Pat Gallagher (Donegal South West, Fianna Fail)

I propose to take Questions Nos. 6, 21, 43, 46 and 98 together.

In line with commitments in An Agreed Programme for Government, the Government has made a number of significant decisions recently that will provide a solid basis for expanded and improved bus services throughout the country over the coming years, ensuring better value for money for both passengers and taxpayers. The Minister is committed to the introduction of a modernised regulatory framework for public transport and will continue to advance this regulatory reform agenda.

The Government has decided that the regulation of the bus market and future decisions on the allocation of all public subsidies for bus services in the greater Dublin area will be taken by the new Dublin transport authority, which is being established under legislation that is at an advanced stage of preparation. The Dublin transport authority will have responsibility for contracting with all operators in the Dublin market, including Dublin Bus. It will also be responsible for monitoring the quality and cost of the service by all operators and ensuring value for money on all routes.

Under the Government's transport investment programme, Transport 21, it is anticipated that there will be a requirement in the greater Dublin area for an expansion of the number of buses providing scheduled services. This will require an increase in the total number of buses to around 1,800, with a requirement for at least 200 extra buses over the next two years. The Government has decided to meet this initial requirement by providing up to €30 million immediately to enable Dublin Bus to buy 100 additional buses. These buses will begin to enter service by the end of the year and the delivery will be completed by the end of January 2007. Their deployment is a matter for the company.

There are also 100 buses to be procured from the private sector by the Dublin transport authority to provide services on new routes. This is to be done by competitive tendering. This forms part of an initiative to facilitate the entry of private operators, by awarding franchises to operate routes accounting for 15% of services, approximately 200 buses. The identification of routes for these buses and the award of franchises will be a matter for the Dublin transport authority, DTA. Following this period, all new routes will be subject to a competitive tendering process open to all operators, whether Dublin Bus or the private sector. The Government will approve the precise arrangements on the basis of proposals from the DTA. This approach will encourage new investment and innovation in the Dublin bus passenger market.

In the interests of stability and integration of the bus network, the legislation establishing the DTA will allow the DTA to enter into a direct contract with Dublin Bus, in accordance with EU law, on the basis that it will continue to operate without a diminution in the size of its bus fleet. It is proposed that the DTA will make all subvention payments in the greater Dublin area, to Dublin Bus and to new operators, on an objective, transparent and even-handed basis to maximise value for public money.

The integrated nature of the Dublin bus market will be underpinned by the DTA's responsibility for traffic management strategy, which will prioritise public transport, and for integrated ticketing, fares and information systems. The DTA will also be empowered to organise the allocation of routes to operators in such a way as to maximise their prospect of efficient operation and the coherent development of the bus network. The Government is also investing up to €50 million in Bus Éireann for the delivery of up to 160 buses in the period commencing in 2007 for non-commercial services outside the greater Dublin area.

New legislation is being prepared to replace the bus licensing regime under the Road Transport Act 1932 by a modern regulatory and licensing regime in line with commitments in the programme for Government. This will be designed in a manner consistent with EU law on public service obligations and State aids and in such a way as to create new opportunities and a level playing field for private operator involvement in the bus market. I hope the Minister will be in a position to publish legislative proposals later this year.

The combination of immediate investment in new bus capacity and structural reform to introduce competition and enhance incentives for efficiency, represents a balanced strategy to benefit bus passengers and taxpayers alike. It follows extensive consultation with interested parties, including with key stakeholders such as the CIE companies and unions, and study of mechanisms used internationally to achieve efficiency and effectiveness in bus markets. The Government's strategy will deliver immediate benefits and secure steady and continuing progress into the future.

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