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Bust Éireann

  • 10-01-2017 5:26pm
    #1
    Closed Accounts Posts: 6,084 ✭✭✭


    According to reports today, Bus Eireann has about 18 months left before it goes insolvent. The company lost 7m last year on top of accumulated losses for previous years.

    What future does the company have? Looks like service cuts and forced redundancies are on the way at a minimum. Do you think they will sell off expressway?


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Comments

  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Boulevardier


    Part of the problem seems to be that the "National Transport Authority" licenced competing carriers in the knowledge that their drivers were paid much less than those of BE, and that they have vastly fewer overheads, such as upkeep of Busaras. BE have therefore been operating with both hands tied behind their back.

    Also, the current minister is Shane Ross, who is known to loathe the CIE companies.

    It is a toxic environment for what should be the premier national passenger carrier.


  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    It is a toxic environment for what should be the premier national passenger carrier.

    I believe that providing good public transport services is the most important thing. Ultimately who provides the service doesn't bother me in the slightest. Many of the improvements that Bus Eireann have made over recent years have only been made because they have had no choice but to. We should always reward people who offer innovative new services.

    But we do also need to prevent predatory competition such as two operators running from exactly the same places 5 minutes behind or 5 minutes in front of a competitor and then have an hour gap with no service or those who offer silly fares which are far below a companies cost. That's the kind of UK system we certainly don't want to import here.

    This is why the NTA allows two operators per route on commercial routes and requires them to be at least 15 minutes apart from the competition. It rewards the first two operators who innovate, whilst at the same time protecting them from predators who just want to come after the service has been proven and cynically run buses at exactly the same time as the opposition who spend considerable money marketing and the up front costs of establishing a new service.

    If a private proposes and starts operating an innovative new service that Bus Eireann say is not viable, as has happened on a number of occasions, why should we stop them? Public transport is supposed to be for the public not specified to the best interests of any other groups. No Monopoly is good no matter if it is a private company or a public company.
    Part of the problem seems to be that the "National Transport Authority" licenced competing carriers in the knowledge that their drivers were paid much less than those of BE.

    Indeed, the NTA should should simply tell passengers who avail of services operated by private operators who put licenses in to operate later, faster, and more frequent services that Bus Eireann they must be canceled because Bus Eireann don't like it, since the interests of Bus Eireann are far more important than someone who wants to travel to the airport, on holiday or to work.

    The problem in BE is that the staff have no commercial acumen on the front line whatsoever. They believe that the company is run for them as proven by the fact their company is struggling yet they are still asking for extra money. Just saying remove the competition is basically saying that the well being of their company is more important than the bigger picture and the service offered to the customers which should never be the case.

    However in some respects I see the unions point. Their management has sold them down the river so to speak by not developing their products or services enough and management should take their share of the blame and their own mistakes rather than saying that the staff are on too expensive wages and totally absolving themselves of any blame whatsoever.

    To say that it's all about wages though is also false. the fact is that privates operated services that Bus Eireann didn't want to operate or didn't think were worthwhile. Early morning services to airports, late night services from airports, non stop services, 24 hours services, online seat reservations, leather seating, on-board Wifi, plug sockets on buses etc, all these were innovations by privates that BE only started offering when they realised they had to seriously up their game.


  • Registered Users, Registered Users 2 Posts: 36,170 ✭✭✭✭ED E


    Also, the current minister is Shane Ross, who is known to loathe the CIE companies.

    As much as I loathe the ***** the problems with BE are inherited and not really of his making. There's been a long road to ruin for them.


  • Registered Users, Registered Users 2 Posts: 91 ✭✭sat matt


    I know little about the ops of BE so sorry for hopping in here

    I'm just curious about their Expressway service as I saw it in the news before Christmas about them wanting to split it off from BE.
    What's the story with it? Is it losing money?


  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Boulevardier


    My preferred model for bus provision is that the publicly-owned service should get first refusal on all routes, with other operators permitted to fill in the gaps. Also, independent operators should be required to provide terms and conditions to their staff which are comparable to those of the main provider, otherwise the latter will simply become uncompetitive, as is now happening.

    Also badly needed is an increase in our derisory public transport subvention to the levels taken for granted in mainland Europe. Perhaps a percentage of motorway tolls and road taxes should be earmarked for this purpose.

    There is no evidence whatsoever that the improvement of passenger facilities in BE is the result of private competition. Iarnrod Eireann has hugely improved their trains and onboard facilities with no competition at all from other rail operators. The idea that state companies cannot be bothered to improve themselves, except when forced to, is completely without foundation.


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  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Boulevardier


    Expressway is in a financial death-spiral. It is not yet clear what is going to be done to rescue it (or not).


  • Registered Users, Registered Users 2 Posts: 91 ✭✭sat matt


    Expressway is in a financial death-spiral. It is not yet clear what is going to be done to rescue it (or not).

    Wow! Thanks

    This I cannot understand though as it seems only a year or so ago they were buying new buses for it at close to half a million € / bus.
    It speaks woeful management to me


  • Registered Users, Registered Users 2 Posts: 12,363 ✭✭✭✭Del.Monte


    Expressway is in a financial death-spiral. It is not yet clear what is going to be done to rescue it (or not).

    The entire CIE group has been in a death-spiral for years and should have been sorted out long ago. Crap management and overly powerful unions have brought CIE to edge of the abyss. Nearly forgot to mention the charlatans in the Dept.of Transport and the various fools who have been the line ministers down the years - with the honourable exception of Seamus Brennan.


  • Closed Accounts Posts: 4,121 ✭✭✭amcalester


    My preferred model for bus provision is that the publicly-owned service should get first refusal on all routes, with other operators permitted to fill in the gaps. Also, independent operators should be required to provide terms and conditions to their staff which are comparable to those of the main provider, otherwise the latter will simply become uncompetitive, as is now happening.

