to other activities as they re-open. Many of these operators provide essential transport services for people who need to get to work and are vital to ensure economic recovery.
For that reason, the Deputy will be pleased to know that on 25 June the Government approved temporary funding supports, in accordance with EU and national legislation, for the licensed bus sector. These supports are aimed at ensuring the continued operation of essential licensed bus services for a period of up to six months. The package will be restricted to operators where a clear public interest justification supports such intervention and will be targeted at compensating the gap between specified costs and the revenues generated on the services. The NTA, as the public transport licensing agency, is responsible for administering funding support through the establishment of contracts between the NTA and the relevant operators.
This is, of course, additional to the wider programme of Government supports introduced for impacted businesses, including new schemes of wage subsidies, rates waivers, re-start grants, lending facilities, equity injection, and business advisory supports for example.
With the commencement of Phase 3 of the Roadmap for Reopening Society and Business on 29 June 2020, changes to the existing public transport social distancing restrictions were agreed, allowing a move from 2 metres social distancing to utilising 50% of the passenger-carrying capacity of bus and rail fleet. This will help to underpin public transport services provided by both public and commercial licensed operators during these unprecedented times, with a view to safeguarding public transport for the Roadmap for Reopening Society and Business. Alongside this change, new Regulations were introduced making mandatory the wearing of face coverings on public transport, with some limited exceptions.
