Oireachtas Joint and Select Committees

Wednesday, 17 October 2012

Joint Oireachtas Committee on Transport and Communications

Public Service Obligation Bus Contracts: Discussion

9:35 am

Mr. Gerry Mullins:

The very first line of that transport policy is very clear: "The Fine Gael model for a new bus network will be based on competitive tendering for bundles of bus routes". That is exactly what we are calling for.

The Competition Authority made clear to the National Transport Authority last year that greater competition for public transport services should be introduced, including that all public bus transport service providers should have equal opportunity to compete to provide the subsidised PSO services when the current contracts with Dublin Bus and Bus Éireann expire and that any proposed new public transport services should be subject to open competition. We could not have put it any better ourselves. The National Recovery Plan 2012-2014 states that the Government will ensure greater competition for public transport routes following establishment of the National Transport Authority and that this will have further positive effects on competitiveness.

The final part of our presentation is based on a map which may be a little difficult for Members to read. If Members wish, I could forward another copy with larger print at a later stage. The map, which is not quite complete, shows the network of public transport services provided by private companies in this country. It does not show city services in Dundalk provided by John Halpenny or in Waterford by J.J. Kavanagh & Sons but does show many of the larger services, which as Members will note cover vast areas of the country. It is important to remember that all of these services from Kilmore Quay in Wexford to Dingle, which is on the tip of Europe, to Crolly in Donegal are provided at no cost to the State. The opposite is the case in that the State collects revenue, PRSI and various other taxes from the excellent services provided by our members. It is important the services provided are excellent. It is the key to success. A person operating a service in the unsubsidised arena who is providing an unsatisfactory service will go out of business. The provision of an excellent service is key.