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funding or that            solutions and the status
News Up-Date              promises serious           quo that has protected
January 2011.             commitment in the          outdated routes, non-
                          absence of otherwise       commercial
                          proven difficulties in     applications to those
                          this model.                routes and a business
                                                     model sustainable only
Fare                      The reason FOTO is         by State subventions.
Increases:                not doing anything         There are presently 150
                          about certain              Irish private bus/coach
                          ”commercial benefit”       owners capable and
There are many private
                          issues is that whenever    willing to finance the
bus/coach operators
                          it does, everyone          research and viability
envying the simple
                          benefits, whether they     studies required for this
solution of Dublin Bus
                          pay for the service or     major application to the
to make ends meet-
                          not, evidence the fuel     NTA. It is their right to
increase the fares!
                          rebate when 1,300          expect that they should
                          operators benefited        benefit in the first
This is a solution only
                          from the investment of     instance.
available to a State
                          160!
company on a route
protected under the
                          Those who are              School
new Transport Act and
where competition is
                          prepared to pay are not    Transport
                          prepared to allow
not allowed!
                          others to benefit from     The main concern for
                          their investment and       over 80% of Irish
Many of you are asking
                          have bought into their     bus/coach owners is
what FOTO is doing to
                          own limited company,       their School Transport
right this kind of
                          ibus plc. This is not a    contract. This has been
wrong. What is anyone
                          co-op, it is not a         the cornerstone of their
else doing? What are
                          committee, it is a         business for over 30
you doing?
                          business.                  years. There has been a
Certainly FOTO                                       complete erosion of the
continues to represent                               value added of this
                          ibus plc. has proposed     contract in the last 2/3
the interests of over
                          a new national network     years and for many it
1,100 bus/coach
                          of services developed      has become barely
owners within the
                          around the concept of a    worth having except
present legislative
                          new National Bus           for the fear of losing it
framework and has its
                          Terminus. This             altogether. The reality
consultant, Mr. Frank
                          proposal is the only one   here is that this contract
King in the pivotal
                          on the table of the NTA    is given to the State
position on the Board
                          by any organisation or     company, Bus Eireann,
of the National
                          other business within      by the Department of
Transport Authority
                          the Irish transport        Education with only
[NTA] However, this
                          industry. It is            the “tag” attaching that
representation can only
                          shamefacedly               it shows a reduction on
work within such
                          challenging the new        the previous year. This
framework and cannot
                          Authority to examine       is only achieved by Bus
take actions that
                          other transport            Eireann through
require serious ongoing
2.
                            Legal action will.         Which would you
continually reducing
                                                       prefer?
the price it pays to you
                            Who will benefit from
the subcontractor by
                            such an action?            Whoever wins the
pitting you against each
                                                       contract will have first
other. There is no
                            Not you if you do not      choice and the less than
competition applied to
                            have the resources to      attractive runs will be
the services or routes of
                            do so.                     tendered out!
Bus Eireann itself and
for so long as they can
                                                       ibus plc. is presently
show a reduction in
                                                       working on the most
what it charges the
                            Any international          cost efficient way to
Department of
                            transport company,         force this contract to
Education annually to
                            such as Stagecoach,        tender. It is also acutely
provide the service, the
                            First Group etc. could     aware of opening any
objective is met!
                            do it!                     opportunity to its
                                                       competitors that it
We can challenge this
                            Bus Eireann could          cannot exploit itself!
too.
                            continue to do it!         This is not a case of
                                                       dithering nor is it a fear
There is ample
                            ibus plc. could do it!     of competition, merely,
evidence to show that
                                                       a prudent approach to
contracts such as this
                            Any collective of          ensure the protection of
should be tendered in
                            bus/coach owners           its shareholders. It
full. Such tender to
                            could do it!               would not, for instance,
include the cost of
                                                       be a good strategy to
managing the contract,
                            Now would be a good        advise when, how, or
providing the service
                            time for a challenge to    who will be involved in
and maintaining the
                            this arrangement and       this. We do have room
standards and safety
                            no doubt there are         for more subscribers
any such service is
                            others thinking the        and you would be most
obliged and should
                            same.                      welcome at this time,
have.
                            It is important that you   however, you should
                            understand the             know that ibus plc. is
Why is this not being
                            implications of each of    capable of mounting
done?
                            these options. It is now   this challenge within its
                            a question of when         existing base of
ibus plc. has written to
                            rather than if that this   bus/coach owners.
the Minister for
                            contract is managed by     My promise to protect
Education pointing out
                            either of the above, a     the identities of any
that under a different
                            large collective of        subscribers remains
business model there
                            small individual           and has stood up to that
could be savings of up
                            bus/coach owners [ibus     test for over 3 years
to €300m over a 5 year
                            plc.] or one large         now!
period!
                            international or one
                            State company or30 to
Representation will not
                            60 medium sized
force this contract to
                            operations.
tender.
3.

Cuchulann
Tunnel
I have never had so         It will create 10s of
many queries about a        thousands of jobs
subject before!
                            It will become the
Behind this proposal is     preferred route for the
the original concept of     bulk of imports/exports
ibus plc.!                  for Europe to/from
                            China/America.

