1
Joint Oireachtas Committee on Transport, Tourism and Sport
Wednesday 5th October 2016
Minister for Transport, Tourism and Sport, Mr. Shane Ross T.D.
Opening Statement
Introduction
I would like to thank members for their invitation to appear before the Committee this morning for what I know will be an interesting and hopefully productive exchange of views.
You’ve invited me here to talk about the future for public transport and on the levels of subvention. I’d like to outline my thoughts on these matters, and look forward to discussing them with you.
Members will be aware that the Programme for a Partnership Government contains a commitment to review public transport policy, which I'll return to later, and I hope that today is the beginning of an on-going dialogue with Committee members as regards the future of public transport policy.
My view of public transport
Let’s first look at transport generally and what's at the core of public transport policy?
I believe -
- It’s about having a system that allows people and goods to move efficiently, sustainably and safety between places they need to go;
- It’s about people getting from home to work, to school, to social activities;
- It’s about alleviating the impacts of congestion in our urban areas;
- It’s about enabling goods to move to markets; and
- It's about enabling sustainable travel choices and contributing to a more sustainable future.
Having an efficient, value-for-money, accessible transport system is critical to underpin economic growth and to enable social and economic development for the future.
Those objectives require the development of an accessible, integrated, well-funded, high-quality and efficient public transport system.
A system that delivers real value for money for both the taxpayer and the fare-paying passenger.
In recent years, transport policy makers and planners have grappled with better integrating the transport system to allow for more efficient mobility so that our economy can continue to grow and develop and so that the quality of life can be enhanced. In Dublin and the provincial cities we can see positive initiatives to improve public transport integration with walking and cycling. We have also seen the roll out of integrated ticketing, real time passenger information and journey planning which all serve to improve flexibility and choice for customers who must be at the heart of how we continue to improve the service offering.
Organisation of public transport
How is public transport organised in Ireland?
Actually in recent years there have been great improvements to the way public transport is organised and delivered in Ireland.
The major impetus behind these recent changes is the Dublin Transport Authority Act 2008.That Act established the National Transport Authority (NTA), and lays out the legal framework for how public transport is organised, financed and delivered.
As Minister -
- I retain responsibility for transport policy and priorities for delivery;
- I provide an aggregate amount of money each year to the NTA and other agencies to fund service delivery;
- I have certain statutory functions in relation to the NTA and TII; and
- I am the shareholder for CIÉ and its subsidiaries.
On a statutory basis the NTA -
- enters into contracts with PSO operators;
- regulates those PSO services;
- allocates funding to PSO operators;
- licenses and regulates commercial services;
- develops integrated ticketing; and
- promotes public transport generally.
The regulatory framework for public transport is based on EU law and, like all other Member States, we now have a dedicated transport focussed authority working with, and allocating funding to, the transport operators. The NTA will be telling you more about their approach to this task later this morning.
But it's important to note that the public transport system as we know it today is effectively made up of three services - Public Service Obligation, or PSO, services, Commercial Licensed services and the Rural Transport Programme. The NTA regulates the PSO and Commercial services on a statutory basis and administers the Rural Transport Programme on a non-statutory basis under agreement with my Department.
Funding of public transport
Obviously a key element in delivering any public service is the funding of that delivery.
Public transport is basically funded through two sources - the passenger and the taxpayer.
During the 2010 to 2012 period there were some significant fare increases, which were imposed to assist with the financial crisis which engulfed all three CIÉ companies during the economic downturn when passenger levels fell in line with the fall off in employment levels.
However, that period is now behind us.The NTA's fares policy in the last few years is part of a medium term plan to overhaul the complex and different levels and types of fares and move toward a more streamlined system that will encourage greater use of public transport services.
As regards the second major source of funding, Government will this year provideapproximately €595million to fund our public transport system. That is comprised of €236million in PSO funding, €346million in capital funding and almost €12million for the Rural Transport Programme.
The total amount of Government spending must be taken into account if we are to have a real discussion on how public transport is funded.
You can't fund new buses without funding new services just as you can't fund new services without new buses.
I know that comparisons of PSO subsidy levels are frequently raised but the point I've just made is an important caveat to any quick conclusions which are sometimes drawn. A recent report for the European Commission highlightedthe numerous difficulties faced when attempting to accurately benchmark PSO subsidy levels across different countries.
Obviously then I welcome this year's 13% increase in PSO funding and can assure Members I am looking to secure further increases for next year, as may be possible within the overall Budgetary position. Needless to say I would like to invest more in public transport but I have to recognise that there are huge demands elsewhere for scarce resources- - housing, health , education and so on.
But I am clear that any increase in PSO funding should prioritise improvements in the delivery and quality of services. I would hope that all Members would share the view that if we are to provide more taxpayers' money we must be able to demonstrate the value for money of that expenditure.
Future of public transport
So what's the future of public transport?
Right now across Government there are a number of important initiatives underway which will heavily influence the future of public transport.
First and foremost there is the development of the National Planning Framework. I don't think it's possible to overstress the importance of that work to our transport system.
Additionally there is also important work underway in the area of climate change which will have important consequences for the future direction of the transport sector.
Just recently I received a copy of a Rail Review conducted by the NTA in co-operation with Iarnród Éireann and which examines the funding parameters required to support our rail network now and into the future. I'm currently considering its conclusions and expect to make a decision on the next steps very shortly.
Finally, and as I mentioned at the outset, the Programme for a Partnership Government also commits toward a review of public transport policy 'to ensure services are sustainable into the future and are meeting the needs of a modern economy'.
I will consult with my Department later in the year on how best to progress that commitment but I can assure Members that I believe this Committee will play a crucial role in the development of that revised policy.
Conclusion
During these last few months I have met many different stakeholders with an interest in public transport. Those meetings, together with the many different issues raised during Oireachtas business in recent months, have allowed me develop a sense of the essential needs for the public transport area.
As a result of these deliberations I intend to -
- ensure the interests of the commuter and the taxpayer are at the heart of public transport policy and our public transport system;
- consider the conclusions of the Rail Review and its implications for our rail network;
- consider our overall public transport investment programme in line with the principles of the Strategic Investment Framework for Land Transport; and
- within the context of the overall Exchequer funding resources, ensure value for money and improved outcomes for all stakeholders in the delivery of public transport services.
I look forward to working with this Committee as we work on these issues in the coming months and years ahead.
Once again many thanks for your invitation and I look forward to our discussion.