THE CRITICISM by The Irish Times(Editorial, January 21st, 2009) of the cost-saving measures announced by Dublin Bus and Bus Éireann completely ignores the economic realities which both companies must face.
In this decade, as economic growth drove demand higher, and as both companies expanded services and delivered new options for commuters, annual numbers travelling by bus increased by 25 million from 2000 to 2007, part of an overall increase in the CIÉ group of 40 million passenger journeys.
These increases were delivered in a more competitive environment, including the introduction of Luas services, and the growth in private bus operators, and reflect the success of, amongst others, quality bus corridor development, enhanced commuter services in our cities and regions, and the improved quality of our fleet.
However, the economics of public transport are simple – if there are fewer people working, if there are fewer people shopping, if there are fewer people socialising and making discretionary journeys, there is less demand for public transport.
The sudden change in the economic fortunes of the State have therefore directly impacted on demand for our services, and 2008 and 2009 cumulatively will see an estimated 10 per cent fall in bus passenger numbers.
Coupled with major issues such as the end of the fuel rebate (at a cost of €22 million to Dublin Bus and Bus Éireann), a shortfall in our pension fund, and the inability to bridge the funding gap from exchequer finances, we faced a dramatic worsening of our financial situation.
As a commercial State enterprise, we have a statutory responsibility to act to ensure that the company is financially stable, while ensuring we deliver the best possible service to our customers.
It is in this context that we announced our cost-saving plans, which reflect directly the changes in demand in our marketplace, and are aimed at minimising the impact on the travelling public.
On high-frequency routes, we will retain a strong service where bus frequency will be altered resulting in bus intervals longer by as little as 2-3 minutes. In areas where major population growth was forecast, but where development has now ground to a halt, we will reflect that reality by operating a service that meets the need of the actual population of the communities, not a population which may now not materialise for many years.
We will, with sensitivity to all sections of the community, balance reductions in the size of the bus fleet across the national and bus fleet, ensuring we deliver a quality service as efficiently as possible. In addition, 2009 will see us continue to develop customer facilities, including real-time passenger information (including mobile-phone and web-based facilities), the implementation of integrated ticketing with other operators and website improvements.
Your Editorial is incorrect when it implies that the school transport scheme will be affected by the cost effectiveness plans: in fact, the vast majority of buses withdrawn from other services will be cascaded into the school transport fleet to further enhance that fleet. Bus Éireann’s school transport fleet is already one of the youngest in Europe in terms of age profile.
Your claim that Dublin Bus “drove a competitor out of business by saturating its routes with buses” is simply untrue, and an allegation that Dublin Bus has strongly rejected, and is contesting vigorously. To present this as a statement of fact was completely inappropriate, not to mention misleading.
In conclusion, it could not be more wrong to say that withdrawing buses from the fleet and reducing our workforce is “the easy option”.
There is nothing easy about taking these steps, and it is the first time in the companies’ histories that we have been forced to take them.
However, they are essential to ensure that when economic recovery begins, our bus companies are in the strong financial position to ensure we can respond quickly to increased demand, expanding communities, and the transport needs of citizens across the State.
John Lynch is chairman of CIÉ.