Mr. Eamon Ryan asked the Minister for Transport his plans for regulation of the Dublin bus market; the arrangements he will put in place to allow for a new bus regulator to review or change existing bus routes; the authority the regulator will have to set service levels on such routes; and the means the regulator will have to ensure such service levels are reached. [30290/06]
?? Minister for Transport (Mr. Cullen): I propose to take Questions Nos. 1, 2 and 5 together.? The Government yesterday made a number of significant decisions which will provide a solid basis for expanded and improved bus services throughout the country over the coming years, while ensuring better value for money for both passengers and taxpayers.
In the case of the greater Dublin area, there is a requirement for an expansion of the number of buses providing scheduled services.? This will require an increase in the total number of buses to approximately 1,800, under Transport 21, with a requirement for at least 200 extra buses over the next two years.? The Government has decided to meet this initial requirement by providing up to ?30 million immediately to enable Dublin Bus to buy 100 additional buses for delivery over the period 2006-2007 and by mandating the proposed Dublin Transport Authority, DTA, to procure the additional 100 buses from the private sector to provide services on new routes.
The 100 buses procured from the private sector will form part of an initiative to facilitate the entry of new, private operators by awarding franchises to operate routes accounting for 15% exclusively to such operators by way of competitive tendering.? Following this period, all new routes will be subject to a competitive tendering process open to all operators.? The precise arrangements will be approved by Government on the basis of proposals from the DTA.? This approach will encourage new investment and innovation in the Dublin bus passenger market.
In the interests of stability and integration of the bus network, the legislation establishing the DTA will allow the DTA to enter into a direct contract with Dublin Bus, in accordance with EU law, on the basis of its continuing to operate without a diminution in the size of its current bus fleet.? The DTA will also enter into contracts with other operators in the Dublin market.? All subvention payments, both to Dublin Bus and to new operators, will be made on an objective, transparent and even-handed basis to maximise value for public money.
The integrated nature of the Dublin bus market will be underpinned through the DTA having responsibility for traffic management strategy, which will prioritise public transport, and for integrated ticketing, fares and information systems.? The DTA will also be empowered to organise the allocation of routes to operators in such a way as to maximise the prospect of efficient operation and the coherent development of the bus network.? It will also be responsible for monitoring the quality and cost of services by all operators and ensuring value for money on all routes.
The Government has also decided to invest up to ?50 million in Bus ?ireann for the delivery of up to 160 buses in the period commencing in 2007 for non-commercial services outside of Dublin.
As part of the Government decision, new legislation will also be brought forward to replace the Road Transport Act, 1932 by a modern regulatory and licensing regime in line with commitments in the programme for Government.? This will be designed in a manner consistent with EU law on public service obligations and State aids and in such a way as to create new opportunities and a level playing field for private operator involvement in the bus market.
The combination of immediate investment in new bus capacity and structural reform to introduce competition and enhance incentives for efficiency, represent a balanced strategy to benefit bus passengers and taxpayers alike.? It follows extensive consultation with interested parties and a study of mechanisms used internationally to achieve efficiency and effectiveness in bus markets.? The Government?s strategy will deliver immediate benefits and secure steady and continuing progress into the future.
The demand for bus services is set to grow substantially over the coming years.? Ongoing economic, population and employment growth, the growth of urban areas and the significant role of bus-based public transport in a sustainable transport system will all drive growth in the bus market.
The Government?s transport investment programme, Transport 21, has already recognised the critical role that an expanded bus service will have in meeting transport needs, including new and expanded feeder services to support a substantially expanded rail network.? In total the programme provides approximately ?770 million for upgrading bus services, with ?530 million being provided for the greater Dublin area and ?240 million for the rest of the country.? The Government has now taken significant steps towards delivering on its commitment.
