Hundreds of jobs to go as stricken CIÉ cuts services

Emergency proposals to save company as financial meltdown is looming

Shane Coleman, Political Editor

Hundreds of redundancies, the withdrawal of some CIÉ services, garage closures and a pay freeze are all being seriously considered as the company faces an unprecedented threat to its financial viability.

Dramatic cost savings are being proposed by the group which two months ago sought a 20% fare rise from the government, the Sunday Tribune can reveal.

CIÉ, made up of Iarnrod Eireann, Dublin Bus and Bus Eireann, is projecting a loss of €131m for next year, compared to an operating deficit of just €1.5m in 2007.

Bus passenger numbers are down by 4% so far this year, while rail passengers are down by 1%. And costs are projected to rise by €73m, or 10%, across the group next year.

The projected 2009 operating deficit will be reduced by around €45m from a 10% fare increase and a €5m increase in the state subvention – both of which the government intends to grant. However, this still leaves a sizeable deficit.

And the Sunday Tribune has learned that CIÉ has extensively briefed the government on potential savings of around €45m at the three companies. Measures being considered include:

? The withdrawal from service of around 100 buses at Dublin Bus through reduced frequency on some routes and withdrawal of services on a small number of lightly-used routes.

? The release of as many as 400 staff at Bus Eireann with over 170 buses being withdrawn from service.

? The cancellation of over 40 Bus Eireann services and a reduction of services on a further 150 routes.

The government has been warned by the group that the proposed service reductions on Bus Eireann are extensive and will have a significant impact across the country.

For Iarnrod Eireann, the emphasis is on deferring proposed new services instead of cutting services. It has been proposed that the increase in service frequencies on routes from Dublin to Limerick, Galway, Waterford and Wexford will be deferred. And there may be a reduction in capacity on off-peak Dart and other routes. Other proposals include the deferral of a limited number of new services on the Western Rail Corridor, the Kildare line and on Cork-Midleton.

The government has also been told that, in addition to the reductions outlined, the companies may have to consider a pay freeze and redundancies. A cost and efficiency review of Dublin Bus and Bus Eireann is being carried out by consultants Deloitte.

A spokesman for CIÉ said the group was "facing a more difficult financial situation in 2009, in light of the changed economic environment, increased costs and reduced subvention". While he said that "all aspects of the cost base" were being examined for potential savings, the spokesman stressed "no decision has yet been made on the final measures to be taken".

November 23, 2008

Comments

#1 Daniel Crowley commented, on November 23, 2008 at 5:35 p.m.:

Bus Eireann could save a significant amount of money on fuel if their buses kept to the 80 kph speed limit which applies to this class of vehicle.
But they need the resolve to deal with drivers who persistently speed - thereby increasing fuel consumption, increasing environmental damage, breaking the law and endangering the public.
But to hope that this will happen is to hope in vain.

#2 joe bloggs commented, on November 23, 2008 at 7:33 p.m.:

With reference to Mr Crowley above: would it not be the case that any savings in fuel would have to be paid in overtime due to running late when stuck in traffic?

#3 Robert Brennan commented, on November 23, 2008 at 7:37 p.m.:

All buses are fitted with a road speed limiter that keeps them just under 80kph, so they can't speed.

#4 jmc commented, on November 23, 2008 at 8:21 p.m.:

In all fairness Daniel, it is just as dangerous to travel 20km/h under the speed limit, as it is to drive 20 km/h over it. Are you suggesting that Bus Eireann coaches are not allowed to travel at the speed limit on a main road?

#5 ted kelly commented, on November 23, 2008 at 10:05 p.m.:

That's a constructive contribution from Daniel above and one that will be of great help to management and staff of CIE.

#6 Mackswell Smart commented, on November 24, 2008 at 12:21 a.m.:

This is a political issue on a vast scale.
In the case of Dublin's public bus service, Bus Atha Cliath has only been playing catch-up after decades of neglect.
As a capital, Dublin remains seriously underserviced in bus terms.
These cuts will ensure that public transport in Ireland will be returned to 1970s levels.
What level of credibility can we now attach to Transport 21 or indeed ANY of this government's "Grandes Projets" which have now been revealed as little more than fatuous nonsense?

#7 Sean9015 commented, on November 24, 2008 at 10:20 a.m.:

Re Robert Brennans comment: clearly you have never travelled on the N7 Naas dual carriageway, where I have been in a car at 100km/h, and been overtaken by a "speed limiter fitted" Bus Eireann coach - and not slowly either. The eejit was doing at least 110.
They also seem to have problems with the 60knm/h limit through the M50 works - but then, so does every vehicle it seems....

#8 KevinB commented, on November 24, 2008 at 10:57 a.m.:

We have a product called Ecotrak which the private operators are putting into their buses which typically reduces fuel costs by 25% and also provides extensive operational information which can be used to improve quality of service and operational efficiences. CIE need to start embracing technology to ensure that they can survive and be competitve in the current environment.

#9 Eamonn commented, on November 24, 2008 at 12:55 p.m.:

Years of inefficiencies driven by strong unions have the group in this mess.
Not to mention annual subvention from the State that caused a EU investigation in 2007.
And the focus on crippling private operators such as the Swords Express service that recently won their case with the Department of Transport about Dublin Bus using unfair tactics to stop this successful service.
End result: let private operators hit the 15% target as per the 2006 agreement and see if a bit of real competition focuses drives more efficient operations.

#10 antony commented, on November 24, 2008 at 5:14 p.m.:

Eamonn is right. I worked for C.I.E in 1980/82 and I could not believe the goings on there. Two o'clock used to be nap time. Mondays clock in and then head for the pub. Do a little bit of work Tuesday and Wednesday. Get paid Thursday 12 noon. Slip out to the pub for one before lunch etc. Friday complain about how tough the week was and leave around 2/2.30pm for acouple of pints with the boys. F.A.S was and still is even worse. Motto.. don't get caught...

#11 Joe commented, on November 24, 2008 at 6:53 p.m.:

I was employed for just under 47 years in various departments in CIE. During that time successive governments never treated CIE seriously. For years the company was starved of capital resulting in rolling stock and permanent way deteriorating to the point of collapse. It was only the super human efforts of management and staff over the years that kept the show on the road. But for the support of Mary O'Rourke as Minister for Transport with the injection of capital to buy trains and buses the equipment on both rail and road would by now be unfit for service. With regard to pay and conditions the staff within CIE were and still are the Cinderellas of the semi-State sector. If Dublin Bus was privatised the public would be in for a rude awakening with curtailments on services after 8pm nightly and little or no service on Sundays. As happened in the UK wages and conditions were depressed after the services were privatised and this led to a high turnover of staff leading to unreliability in service delivery.

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