    Also badly needed is an increase in our derisory public transport subvention to the levels taken for granted in mainland Europe. Perhaps a percentage of motorway tolls and road taxes should be earmarked for this purpose.

    There is no evidence whatsoever that the improvement of passenger facilities in BE is the result of private competition. Iarnrod Eireann has hugely improved their trains and onboard facilities with no competition at all from other rail operators. The idea that state companies cannot be bothered to improve themselves, except when forced to, is completely without foundation.

    Who does this benefit?

    Bus Eireann's customers or employees?


  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    My preferred model for bus provision is that the publicly-owned service should get first refusal on all routes.

    Where you and me differ is that I believe that the best model is one where the users of public transport are placed first and before any single company. We should reward innovation, if there is no incentive to innovate, nobody will innovate and nothing will improve and you propose removing rewards for innovation.
    with other operators permitted to fill in the gaps

    That is what happens now, private operators have filled the gaps and operated more frequent, later finishing, earlier starting services that Bus Eireann have not provided. It's not all about costs, it's about the private operators operate the kind of services that BE do not operate either because they don't want to or don't think they were viable.

    Why should a company who operates a service have to give their business plan to another company. If the other company was as good as you seem to think they are, surely they should be able to come up with this themselves?

    If another operator proposed a service and BE were given first refusal, BE would in a lot of cases only operate said services because of the fact they wanted to stop someone else from doing so.
    Also, independent operators should be required to provide terms and conditions to their staff which are comparable to those of the main provider, otherwise the latter will simply become uncompetitive.

    Which basically will drive wages up and increase the end costs to public transport users, be that through the higher required PSO and higher fares. Essentially what your statement implys that you believe you believe the private interests of the staff are more important than the interests of the people who actually use the service.
    Also badly needed is an increase in our derisory public transport subvention to the levels taken for granted in mainland Europe. Perhaps a percentage of motorway tolls and road taxes should be earmarked for this purpose.
    There is no evidence whatsoever that the improvement of passenger facilities in BE is the result of private competition.

    I notice you spin my words there.

    Private operators were the first to offer 24 hour services, late services to/from the airport, non stop services, early services to/from airport and Wifi, plug sockets and other things. You are telling me that it's just a complete co-incidence that Bus Eireann who ran many of these routes for many years without a single meaningful change to their timetable, only got around to changing them a short while after the privates started a competing service that offered people what they wanted to.
    Iarnrod Eireann has hugely improved their trains and onboard facilities with no competition at all from other rail operators.

    Irish Rail has improved without doubt but they are still very far behind what I would call a good railway operator, their standards of passenger information is exceptionally poor. This is a company that has had one class of DART train that has had exceptionally unreliable passenger information systems from day one and still not fixed them 10 years later.

    Also you claim Irish Rail have no competition! Rubbish! Do you really think that the private cars with the new motorways and expansion of coach services on said motorways has had no effect on them? Of course it has, they saw a customer bleed to the coach companies and then adjusted their fare structure to deal with this and managed to win some of the customers back
    The idea that state companies cannot be bothered to improve themselves, except when forced to, is completely without foundation.

    So it's just a co-incidence that the things I mentioned were all done by privates first and Bus Eireann always did them a short while later? How come other companies are always first and Bus Eireann are always last? If BE were leading the way in such things how comes they are always acting in a reactionary way rather than a proactive way?


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  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    sat matt wrote: »
    Wow! Thanks

    This I cannot understand though as it seems only a year or so ago they were buying new buses for it at close to half a million € / bus.
    It speaks woeful management to me

    This year they will start retiring coaches that are approx 9 years out from service work, whilst privates on similar routes are still operate coaches that are 12 years old and have been worked much harder for their working lives.

    That's the paradox in BE Expressway itself, they can spend 10s of millions a year on coaches and marketing but claim they have no money to pay the staff wages. Just one year of not purchasing new coaches would make a big difference to their bottom line and they would still have perfectly acceptable coaches on the routes.

    That's the trouble with BE though at the end of the day, too much money is spent on nice shiny coaches and marketing and not enough on the nuts and bolts of the service,


  • Closed Accounts Posts: 4,121 ✭✭✭amcalester


    devnull wrote: »
    This year they will start retiring coaches that are approx 9 years out from service work, whilst privates on similar routes are still operate coaches that are 12 years old and have been worked much harder for their working lives.

    That's the paradox in BE Expressway itself, they can spend 10s of millions a year on coaches and marketing but claim they have no money to pay the staff wages. Just one year of not purchasing new coaches would make a big difference to their bottom line and they would still have perfectly acceptable coaches on the routes.

    That's the trouble with BE though at the end of the day, too much money is spent on nice shiny coaches and marketing and not enough on the nuts and bolts of the service,

    Driver salaries are not the nuts and bolts of the service but newer vehicles very much are.


  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Boulevardier


    Devnull, Irish rail leaves its overpriced, ramshackle and unsafe British (privatised) counterparts in the ha'penny place, but if you prefer the British model, I can't really help you.


  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    amcalester wrote: »
    Driver salaries are not the nuts and bolts of the service but newer vehicles very much are.
    .

    Nuts and bolts of the service is making the service attractive, investing in developing schedules, better timetables, additional services etc there's been precious little of that by Bus Eireann in the last 5 or 6 years, which is why privates have been able to take customers off them.

    If newer vehicles are the nuts and bolts of the service, please explain why Dublin Coach are able to operate 2004 vehicles on Dublin to Waterford and take passengers away from Bus Eireann that has almost brand new vehicles on them? For the money that BE are spending on such vehicles, it's not really helping them enough competitively to make the investment feasible.

    It shows that given a choice of older vehicles with a faster timetable / more frequent service or newer vehicles with a less frequent service and slower timetable, people with choose the former, which shows that for all BE claim new vehicles are vital, it's not backed up by passenger numbers. I just don't believe that the formula that BE uses competitively is sustainable. They don't have their budgeting right, spending too much in some areas and not enough in others.

