European Commission Putting Pressure on Goverment to Tender Rail Services

[dowlingm]

Let's say a service is determined by IE to cost 1000 Euro right now (round numbers for simplicity) for which they get 1000 Euro in revenue and subsidy under current arrangements.
Veolia come in and say "we are willing to deliver this for 900 Euro" which represents their estimate that it will cost them 700, providing 200 in profit to the company - as we've so oft noted in discussing these matters, these companies ain't charities.

While the actual figures are clearly different, this amounts to a substantial reduction. What I don't get is this: how does Veolia (for example) get that 300?

The other issue is: while I know there is some PSO/non PSO split within IE right now, is a move to franchising likely to change the landscape for special services such as GAA and concerts?

[Eddie]

Originally Posted by dowlingm

While the actual figures are clearly different, this amounts to a substantial reduction. What I don't get is this: how does Veolia (for example) get that 300?

Staff Costs: I imagine new train crews would not have final salary pensions, and have lower base rates of base pay and PRP.

They may also want to offer more dynamic ticket pricing that maximises revenue. The Irish Rail ticketing website appears very broadbrush, and I doubt it achieves this.

[dowlingm]

Eddie: that scenario involves no transfer of personnel or obligations to the franchisee. The question then becomes what do IE do with the employees who used to work on these services. some might be redeployed to non franchised services but that will only go so far,

[Mark Gleeson]

Irish Rail faces bankruptcy if it loses tender, Government warns
EU Commission wants changes that would open up sector to competitors

State-owned train operator Irish Rail (Iarnród Éireann) is likely to face bankruptcy if it loses the right to run services as a result of proposed changes to the way the EU rail sector is run, the Government has warned.

http://www.irishtimes.com/business/t...arns-1.2305992

[berneyarms]

Originally Posted by Eddie

Staff Costs: I imagine new train crews would not have final salary pensions, and have lower base rates of base pay and PRP.

They may also want to offer more dynamic ticket pricing that maximises revenue. The Irish Rail ticketing website appears very broadbrush, and I doubt it achieves this.

Originally Posted by dowlingm

Eddie: that scenario involves no transfer of personnel or obligations to the franchisee. The question then becomes what do IE do with the employees who used to work on these services. some might be redeployed to non franchised services but that will only go so far,

It's not a realistic proposition to expect that there would be completely new staff taken on though, particularly when it comes to drivers.

There would have to be TUPE provisions involved.

It's totally unrealistic to expect that drivers would not transfer and not retain their existing pay and conditions, given how long it takes to train new drivers - it's a specialised job being able to retain appropriate route knowledge.

[Colm Moore]

Originally Posted by dowlingm

Eddie: that scenario involves no transfer of personnel or obligations to the franchisee. The question then becomes what do IE do with the employees who used to work on these services. some might be redeployed to non franchised services but that will only go so far,

In a contract for service, all operational staff (may not include some management) that the departing contractor doesn't want to retain would transfer.

It would be different for a contract for goods or works.

[Jamie2k9]

Ireland will not agree to the mandatory opening of domestic rail to privatisation “under any circumstances”, Minister for Transport Paschal Donohoe has said.

Mr Donohoe told Sinn Féin transport spokesman Dessie Ellis that Ireland and a number of other European Union countries have “fundamental concerns” about the proposed EU reforms to open the market to privatisation.

The Minister said he had met the Commissioner in Brussels a fortnight ago “and pointed to the difficulties posed to the Irish rail sector and indicated that Ireland could not agree to mandatory opening under any circumstances”.
Mr Donohoe said: “I believe we will find a solution that will not pose risks to the Irish rail sector.”

Mr Ellis said the Minister should write off Irish Rail’s €150 million losses in the past seven years and “we should not place demands on the rail network to meet its debts”.

While I'm a person who feels there should be no freebies given, if for example it was written off would us the customer benefit in anyway, in terms of IE having additional money to spend in improvements.

Having it on the books can be a good tool when in discussions with unions all the same.

http://www.irishtimes.com/news/polit...ster-1.2363998

[Mark Gleeson]

Its not the Ministers decision, Brussels decides.

The current direct award contract is unacceptable.

Has the NTA ever fined Irish Rail for any breech of contract or EU regulation, Nope

[Colm Moore]

Originally Posted by Mark Gleeson

Has the NTA ever fined Irish Rail for any breech of contract or EU regulation, Nope

In circumstances where there is essentially only one operator, fining the operator for poor performance might not be the best way to proceed, as it removes money that could be spent on the railway.

Putting in a place a scheme where management and staff can benefit modestly (or suffer) from an incentivisation scheme may be more meaningful, with safety, journey times, reliability, punctuality, customer service and cost management as key indicators.

[dowlingm]

an environment without TUPE...
http://www.thestar.com/news/gta/2015...workforce.html