Thomas Pringle (Donegal South West, Independent)
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6. To ask the Minister for Transport, Tourism and Sport the level of subvention that will be provided for the private operators that will be the successful tenderers for the 10% of Bus Éireann routes that will be privatised [46342/14]

Thomas Pringle (Donegal South West, Independent)
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The question relates to the proposed privatisation of 10% of Bus Éireann routes. What level of subsidy will be provided for the private operators by the Department?

Paschal Donohoe (Dublin Central, Fine Gael)
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The direct award contract for the provision of public service obligation, PSO, bus market services held by Bus Éireann expired at the end of November. The awarding of a subsequent contract is the statutory responsibility of the National Transport Authority, NTA. All Bus Éireann routes have been included in the new five year direct award contracts between the company and the NTA for the period to the end of November 2019. The NTA has announced that 10% of publicly subvented bus services will remain within the direct award contract until the end of 2016 only, after which they will be operated under a separate contract that will have been competitively tendered for, rather than privatised as the Deputy suggests. The contract will go to the best competent tenderer that can provide the best service for the least subsidy and should assist in securing efficient and cost competitive services for passengers. The outcome of tendering should be either an improvement in services at the same cost or, at the very least, the same level of service at a reduced cost. The direct answer to the question the Deputy has put to me is that the level of subvention provided can only be fully determined on completing the tendering process. Bus Éireann will be able to participate in the tender process.

The NTA expects the procurement process for the routes to be tendered to begin early next year, leading to the award of the contract in March 2016, with the successful operator commencing services in late 2016.

Thomas Pringle (Donegal South West, Independent)
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The chairperson of the NTA, in addressing the Joint Committee on Transport and Communications a number of months ago, said the NTA would determine the routes, schedules, vehicle types, standards, fares and customer service requirements and that the contracted operator would have no say in deciding fares, routes or frequencies. He went on to say the branding would also be determined by the authority, as well as the accessibility standards and emissions standards for pollutants and noise. Where else can competitive tendering take place, except on wages and the conditions of workers who will drive the buses on the routes chosen? Unless a substantial subsidy is provided for them, what will happen is that there will be a driving down of the terms and conditions of workers who provide services on the routes, which would be a retrograde step. The proposal is only to put out to tender 10% of routes. Bus Éireann operates services across the country, including on very unprofitable routes in rural areas, on which services must be subsidised. In selecting the 10% of routes to go out to tender the tendency will be to cherry-pick routes that will be guaranteed to make profit for the private sector, which will undermine the public service remit of Bus Éireann across the country.

Paschal Donohoe (Dublin Central, Fine Gael)
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An important point is that Bus Éireann and Dublin Bus will be able to participate in the tendering process. On the basis of the tenders received, the NTA will then make a determination on who can best meet the needs identified. It is also important to note, as the Deputy is aware, that we already have a very large private sector presence in the bus market, for example, in providing express services across the country or the provision of services on particular bus routes at various points within cities.

In response to the Deputy's direct question on the impact on the conditions of employees, a process is under way to examine these concerns under the auspices of the Labour Relations Commission. I will meet union representatives to discuss the matter in the next two weeks.