I welcome the Minister of State, Deputy Buttimer, who will take the next two Commencement matters.

I thank the Minister of State for attending to discuss the growing concern about public transport in Carlow and Kilkenny. I recently met with representatives of the National Transport Authority, NTA, who outlined their ambitious plans for Carlow and Kilkenny after I raised a long list of concerns that had been brought to me by residents. The NTA representatives outlined plans for improved connectivity, enhanced rural links and climate-aligned transport policy. It is absolutely fantastic in theory, but the issue is that it is all very much theory at this stage. I was told directly by the NTA's representatives that there is simply no funding available to implement their plans. The Department of Transport is not providing any funding for increased public transport infrastructure for rural communities. Without funding from that Department, those commitments are simply aspirations. It would seem that many will remain aspirational when we consider that the Connecting Ireland and all-Ireland rail review capital spend is down €1 billion from the plans adopted by the previous Government. If the overall capital spend is down by €1 billion, how is the NTA meant to deliver when its budget is so severely reduced?

There is no funding to address the new plans, but there is also no funding to address the gaps caused by private providers pulling out. Communities are left dealing with real and immediate service reductions instead of the much-needed enhancements. One of the recent changes last year was to the 717 route operated by JJ Kavanagh & Sons. The axing of key segments of this route through rural parts of Kilkenny, particularly Castlecomer, has had a tangible impact on the people who rely on it daily. As well as being a direct link to Dublin Airport, these are essential links connecting people to their work, education, healthcare and social life and are now gone. Rural communities already face structural disadvantages in accessing transport and decisions like this only deepen that inequality. I have been in touch with the NTA multiple times regarding this route reduction. Following a review, it was deemed a necessary route, which is great, but the NTA told me once again that there is no funding available to fix the gap. If we are serious are balanced regional development, we cannot allow routes like the 717 to be hollowed out and we must provide a public service in its place.

Two weeks ago, commuters heard about the axing of the Expressway route 4 service through local media, which is absolutely the wrong way of doing things. It has caused significant concern for the people who depend on that route daily. The NTA has acknowledged that this route carries a public service obligation. That recognition is important, but I was contacted only last night by a representative from the NTA who told me that any plans to maintain this route will depend on funding availability. The NTA representative also said that it should be noted that any measures proposed to be introduced will depend on funding availability. Can the Minister of State give me a clear and unequivocal guarantee that there will be no break in service and no further cuts to the route 4 service, and that the Department for Transport will provide the funding for its continuation? Anything less risks leaving entire communities isolated.

Rail services present another set of challenges. The Kilkenny to Waterford line, for example, does not provide a viable option for commuters who need to be in Waterford by 9 a.m.

That is a basic requirement for any functioning commuter service, but it is unmet. Capacity issues persist due to infrastructure decisions, including the reduction of platform length in Kilkenny. This has resulted in fewer carriages being used and that is limiting the capacity on commuter trains. I am a regular commuter on this train. I took it this morning and as with most mornings, it was standing room only from Athy onwards to Dublin. This train is always packed. This is an issue that urgently needs to be addressed because limiting passenger numbers at a time when we should be encouraging greater uptake of public transport makes no sense. The lack of late-night train services to and from Dublin on the line is also another glaring gap.

At a time when we are urging people to reduce energy consumption and asking people to shift away from car use, the absence of flexible services sends the completely wrong message. I wonder often whether the people making policy on public transport actually use it. I personally depend on the Expressway route 4 and the JJ Kavanagh route 717 to get to and from the airport. I use it all the time either from Kilkenny or Leighlinbridge. I know how crucial these services are for rural communities but when they are systematically cut, it feels like the people implementing these policies do not take the train or bus. I encourage policymakers and Ministers to do so regularly as part of their commute to address so many of these issues.

Public transport has to be designed around how people live and work, not confined to narrow operating windows that fail to meet demand. Will the Minister of State commit to the continuation and protect the bus route, Expressway 4, that goes through Mullinavat, Ballyhale, Thomastown, Gowran and Leighlinbridge?

I thank the Senator for raising this important Commencement matter, which I am taking on behalf of the Minister for Transport. I will make clear to the House that neither I, as Minister of State at the Department of Transport with special responsibility for rural transport, nor the Minister, is responsible or involved in the day-to-day operations of public transport services.

The decision by Bus Éireann to withdraw some Expressway routes from 24 May this year is a commercial decision taken by the company. While the majority of public transport services in Ireland are delivered under the National Transport Authority's public service obligation, PSO, programme and supported by State funding to the tune of €940 million, which is a 43% increase, as the Senator will know, there is also an important component of the network made up of commercially operated services provided without State subvention. As she also knows, Bus Éireann operates both PSO services funded by the State subvention and Expressway intercity services, which operate on a commercial basis and do not receive any State subvention.

