‘Chaos’ if rail routes are put out to tender

Trade unions at Iarnród Éireann are warning of “industrial relations chaos” if the Government has to accede to European Commission demands for the opening up of the country’s rail routes to tender.

At present Ireland is among a number of small European countries which directly awards public contracts for rail services. Iarnród Éireann is awarded 10-year long contracts to operate services here but the current contract is due to end in 2019. The fourth Railway Package, which the European Commission wants to bring in and which was announced at the start of 2013, would involve:

• the opening of the domestic passenger markets to competition by granting open access rights to all EU railway undertakings;
• to introduce mandatory tendering for public service contracts.

Transport Minister Paschal Donohoe has told the Oireachtas Committee on Transport and Communications of the Government’s opposition to the introduction of the package here.

“Whilst some member states see these reforms as an opportunity for growth of their rail sectors and rail companies, others, such as Ireland, have fundamental concerns that these reforms would have very negative impacts on the provision of rail services in their countries,” he said. “We have aligned with seven other like-minded small member states — Luxembourg, Lithuania, Bulgaria, Estonia, Slovakia, Greece and Croatia. This group maintains that member states whose rail markets form less than 1% of the EU rail market should be allowed to continue direct award of public contract services. This is the most efficient way for Ireland, and other small member states, to provide rail services.” He said the Commission had disagreed with an exemption based on market size but did voice support for a proposal of a performance-based exemption which would allow all member states to continue direct award based on performance.

Mr Donohoe said Luxembourg, which had the incoming presidency of the Commission, had said it will put in all efforts possible to reach agreement by October and he expected a solution will be found “which will not pose risks to the rail sectors of member states with small rail markets”.

The National Bus and Rail Union (NBRU) said it will vehemently oppose any move towards privatisation. NBRU general secretary Dermot O’Leary said privatising rail did not stand up and was a failed political ideology driven by “neo-liberal zealots”.

“Privatising rail in the UK has failed miserably” and this plan “will inevitably lead to the death knell for a large portion of Ireland’s railways.”

Owen Reidy of Siptu said it would be “madness” for the country’s rail services to be put out to international tender. Mr Reidy said large multinationals players would simply cherrypick the profitable routes such as intercity and ignore the socially important but non-profitable routes. He said the minister and any successive governments should “dig their heels in” because the move was counter to consumer needs. The Siptu divisional organiser said the liberalisation of the rail market here would create “industrial relations chaos” as it could lead to the practical demise of Iarnród Éireann.

Figures released by the National Transport Authority showed Iarnród Éireann passenger journeys grew by 2.9% to 37.8m in 2014