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?? Mr. Eamon Ryan: The key figure of the Government’s record is that capacity has increased by 40%.? I agree with Deputy Shortall that more buses were promised that were not delivered.? According to Dublin Bus official figures the volume of bus passengers in this city decreased last year while transport numbers increased by 80%.? Is that not an example of the incompetent manner in which this Government has managed our transport system?? Bus passenger numbers decreased at a time when we needed to switch people to buses and they were queuing at the stops, as Deputy Shortall said.
I have three questions for the Minister.? Why, in August 2000 were we able to produce a report on a new institutional regulatory framework for public transport, page 19 of which recommends that within a year we would establish a regulatory authority to do exactly what the Minister has committed to do today?? It was promised six years ago.? What happened six years ago to prevent that from being implemented?? What has been happening over the last five years as that sat on the shelf and Dublin passengers stood on the side of the road?
The new regulator should be given the full strategic role of designing the bus network in this city.? It needs to be radically changed.? We need to leave the 1950s and enter the 21st century.? We require a mesh of bus services and new routes, not just in the expanding communities of which Deputy Mitchell spoke, but in existing areas.? In my own area the 75, 17 and 18 orbital bus routes do not work.? One never knows when the buses are coming and they go all around the world.? We need new orbital bus services to replace those services and provide fast frequency services.? Will the regulator be able to regulate the routes and design the network for Dublin Bus routes as well as the private ones?
I am still uncertain of the Minister’s meaning.? If only 15% of the new routes are to be opened and 100 buses made available to the private sector, the PDs have obviously caved in.? I would like the Minister to explain it in more detail.? What roll-out to the private sector does the Minister envisage?? Will it apply only to new routes?? Will the changes consist only of new private sector routes tagged onto the existing network or does the Minister plan a comprehensive review of the Dublin bus service?? A comprehensive review is needed.
Acting Chairman: I ask the Minister to be brief as we have almost exhausted our time.
Mr. Eamon Ryan: I ask the same respect that other Members got in their responses.
Acting Chairman: I realise that and am trying to do my best.? Two other Deputies are waiting to ask their priority questions.? If Deputies would ask questions without making speeches we would be further on.
Mr. Cullen:? Dublin’s public transport capacity has been greatly increased over the last number of years.
Mr. Eamon Ryan: The number of passengers has decreased.
Mr. Cullen: There has been a significant increase in the number of public transport modes and the number of people using public transport.
Ms Shortall: Only 20 extra buses were provided.
Mr. Cullen: That is the object of the exercise, as the Deputy knows.? The Opposition had no confidence in Luas and said it would never be built but 22 million passengers have answered that.
Mr. Eamon Ryan: We had no confidence in the Government.
Ms Shortall: Only 20 extra buses.
Mr. Cullen: Seven further extensions and new lines under Transport 21, four of which are already underway, will form part of the service.
Ms Shortall: Most people have no choice about their transport.
Mr. Cullen: The 100 buses I mentioned for the private sector are not the total.? They form part of an immediate guarantee ring-fenced for the private sector so that it can get a strong foothold in the market.? In respect of regulation, the DTA will discuss with Dublin Bus and the various operators how the network is working in Dublin, and throughout the greater Dublin area.? There is a need for many new services on the orbital routes and interconnectivity both with other modes of transport and the city.
It is proper not to dismantle a network that works.? We are trying to add capacity, work within EU competition law and the EU directives, to ensure that we achieve a modern regulatory framework that brings competition into the market and opens the market in a measured way, unlike the big bang approach taken in other countries following which whole systems collapsed.
Mr. Eamon Ryan: Is the Minister saying that the new regulator will have the authority to tell Dublin Bus to amend its existing routes or service levels?
Mr. Cullen: I said that the DTA, which will be a strong body, will be responsible for the integration of all the services in Dublin.? We will have to take an overview.? The Deputy seems to presume that the DTA will have an adversarial role.? The DTA will work with Dublin Bus and the private operators in expanding the route and maximising the public transport system, the bus networks, to the benefit of the customer.? That is what we want to see.? I think that is what the Deputy is saying.
