2 Dublin Bus & Bus Éireann
Cost and Efficiency Review January 2009
Scope and basis for review
Deloitte & Touche (hereinaf
ter ―Deloitte‖) together with ou
r subcontractors, the TAS Partnership Ltd(TAS)
and Colin Buchanan, are pleased to present our Report (―Report‖) on the cost and efficiency
review of Dublin Bus and Bus Éireann to the Minister for Transport. This Report and any relatedadvice we give has been prepared for the sole purpose of assisting and advising the Minister inaccordance with our Consultancy Agreement dated 30 June 2008.The information we have used to prepare this Report has been provided to us by a variety of sourcesand derived from our own research of publicly available sources. In some cases, commerciallysensitive information was used to perform the analyses. Our procedures have not included verificationwork and do not constitute an audit in accordance with auditing standards. At all times therecommendations and conclusions made in this Review are those of Deloitte and we have not soughtto seek validation of our views by those consulted as part of the Review.This Report is for the attention of the Minister for Transport. The Report may not be relied upon,referred to, reproduced or quoted from, in whole or in part, for any other purpose than that set out inthe Consultancy Agreement. Deloitte shall not under any circumstances whatsoever be under anyliability to any party other than as set out in our Consultancy Agreement.
Background to the review
Deloitte was appointed by the Department of Transport on 30 June 2008 to undertake a cost andefficiency review of Dublin Bus and Bus Éireann. This section sets out our Terms of Reference that
accompany this review and summarises Deloitte‘s approach to undertaking the project. It also outlines
the overall structure of this report.
Terms of reference
The Terms of Reference for the review issued by the Department of Transport are summarised below.These Terms specify that the review should assess whether the resources currently available toDublin Bus and Bus Éireann are used in the most effective and efficient way possible to deliver anoptimum public transport service and more particularly to:
Assess the effectiveness and appropriateness of the network of services currently provided byDublin Bus and Bus Éireann for public transport users and of their planning and management ofthe network including the criteria used for route selection and amendment, frequency setting andadjustment, service variations during weekday/weekend, extent of peak/off peak provision,integration with other public transport services etc.
Assess the operational efficiency of Dublin Bus and Bus Éireann with particular reference toresource utilisation (including bus scheduling and staff scheduling and rostering) and operationalcosts. This should include an examination of the utilisation of buses to determine whether the fleetis deployed in the most efficient and effective manner. The assessment should also examine themanagement of direct costs and overheads and of the issues (e.g. human resource,organisational etc), which might impact on the delivery of services to public transport users.
Identify any issues (e.g. human resource, organisational) adversely impacting on the efficiency,effectiveness and sustainability of service delivery, indicating whether these issues are withinmanagement control.
Make recommendations in relation to actions required to enhance efficiency, effectiveness andreliability of the delivery of public transport services. Each recommendation to be assessed inrelation to its implications for the financial viability of the companies and the impact on the need forExchequer support.