The events of the last      It will become the new
18 months have              Wonder of the 21st
brought our country to      Century
its knees. We are
doubting our education,     It will generate major
our abilities, our spirit   tourism.
and our hope.
                            I cannot say if this will
During the years of         be built in my lifetime,
earlier depressions and     but, it must be
wars people have            proposed now for
reached extraordinary       tomorrow.
heights to overcome
adversity. Governments      Benefit to ibus plc.?
have responded to the
spirit of its people by     I will welcome your
providing the base for      comments!
stimulus and
investment, America is      jdunne@jfd.ie
a strong case in point
when it built the
Hoover Dam!
                            John Dunne
Ireland can do the
same. Ireland is pivotal
to Europe. We only
hear of our island status
and how peripheral we
are to Europe and a
help us mentality.

The Cuchulann Tunnel
is the major stimulus
for Ireland.

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ibus News - January 2011

  • 1. funding or that solutions and the status News Up-Date promises serious quo that has protected January 2011. commitment in the outdated routes, non- absence of otherwise commercial proven difficulties in applications to those this model. routes and a business model sustainable only Fare The reason FOTO is by State subventions. Increases: not doing anything There are presently 150 about certain Irish private bus/coach ”commercial benefit” owners capable and There are many private issues is that whenever willing to finance the bus/coach operators it does, everyone research and viability envying the simple benefits, whether they studies required for this solution of Dublin Bus pay for the service or major application to the to make ends meet- not, evidence the fuel NTA. It is their right to increase the fares! rebate when 1,300 expect that they should operators benefited benefit in the first This is a solution only from the investment of instance. available to a State 160! company on a route protected under the Those who are School new Transport Act and where competition is prepared to pay are not Transport prepared to allow not allowed! others to benefit from The main concern for their investment and over 80% of Irish Many of you are asking have bought into their bus/coach owners is what FOTO is doing to own limited company, their School Transport right this kind of ibus plc. This is not a contract. This has been wrong. What is anyone co-op, it is not a the cornerstone of their else doing? What are committee, it is a business for over 30 you doing? business. years. There has been a Certainly FOTO complete erosion of the continues to represent value added of this ibus plc. has proposed contract in the last 2/3 the interests of over a new national network years and for many it 1,100 bus/coach of services developed has become barely owners within the around the concept of a worth having except present legislative new National Bus for the fear of losing it framework and has its Terminus. This altogether. The reality consultant, Mr. Frank proposal is the only one here is that this contract King in the pivotal on the table of the NTA is given to the State position on the Board by any organisation or company, Bus Eireann, of the National other business within by the Department of Transport Authority the Irish transport Education with only [NTA] However, this industry. It is the “tag” attaching that representation can only shamefacedly it shows a reduction on work within such challenging the new the previous year. This framework and cannot Authority to examine is only achieved by Bus take actions that other transport Eireann through require serious ongoing
  • 2. 2. Legal action will. Which would you continually reducing prefer? the price it pays to you Who will benefit from the subcontractor by such an action? Whoever wins the pitting you against each contract will have first other. There is no Not you if you do not choice and the less than competition applied to have the resources to attractive runs will be the services or routes of do so. tendered out! Bus Eireann itself and for so long as they can ibus plc. is presently show a reduction in working on the most what it charges the Any international cost efficient way to Department of transport company, force this contract to Education annually to such as Stagecoach, tender. It is also acutely provide the service, the First Group etc. could aware of opening any objective is met! do it! opportunity to its competitors that it We can challenge this Bus Eireann could cannot exploit itself! too. continue to do it! This is not a case of dithering nor is it a fear There is ample ibus plc. could do it! of competition, merely, evidence to show that a prudent approach to contracts such as this Any collective of ensure the protection of should be tendered in bus/coach owners its shareholders. It full. Such tender to could do it! would not, for instance, include the cost of be a good strategy to managing the contract, Now would be a good advise when, how, or providing the service time for a challenge to who will be involved in and maintaining the this arrangement and this. We do have room standards and safety no doubt there are for more subscribers any such service is others thinking the and you would be most obliged and should same. welcome at this time, have. It is important that you however, you should understand the know that ibus plc. is Why is this not being implications of each of capable of mounting done? these options. It is now this challenge within its a question of when existing base of ibus plc. has written to rather than if that this bus/coach owners. the Minister for contract is managed by My promise to protect Education pointing out either of the above, a the identities of any that under a different large collective of subscribers remains business model there small individual and has stood up to that could be savings of up bus/coach owners [ibus test for over 3 years to €300m over a 5 year plc.] or one large now! period! international or one State company or30 to Representation will not 60 medium sized force this contract to operations. tender.
  • 3. 3. Cuchulann Tunnel I have never had so It will create 10s of many queries about a thousands of jobs subject before! It will become the Behind this proposal is preferred route for the the original concept of bulk of imports/exports ibus plc.! for Europe to/from China/America. The events of the last It will become the new 18 months have Wonder of the 21st brought our country to Century its knees. We are doubting our education, It will generate major our abilities, our spirit tourism. and our hope. I cannot say if this will During the years of be built in my lifetime, earlier depressions and but, it must be wars people have proposed now for reached extraordinary tomorrow. heights to overcome adversity. Governments Benefit to ibus plc.? have responded to the spirit of its people by I will welcome your providing the base for comments! stimulus and investment, America is jdunne@jfd.ie a strong case in point when it built the Hoover Dam! John Dunne Ireland can do the same. Ireland is pivotal to Europe. We only hear of our island status and how peripheral we are to Europe and a help us mentality. The Cuchulann Tunnel is the major stimulus for Ireland.