Noel Dempsey (Meath West, Fianna Fail)

CIE and its subsidiary companies have a broad statutory mandate under the Transport Acts of 1958 and 1986 to provide a range of loss making but socially and economically necessary public service obligation, PSO, services. The compensation paid by the Exchequer to CIE in respect of these PSO services, €308.6 million in 2008, is administered through annual memoranda of understanding on service levels and targets between my Department and each of the CIE companies. The memoranda require the submission of quarterly reports to confirm compliance with the terms of the memoranda. These reports are subject to an independent review process. In addition, the annual report and accounts of CIE certify that the Exchequer grants paid to CIE are deployed in accordance with EU regulations governing state aid to transport undertakings.

If Dublin Bus or Bus Éireann wishes to initiate or alter a bus service the companies must give advance notice to my Department. Where proposed services by either company are deemed to be in competition with services that are the subject of a licence held by a private bus operator issued under the Road Transport Act 1932, Dublin Bus and Bus Éireann are required to obtain my consent under section 25 of the Transport Act 1958 before the services can be introduced.

I am satisfied that the CIE companies comply generally with the terms of the MOU and with the bus licensing requirements. Nevertheless, issues have arisen regarding competition with private sector operators in a number of areas. In this regard, the Competition Authority, the European Commission and my Department are investigating complaints against Dublin Bus and Bus Éireann. It would be premature at this stage to make determinations as to the outcome of these matters.

Funding is also provided for regional air services and rural transport services. I am satisfied that the recipients of this aid are acting within the terms of their service agreements.

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