Mr. J.J. Kavanagh:

There is an array of measures. When one buys a coach, one must have it licensed by the PSV office. It must undergo a roadworthiness test every year. All the necessary safety inspections must be carried out. One must have a paper trail of all the safety inspections. These are monitored regularly by the RSA. There will be no additional cost to the State. All these functions are in place at present.

When the NTA was being established, we requested that a complete audit be done of all public services being offered in the State. We could see the shortcomings and deficiencies in the market at the time, and where new services could be developed and evolve.

I will now comment on PSO routes. We wish to be allowed to tender for PSO routes. At present one company takes all. We suggest that if we were allowed to tender, we would be able to enhance and improve the service being offered. It would be administered by the NTA and would result in an enhanced service for the public.

Deputy Naughten referred to intercity services. As Mr. Mullins stated there is a significant difference between inter-urban and local service routes. It is like comparing apples with oranges. At present the intercity routes are commercial routes operated by every company. Some rural services operated by the State company are PSO routes. Those operated by the private operators are commercial routes because there is no subsidy available to them. Throughout Ireland, every service operated in every provincial town and city by the State company is a PSO whereas every service provided by a private operator is a commercial route, at no cost to the State. In Waterford city, some 25 to 30 buses are operated by the State company, each one of them provided and paid for by the State at a cost of €200,000 per unit, which approximates to €5 million. We, J.J. Kavanagh and Sons, and Suirway Bus & Coach Services operate services in the city at no cost to the State. We buy our own vehicles. Members should embrace the Coach Tourism and Transport Council of Ireland, CTTC. We have a proven track record of providing transport services. We provide 90% of the transport for incoming tourists and 85% of the school transport service. We can deliver and save the State money.

Senator Sean D. Barrett asked about capital investment. The State capital investment has distorted competition in the market. The number of vehicles that have been provided by the State for the CIE companies in the past ten years is phenomenal. There are 85 coaches waiting in Wrights to be delivered to Dublin Bus at a cost of €300,000 per unit. The private operators have never received or requested a grant from the State, yet we have the most modern up-to-date fleet. Ireland has one of the most modern fleets in Europe. The investment incurred by private operators in the past ten years in particular has been phenomenal. We have the safest fleet in the marketplace at no cost to the Exchequer.