Tom Morrissey (Progressive Democrats)

I thank the Minister of State at the Department of Transport, Deputy McDaid, for coming before the House to address the subject I raise again tonight. On previous occasions I have raised the issue of the licensing of new bus routes and extensions of existing routes by both Dublin Bus and private operators, citywide and countrywide. There appears to be an inordinate delay within the Department of Transport in processing applications. At a time when this Government has a laudable policy under which it is proposed to franchise some 25% of the Dublin Bus market — comprising a great number of routes — a system needs to be put in place to deal with applications in a manner akin to the way planning applications are dealt with by county councils. For example, if one makes an application for an extension or retention, one should be confident that it will be dealt with within four to eight weeks. It is a considerable outlay if one is investing €300,000 in a double-decker bus and €150,000 per annum in maintaining and driving the vehicle. One needs to be certain how long it will take to set this up. Also, under the current system, licences are being granted for only 12 months. We need to move to the UK model. People are investing large amounts of money in this area. It costs €300,000 to operate one bus on a particular route. If a private investor or the Government, through the NDP, was investing in Dublin Bus to that extent it would want licences to be valid for more than 12 months. We must provide incentives to private operators to develop and invest in good management of those routes.

Perhaps a way to end the backlog in the Department would be to introduce a three or five year licensing system to include a level of examination to ensure that if the operator was not meeting certain standards, the licence could be revoked. We should examine that possibility. We cannot continue in a situation where 25% of the licences of the entire Dublin Bus market is franchised under the existing regime because private operators will not be encouraged to come into the market.

I understand that private operators wishing to obtain a rebate on fuel must provide Revenue with their renewal notice. In certain circumstances, it is taking up to six months to renew licences thereby resulting in fuel rebates being withheld. If the Government is serious about dealing with this issue, it will have to examine the internal difficulties of the Department. I suggest the Government consider the introduction of a long-term licensing system given the investment being made in this area. I welcome the Minister of State's comments on this matter.