Noel Ahern (Dublin North West, Fianna Fail)

While the new EU Regulation 1370/2007 will have full effect from 3 December 2019, following the ten-year period in which it takes effect, member states are being encouraged to take measures to gradually comply with its provision. This chapter of the Bill provides for the first time in Irish transport law a contracting regime to govern the subvention of public bus and rail passenger services in respect of which public service obligations apply.

Section 52 establishes that the three CIE companies have exclusive rights to provide the services that are the subject of State financial support and for growth in respect of rail services, subject to future legislative change. In the case of bus services, the exclusive right is also subject to the grant of bus route licences to private bus operators under the Road Transport Act 1932. Direct award contracts will be entered into with the three CIE companies to support the provision of the funded services that are the subject of those exclusive rights — this is what they currently do.

The section provides that the initial direct award contracts in respect of bus services provided by Dublin Bus and Bus Éireann will be for a period of five years. It also provides for the review of such contracts and for the making of subsequent contracts.

The fact the initial direct award contracts are limited to a five-year period, allied to the review provisions and the power to enter into subsequent direct award contracts, ensures the provisions of Regulation 1370/2007 will be fully complied with within the timeframe envisaged in that regulation. This goes back to member states being encouraged to take these measures to gradually comply with the provisions. This is why we are doing this over a five-year term, so that within the ten-year term we will have fully complied. In those circumstances, I ask the Senator to accept that the provision as drafted is correct and to consider withdrawing the amendment.