Oireachtas Joint and Select Committees
Wednesday, 15 January 2014
Joint Oireachtas Committee on Transport and Communications
Tendering of Bus Services: SIPTU and NBRU
11:55 am
Mr. Willie Noone:
I welcome the Deputy's view that the direct award model should be used. The level playing field is the nub of the problem we face. I represent workers in the private bus companies as well and we should not forget that fact. When a contract goes out to tender, the incumbent companies have pension liabilities to their employees. Everything being equal, they cannot compete, because the prices of buses, fuel, etc. should be the same. They are not starting at the same place. We are concerned that the NTA is taking a dangerous gamble because, as Deputy Dooley alluded to, economies of scale come into play.
The big private bus companies will have the propensity to get the majority of these routes as time goes forward. That will rule out smaller bus companies competing and we could end up in the future with a monopoly of private bus companies. All evidence to date shows that when that happens, standards, customer service and usage fall. That is where we are.
The Deputy's final comment referred to a better approach. Our view is more time needs to be given to this, more debate needs to be had and more consultation should take place because this gamble is taking place at the expense of the taxpayer, the consumer and our members and workers. If contracts are changed on a regular and ongoing basis, and even the NTA says in its own proposal that if Bus Éireann does not get a number of these contracts, voluntary severance and TUPE will have to apply, both of which will end job security for workers and reduce driver standards.
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