Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I thank the witnesses for their presentations and share their concerns. Notwithstanding that the previous Government established the NTA and began the implementation of the EU directive, I have always been an advocate of the direct award model. Based on the advice I have received, I believe it meets the spirit of the EU directive while at the same time protecting the important integrated network that has been established by the bus and rail companies over many generations. It is right and fitting we protect this network to the greatest extent possible.

I have some concern about the notion that it may be economically advantageous to introduce competition. I am not against competition but I am concerned about the economies of scale. The bus companies operate well at their current size and scale, which allow them to achieve a reduced cost base. If we allow a number of bus companies to compete with each other, they will not be able to spread the costs over the entire network, with the result that costs could ultimately rise. As Mr. Reidy rightly pointed out, the transfer of undertakings legislation puts a strong encumbrance on other companies to take up the slack that would arise for the State companies if there is a change in the way contracts are awarded. He rightly identified the issue of pensions. How confident is he that other terms and conditions of employment will have to be preserved by any new entity?

SIPTU is an affiliated member of the Labour Party, or at least it has close links with it. I understand SIPTU's president sits on the national executive of the Labour Party. Is Mr. Reidy disappointed that the Labour Party in Government is opening the door to privatisation of our bus network with the decision to allow the NTA to proceed with this partial privatisation of the routes?

Mr. O'Leary correctly identified the issues that face Bus Éireann in particular on the rural network. For far too long, the NTA has taken a hands-off approach which has disenfranchised many of the rural villages and towns that depended on the bus network. It has provided licences to independent operators to allow them to compete with Bus Éireann, thereby eliminating the latter's capacity to provide the services it delivered over many generations. Rural and minor towns are effectively being bypassed.

An integrated public bus network is a vital component of our rural life, not just to service local needs but as an integral part of our tourism offering. I am familiar with County Clare, where I come from, and I see how the bus network takes people from many parts of the country to places such as Doolin, Lahinch and Kilkee as part of their travels as tourists. A diminution of that would impact negatively on the way we are seen internationally and I hope that does not happen. I thank the witnesses for their helpful and thoughtful presentation, which I hope will help us in our communications with the NTA.