I understand that the recent decision to withdraw from certain services was made following a comprehensive financial and operational review carried out by Bus Éireann regarding Expressway performance over recent years, which sought to ensure long-term sustainability and viability of the semi-State company as a whole. The decision to withdraw these services was due to significant losses that have become unsustainable for their commercial operations. Where a commercial operator ceases a service, the National Transport Authority has a clear statutory role to assess the impact on connectivity. This includes determining whether a replacement PSO service is required to meet identified social and economic needs.

Under European Union law, a public service obligation is an arrangement by which the NTA procures the service of a bus operator through a tendering process. The winning bidder is then obliged to operate a specified bus service for a specified period of time in return for the payment of a subsidy by the NTA. As Members will know, the PSO is aimed at routes that are not commercially viable but where there is a socially desirable advantage to transport being available. We have seen the success of rural link and rural transport across the country as a testament to the commitment of Government to improving connnectivity.

In the context of the question raised by the Senator, I understand that the NTA has completed its assessment of the affected routes, which are publicly available on its website. For example, it has determined that the withdrawal of Expressway route 4 would create a significant service gap and has recommended the introduction of a PSO service on the Carlow to Waterford corridor to maintain connectivity. It is also important to note that following such determinations the NTA must allow a period of time for the market to respond, including the potential for alternative commercial operators to step in. This ensures that any intervention is proportionate and does not displace viable private services. Once this position becomes clearer over the coming weeks, the NTA will respond as appropriate taking into account passenger needs, available resources and the overall funding envelope for PSO services.

Similarly, with regard to other services referred to in the Senator’s question, the route is commercially operated and does not require any State intervention or subvention. While the NTA acts as the regulator for such services, any decision to amend the route is a commercial decision for the company, and as such the NTA's powers are primarily focused on licensing and assessing social need if and when changes occur to the route.

I assure the Senator that I fully recognise that transport connectivity is very important for people who live, work and study in Ireland. As I know quite well, it is key to revitalising our villages, towns and urban centres. Indeed, I have been in Carlow with Deputy Catherine Callaghan and I am due to go back there next week or the week after. I use the bus myself. We have a very good bus service in my city, Cork. The importance of transport connectivity is why the NTA’s role in determining that if there is a loss of connectivity once a commercial route ceases to operate is critical. I assure the Senator that the Minister for Transport, Deputy O’Brien, the Minister of State in his Department, Deputy Canney, and I are very much aware of the importance of connectivity and I thank her for raising the matter.

The Minister of State talked about the market needing to respond. My concern in this regard is that there will be period for which we will have to wait, meaning there will be a gap in service. Effectively, the Minister of State is telling me there will be a gap in service for the affected communities.

We have outsourced and privatised everything in Ireland to the point that nothing is functioning, including this service. We are seeing insufficient-----

We have not privatised everything. The Senator should not say that, to be fair.

We are talking about private routes here. You are saying that the 717 cannot operate-----

Sorry, but the Senator should continue through the Chair.

The Minister of State has mentioned that the 717 is a private service that is going to be cut. We have talked about the Expressway service being a private service that has a public service obligation, but that we have to wait for the market to respond. I understand the market to mean the private sector. The Minister of State might clarify whether the market means something else within this context. My concern is that there will be a massive gap for people. I appreciate that this does not pertain to the Minister of State’s Department but it is a question of rural connectivity. There is a huge gap.

The NTA has told me there is no funding available to fill these gaps, so the Department needs to make a commitment. I do not see that the market, or the private sector, is going to respond in any clear way, since we know that Expressway has already said it is not financially viable for it. Why would it be different for a different provider? What we actually know is that the NTA has said it does not have funding to deal with these routes.

I reiterate that the Government is firmly committed to ensuring that people in Carlow, Kilkenny and elsewhere across Ireland, including those living in rural and regional communities, will have access to reliable, accessible and sustainable public transport options. I refer the Senator to Rural Link and the changes announced last week concerning hackney licences.

Connectivity is fundamental to supporting economic activity, social inclusion, access to education, healthcare and people's overall quality of life. I fully understand the frustration over the withdrawal of certain commercial activities by the operator we have referred to this afternoon. That is a matter for the company itself. There are robust mechanisms in place, through the NTA, to assess and respond to the gaps that may arise. This is how Local Link arose. The PSO framework ensures that where there is a clear social need and services are not commercially viable, the NTA intervenes in a targeted, proportional manner to maintain essential connectivity.

The significant allocation of €940 million for PSO services in this year's budget represents a 43% increase on the previous year and demonstrates the scale of our ambition for connectivity, rural transport and what we have been talking about this afternoon. I thank the Senator for the remarks. I will relay them to the staff in the Department and the NTA.

I thank the Minister of State and Senator Stephenson.