Major internal review of Dublin Bus operations now under way

DUBLIN Bus is undertaking an internal review of its operations at the request of its parent company, CIE, a spokesman has confirmed.

The review is part of a group wide cost cutting initiative by the state transport company.

Outside consultants have been appointed to carry out reviews at the two other operating companies, Bus Eireann and Iarnrod Eireann. Reductions of £70 million in CIE's cost base are being sought by the Department of Transport Energy and Communications.

Somers and Associates carried out a review of Bus Eireann for CIE and reported last month to the CIE board, while management consultant Mr Leslie Buckley was appointed to carry out a review at Iarnrod Eireann two weeks ago.

The reviews at the subsidiary companies follow the major restructuring of the CIE group management last year, after the appointment of Mr Michael McDonnell as chief executive.

The internal review at Dublin Bus got underway six weeks ago. Five separate project teams of around five people each have been established to report on the following areas quality and standards, profitability, competition, technology, and a customer charter.

The Minister for Transport Energy and Communications, Mr Lowry, is keen to see customer charters introduced at the CIE operating companies.

Performance targets would be set for the companies that would be linked to their annual subventions which come to more than £100 million a year.

The five project groups working at Dublin Bus made their first, reports earlier this month, setting out the present situation, said the spokesman. The whole process could take up to 18 months to complete, he added.

Dublin Bus last under went a major review in 1990 when the Network Review Process was undertaken. The recommendations of this programme are still being implemented and it includes the City Swift and Imp services as well as a comprehensive upgrading of the bus fleet.

A major review at this stage, including the appointment of outside consultants, was not felt necessary by CIE.

The teams examining competition and profitability will be looking at the cost base, which will include work practices and employment levels.

CIE has not yet published its results for 1995, but the 1994 annual report shows that Dublin Bus had revenues of £96 million and received a state subvention of £5 million, after which it returned a surplus of £3 million. Overall, the group had turnover £314 million and turned in a surplus of £14.5 million after Government grants totalling over £105 million.

The review of Bus Eireann produced by Somers and Associates concluded that the company was unlikely to survive in the long term if it did not address its cost base.

The report also included proposals to cut the wages bill by £7.5 million and the introduction of private contractors on some routes, as well the hiring of casual drivers.