Lucinda Creighton (Dublin South East, Independent)
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108. To ask the Minister for Education and Skills when the European Commission is likely to investigate his Department for breach of state aid rules; if he has taken any pre-emptive action by his Department regarding the school transport services administered by Bus Éireann on behalf of his Department; and if he will make a statement on the matter. [9154/14]

Lucinda Creighton (Dublin South East, Independent)
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114. To ask the Minister for Education and Skills to outline his views on whether the European Commission may make adverse findings against his Department for being in breach of EU state aid rules in respect of the school transport services administered by Bus Éireann on behalf of his Department; and if he will make a statement on the matter. [9155/14]

Lucinda Creighton (Dublin South East, Independent)
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There was a report in The Irish Times on 10 February suggesting that the European Commission had indicated that it is likely to launch an investigation into claims that, as currently operated, the school transport scheme is in breach of EU state aid rules. Is that the case? If so, when is it likely to be initiated? Is there any further information that the Minister of State can provide to the House?

Seán Sherlock (Cork East, Labour)
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I propose to take Questions Nos. 108 and 114 together.

The questions presume a possible future investigation by the European Commission. My Department has had no contact from the Commission in respect of such an investigation. I am aware that the Commission commenced an investigation on state aid to Bus Éireann and Dublin Bus in 2007. The State's response was co-ordinated by the Department of Transport, Tourism and Sport and my Department supplied any information to that Department as required by the Commission. The State has maintained that the operation and administration of public service obligation transport services and the school transport scheme respectively are in accordance with the provisions of EU law. A decision on the investigation is awaited.

Lucinda Creighton (Dublin South East, Independent)
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I thank the Minister of State. Perhaps the question that faces the Minister and the Department is whether it might be time to reassess how the school transport scheme is being administered by Bus Éireann. I understand that the legal basis for the scheme is grounded in a letter sent in 1967 to Bus Éireann which gave the company total administrative rights over the school transport scheme.

Furthermore, I understand that in 2009 a consultant report or review was conducted by RSM Farrell Grant Sparks which cost Department €67,000 at the time. To my knowledge, that report or review has not been published although I gather there have been freedom of information requests relating to it. It would be enlightening, interesting and useful to be able to debate, discuss and analyse some of the recommendations which, I assume, were included in the report.

We can look into the publication of the report to which the Deputy referred. I hope that answers her question.

Lucinda Creighton (Dublin South East, Independent)
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My understanding is that the matter is with the Information Commissioner. Presumably, the Minister of State's officials can fill him in on that. There is also a broad policy question as to whether there is an appetite on the part of the Minister or the Department to review this matter. The annual cost is approximately €166 million, which is substantial. Effectively, it is a comfortable arrangement for Bus Éireann. I understand that some serious allegations have been made about how that is being administered at the moment. They are just allegations and I certainly cannot pass judgment on them, nor do I expect the Minister of State to do so. I do think, however, that this presents a good opportunity to reflect on and review the previous report, as well as examining alternative means of administering the school bus system and possibly injecting some competition and more transparency.

Seán Sherlock (Cork East, Labour)
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I am sure the Deputy will recall that during her time as a Minister of State, a value for money report was published on this matter. It was decided that we would continue on in the manner envisaged, in other words, that the relationship with Bus Éireann would continue. The Deputy will also be aware of a recent High Court case which focused on the nature of the arrangements between the Department and Bus Éireann. The essential thrust of that legal action was to seek an order from the High Court setting aside the existing arrangements for the provision of national school transport services. That was before the commercial High Court for a six day period. The court found comprehensively in favour of the Department and costs were awarded to the Department. The matter is now the subject of a Supreme Court appeal. To answer the Deputy's question, a value for money report was carried out on this matter and I do not envisage that the policy will be revisited at this point.

Lucinda Creighton (Dublin South East, Independent)
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The European Commission obliges it.