    If BE buying new vehicles allowed them to win customers from their competitiors and beat them I'd agree that it was a sound investment, but in my view the problem here is they have loss making services and they're throwing even further costs into what appears to be almost a black hole. New vehicles do not make a service successful, they never have done and they never will do.

    Look at GoBus, Citylink, Dublin Coach, JJ Kavanagh, Aircoach, all of these operators have been able to get a foot-hold in the market without needing to run brand new coaches and I presume decided not to because they felt it would just add extra costs into the business which could not be covered. Instead they adjusted their services, the returns improved and when the services started to be profitable they invested money.

    All of those companies as well have been loss making for a few years in the recession, most of them stopped investing in coaches then as well because they were losing money and cut their cloth accordingly. With BE no matter how their finances is like it's spend spend spend. and to be quite honest it's pretty irresponsible for their management to continually to blame the staff for something they have played an equal part in themselves.


  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    Devnull, Irish rail leaves its overpriced, ramshackle and unsafe British (privatised) counterparts in the ha'penny place, but if you prefer the British model, I can't really help you.

    The UK System is far from perfect but the provision of passenger information is light years ahead of what we have in Ireland. I wouldn't say I prefer either system, there are much better systems than both countries in other European countries such as Germany, which to be fair is light years ahead of most other European countries.

    What I will say though the British system is overcrowded for a large part due to the excessive regulation and interference by central government. Many operators are overcrowded because they have been prevented from ordering rolling stock and the fact central government couldn't close rolling stock deals to save their life.

    As for safety there have been less incidents in the privatized network than there was before it started, but it's very hard to compare a small operation like Irish Rail compared to the British Network as a whole, whilst as far as the DOO dispute goes on Southern and safety issues caused by that, I assume you will have similar thoughts about the unsafe nature of DART and commuter trains which are also DOO?


  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Boulevardier


    "What I will say though the British system is overcrowded for a large part due to the excessive regulation and interference by central government."

    Well, that really is a new one on me. Has a single rail union or commuter group in the UK ever said that?


  • Registered Users, Registered Users 2 Posts: 8,295 ✭✭✭n97 mini


    Devnull, Irish rail leaves its overpriced, ramshackle and unsafe British (privatised) counterparts in the ha'penny place, but if you prefer the British model, I can't really help you.

    Last summer I got a high speed train from London to Machester for £3.50. There is value to be had, for sure.

    Your other point is akin to Ryanair only being allowed have a route if Aer Lingus didn't want it, but that model thankfully was scrapped 25 years ago after it became too embarrassing. Ryanair were never forced to offer the same terms and conditions as Aer Lingus. That'd be anti competitive, probably even in the 1980s.


  • Closed Accounts Posts: 4,121 ✭✭✭amcalester


    devnull wrote: »
    .

    Nuts and bolts of the service is making the service attractive, investing in developing schedules, better timetables, additional services etc there's been precious little of that by Bus Eireann in the last 5 or 6 years, which is why privates have been able to take customers off them.

    If newer vehicles are the nuts and bolts of the service, please explain why Dublin Coach are able to operate 2004 vehicles on Dublin to Waterford and take passengers away from Bus Eireann that has almost brand new vehicles on them? For the money that BE are spending on such vehicles, it's not really helping them enough competitively to make the investment feasible.

    It shows that given a choice of older vehicles with a faster timetable / more frequent service or newer vehicles with a less frequent service and slower timetable, people with choose the former, which shows that for all BE claim new vehicles are vital, it's not backed up by passenger numbers. I just don't believe that the formula that BE uses competitively is sustainable. They don't have their budgeting right, spending too much in some areas and not enough in others.

    If BE buying new vehicles allowed them to win customers from their competitiors and beat them I'd agree that it was a sound investment, but in my view the problem here is they have loss making services and they're throwing even further costs into what appears to be almost a black hole. New vehicles do not make a service successful, they never have done and they never will do.

    Look at GoBus, Citylink, Dublin Coach, JJ Kavanagh, Aircoach, all of these operators have been able to get a foot-hold in the market without needing to run brand new coaches and I presume decided not to because they felt it would just add extra costs into the business which could not be covered. Instead they adjusted their services, the returns improved and when the services started to be profitable they invested money.

    All of those companies as well have been loss making for a few years in the recession, most of them stopped investing in coaches then as well because they were losing money and cut their cloth accordingly. With BE no matter how their finances is like it's spend spend spend. and to be quite honest it's pretty irresponsible for their management to continually to blame the staff for something they have played an equal part in themselves.

    I don't disagree with any of that but I would argue that newer vehicles are a USP for BE and money spent on these vehicles are a better investment than increasing driving salaries.

    Obviously BE need to improve their services in line with the competition as well but given the choice between a new coach operated by BE and an older private coach (and all other things being equal) I would choose the newer coach.


  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    Well, that really is a new one on me. Has a single rail union or commuter group in the UK ever said that?

    Yes - it has been covered many times by user groups. The UK Department of Transport and the SRA that existed before it has a right to modify or veto rolling stock orders that are placed by train operators if they feel that they are not in the taxpayer interest and constitute over predicting future passenger numbers.

    One of the most well known ones is the First Transpennine Express order for 168 carriages with later options for another 56 that was cut to 153 with no options for extra carriages, South West Trains had an order cut as well.

    There's also the extremely poor management of contracts that are managed by the government directly such as the Thameslink and the Intercity Express order where operators outlined that additional capacity was needed and by the dates that they were needed, but the government took many many years to sign the deal.

    Here's a timeline of Thameslink rolling stock for instance
    2007 - Operators make approach to government on what they need
    2008 - Procurement program begins
    2011 - Contract Awarded
    2013 - Commercial Terms Agreed
    2015 - Start of Deliveries.


