Fergus O'Dowd (Louth, Fine Gael)
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Question 9: To ask the Minister for Transport the action he is taking to open the Dublin bus market to further competition and to increase bus capacity; and if he will make a statement on the matter. [32957/08]

Noel Dempsey (Meath West, Fianna Fail)
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In accordance with the programme for Government commitment, the Dublin Transport Authority Act 2008 was enacted in July 2008 and provides for the establishment of the Dublin Transport Authority, DTA. For the first time, we have a law in place to ensure that a single body will be in charge of surface transport in the greater Dublin area.

The Act gives the new Dublin Transport Authority the power to procure public passenger transport services through the making of public transport services contracts. Under section 48 of the Act, the DTA may enter into contracts following open tendering in respect of public bus passenger services, as well as metro and light rail services. It also provides that public bus and rail services can be secured by means of direct award contracts. Section 52 provides that direct award contracts will only apply to the continued provision of the services currently being provided by Dublin Bus and Bus Éireann.

Accordingly, the future growth in the market for subvented public bus services will be pursued by way of open tendering in accordance with the new EU Regulation No. 1370/2007 on public passenger transport services by rail and by road, which will become mandatory from December 2009. All contracts will be framed against the background of this EU law and will set strict standards of operational performance and customer service and will contain penalties for non-performance.

For the time being, the Road Transport Act 1932 will continue to be the basis for the licensing of commercial bus services provided by private operators. The programme for Government does, however, include a commitment to improving bus services under Transport 21 by reforming the bus licensing provisions of the Road Transport Act 1932.

It is my intention that proposals for a new bus licensing regime will follow in a public transport regulation Bill which will deal with the replacement of the Road Transport Act 1932 and the provisions of the Transport Act 1958 that relate to the provision of bus services by the State bus companies. It is envisaged that the new licensing structure will apply in respect of all commercial bus services, including those provided by Dublin Bus and Bus Éireann and will encompass provisions relating to the subvented bus market outside the greater Dublin area that are consistent with the new EU public service obligation regulation.

Fergus O'Dowd (Louth, Fine Gael)
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I welcome the Minister's commitment to reforming the 1932 Act. This matter was raised during the DTA debate. When will this legislation be before the House? Will it be this term?

The second issue I wish to raise concerns Dublin Bus abusing its dominant position in the marketplace. The Circle Line company went out of business under the present system. One of the reasons for this was that Dublin Bus travelled in convoy before and after the Circle Line buses. Some of the bus stops were obstructed by parked Dublin Bus vehicles at taxpayers' expense to ensure that Circle Line buses could not stop there. The Department produced a report as recently as 2007, indicating that during the previous two years it carried out seven separate monitoring services. It found that Dublin Bus's operating services on the 25x route were well in excess of the approved levels, that the company operated the 25A service in a way that bears no resemblance to the timetable and that its buses were travelling in convoy. There was a private operator with a licence operating a route with three Dublin Bus vehicles travelling before and after its vehicles, and at the bus stops there were Dublin Bus vehicles parked as well. That is an absolute abuse of the company's privileged and dominant position in the marketplace and it is being done with taxpayers' money. Will the Minister prosecute Dublin Bus in this area? Will he hold the company to account for its abuse of taxpayers money and, most of all, for depriving commuters of a choice which the Minister and the Department seek?

Noel Dempsey (Meath West, Fianna Fail)
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I confirm to the Deputy that it is my intention to legislate in this area. We are working on the heads of the Bill for the reform of the 1932 Act. We had several very good discussions on the DTA Bill. Deputy O'Dowd made several points on the 1932 Act and regulation. I have taken those into consideration in this reform and in the Bill we are bringing forward. The heads are nearly prepared and within a few weeks I should be able to circulate the heads of the Bill to the Government. I am not sure I will be able to publish the Bill during the current session. It depends on the difficulties with drafting. As I said all along, it is my intention, and I gave the Deputy that commitment, that we will proceed as quickly as we can. Much work has been done on that Bill.

I do not want to say too much about the case the Deputy has referred to because of ongoing court cases in that regard, but it is a perfect illustration of the reason we need to change the 1932 Act. I do not disagree with the Deputy's contention in that regard. The powers in the Act are weak. For some time Dublin Bus argued the case that it felt it was doing nothing wrong and there was some legal doubt as to whether that was the case. Even if it is prosecuted successfully, the levels of fines and so on in the Act are ridiculous and from that point of view the Deputy and myself are ad idem. We may have differences in terms of the actual Bill but we are——

Fergus O'Dowd (Louth, Fine Gael)
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I acknowledge what the Minister is saying but I do not accept that he cannot take action against Dublin Bus. Even if the action results in a court fine, whatever that is, the Minister and the Government must say to Dublin Bus that it will not get away with abusing the rights of consumers to have a choice, the rights of private operators to run these buses and the right of people to stand at a bus stop and get on a bus of their choice. The Minister and his Department must defend them and bring Dublin Bus to court.

Noel Dempsey (Meath West, Fianna Fail)
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It is not the Department that takes it to court; it is the Garda. It is a prosecution.

Fergus O'Dowd (Louth, Fine Gael)
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The Minister put the statutory powers in place.

Noel Dempsey (Meath West, Fianna Fail)
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The Deputy appears to have got much of the information through a freedom of information request. He acknowledged that the Department sent out inspectors.

Fergus O'Dowd (Louth, Fine Gael)
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It did, but there has been no action.

Noel Dempsey (Meath West, Fianna Fail)
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They engaged in correspondence. Dublin Bus is on notice since then that in future I will not be issuing letters to it on this matter. I will be issuing directives and directions if it comes to my attention that it is engaged in that kind of behaviour.

Fergus O'Dowd (Louth, Fine Gael)
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In the first instance.

Noel Dempsey (Meath West, Fianna Fail)
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In the first instance, yes.