Dáil debates

Thursday, 9 July 2009

12:00 pm

Photo of Joe CareyJoe Carey (Clare, Fine Gael)
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Question 10: To ask the Minister for Transport if he has explored interest with domestic and international private bus operators to enter the market here to compensate for reduced and lost bus transport systems; and if he will make a statement on the matter. [28503/09]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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In recent years, private bus operators have shown a much stronger interest in the provision of bus services and are now well established in parts of the national bus market. They compete with Bus Éireann on most of the major national routes in and out of Dublin and provide some limited services within the Dublin metropolitan area. The provision of public bus services on specific routes or to service particular areas is an operational matter that must be determined by the State bus companies or by private bus operators.

The Road Transport Act 1932 provides the statutory basis for regulating the provision of public bus services by private bus operators. Under that Act, it is open to such operators to submit proposals to my Department for licences for the provision of bus services. Dublin Bus and Bus Éireann are not subject to the 1932 Act. However, they are obliged to notify my Department with regard to the initiation or alteration of a bus service and they must obtain my specific consent under section 25 of the Transport Act 1958 where a proposed new service or an alteration to an existing service would give rise to competition with a service licensed under the 1932 Act.

In January 2009 the Government approved the general scheme of the public transport regulation Bill, which contains proposals for a new bus licensing regime for all commercial services. This new regime will replace that provided for under the Road Transport Act 1932 and the provisions of the Transport Act 1958 which relate to the provision of bus services by the State bus companies. In accordance with the programme for Government commitment, the proposed licensing regime will provide a level playing field for all bus market participants.

The general scheme of the Bill also contains proposals for extending nationally the contractual arrangements for the procurement of bus and rail services established in the Dublin Transport Authority Act 2008 in respect of the greater Dublin area. That Act provides that future growth in the market for subvented bus services will be addressed by public service contracts entered into following open tendering processes.

The Bill will assign responsibility to the Dublin Transport Authority, DTA, for bus route licensing and the award of public service contracts nationwide. Given its proposed national responsibility in respect of commercial bus licensing, bus and rail subvention and also the regulation of small public service vehicles, the Bill will also provide for the renaming of the DTA as the national transport authority. In the light of Government approval of the general scheme to which I refer, the draft public transport regulation Bill has been prepared and circulated to Departments for observations. When the latter are received, it is my intention to seek Government approval for the publication of the Bill at the earliest opportunity.

Photo of Fergus O'DowdFergus O'Dowd (Louth, Fine Gael)
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Has the Department received any approaches from companies from outside the State which may wish to provide services here?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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I am not aware of any such approaches being made. However, there are a couple of companies which operate in Ireland, the parent companies of which are located abroad. One of the latter has its headquarters in Singapore. I met representatives of that company when I visited Singapore, either last year or the year before, to examine its transport system. I am not aware of any formal approaches being made to the Department in respect of the provision of bus services but I will check on the matter for the Deputy.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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The Joint Committee on Transport discussed the issue of international operators in the context of the relevant European directive. Did any discussions take place with international companies in respect of that matter? For example, I understand there may have been discussions with some Polish companies.

How many applications for bus licences - of any type - are currently lodged with the Department in respect of which decisions are awaited? How long does it take the Department to process such applications? Are there any ongoing legal disputes involving the Department and any private bus operators?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Approximately 600 licences are on issue in respect of public bus passenger services being provided by private bus operators throughout the country. In the first half of this year there has been an increase of over 40% in the number of applications. The total number of applications received for the first six months of 2009 was 152. Applications for annual passenger licences during that period increased by over 100% when compared to the first six months of 2008. It is clear, therefore, that something is happening in the market.

I am informed that no undue delays occur in respect of processing either bus licence applications for private operators or notifications from the State bus companies. In 2008 the Department received in the region of 500 applications for proposed services. These comprised applications for new licences from private operators, amendments to existing licences and notifications from the State bus companies. Some 90% of these applications were processed in 2008. Almost 100% of the remaining 2008 applications had been processed by the beginning of this month. A total of 601 cases were finalised in 2008, comprising 447 applications received in that year and 154 that were outstanding from previous years.

The aim is that, where possible and once all the necessary information has been provided, applications are processed with weeks of being received. In view of the level of complaints received, I insisted that this be the case when I took up my portfolio.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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So a problem did exist.

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Yes. In addition, difficulties continue to arise in cases where State bus companies or private operators make prior applications. In such circumstances, one application must be processed before the other. Of the 336 cases received up to 7 July of this year, 72% have been processed, that is, an offer has been made to the relevant operator.

Photo of Ulick BurkeUlick Burke (Galway East, Fine Gael)
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The bus service provided by Bus Éireann in the west is particularly bad. In 2005 Bus Éireann agreed to commence providing a range of services between Knock Airport and the surrounding towns. The Minister and his Department were lobbied in respect of this matter. In March 2007 - oddly enough, prior to the general election - the department decided to sanction the provision of such services. To date, however, a service to the airport has not been provided. Will the Minister indicate the position with regard to this matter?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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The matter to which the Deputy refers is extremely specific in nature. If he tables a parliamentary question in respect of it, I will endeavour to obtain the information he requires. If it took two years to process the application - I have no reason to doubt the veracity of the Deputy's claims in that regard - then information must have been outstanding and this prevented the making of a decision. The fact that, two years after the licence was granted, bus services are not being provided, indicates to me that the fault may not lie with the Department.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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I wish to raise one closely related point and thank the Minister for the statistics. It is the first time Members have been provided with such statistics, which will enable Members to evaluate what is happening-----

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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The Deputy should be brief, as I wish to include one last question.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Are there, at present, one or more legal disputes between the Department and a number of companies?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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Yes, I am sure there is one or more.

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Can the Minister provide information on them to Members?

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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The Deputy should drop a note to me and I will try to give him any information I can.