Bus Éireann’s rural routes to be retained, says Kenny

The Government will retain Bus Éireann's extensive rural transport scheme, Taoiseach Enda Kenny has said. He was replying in the Dáil to Fianna Fáil transport spokesman Robert Troy, who said Minister for Transport Shane Ross had a role to play in the company.

He asked Mr Kenny if he believed Mr Ross had not seen a copy of the Grant Thornton report on options available to the company to tackle its financial difficulties. The report has recommended the company should close down its loss-making Expressway service.

“You are being very hard on Minister Ross,’’ Mr Kenny replied.

Mr Kenny said the Minister had confirmed to the Cabinet on Tuesday he had not received the report, and, from what he had read in newspapers and from other comments, the focus seemed to be more on the company’s structure rather than individual routes.

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He said Mr Ross was not responsible for what had happened in the company. Expressway was losing €6 million annually. “That is a commercial problem, and it is also a commercial reality.’’

Government funding

He said it was important to note the losses were not as a result of Government funding given that the Bus Éireann network was performing well both financially and operationally.

Last year it received €40 million in funding, 17 per cent more than in 2015. The losses, he said, related to the Expressway services which competed with other operators. There had been very strong growth in the commercial bus market but it was not being felt in the Expressway arm of Bus Éireann. “Contrary to some reports, there has not been a glut of new licences issued in recent years,’’ he added.

Mr Troy said there was overcapacity on certain routes, while other routes were starved. The Taoiseach should commit to have a review on how licences were issued. There should be a meaningful debate on how every region in the country could have a sustainable public transport service.