Brennan links CIÉ companies’ service quality to State funding

STATE funding to the three CIÉ companies will be cut if they fail to deliver a specific level of service in the future, Transport Minister Seamus Brennan has warned.

CIÉ received €500 million in State aid last year to fulfil its obligation to service commercially unprofitable routes.

A new agreement between the minister and CIÉ, setting down specific targets on reliability, quality and performance of services is due to be finalised shortly.

The aim of this deal is to bring greater accountability and transparency to the provision of public transport services, Mr Brennan said.

“These agreements will set down the subvention to be paid by the Government ... and this will be monitored on a quarterly basis,” the minister added.

But Mr Brennan’s spokesman could not say yesterday if the level of State subvention will be reduced next year. “The money which the new CIÉ companies will get in the future will be directly linked to the level of service they provide,” he said.

This will be the first time that a State company will be required to link performance with Government cash.

A CIÉ spokesman could not be reached to comment on the new deal.

Meanwhile, Mr Brennan is pressing ahead with his plans to break up CIÉ and make three independent companies out of Iarnrod Éireann, Bus Éireann and Dublin Bus.

At the moment, CIÉ is the holding company for the three operating companies which control day-to-day operations.

But they still have to get sanctions from the main CIÉ board for any major spending.

The minister believes this has caused major duplication and competition between the three companies that often lead to a trade-off being made between trains and buses.

Mr Brennan also plans to open up 25% of the Dublin Bus market to competition and this has been met with strong opposition from the unions.

But the minister insists that he will bring competition into the Dublin Bus market and plans for this will be finalised at the end of March, when the consultation process with all the unions is completed.

The private bus company that secures the contract to operate in Dublin will also get State subvention like Dublin Bus because they will also be expected to operate non-profitable routes, the minister’s spokesman said.

On the rail front, the minister is determined to keep the freight routes open, even though Iarnrod Éireann wants to close them.

Several British companies have indicated an interest in operating freight routes, particularly between Waterford and Dublin, and Foynes Port and Limerick.

“One possible way forward would be for these companies to form a joint-venture with Iarnrod Éireann,” the minister’s spokesman said.

Legislation to break up CIÉ and form the new independent companies is expected to come before the Oireachtas before the summer recess.

Mr Brennan has guaranteed that the 200 people working in CIÉ will not lose their jobs and they will be absorbed into the Iarnrod Éireann, Bus Éireann and Dublin Bus companies, who currently employ 10,000 people between them.