Operations Review Directors and Other Information Report of the Directors Statement of Directors' Responsibilities Report of the Auditors Principal Accounting Policies Profit and Loss Account Balance Sheet Cash Flow Statement Notes to the Financial Statements
  1. PAYROLL AND RELATED COSTS
  2. (A) MATERIALS AND SERVICES (B) EXCEPTIONAL ITEM
  3. DEPRECIATION AND LOSS ON DISPOSAL OF TANGIBLE ASSETS
  4. TANGIBLE FIXED ASSETS
  5. STOCKS
  6. DEBTORS
  7. CREDITORS
  8. PROVISIONS FOR LIABILITIES AND CHARGES
  9. DEFERRED INCOME
  10. SHARE CAPITAL
  11. ASSET REPLACEMENT RESERVE
  12. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS’ FUNDS
  13. CASH FLOW STATEMENT
  14. OPERATING LEASE OBLIGATIONS
  15. PENSIONS
  16. CAPITAL COMMITMENTS
  17. CONTINGENT LIABILITIES
  18. NET SURPLUS/DEFICIT BY ACTIVITY
  19. RELATED PARTIES
  20. PUBLIC SERVICE OBLIGATION PAYMENT
  21. MEMBERSHIP OF CÓRAS IOMPAIR ÉIREANN GROUP
  22. APPROVAL OF FINANCIAL STATEMENTS

Report of the Directors

For the year ended 31st December, 2008
The directors present their annual report in accordance with their obligations under the Irish Companies Acts 1963 to 2009 and the Transport (Re-organisation of Córas Iompar Éireann) Act 1986. The accounts of the company and the related notes, which form part of the accounts and are included in this report, have been prepared in accordance with accounting standards generally accepted in Ireland.

Principal Activities and Financial Review
Bus Éireann, is a transport management company, whose principal activities are the management and planning of an integrated network of services, using its own and subcontractor resources. This integrated network covers long distance coach services, local, rural, commuter, provincial city and town bus services. The company is also responsible for the management and provision of the nationwide school transport scheme on behalf of the Department of Education and Science.

The company recorded an overall deficit of €8,092,000. The net cost of providing PSO services amounted to €49,013,000 was received. A Public Service Obligation payment of €41,846,000 was received. Road passenger journeys decreased by 2.06 million journeys and School journeys increased by 0.20 million journeys in 2008

Revenue increased by €16.73 million to €299.67 million despite a difficult year of trading with increased competition on the most lucrative elements of the network which saw a 4% decrease in customer journeys on provincial city and other scheduled services. Payroll and related costs increased to €142.31 million during the year in line with the increase in the national wage agreement and increased change programme costs.

Materials and services costs increased primarily as a result of higher fuel costs, contractor costs and maintenance costs.

€40 million was invested in fleet improvements during the year as part of Transport 21.

The company continues its strong focus on improving quality and efficiency of its services for all customers. In monitoring the company’s performance a range of key operating and financial performance indicators are regularly reviewed by both the management and directors of the company.

A detailed review of the company’s activity for the year is contained in the Operations Review.

Results and Reserves
The financial statements for the year ended 31st December, 2008 are set out in detail. The results for the year ended 31st December, 2008 show a deficit of €8,092,000 (2007– Surplus €6,903,000 ).

Internal Control and Risk Management
The board of Bus Éireann has an Audit Review Group in place to review the annual accounts, internal controls and compliance matters, the effectiveness of internal and external audit and risk management. A risk register is maintained by the company and is updated for review by the directors and senior management on an ongoing basis.

A Board Safety Committee and a Board Maintenance Committee are also in place to review safety matters, maintenance matters and procedures and which report to the Bus Éireann board.

Employee Participation
The terms of the local partnership councils elected in 2003 expired in December, 2007. Much of 2008 was taken up with the planning and organising of elections to the new councils. This was done through a management/trade union implementation working party. Elections for the new local councils took place in September, 2008. By the end of the year two local council meetings had taken place.

