Competitive tendering for bus routes
Gerry Adams argues that opening 10% of public bus routes to competitive tendering amounts to privatisation and threatens workers and communities. The Taoiseach rejects that characterisation, says Bus Éireann and Dublin Bus can bid, and defends the process and worker protections while urging an end to the strike.
The Taoiseach states that it is not fair, just or equitable yet he does nothing. He knows as well as I that there are different ways to govern. One way is to build a citizen-centred, rights-based society with equality for citizens and a right to public services. The other involves an approach whereby it is everyone for himself or herself, where there is little sense of social solidarity and where there are no legal rights or social protections for citizens. This is the vision that Fine Gael and, shamefully, the Labour Party now embrace. Hardly a month passes without further evidence of the Government's destruction of public services and its policy of privatisation in the areas of health, water services and public transport. The Government's plan to privatise bus routes is set to fatally undermine Bus Éireann and Dublin Bus. It is clear the Taoiseach either does not understand or chooses to ignore the fact that in order to ensure an economic recovery which is fair and which leaves no family or part of our island behind, investment in public transport is crucial.
Bus Éireann and Dublin Bus have struggled to maintain vital services but they have actually managed to increase passenger numbers and revenue despite Government cuts. Now, however, those opposite are going to force these public companies to compete with private operators. Buses will in future run as a means of generating profits for shareholders and not as a public service. Those who will suffer will be ordinary workers, students, elderly citizens and families. Privatisation will inevitably drive down the wages of bus workers and will have an adverse impact on their terms and conditions. Will the Taoiseach acknowledge that profit cannot be perceived as the decisive factor in terms of whether the economy of and services on offer in rural Ireland decline further? Will he reverse the decision the Government has taken to privatise bus services?
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I do not accept Deputy Adams's assertion to the effect that the Government has decided to privatise Bus Éireann or Dublin Bus. Nothing could be further from the truth. The position is that the Government - in the context of an economy that is rising - wants consumers and those who use buses to have access to the very best level of service that can be made available.
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As Deputy Adams is well aware, the National Transport Authority, NTA, has a statutory responsibility to judge how best to balance both the direct award and the tendered public service obligation, PSO, services that are socially necessary and that relate to non-commercial bus routes. In late 2013 the NTA, in the aftermath of a wide-ranging consultation process, decided that 10% of the existing PSO bus market should be tendered for. The Deputy will have heard the Minister for Transport, Tourism and Sport very cogently reassure workers with regard to their conditions and their rights in respect of this matter. The NTA was proceeding with the public procurement process while also participating in the process facilitated by Labour Relations Council, LRC, in the context of addressing CIE employee concerns on the implications of this element of the market being opened until a trade union withdrawal on 30 March last. Hence, there has been quite an amount of intensive engagement on employee issues. It is the Government's view that the discussions at the LRC would allow employee concerns to be addressed very satisfactorily. The Minister is extremely clear about that.
As the Deputy is also well aware, introducing competitive tendering in respect of a small segment of the overall number of available bus routes will save the taxpayer money, encourage cost competitiveness and enhance service quality.
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It will also send the service abroad.
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Dublin Bus is perfectly entitled to tender in respect of the 10% of routes to which I refer in addition to those on which it already provides services.
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In Waterford, 100% of services will be privatised.
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Will the Taoiseach support those who go on strike?
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International experience indicates that competitive tendering is beneficial in the context of the provision of subsidised PSO bus services. Bus Éireann and Dublin Bus will both be able to submit bids during the tendering process when it commences in the middle of this year. The two companies in question were paid in excess of €90 million in PSO supports by the taxpayer last year - this amount was over and above passenger fare incomes - in respect of the provision of public bus services.
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A further €90 million was provided to cover the cost of the purchase of new buses and the upgrading of the fleet. The NTA has a legal responsibility in respect of this matter and it set down a 10% requirement in respect of services which are to be tendered for. Dublin Bus and Bus Éireann can tender to provide services on the routes involved. The taxpayer has paid €180 million in order to support this process and improve the quality and quantity of the companies' bus fleets.
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The Taoiseach stated that the Minister cogently spelled out the Government's position. The bus workers cogently informed the Minister that they are going on strike. They do not appear to have been at all humoured by what he had to say. The Taoiseach indicated that there will not be any privatisation, that the market will be opened and that there will be competitive tendering. Given that words are what words mean, there is going to be a 10% privatisation of bus routes. In the Taoiseach's words, there will be competitive tendering for these routes and the market will be opened. He is aware that his Government has made life consistently more difficult for rural communities and the people who live in them. Local post offices and Garda stations have been closed-----
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What about the PSNI in the North?
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-----and the cost of private motoring has increased. The Government is now cutting transport programmes.
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What about the hospital closures in the North?
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It is clear, from what the Minister so cogently spelled out, that 100% of bus services in Waterford city will be privatised.
How long will it take the Government to do the same in Dublin? That is clearly the intention across the State. I will not repeat my opening remarks but it is clear that the private model will not serve the interests of citizens or communities. Will the Taoiseach accept that investing in transport on this island, North and South, is fundamental to the future of the island economy and will he stop the privatisation of public transport routes and the undermining of successful public transport companies? If they were not successful they would not be sold off.
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I do not accept the Deputy's assertion. He deliberately chose to misinterpret what I have said, and what the Minister has very cogently explained. As the Deputy noted, however, these things happen. The bus routes are not being privatised. What is being opened is 10% of the market for competitive tendering.
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It is the same thing. It is privatisation.
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Bus Éireann and Dublin Bus are entitled to tender for that 10% and to win those tenders. I cannot predict the outcome of a competitive tendering process. Last year the taxpayer provided €90 million over and above the income derived from bus services -----
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That is low by European standards.
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----- and a further €90 million in respect of new buses for the fleet. The Minister has given a clear outline in respect of the workers and their rights and conditions. These issues have been subjected to intensive discussion. The strike should be called off. One of the objectives of the Labour Relations Commission negotiations was to enable the vast majority of employees to remain with Dublin Bus and Bus Éireann. In addition, employees who transfer will retain their terms, conditions and pension benefits. This was clarified and agreed by the Minister publicly.
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The competitive tendering process for 10% of the routes will open in mid-year. Dublin Bus and Bus Éireann will compete for those tenders and they may win them because they are already supported by the taxpayer and they have up-to-date fleets. I commend the workers in Bus Éireann and Dublin Bus on what they have done in difficult times. This year is the first time since 2008 that the level of public service obligation subsidy for bus and rail services was maintained at the same level as the previous year. That was not possible in previous years because of the economic situation. I hope the issues can be resolved.