Fine Gael’s bus policies make no sense and are out of touch with reality – Kennedy

Fianna Fail TD for Dublin North Michael Kennedy has described as "nonsensical and out of touch with reality" the response by Fine Gael to the reduction in the number of bus routes operated by Bus Eireann.

Deputy Michael Kennedy has said Fergus O’Dowd’s proposals for dealing with the drop in demand for some routes would only make the situation worse.

"Deputy O’Dowd clearly doesn’t live in the real world. Bus Eireann has experienced a 10% drop in demand for its services around the country as a result of the economic downturn. There are many reasons for this, but most specifically, rising unemployment levels, a slowdown in tourism and a decrease in the number of non-nationals in Ireland. Bus Eireann clearly has responsibilities to the taxpayer, it cannot continue to haemorrhage money on routes where there is no demand. Like any sensible business, it must bring its costs in to line with consumer demands.”

"Fergus O’Dowd suggests that we should instead open up all our bus routes for privatisation. Does he really think that a private operator, if given the chance, would step in and take over a route where there is little demand? No private operator will want to take over a bus route where only 5 people a day travel on it. The reality is that some of the routes cut by Bus Eireann had as little as 5 passengers.  Full privatisation of bus routes is clearly not the answer and only highlights how little Fine Gael knows about private business”.

"Under the new Public Transportation Bill 2009, Fianna Fail has adopted the principle of ‘regulated competition’ in the provision of public transport services. This bill will usher in a completely new consumer centred system for bus operators and will establish a uniform licensing system, for both private and state operators. We want greater competition but it needs to be regulated to ensure urban, city and rural demands are met," he said.

“Just like any other business, CIE are having to adjust to the economic downturn and lower their cost base. Any sensible private operator would have had to make the same decisions today as CIE if they were operating in the same environment," added the FF Deputy.