Paschal Donohoe (Fine Gael)

I move amendment No. 52:

In page 45, lines 33 and 34, to delete paragraph (a).

This section gets to the heart of one of the major concerns that I have about the proposal. What this clause will do in the legislation is to create an organisation that will be a regulator at the same time as it has the capacity to provide the service itself. I have real concerns about whether, in practice, this will create conflicts of interest that will not be in the interest of passengers and commuters for whom the service is intended.

The practical example that I would give is that of our waste markets, the systems for the pick up of domestic waste across many parts of our country. The situation with which I am most familiar is within Dublin City Council which is both the provider of the service and its regulator. It creates many instances where there is a perceived conflict of interest as that organisation tries to perform both parts of its remit well.

This legislation will confer upon the transport authority the ability to tender out for transport services or to give guidance to organisations about how that transport is going to be delivered. If it is not happy about how that is done it will be able to step in and provide the service itself. The example that made this most clear to me in respect of the conflict that might come about is an issue we have discussed many times, namely, the awarding of contracts for bus routes. The Dublin transport authority will be the organisation that will set the criteria for a successful tender. If it is not happy with a tender it can then step in and provide the service itself.

The Minister has clearly outlined on a number of occasions that the role of the Dublin transport authority is to deal with the vested interests that have at times got in the way of providing the right solutions for the people who need the services. Does this not create the potential for the DTA to be a vested interest itself at some point in the future? The board and the management team charged with setting the criteria for tendering processes and overseeing whether a service is well provided or an intervention should be made, is the same organisation that has the ability to provide the service itself. Will we not find ourselves at some point in the future in a situation where is a perceived conflict of interest that could be challenged by an organisation unhappy with a decision that the Dublin transport authority has made?

We have many different regulatory bodies that deal with a range of issues such as the supply of electricity or the operation of particular services but none of these authorities has the ability to provide the service itself. I am unclear as to why the Minister finds it necessary to confer such power on this organisation. Does he not think there could be a perception of a conflict of interest at some point in the future that might get in the way of the smooth operation of this organisation?