Soaring fuel prices leave school bus network on brink of collapse

Private bus operators are warning that diesel prices are making some school bus routes untenable.

Most of the country's school transport companies cannot guarantee service provision up to June, the Coach Tourism and Transport Council of Ireland has warned.

A survey carried out by the body has shown spiralling fuel costs could now lead to a reduction in services.

The survey offers an insight into the  crisis engulfing the sector.

It says 95% of all school transport companies say it is not commercially viable to continue running services up to June, without any government support.

About 90% of operators need up to a 35% increase in contract rates to continue to operate their services.

Nearly two-thirds of operators have seen fuel costs increase by over 50% in the last year.

In light of the findings, the council is calling on the Government to urgently implement a temporary Vat reduction on fuel to 9% which will help to mitigate the soaring costs and safeguard service provision for regional commuters.

About 43% of the representative body’s membership identified this measure as their preferred solution.

Council chairperson John Halpenny said: “The pandemic dealt a significant blow to the commercial bus and coach industry with the low use of public transport but just as business began to pick up, the impact of the war in Ukraine has resulted in soaring fuel costs.

"With these historic spikes in prices in a short period of time, school transport providers are seriously struggling to provide services.

"Fuel is a mission-critical expense for the industry and where we are witnessing exponential growth in costs, it is clear that governmental intervention is urgently required to rescue the sector from failure.

"To expect the industry to provide the same scheduling for the same pricing against the backdrop of 50% to 60% increases in fuel is frankly unrealistic, unsustainable and totally unaffordable."

He added: "Government must recognise there is an existential crisis facing the industry and in the absence of suitable policy intervention, consistency of school transport services cannot be guaranteed.

"There is a workable precedence to these challenges that must be seriously considered to get the industry through this significant setback. Providing a temporary Vat reduction, akin to what was introduced for the hospitality industry, would represent a crucial lifeline to many operators in the school transport space."

His comments come as the Irish Examiner reported last week that the Department of Education and Bus Éireann are monitoring the fuel costs crisis amid fears some school bus routes could be axed.

It follows a warning from private bus operators that diesel prices are making some school bus routes untenable. Some have warned they may have to withdraw from contracts.

Others are looking at reducing the length of some of the school runs, which could leave some children without a service.

Roy Kearney, the head of Kearney’s Coaches in Cork, said it was costing his firm up to €5,500 a day to keep school buses running on its network of 75 routes.

He said he may have to withdraw from the contract within days, unless the Government takes meaningful steps to tackle fuel costs.

School transport is managed by Bus Éireann for the Department of Education.

Some 121,400 children, including 15,500 with special educational needs, are transported daily to primary and post-primary schools. The service cost the State over €289m last year.