Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The direct award contract for the provision of public service obligation, PSO, bus market services held by Bus Éireann expired at the end of November. The awarding of a subsequent contract is the statutory responsibility of the National Transport Authority, NTA. All Bus Éireann routes have been included in the new five year direct award contracts between the company and the NTA for the period to the end of November 2019. The NTA has announced that 10% of publicly subvented bus services will remain within the direct award contract until the end of 2016 only, after which they will be operated under a separate contract that will have been competitively tendered for, rather than privatised as the Deputy suggests. The contract will go to the best competent tenderer that can provide the best service for the least subsidy and should assist in securing efficient and cost competitive services for passengers. The outcome of tendering should be either an improvement in services at the same cost or, at the very least, the same level of service at a reduced cost. The direct answer to the question the Deputy has put to me is that the level of subvention provided can only be fully determined on completing the tendering process. Bus Éireann will be able to participate in the tender process.

The NTA expects the procurement process for the routes to be tendered to begin early next year, leading to the award of the contract in March 2016, with the successful operator commencing services in late 2016.

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