  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    amcalester wrote: »
    I don't disagree with any of that but I would argue that newer vehicles are a USP for BE and money spent on these vehicles are a better investment than increasing driving salaries.

    I don't disagree with that, but personally I think that the answer to BE's problems doesn't lie in either of the two camps since shifting one to the other won't fix all the problems.
    Obviously BE need to improve their services in line with the competition as well.

    The problem is though they are locked out on a lot of key markets now, because NTA only issue licenses for two operators on any corridor so on many of these routes it's too late because two other companies got there before they did which is the key failings which have led them to the current situation.

    A little less being spent on vehicles in the past and a little more being spent on service development would have been a better balance. I mean I don't think they should have stopped buying vehicles altogether, they should just have just spent less there and more on other areas.

    For me saying they cannot afford to take commercial risks or innovate new services because they have no money but at the same time can buy so many new vehicles is not an example that they have no money, it's an example of that the money which they do have is not being spent in the way that is best for their business.

    For example, Aircoach were a complete basket case for a few years and were losing money hand over fist. During this time they cut back investment in vehicles and started to invest in service development by being first operators on Dublin to Cork and Dublin to Belfast non stop. When things picked up again they increased investment in vehicles. If they kept investing in vehicles and didn't launch two new routes they'd most likely be dead now.
    but given the choice between a new coach operated by BE and an older private coach (and all other things being equal) I would choose the newer coach.

    And most people would be the same, but the problem is that on most Expressway routes the choice is an older private coach on a more frequent, faster service or a newer Bus Eireann coach with a slower less frequent service and the problem BE faces is that new coaches are a smaller positive value than an inferior timetable is a negative value and I'm sure that if BE could have done things differently with hindsight they would have.

    Since the CEO job in Bus Eireann is up for grabs now, it's VITAL that they get someone in the door who is an experienced transport manager who is used to acting in a commercial environment, just promoting from within will be not good enough, they need someone who can succeed and thrive in that environment, just like Irish Rail have improved commercially by hiring an outside person in rather than endless promoting from within or someone from the public sector who has never had to work in a commercial environment.


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  • Closed Accounts Posts: 6,084 ✭✭✭oppenheimer1


    devnull wrote: »
    .




    It shows that given a choice of older vehicles with a faster timetable / more frequent service or newer vehicles with a less frequent service and slower timetable, people with choose the former, which shows that for all BE claim new vehicles are vital, it's not backed up by passenger numbers. I just don't believe that the formula that BE uses competitively is sustainable. They don't have their budgeting right, spending too much in some areas and not enough in others.

    If BE buying new vehicles allowed them to win customers from their competitiors and beat them I'd agree that it was a sound investment, but in my view the problem here is they have loss making services and they're throwing even further costs into what appears to be almost a black hole. New vehicles do not make a service successful, they never have done and they never will do.

    The key point you're missing though is not only do the private operators provide a superior service, it is significantly less expensive than BE. On the routes that there is no competition from privates, fares are still much higher.

    What BE have let happen is that they have failed to innovate and let their cost base get out of control. It will be interesting to see how the government and the union's react to the inevitable layoffs, cuts to services and reorganisation of the company.


  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Boulevardier


    Of course the privates are cheaper than BE, they pay their drivers less and they do not have Busaras to keep up.

    I think as a matter of urgency, the government should consider something like the following steps:

    1. Close down or restructure the National Transport Authority, who allowed this situation to develop.

    2. Announce the phasing out of operating licences for companies which pay their drivers significantly less than BE.

    3. Have all BE Expressway routes and timetables re-designed by an expert group on which passengers are represented.

    4. Double the public transport subvention, to be financed in whole or part by road tax.


  • Registered Users, Registered Users 2 Posts: 2,655 ✭✭✭draiochtanois


    This post has been deleted.


  • Registered Users, Registered Users 2 Posts: 36,170 ✭✭✭✭ED E


    2. Announce the phasing out of operating licences for companies which pay their drivers significantly less than BE.

    Why? Because they love to gouge the public/taxpayer? Ehh no thanks.


    If BE cant compete tender it all out. Lads driving for Aircoach were always perfectly competent despite the wage gap.


  • Moderators, Motoring & Transport Moderators, Technology & Internet Moderators Posts: 23,279 Mod ✭✭✭✭bk


    I think as a matter of urgency, the government should consider something like the following steps:

    1. Close down or restructure the National Transport Authority, who allowed this situation to develop.

    2. Announce the phasing out of operating licences for companies which pay their drivers significantly less than BE.

    Hell no, do you really think anyone who regularly takes a bus from Dublin to Cork wants to go back to:

    - It taking 5 hours rather then 3
    - No buses after 6pm, sure why would anyone want to travel between Irelands two largest cities after 6pm :rolleyes:
    - Only one bus every two hours
    - No toilets, wifi, sockets on the bus.

    Because that was the reality of the service BE offered on the Cork route until Aircoach stepped in and blew them out of the water, operating almost hourly buses 24/7, that did the same journey in just 3 hours and had toilets, wifi and sockets.

    The truth is that the service offered by the private operators is SO much better and more innovative that no one wants to go back to BE's terrible service.

    In the end it is all about the public and the service you deliver to them. I genuinely feel sorry for BE staff who lose their jobs, but in the end the public doesn't care if the driver is private or public, they just want a really good service.

    BTW Boulevardier you can forget about the government revoking the licenses, it would be illegal under EU law anyway.


  • Closed Accounts Posts: 20,373 ✭✭✭✭foggy_lad


    Bus Eireann are in a difficult position really because they operate the majority of the PSO routes in the country and many of these routes are operated using their Expressway services for which they receive no subvention! (Exceptions would be commuter services like the 103,105,111,109,120,133,115,126 and most city services)

    What is needed is for them to receive proper subvention payment for using Expressway for PSO routes, Take Waterford-Dublin or most other long distance routes and the majority have a need for a PSO element due to the stage carriage element of most routes. There is only an Expressway service on most of these routes and there is no alternative PSO routes available to Free travel holders.

