Minister unsure of CIE stance on running Luas

The Minister for Public Enterprise, Ms O'Rourke, does not know if CIE will remain the sponsor of the Luas project after a report recommended that the transport company should consider contracting out the running of Luas to a private operator.

Ms O'Rourke told Fine Gael's traffic spokeswoman, Ms Olivia Mitchell, that she was beginning to talk to all the parties involved following the report by consultants on a public private partnership (PPP) approach for the Dublin light rail project.

She was speaking during Public Enterprise Questions at which she also rejected Fine Gael claims that she was delaying the announcement of a 9 per cent increase in bus and train fares until after the local elections. Fine Gael's public enterprise spokesman, Mr Ivan Yates, claimed that a political decision had been made to increase fares but to delay increase until after the local elections.

However, Ms O'Rourke insisted that no political decision had been taken about fare increases.

On Luas, Ms Mitchell asked if there had been a change of attitude in CIE to the project. Reports suggested a "divergence of opinion" on the value of the light rail project.

"Is the Minister satisfied there will not be a major conflict of interest if CIE continues as the client to procure a private operator, but is in competition with the operator of Luas?"

Ms O'Rourke said that three or four days after she had sent copies of the report to everyone concerned, she had received an "interesting - I won't say alarming - letter" - from the CIE chairman.

"That was the first inclination I had that the sponsor of Luas, CIE, might consider changing gear. However, it did not change gear."

Asked about the conflict of interest if there was competition, the Minister said she hoped to meet the unions and the board of CIE shortly.

"I hope to receive a correctly-worded and evaluated proposal for the building of Luas. I found the change of tack extremely interesting - I won't say alarming - four days after the report was published."

Mr Yates claimed the Minister was "going to abort Luas and blame CIE" but Ms O'Rourke said she did not know what he was talking about.

Mr Yates: "That is a clever move."

Ms O'Rourke: "I did not think it was a clever move by CIE."

Mr Yates: "It is a clever move by the Minister."

Ms Mitchell asked if the consultants' report would be accepted by Government, and if CIE would be the client for procuring a private operator.

The Minister said she did not know because she was only just starting to talk to people about it.

"The note I received with the report stated that those proposals [for a private operator] should be considered.

"The first meeting of the Cabinet sub-committee on the National Development Plan will take place tomorrow and those issues will be aired informally there. I will go back to Cabinet with proposals in that regard."