Bus fares and rural operators
Deputy Lowry criticised the exclusion of commercial bus operators from fare reductions and youth travel supports, saying rural passengers were being penalised. The Tánaiste replied that the scheme applied only to PSO services and asked the Finance Minister to contact him about VAT.
The Government's policy of excluding commercial bus operators from the 20% reduction in public transport fares and from the youth travel card scheme is having a detrimental impact on the sector. If you live in an urban area you will get a 20% discount on your bus fares and use your youth travel card. If you do not live on a Bus Éireann route you will pay full fares. Rural passengers are being penalised in their pocket which is adding to their cost-of-living crisis. It is wrong, unreasonable, inequitable and unfair. School transport providers stated last week that increased fuel costs have made their businesses unviable. They cannot guarantee the continued provision of school transport up to June. Further disruption to schools must be avoided. Will the Government consider a temporary VAT reduction for transport operators similar to that introduced for the hospitality sector?
Comment on this
My understanding in relation to bus and public transport services is that if they are PSO services, Government subsidised services, in urban and rural areas that can apply, but where they are commercial services in urban and rural areas and not funded by the State, then it cannot apply and there is no way for us to do that unfortunately.
VAT is obviously a matter for the Minister for Finance. I will ask him to contact the Deputy directly.