    OR the removal of Free travel from all Expressway services and those routes in need of PSO services would then have both Expressway and PSO buses travelling side by side on the same routes!


  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    foggy_lad wrote: »
    Bus Eireann are in a difficult position really because they operate the majority of the PSO routes in the country and many of these routes are operated using their Expressway services for which they receive no subvention! (Exceptions would be commuter services like the 103,105,111,109,120,133,115,126 and most city services)

    What is needed is for them to receive proper subvention payment for using Expressway for PSO routes, Take Waterford-Dublin or most other long distance routes and the majority have a need for a PSO element due to the stage carriage element of most routes. There is only an Expressway service on most of these routes and there is no alternative PSO routes available to Free travel holders.

    OR the removal of Free travel from all Expressway services and those routes in need of PSO services would then have both Expressway and PSO buses travelling side by side on the same routes!

    That would be considered as illegal state aid.

    What the company should do is run expressway as a commercial service and not run any parts that are not viable and either absorb them into the pso network and make the NTA give them funding for it or allow the NTA to sort it out.


  • Moderators, Society & Culture Moderators Posts: 17,643 Mod ✭✭✭✭Graham


    Of course the privates are cheaper than BE, they pay their drivers less

    That's a rather roundabout way of saying BE can't compete because they pay their drivers over the market rate.


  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Boulevardier


    No, it's a way of saying that in the absence of decent labour laws, private operators (like Ryanair in aviation) have driven down the rate for the job.


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  • Closed Accounts Posts: 4,121 ✭✭✭amcalester


    No, it's a way of saying that in the absence of decent labour laws, private operators (like Ryanair in aviation) have driven down the rate for the job.

    And the price.

    They also have no problem finding people to work for those rates, so what is the issue?

    So now we have a better service, at a lower cost with more people employed.

    Everyone's a winner.


  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Boulevardier


    Everyone is not a winner. Pay and working conditions get driven down for everyone.


  • Moderators, Society & Culture Moderators Posts: 17,643 Mod ✭✭✭✭Graham


    Everyone is not a winner. Pay and working conditions get driven down for everyone.

    I'm trying to come up with a reason why BE drivers should be a special case that warrant additional public funding to immunise them from the effects of the labour market.

    I got nothing.


  • Moderators, Motoring & Transport Moderators, Technology & Internet Moderators Posts: 23,279 Mod ✭✭✭✭bk


    Everyone is not a winner. Pay and working conditions get driven down for everyone.

    And that has always been the problem with BE. A company run for the benefit of the employees rather then the benefit of the public they are supposed to be serving.


  • Registered Users, Registered Users 2 Posts: 1,375 ✭✭✭Boulevardier


    Workers need to "immunised" from a race to the bottom.

    The first step needs to be better union legal recognition protection.


  • Moderators, Society & Culture Moderators Posts: 17,643 Mod ✭✭✭✭Graham


    Workers need to "immunised" from a race to the bottom.

    The first step needs to be better union legal recognition protection.

    That theory doesn't appear to be playing out too well for BE at the moment.


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  • Closed Accounts Posts: 4,121 ✭✭✭amcalester


    Everyone is not a winner. Pay and working conditions get driven down for everyone.

    Perhaps not at a micro level but on a macro level everyone is a winner.


  • Moderators, Society & Culture Moderators Posts: 2,688 Mod ✭✭✭✭Morpheus


    I travel once weekly to waterford.

    BE and Dublin coach operate at roughly same times

    I got the expressway once from waterford to red cow, same price as dublin coach, the BE coach went down some mad back road route and took longer as it had to nip through a lot of empty villages to pick up a smattering of people. That was the last time, Dublin Coaches route is pretty direct, one stop at kilkenny and that's it.

    BE have no choice but to cover the routes in this manner as far as im aware... Private operators avoid these rural areas along the route.

    Bus Eireann 0700 service to Dublin red cow: Stops:
    Waterford (Bus Station)
    Mullinavat (Mulhearns)
    Ballyhale (Opp Day Today)
    Thomastown (O Keefes)
    Kilkenny (Ormonde House)
    Kilkenny (Rail Station)
    Gowran (Opposite Power’s)
    Royal Oak (Slip Road)
    Leighlinbridge Cross
    Carlow IT (Opp Main Entrance)
    Carlow (Barrack St)
    Newlands Cross (Northbound)
    Red Cow LUAS

    Dublin Coach, Waterford to Red cow: Stops:
    Waterford (Merchants Quay)
    Kilkenny (Ormonde Road)
    Kilkenny (McDonagh Junction)
    Red Cow LUAS

    How is this competition?


  • Moderators, Society & Culture Moderators Posts: 17,643 Mod ✭✭✭✭Graham


    Morpheus wrote: »
    I travel once weekly to waterford.

    BE and Dublin coach operate at roughly same times

    I got the expressway once from waterford to red cow, same price as dublin coach, the BE coach went down some mad back road route and took longer as it had to nip through a lot of empty villages to pick up a smattering of people. That was the last time, Dublin Coaches route is pretty direct, one stop at kilkenny and that's it.

    BE have no choice but to cover the routes in this manner as far as im aware... Private operators avoid these rural areas along the route.

    Bus Eireann 0700 service to Dublin red cow: Stops:
    Waterford (Bus Station)
    Mullinavat (Mulhearns)
    Ballyhale (Opp Day Today)
    Thomastown (O Keefes)
    Kilkenny (Ormonde House)
    Kilkenny (Rail Station)
    Gowran (Opposite Power’s)
    Royal Oak (Slip Road)
    Leighlinbridge Cross
    Carlow IT (Opp Main Entrance)
    Carlow (Barrack St)
    Newlands Cross (Northbound)
    Red Cow LUAS

    Dublin Coach, Waterford to Red cow: Stops:
    Waterford (Merchants Quay)
    Kilkenny (Ormonde Road)
    Kilkenny (McDonagh Junction)
    Red Cow LUAS

    How is this competition?

