European Commission Putting Pressure on Goverment to Tender Rail Services

dowlingm · 02-08-2015, 01:58

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?

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02-08-2015, 01:58	#21
dowlingm Really Really Regluar Poster Join Date: Aug 2006 Location: Toronto, Canada Posts: 1,371	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?