Committee for Regional Development

Transport Bill (to become the Transport Act (Northern Ireland) 2010)

Response by Northern Ireland Committee – Irish Congress of Trade Unions
16th August 2010

NIC-ICTU welcomes the opportunity of giving its view on the content of the Public Transport Bill. It is our opinion that the Bill whilst meeting the regulations for Public Service Contracts as defined in EU Regulation 1370/2007 it (the Bill) does not adequately cater for the direct award concept contained in the Regulation. It is our contention that an exclusive right to operate (no other Operator permitted to compete) should be the preferred option for the Northern Ireland Assembly.

NIC-ICTU does not believe that ‘perfect competition’ as an economic theory meets the demands of a modern Public Transport System. Public Transport is an economic theory ‘monopolistic’ however we do believe that there is a role for small private Operators to be used as sub-contractors in the provision of supplementing a Public Transport entity.

The current Public Transport provision in Northern Ireland performs much better than any comparator throughout the rest of the United Kingdom despite the reduction in funding Translink has made savings, increased efficiency and increased passenger growth and services. There has been improved integration of Timetables, Bus & Rail Park and Ride Schemes and Services and we do not believe that if more service providers are involved that integration can ever be fully achieved.

Part 1 - Public Transport Services

NIC-ICTU welcomes the commitment in the Bill that most Public Transport Services will be provided by the Northern Ireland Transport Holding Company and its subsidiaries. However, as mentioned in our introduction there is nothing in the Regulations to currently prevent all of the service provision being contracted to Translink by DRD. NIC-ICTU is confident that by complying with EU 1370/2007 Public Transport Services in the form of Public Service Contracts will ensure transparency and consistency in the provision of an efficient and quality service.

Part 1 – Service Permits

NIC-ICTU is deeply concerned with the policy thrust contained in the Bill on Service Agreements and Service Permits. Our concern specifically relates to our experiences in other countries whereby operators who have received Licenses as per the content of this Bill do not adhere to the parameters set out in the License and set about to take existing passengers off the current Operator.

In the context of Northern Ireland where there is high non-compliance with the National Minimum Wage Legislation and other non-compliance in areas of taxation, etc, we fear for the Employment Rights of those employed by small Operators. In order to achieve any sort of compliance in such a system necessitates a policing of those Operators and high financial penalties and removal of license for those found in breach of contract. Applicants for an Operators License must be subject to a rigorous test of their professional ability, competence, financial security and other assessments commensurate with the provision of an efficient high quality service. NIC-ICTU is unsure of what the Fares Regulation means in terms of who bears the commercial risk. We are unable to interpret whether the policy in the Bill will operate on a net or gross cost basis.

Part 2 – Buses, Taxis and Trains

Taxis

NIC-ICTU acknowledges the fact that certain taxis operate bus type services under the current Road Licensing System. NIC-ICTU is pragmatic with regard to including amendments to the Taxi Act in this Bill.

Railway Services

NIC-ICTU acknowledges that the inclusion of a provision for Railway Services in conformity with EU Regulation 1370/2007 is a necessity and agreeable to NIC-ICTU.

Part 3 – Consumer Council

NIC-ICTU welcomes clarification on the role of CCNI but is unclear as to how a non-elected Body bereft of any Public Transport expertise is granted a status in the Bill which ignores representatives of the employees. There is a view in the Trade Union Movement that in recognising ‘the shared interest’ between Departmental Agency and Consumer Council may well pose a threat to the retention of Public Transport Services as a public good.

Part 4 – Enforcement

NIC-ICTU believes that the proposed Offences and Fine Levels for Service Agreement/Public Transport Service Permit System are too lenient for those who would breach the contracts. Furthermore with regard to the appointment of Enforcement Officers it is the view of NIC-ICTU that the proper way forward is the appointment of a Transport Police Unit similar to those operating in GB and European countries.

Part 5 – Grants

NIC-ICTU is favourably disposed to this aspect of the Bill premised that those in receipt of public money should have their operation benchmarked and evaluated on the normal criteria in a transparent manner.

Part 6 – Other Issues

NIC-ICTU favours the granting of powers to the Department for the acquisition and disposal of land. NIC-ICTU envisage that this legislation will be used as an aide to enhance the Public Transport System in regard to the following:

• Bus Priority Measures
• Park & Ride Facilities
• Passenger Facilities
• Bus Stops & Shelters

Congress welcomes the Regulations concerning the conduct of persons in Bus Stations on a power with those currently in operation in Train Stations.

Shared Transport Facilities

NIC-ICTU is concerned that the use of the term Shared Transport Facilities could be construed as a carte blanche opportunity for private licensed Operators to utilise publicly paid for facilities for private gain with no obligations to contributing to the upkeep of these services. NIC-ICTU is concerned that private Operators may seek to utilise:

• Staff Canteen Facilities
• Bus Depots
• Cleaning Facilities
• Office Accommodation
• Maintenance & Engineering Services

NIC-ICTU is opposed to the extension of these facilities based on our arguments of private gain and health and safety dangers.

CONCLUSION

NIC-ICTU has serious concerns about how this Bill will be interpreted, operated and believe that in our experience of other similar type Regulations there will be a net welfare loss to passengers and to the whole concept of an Integrated Public Transport System.