    You're right, it's unfair competition. The private operators should be offered the same subsidies to operate the otherwise un-economic but arguably socially necessary stops.


  • Registered Users, Registered Users 2 Posts: 6,261 ✭✭✭joeysoap


    The M1 was one of the first motorways in the country. I had a daughter in college who tried commuting for a year. BE ignored the motorway and went via Castlebellingham, Dunleer, Drogheda, Gormanstown, Balbriggan etc. 2 coaches left bus office in Dundalk at 6.30 am each morning and played 'hopscotch' with each other (as one stopped for passengers the other overtook) I phoned BE and asked them why they weren't using the motorway. 'PSO' was the response. I asked why every 2nd coach couldn't go direct, same answer 'PSO'. Few years later Matthews coaches start motorway services (some direct, some via Drogheda) and guess who joins them on the motorway?

    I do understand BE has to provide a service to small villages that private operators don't/won't provide and for this BE should be well subsidised. But not every village should get every bus to detour, BE should be allowed direct services too.

    Matthews now run 20 times to Dublin from Dundalk daily with 23 return services. Could BE have captured this market if it wasn't for the requirement to call to ever village/town on the old N1?

    http://commuter.matthews.ie/images/012Dundalk-DubSept.2016.pdf

    The times in bold usually mean two coaches departing at the same time, with one of the direct, the other via Drogheda with a few extra stops.


  • Registered Users, Registered Users 2 Posts: 19,657 ✭✭✭✭road_high


    Morpheus wrote: »
    I travel once weekly to waterford.

    BE and Dublin coach operate at roughly same times

    I got the expressway once from waterford to red cow, same price as dublin coach, the BE coach went down some mad back road route and took longer as it had to nip through a lot of empty villages to pick up a smattering of people. That was the last time, Dublin Coaches route is pretty direct, one stop at kilkenny and that's it.

    BE have no choice but to cover the routes in this manner as far as im aware... Private operators avoid these rural areas along the route.

    Bus Eireann 0700 service to Dublin red cow: Stops:
    Waterford (Bus Station)
    Mullinavat (Mulhearns)
    Ballyhale (Opp Day Today)
    Thomastown (O Keefes)
    Kilkenny (Ormonde House)
    Kilkenny (Rail Station)
    Gowran (Opposite Power’s)
    Royal Oak (Slip Road)
    Leighlinbridge Cross
    Carlow IT (Opp Main Entrance)
    Carlow (Barrack St)
    Newlands Cross (Northbound)
    Red Cow LUAS

    Dublin Coach, Waterford to Red cow: Stops:
    Waterford (Merchants Quay)
    Kilkenny (Ormonde Road)
    Kilkenny (McDonagh Junction)
    Red Cow LUAS

    How is this competition?

    I think you're not comparing like with like here...as far as I'm aware almost all of the BE Dublin-Waterford services follow the M9 motorway like Dublin Coach, with one stop in Carlow.
    The route you took was probably one of the old route (old N9) services they were obliged to keep up to serve these small towns and villages. I think there's only 1 or 2 per day, the timetable would tell you which times avoid these places and is quicker.


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  • Moderators, Society & Culture Moderators Posts: 2,688 Mod ✭✭✭✭Morpheus


    That was on the 7am a few weeks ago on a weekday, trying to get into work in dublin before 10am


  • Registered Users, Registered Users 2 Posts: 29,381 ✭✭✭✭end of the road


    Iarnrod Eireann has hugely improved their trains and onboard facilities with no competition at all from other rail operators.

    i am not sure i agree. while they have implemented things like plug sockets and wifi straight from the off on some of their trains, the onboard environment is of a lower quality over all compared to the older stock. the train once had staff to deal with customer issues and insure the various rules were obeyed, people could buy a breakfast on the train (whether it was the best quality or not probably depended) but they're would be no excuse if managed properly not to be of a high standard if offered now (not that they're was then)
    those 2 aspects are among probably many that rail travel is usually known for and which if implemented correctly could be of worth today. while people of course can purchase food and drink elsewhere for example, the fact is IE had an opportunity to make the onboard environment of their trains of the best quality, reflecting the reasons people usually choose the train and which would be of value and worth the fares people pay. they have not done that, and now our trains are effectively an overpriced bus service with no staff, everyone is left to themselves and the people do not get the value and quality they deserve. it's a crying shame.
    granted dispite having a very basic offering, i would take IE over the uk railway any day. in saying that, it's no coincidence that it was x management from the uk railway responsible for the lowering of quality, but that's not to say over all IE were a great operator before, as they certainly weren't.
    devnull wrote: »
    Which basically will drive wages up and increase the end costs to public transport users, be that through the higher required PSO and higher fares. Essentially what your statement implys that you believe you believe the private interests of the staff are more important than the interests of the people who actually use the service.

    no he believes in protecting terms and conditions and preventing a race to the bottom. better for wages to go up then to be driven down to the lowest common denominator.
    devnull wrote: »
    The problem is though they are locked out on a lot of key markets now, because NTA only issue licenses for two operators on any corridor so on many of these routes it's too late because two other companies got there before they did which is the key failings which have led them to the current situation.

    which is a problem. the NTA shouldn't be able to lock other operators out of the market. if they want to regulate the market then they must give all operators who want to operate services on a corridor a chance to do so and regulate accordingly.

    in some ways i also don't blame bus eireann for not getting in before hand and running these services and here is why. politics. lets say bus eireann did start up the services and it turned out they were right and they're was no demand how do you think it would have ended for them? it certainly wouldn't have ended well. politicians whining left right and centre and god knows what the government might have done as a come back. bus eireann are damned if they do and damned if they don't.

