Public transport reform and privatisation
Ó Caoláin said the Tánaiste’s comments on privatisation had prompted SIPTU to withdraw from talks, and sought assurances for transport workers and the public. The Taoiseach hoped SIPTU would return and favored negotiated transport reforms involving CIE, Government and unions.
As a direct result of statements made to the media by the Tánaiste, Deputy Harney, in the course of her weekend conference, SIPTU has withdrawn from negotiations on the next phase of the Sustaining Progress agreement. The Tánaiste said in the course of the interview that the future of the Fianna Fáil-Progressive Democrats coalition would be in doubt if the Progressive Democrats' agenda of wholesale privatisation of the public transport system were not pushed through. The Tánaiste made no reference whatsoever to the matters concerning the existing workforce in our public transport service in all its shapes and guises. Her utterances have cast doubt on the Taoiseach's assurances to the sector, which brought SIPTU back from the brink of industrial action.
The Taoiseach stated here last summer that he was increasingly not a supporter of the privatisation of semi-State companies, even if that was not the view of his colleagues. Has that position changed? Does the difference between the Fianna Fáil and Progressive Democrats members of the coalition that his commentary pointed up still hold, or is there, as a colleague is suggesting, now no difference at all? Who now determines Government policy on privatisation? Has the Tánaiste raised this matter directly with the Taoiseach and indicated as clearly as in her utterances that she would be prepared to bring down the coalition if her Thatcherite agenda were not pressed ahead with? Did the Tánaiste or the Progressive Democrats indicate at any time that the failure to deliver on the promised ending of hospital waiting lists, the proposal, also reneged on, to extend medical cards to a further 200,000 people or the issue of the 130,000 people currently on housing waiting lists throughout the jurisdiction would cause them to leave the coalition?
Comment on this
I hope the leadership of SIPTU continues in the talks on the second half of the national wage agreement. I hope that will be the case. I understand their concerns. In line with An Agreed Programme for Government, the Government's position on the future of the commercial State companies has been made clear during a series of contacts — in person and in writing by myself and other Ministers — with the Irish Congress of Trade Unions and with the SIPTU leadership, throughout the course of Sustaining Progress and throughout the lifetime of this Government.
The Government's commitment to the role of the semi-State sector in providing world-class services at a competitive price to the consumer, with a viable long-term future for individual companies based on the most appropriate form of ownership structure and particular needs, remains unchanged. The principles laid down in my letter at the commencement of the Sustaining Progress talks also remain unchanged. These principles are: the need for a strategy for sharing information and analysis about issues and options facing each company in the sector within which it operates; systematic learning from the experience of other countries, as a guide to dealing with the issues which may arise; sharing the Government's thinking at the earliest appropriate time; basing policies in all cases concerning the public interest — and in particular that of meeting the needs of the people — on how to achieve the desired effect without any ideological assumption as to which corporate structure or strategy best meets the objective; and basing this engagement on a recognition that the public interest is best served by a culture of innovation, flexibility and cost effectiveness in the operations of State companies. I made that clear to them at the start of the talks.
Over the last fortnight I have made clear that information would be shared and appropriate time for consideration given as regards future plans for CIE and Aer Rianta. We obviously want to get on with that and the proposed legislation will be introduced in the next Dáil term. There are difficulties in some sectors of industry, domestically and globally. This is equally true of the State sector. There is clearly a great deal of sensitivity on all sides about possible changes. We have to deal with that. There is the issue of An Post, which is with the Labour Relations Commission. Needless to say, we want everyone to look towards long-term viability and to try to resolve the issues. The times of change are also exciting. I understand that they can appear threatening to some trade unions and their members. However, we want to work with them on these major issues.
The answer to much of the uncertainty that surrounds the future of Aer Rianta, CIE and other State companies is to be found in the dedicated talks process that has been set down. The framework for partnership continues to offer the best environment for dialogue around the future of the State companies. This is one which I hope, on reflection, is possible for all parties to participate in. I acknowledge the good work that is going on in the transportation study and on some of the other issues. The future of the State sector is closely linked to the health of the wider economy. I hope the pay talks which have a crucial role in restoring our competitiveness and maintaining employment across the sectors, will continue and that SIPTU will be involved in that.
Comment on this
I thank the Taoiseach for his reply but one of the first questions that his response must prompt is whether he is less or more supportive of and an advocate for privatisation. That clarification is required. Does he not accept that the last thing the public transport system needs is plundering by privateers who will be out to cherrypick the most lucrative and profitable areas to the detriment of all? What assurances can he give, not only to the employees of the various sectors under the CIE umbrella, but to the public who depend on it, that the public transport system in this State will not only be maintained, but invested in, to ensure that we have a fully-integrated, effective and efficient service? Will the Taoiseach say whether, in the course of handing over the policy making role to the PDs within his coalition, if he has also handed over the title of "the republican party" as Deputy McDowell has proclaimed himself as the only and the greatest republican in the land and Fianna Fáil has erased it from its title?
Comment on this
I remember the people in my constituency in County Louth having to take the bus across the Border.
Comment on this
Will the Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern, allow the Taoiseach to speak without interruption, please?
Comment on this
The discussions on the reform of the transport system under the 1932 Act are in the transport framework. I hope they come to a successful outcome. Deputy Ó Caoláin will be well aware that the issue of the opening up of transport is taking place worldwide and that is inevitable. We saw it last year with rail. The agreed reforms are best carried out between the CIE management, the Government and the unions. That is the best way to reach agreement and that is what I am in favour of. The negotiating parties are making good progress.
As regards the other State companies, my view is that the issues should be reviewed on a case-by-case basis. In some areas, the management, workers and the Government would be in favour of opening up a particular sector for investment. That can be the best solution for the State company concerned. In other cases, I would not agree with that course of action and believe they should be retained in State ownership. However, there must be flexibility as regards change. State companies cannot just remain static. They have not done so, by and large, over the last 30, 40 or 50 years. They must always be braced for reform. Each situation must be looked at on a case-by-case basis and the best strategy at the time for the company should be pursued.