State to grant Bus Éireann an extra €7m for free travel scheme
State-owned company bus Éireann will get an extra €7m next year to increase payments to the company for pensioners’ free travel.
The company had been complaining that its private sector competitors could get up to 70% of the average fare from the Government for carrying those passengers entitled to free travel while they were only getting 37%.
The Department of Social Protection has agreed to increase payments to the state-owned company in order to level the playing field with its private sector competitors.
Chief executive of Bus Éireann, Ray Hernan said that it was a "major bugbear" for the company. He explained that the company got less payments because the formula used to calculate them was 40 years old and out of date.
Earlier this December, the company introduced new pay rates and rosters to aid it in cutting €15m for overtime and premium payments it could no longer afford. This increase of the Irish government's subsidy comes at a time when the company may need it the most.
After a three week strike in spring some changes were agreed and about 240 staff are taking voluntary redundancy from the company. This along with the cancellations from Storm Ophelia meant that the company budgeted a loss of €13m for this year.
With the Government’s decision to increase the subsidy for free travel it’s estimated earnings for next year should rise, especially since it was expanding city service to Galway, Limerick and Cork.