    I'm very highly educated. I know words, i have the best words, nobody has better words then me.



  • Registered Users, Registered Users 2 Posts: 3,080 ✭✭✭Vic_08


    Graham wrote: »
    You're right, it's unfair competition. The private operators should be offered the same subsidies to operate the otherwise un-economic but arguably socially necessary stops.

    They are offered the same subsidy on that route: 0

    It is a BE Expressway route which is not subsidised. When BE stop serving those towns either to compete with the privates or by withdrawing the service completely then the taxpayer will be forced to fund a service for those towns.

    In the case of Urlingford, Durrow, Abbeyleix on the old N8 and Kilcullen, Athy, Castlecomber on the N78 route this is is exactly what has happened.

    The taxpayer funded services that now operate on these routes are less frequent, less well connected and less well used.

    On the part of the Waterford-Dublin route north of Carlow the town of Castledermot and the villages between there and Kilcullen have also had their service slashed due to both Bus Eireann and JJ Kavanagh diverting services away from them to compete for the more valuable City-City traffic.

    The NTA have been using the rural Local Link scheme to fill in gaps left by retreating commercial services, this scheme has an astronomical subvention rate per passenger and is squarely aimed at local travel for free pass holders. It has poor to nonexistent timetable and fares information available and no through ticketing or defined connections for passengers from further afield.


  • Registered Users, Registered Users 2 Posts: 29,381 ✭✭✭✭end of the road


    This post has been deleted.

    it has not been a success. external factors are the influence for growth which so happened to begin around the time of privatization. britain's rail subsidy dispite being a decent amount brings less value for money over all, costs are high and users are paying the most expensive fares in the world. also, that article is rather full of the usual privatization propaganda.
    1. how motorists don't expect other tax payers to pay for their journeys, dispite the fact that actually it isn't just road tax alone spent on roads.
    2. believes the railway shouldn't get subsidy, dispite the fact a subsidy free railway will never be realised.
    3. the obligatory rant about unions. a suggestion of how apparently the current southern dispute would be a lot worse under a nationalised railway, dispite british rail been broken up into sectors long before privatization, and the fact it's the dft actually behind the southern dispute pulling the strings.
    4. the inaccurate tale of how working practices have been "modernised" since privatization, dispite the fact that most if not all of the current working practices were brought in by british rail. promotions had been given on merrit long before privatization.
    that and all the stereotypes about br, which while not a fantastic operator for most of it's life it was actually getting there toards the end and likely would have been a lot better then the current system had they gotten anything near the funding levels currently given. maintaining the railway likely wouldn't have cost anything near as much and more would have been done by now. britain is only beginning to catch up on what needs to be done, br were trying to do it years ago with a lot less and would have had it done by now most likely had proper funding been given.
    ED E wrote: »
    Why? Because they love to gouge the public/taxpayer? Ehh no thanks.

    because others wouldn't do it if given the chance of course. no, it would to be to insure more competition and protection of terms and conditions for all.
    ED E wrote: »
    If BE cant compete tender it all out. Lads driving for Aircoach were always perfectly competent despite the wage gap.

    why. tendering it out costs money and they're is the potential for us to be paying more long term. no thanks, this tax payer does not wish to take the risk. i would expect any driver driving for a bus company to be competent.
    Graham wrote: »
    That's a rather roundabout way of saying BE can't compete because they pay their drivers over the market rate.

    it's not no . BE pay their drivers the right wage for what is a very responsible job. i would have no issue with the terms of the others being brought up to the same standard all though i recognise that sadly that won't happen.

    I'm very highly educated. I know words, i have the best words, nobody has better words then me.



  • Moderators, Society & Culture Moderators Posts: 17,643 Mod ✭✭✭✭Graham


    BE pay their drivers the right wage for what is a very responsible job. i would have no issue with the terms of the others being brought up to the same standard all though i recognise that sadly that won't happen.

    I'm not convinced having a bunch of people join the dole queue where they can discuss their old 'right wage' is going to do anyone any favours.


  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    which is a problem. the NTA shouldn't be able to lock other operators out of the market. if they want to regulate the market then they must give all operators who want to operate services on a corridor a chance to do so and regulate accordingly.

    So basically what you propose is a policy that allows as many operators as possible on a particular route, basically a light de-regulation where you can have an unlimited number of operators on a service at any one time. That policy has failed in the UK bus market because it really does create a race to the bottom and an oversupply of services, most of which are running empty and there is not enough passengers for anyone to make a route pay.

    It also promotes predatory tactics, whereby one or two operators invest millions in a new service, only for the predator to come in at a later date once the service is proven and has attracted lots of people, to then undercut them having had no desire to put the ground work in and are merely interested in syphooning off the market that the other companies have created by investing in the area.

    That in turn will prevent innovation in the market, since no business is going to invest a lot of capital in a service when they know that as soon as it's successful, someone is just going to run a service to near identical specification to cream off someone elses investment because they don't want to put the hard work in themselves. The end result is a market that will develop slower, and react to the needs of passengers slower.

    This won't help Bus Eireann either, since for every route they will gain a license for, there will be another route where the competition would gain a license that previously they were not able to get hold of, of which BE already has one, so they'll win some and they'll lose some but overall there will be little change market wise, they'll gain licenses on Commercial routes where they don't at the moment whilst also allowing competitors onto routes where there is no competition right now and are the dominant operator.
    in some ways i also don't blame bus eireann for not getting in before hand and running these services and here is why. politics. lets say bus eireann did start up the services and it turned out they were right and they're was no demand

    That is the reality of working in a commercial environment. You cannot just be assured that something is going to work. There is always an element of risk. That is why you need the right people in your employment and the right tools to asses if a service is viable or not to make sure you get the decisions right almost all of the time.

