Ciarán Cannon (Fine Gael)

This is the first substantial legislation in 77 years to deal with public transport. It is vital to get it right because the opportunity may not arise again for a considerable period. This is a real opportunity to introduce healthy and open competition into the public transport system and finally end the predatory practices of both Dublin Bus and Bus Éireann in trying to force transparent and healthy competitors off the public transport market.

The amendment changes the word "licence" to "contract" and although this may seem a little pedantic on first glance, the difference between those two words, in my opinion, can dictate in what direction we want to move in order to reform our public transport system. My party and I believe that retaining the word "licence" in this instance implies we will more or less continue with the status quo. It also implies that the newly constituted national transport authority will simply take over the licensing of bus routes from the Department of Transport nationally, as distinct from what happens within the greater Dublin area.

Use of the word "contract" would imply a far different approach nationally and reflect the approach taken by the Minister, Deputy Noel Dempsey, in bringing forward the legislation last year for the Dublin Transport Authority. It would ensure that every aspect of servicing a new or existing bus route would be part of a new tendering process, including, for example, whether a new operator might choose to avail of PSO subsidies.

The word "contract", as used in the DTA Act of 2008, implies that following a comprehensive assessment of a particular transport need, a real competitive tendering process to fulfil that need would take place, and similar to all public tenders, such a tender would be openly advertised. The licensing system implies that a cloak and dagger aspect would remain in how these public transport needs are serviced. An open and transparent tendering process, with a contract awarded at the end, would address that fear.

The explanatory memorandum for the Bill states this legislation will provide for the introduction of new contractual arrangements for the procurement of public land transport services. This would lead one to believe that the Bill would use the word "contract" rather than "licence" but the word "licence" is used liberally throughout the legislation. The difference may be subtle but it dictates exactly where the Minister wishes to go with the Bill. He does not want to go the route of transparent and open competition but rather a less attractive route of retaining some of the more protectionist aspects of the current system.