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Departmental Correspondence

Dáil Éireann Debate, Thursday - 1 October 2020

Thursday, 1 October 2020

Ceisteanna (88)

Brendan Griffin

Ceist:

88. Deputy Brendan Griffin asked the Minister for Transport his views on a matter (details supplied); and if he will make a statement on the matter. [28017/20]

Amharc ar fhreagra

Freagraí scríofa

Both the National Transport Authority (NTA) and my Department have been engaging directly with commercial bus operators to help inform policy decisions in relation to the public transport sector as we continue to deal with the impact of Covid-19.  

From the Department's engagement with industry representatives and indeed from the NTA's regular engagement with them throughout the crisis, we 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 necessary activities.  Many of the commercial bus operators provide public transport services that are essential for people who need to get to work and are vital to ensure economic recovery.

For that reason, 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 funding is available for operators of public transport routes where the financial intervention is supported by a clear public interest justification, and the funding is 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 the funding support and it is doing this by putting in place contract with the relevant operators.

In addition to this valuable new support scheme for licensed bus services, there is also a wider programme of Government supports for businesses impacted by the Covid situation.  These supports iinclude new schemes of wage subsidies, rates waivers, re-start grants, lending facilities, equity injection, and business advisory supports for example - all of which will help to improve cash flow amongst SMEs.

I am also aware of how badly impacted the coach tourism sector has been by the public health crisis, due to the lack of international tourists and a fall in demand for local coach services. I understand that Fáilte Ireland has been asked to develop a Business Continuity Scheme to help these businesses through this very difficult period. Fáilte Ireland are engaging with the sector to develop this scheme which has been allocated €10m in funding. The scheme is under the remit of my colleague, Catherine Martin, Minister for Media, Tourism, Arts, Culture, Sport and the Gaeltacht.

Finally, the Deputy will be aware that issues relating to the law on Value Added Tax are a matter for my colleague the Minister for Finance.

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