    The fact is on many routes BE decided there was no demand and privates showed there was which undermined BE's position in the corridor. Essentially the commercial management of the company failed in their job and led the company to make decisions which have now backfired in a spectacular way.They made the wrong decisions and ultimately those responsible should hang their head in shame, but instead they point to the staff and the NTA and everyone but themselves and that is a disgrace in itself

    What BE need to do now is to get in a new CEO from outside of the company who is an expert in both transport and has a high level of commercial skills. Hiring from within is just going to lead to more of the same and more of the same will lead to more of the same results. It will never get better unless BE learn from the mistakes of the past and make sure they do not repeat them again. I feel sorry for staff because their management never admit to any failings so it's no wonder industrial relations are so bad between company and workforce.
    how do you think it would have ended for them? it certainly wouldn't have ended well. politicians whining left right and centre and god knows what the government might have done as a come back. bus eireann are damned if they do and damned if they don't.

    Do you think that other operators are exempt from people who are putting petitions up? JJ Kavanagh had a lot of people complaining about service changes in the past, Aircoach have had it in the past with the Cork route and are now having it with the Dalkey route, Citylink have had it in the past as well when they reduced their commuter service to Galway.

    The difference is that no matter what the politicians say, these companies have had the balls to stand up to them since it is not the requirement of any commercial service to service routes that are not viable. This is the same for Expressway as it is for any other operator. They should start running Expressway as a full commercial entity and make decisions based on those factors alone and be more ruthless.

    Ultimately if the NTA do not like that, then that is something for the NTA to sort out, but instead of trying to be the white knight and be good to all people, Expressway needs to start acting like a commercial business and doing whatever it takes to reach it's potential as one, rather than being too worried about the actions of everyone else. No commercial business should be run in that way, any business who acts like that will ultimately lose in a proper marketplace with competitors.


  • Moderators, Motoring & Transport Moderators, Technology & Internet Moderators Posts: 23,279 Mod ✭✭✭✭bk


    Really interesting quote from the Director of the NTA here:
    He said that between 2012 and 2015, total bus passenger numbers on the Cork Dublin Corridor increased by 61 per cent, while on the Limerick Dublin Corridor, they increased by 50%.

    It just goes to show how terribly out of touch BE have been of the needs of public transport users. For years BE have been telling us that there was no demand for increased and improved services on these routes.

    These numbers clearly show the lie in that, they clearly show that the private operators haven't just taken customers from BE, but more importantly have massively increased the numbers of people taking public transport on these corridors. They have made public transport far more attractive to the public.

    It really isn't about cost or undercutting BE on price. Every time I've looked, the private operators ticket prices have always been around the same as BE. No it is more about the quality of the vastly superior service they offer, far faster non-stop services, hourly almost 24/7 services, extra buses put on when demand needs it, better facilities (toilets/wifi/sockets/etc.).

    The private operators on the intercity services have been the best thing to happen to public transport in Ireland since the Luas opened IMO.


  • Registered Users, Registered Users 2 Posts: 12,363 ✭✭✭✭Del.Monte


    While I'm no CIE fanboy the uncontrolled proliferation of private operators, both passenger and freight, over the last forty years is not sustainable or desirable for a myriad of reasons including safety, environmental, wages and the end game where large parts of the country will be devoid of services.


  • Moderators, Motoring & Transport Moderators Posts: 11,744 Mod ✭✭✭✭devnull


    Del.Monte wrote: »
    While I'm no CIE fanboy the uncontrolled proliferation of private operators, both passenger and freight, over the last forty years is not sustainable or desirable for a myriad of reasons including safety, environmental, wages and the end game where large parts of the country will be devoid of services.

    It isn't uncontrolled and private operators is not the correct term. It is commercial operators of which BE expressway is one.BE expressway are subject to same rules as any other commercial operators.

    The basic rule is two commercial operators on each route. First two to apply get the route. The idea is it rewards and protects innovators and protects against predatory operators. This has resulted in commercial companies being able to grow the market and entice people to switch to using the bus who otherwise might not.

    If a service is not viable that is something the national transport authority should put out to tender as part of the publicly funded network. That is the role of that body and if you have issues with services not being provided ultimately that will be caused by them. However they say they will not let that happen.

    See here
    https://www.nationaltransport.ie/news/statement-by-national-transport-authority-on-bus-services-in-rural-communities/


  • Moderators, Motoring & Transport Moderators, Technology & Internet Moderators Posts: 23,279 Mod ✭✭✭✭bk


    Del.Monte wrote: »
    While I'm no CIE fanboy the uncontrolled proliferation of private operators, both passenger and freight, over the last forty years is not sustainable or desirable for a myriad of reasons including safety, environmental, wages and the end game where large parts of the country will be devoid of services.

    I'm sorry but that sounds like pure scare mongering to me!

    - Safety - How? Aren't the private operators required to follow all the same safety requirements of their license with the NTA as BE are required too under the same license from the NTA? Plus all the various safety laws of the roads authorities, employment regulators, etc.

    - Environment? - How? Aren't the private operators required to follow all the same environmental laws when buying new coaches as BE? Euro 6 engines, etc. And in fact given that new buses and engines tend to be more fuel efficient, it tends to be in operators own economic interest to get the latest engines and coaches as it helps reduce their fuel costs.

    - Wages, sure I'll give you that one. But why should I as a member of the general public care about that? I just want a high quality service. I would hope the drivers earn a decent wage, but BE have in no way being delivering a high quality service to match the very high wages their staff earn.

    - Country devoid of service? No reason why the PSO subsidies BE receive can't be given to private operators to run non-profitable routes. In fact, given that private operators seem to be able to operate services for a lot less money then BE. Then logically the same amount of PSO money could actually go much further with private operators and we could actually end up with more routes and service in rural areas.

    Remember private operators run profitable services in some of the most rural areas of Donegal that even BE won't run. Proving that you definitely don't need a semi-state company to run rural routes.


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