Noel Dempsey (Meath West, Fianna Fail)

When discussing this amendment it is important that we remember two things are in play, namely, competition and the consumer and commercial interests and the consumer. In some cases, despite what people might think, commercial interests do not always favour or take decisions on the basis of the good of the consumer. We are discussing, as Senator Ryan said, consumers which may not be very lucrative for the private sector to become involved with. There are PSOs and so on. The provision of services is not a simple, straightforward line. As I outlined during the debate on amendment No. 1, the primary purpose of this Bill is to try and establish a modern system of licensing of commercial public bus passenger services, with the objective of promoting regulated competition — I strongly believe regulated competition is the way we should go. We are doing it in the public interest, as well as in the interest of promoting integrated, well-functioning, cost-efficient public passenger transport services.

The main aim of section 10 is to establish the framework for the consideration of applications for bus route licences by the authority. The consideration of such applications has to be pursued having regard to the general objectives of the authority, which are provided for in section 10 of the Dublin Transport Authority Act 2008, which is updated in section 29 of this Bill. Subsection 1(a) provides that in the case of applications for all licences, the demand or potential demand for the proposed bus service, having regard to the needs of consumers, must be taken into account. There is a balance between the interests of consumers and service providers. The interests of consumers are being placed at the centre of the consideration of the process for licences and the demand test is established as having specific regard to those particular needs.

Senator Quinn argued that there is no need for the retention of subsection 1(a) in a competitive bus market where it is a matter for individual bus operators to apply for licences based on their perception of the market and having regard to commercial decisions. On the original point I made, there is no guarantee that such commercial decisions will be made in the interests of consumers in all cases, which is an important point. The incorporation of this requirement regarding the consideration of all applications for licences will ensure there is a balance between the interests of the operators and consumers, and that the interests of the operators will not take precedence over the interests of consumers.

I share the sympathy Senator O'Malley expressed towards Senator Quinn's amendment to a certain extent. However, we are regulating a bus market. It may prove the case that there is no need to invoke this section at any stage in the Dublin bus market, but we are not dealing with the Dublin bus market alone. The characteristics of and demand for urban, rural, intercity and provincial bus services are very different and fundamental considerations could be different in each case. The criteria which may be applied for the licencing of services has to reflect the fundamental differences across the different types of service and the incorporation of demand tests which are targeted at each generic service should be a fundamental feature of any consideration of applications. That is what we are attempting to do in section 10. I am satisfied that the particular provisions concerned are such that they afford sufficient flexibility and discretion to the authority in its consideration of bus licence applications, something everybody in the House seems to have accepted, while reinforcing the central aims and the consumer-focused policy which underlines the provisions of the Bill generally. Accordingly, I do not propose to accept the amendment.