The chairman of CIE, Mr Brian Joyce, resigned unexpectedly yesterday evening, citing "fundamentally differing views" from the Minister for Public Enterprise, Ms O'Rourke, over the autonomy of the State-owned train and bus company.
In a highly critical letter of resignation, Mr Joyce accused the Government of failing to withdraw from involvement in industrial relations at the group. This was a "recipe for conflict" with the trade unions, he said.
He maintained that crucial issues, such as fare structures and subsidies, had not been addressed. "All of these are in the gift of the Government, yet remain an elusive pipe dream", he wrote. He also said that he and Ms O'Rourke were "unlikely to agree in the foreseeable future" on matters relating to transport.
Mr Joyce's term of office was not due to end until November and his departure will raise further questions about the management of CIE.
Mr Joyce expressed concern that the Luas project would potentially absorb up to 50 per cent of available resources for national public transport in return for carrying less than 10 per cent of peak-time passengers into central Dublin.
He said he had indicated in 1998 that a "revitalisation" of public transport would depend on "handing back the management of the CIE companies to the managers . . ." This would comprise three elements: the granting of public service contracts to CIE; giving it the power to increase fares; and ensuring that the company enjoyed freedom from Government involvement in industrial relations.
Public service contracts have been discussed for a number of years, but have never been implemented. These would provide a specific subsidy to the CIE companies in return for a specific level of service on unprofitable bus and rail routes.
On fares, Mr Joyce has long argued that CIE should be given the authority to implement annual increases in line with inflation. An 11 per cent rise last January was the first since 1991.
Referring to the Government's intervention in industrial relations at CIE, Mr Joyce wrote: "Sub-strata involvement in industrial relations matters by third parties (other than the Labour Relations Commission and the Labour Court) completely undermines the management in the respective companies and leaves them defenceless against any form of industrial action. The confusion caused by such intervention is a recipe for continuous conflict and incremental demands from the trade unions - the National Bus and Railworkers' Union claim in Dublin Bus is a case in point."
It is understood that CIE managers were unhappy about what they perceived as strong pressure from the Government during a day-long stoppage of the Dublin Bus service last month.
Mr Joyce said he believed strongly in competition, adding that the fundamental reform of public transport would not be achieved without it.
He said he had never been informed that CIE would not operate Luas, which is expected to be run by a public-private partnership. "It is inappropriate for the board and I to read such matters in the public press."
On the viability of Luas, Mr Joyce wrote that it could cost four or five times the amount originally planned - up to £1 billion.
He concluded: "There are well defined lines of demarcation in the plc sector outlining the roles played by shareholder, board and executive. I believe the public sector, and CIE in particular, would benefit greatly from adopting the same definitions."
