Dáil debates

Tuesday, 20 October 2015

Topical Issue Debate

School Transport Tendering

7:20 pm

Photo of Martin FerrisMartin Ferris (Kerry North-West Limerick, Sinn Fein) | Oireachtas source

Deputy Healy-Rae and I, along with others, met the private operators a number of weeks back. These people lost their jobs as a result of the tendering process, and they argued very eloquently that the process took place on an uneven playing pitch. Kerry Flyer, which has entered the market, tendered for eight bus runs and it was successful in five of those. That means five operators lost their jobs. I say it was an unequal competition because the State has subsidised Kerry Flyer with considerable funding over the years, particularly in the past two years, with €180,000 in 2014 and €174,000 this year; it will get €174,000 next year. This money has been awarded and some of it has been paid. The company may use some of the money for drivers, insurance, diesel, running costs such as maintenance and servicing and motor tax. One must also consider that Kerry Flyer has another advantage in its charitable status, meaning somebody must compete with that. Five operators are gone out of business as a consequence.

We suggested that these people should go to the Competition and Consumer Protection Commission. They did so and received a straightforward reply that from the information available, it did not find in the operators' favour. The commission indicated its "considerable" interest from the advocacy perspective and that it is currently preparing practical guidelines for policymakers to assist them in assessing proposals that may have implications for competition. It is clear that the commission is indicating that the policymakers - those of in the Chamber - are not living up to our obligations and responsibilities.

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