Health and Safety
The company is committed to ensuring the well-being of its employees by maintaining a safe place of work and by complying with relevant employment legislation including the Safety, Health and Welfare at Work Act, 2005.

The Bus Éireann Board safety committee, which was established at sub board level in 2004, met regularly during the year. This committee monitors the safety of the company against an annual safety plan and encourages the widest participation in safety awareness and accident prevention in the company.

EC (Late Payment) Regulation 2002
The directors acknowledge their responsibility for ensuring compliance, in all material respects, with the provisions of the EC (late payment) Regulation 2002. Procedures have been implemented to identify the dates upon which all invoices fall due for payment and to ensure that payments are made by such dates. Such procedures provide reasonable assurance against material non-compliance with the regulations.

Equality and Diversity
In 2008 the Equality and Advisory Group continued its work with four meetings held during the year. This Group has come to the end of its two year remit. The function and impact of the Group will be reviewed, to ensure that the structure that replaces it continues the good work already achieved by the Equality Advisory Group.

Under the Disability Act 2005, public service bodies have a duty to promote and support the employment of people with disabilities, and to ensure that at least 3% of their employees are people with disabilities. As a result of the safety critical nature of the environment in which Bus Éireann operates and the need to ensure the safety of employees and customers, this target is not easily reached in Bus Éireann. To provide more focus and support for employees with disabilities a new Policy ‘Bus Éireann’s Policy for the Employment of People with Disabilities’ has been developed with the assistance of the National Disability Authority.

There are currently employees of thirty-one different nationalities working in Bus Éireann, with non-Irish nationals representing 6% of the total workforce. Focus groups were held with a number of these employees in 2008 to gain a better understanding of their experience of working in Bus Éireann. The information gathered during these focus groups was both informative and positive. All the employees involved in the focus groups spoke positively about working for Bus Éireann and they all demonstrated great commitment and interest in the company.

Continuing the focus on mainstreaming Equality & Diversity the updated version of the Drivers’ Handbook and Ticketing Manual, which was distributed to all drivers in 2008, includes significant information on the care to be provided to Bus Éireann’s varied and diverse customers.

Books of Account
The measures taken by the directors to secure compliance with the company’s obligation to keep proper books of account are the use of appropriate systems and procedures and employment of competent persons. The books of account are kept at Bus Éireann, Broadstone, Dublin 7.

Directors
The directors of the company are appointed by the Minister for Transport. Prior to 1st August, 2008 directors were appointed by the Chairman of Córas Iompair Éireann with the consent of the Minister. The names of persons who were directors during the year ended 31st December, 2008 or who have since been appointed are set out below. Except where indicated they served as directors for the entire year.

Dr. J.J. Lynch, Chairman (Reappointed 28th March, 2008)
Mr. J. Byrne  
Ms. T. Byrne (Appointed 24th June, 2008) (Resigned 3rd November, 2008)
Mr. J. Hegarty (Re-appointed 29th March, 2008) (Retired 28th March 2009)
Mrs. T. Honan  
Mr. R. Langford  
Mr. J. Moloney (Re -appointed 1st January, 2009)
Mr. B. Mc Camley (Re-appointed 1st January, 2009)
Mr. J. Pender  
Mr. J. Griffin (Appointed 18th May 2009)

None of the directors or the secretary held any interest in any shares or debentures of the company, its holding company or its fellow subsidiaries at any time during the year.

Code of Practice for the Governance of State Bodies
Details of the policies and procedures implemented by the company following publication of the Code of Practice for the Governance of State Bodies are set out in the Córas Iompar Éireann group accounts.

Auditors
The auditors, PricewaterhouseCoopers, Chartered Accountants and Registered Auditors, have expressed their willingness to continue in office in accordance with Section 160(2) of the Companies Act, 1963.

On behalf of the board
   
Dr. J.J. Lynch Chairman
Mr. R. Langford Director