Sean Barrett (Independent) | Oireachtas source

There are serious concerns among economists about this section. There should have been separate legislation for buses. The fact that they appear on page 60 of the Taxi Regulation Bill demeans what we are doing. This is a major issue as far as economists are concerned. The end of page 69 and page 70 refer to the exclusive rights of Dublin Bus and Bus Éireann, respectively. This indicates anti-competitive behaviour. I gather that Compecon, the group of economists who deal with competition issues, have sent a submission to the NTA within the past week. If we pass this provision, it may negatise the consultation in which the economists and the NTA are engaged.

This would be a major anti-competitive measure. "Direct award contract" is shorthand for no competitive tendering. The current contracts run out in November 2014. They were introduced in rushed circumstances by the Minister of State's predecessor in a guillotined Bill that former President McAleese was given no time to sign. Deals were done on 1 December on this exclusive basis.

We are trying to build a competitive economy. There are shoals of economic evidence to the effect that competitive tendering is better than exclusive contracts and that direct award contracts merely reinforce monopolies. These are such major issues that there should have been a separate bus Bill. I may have tried the Minister of State's patience during our discussions on taxis, but how we configure the bus business is too major an issue to try to get through in our last five or six minutes on a taxi Bill. I gather that the NTA would need to advertise in the Official Journal within one month to open this area up to competition, but we are shutting off that possibility until 2016 or even later.

I am concerned by how this matter has arisen as part of a taxi Bill and by the anti-competitive implications of exclusive rights and direct award contracts. I do not know whether the Competition Authority or the National Competitiveness Council, NCC, examined this proposal. We should not go this way when planning the bus business for the years ahead. Is this to be policy for five years or will there be competitive tendering? I gather that an EY report to the NTA was in favour of competitive tendering, yet the NTA replied that it did not have the staff to operate a competitive tendering system.

I recall how the Department and Bus Éireann were in court for many days against Mr. Pat Nestor, who wanted to run a bus service between Galway and Dublin.

Happily, he was successful. When there was a monopoly, there was only one service per day on this route, via Mullingar. There are currently 59 services operating in each direction on that route. I would be seriously concerned if monopolists were to be afforded protection in legislation.

The NTA has stated that it has limited time and staff resources to prepare and undertake a large tendering process. It favours direct award contracts. During the recent debate on the abolition of the Seanad, some people, not including the Minister of State, Deputy Kelly, criticised this House in terms of its rubber-stamping of legislation. This is a request for a rubber stamp. The direct contracts expire in 2014 and must be advertised in the Official Journal in November 2013. This is what should happen. EU regulation 1370/2007 requires that prior to the launch of an invitation to tender procedure, a notice must be placed in the Official Journal. Ernst & Young has stated that competitive tendering would provide better value for money for taxpayers and lead to improved quality of services, which has been the case in regard to services between Dublin and Galway. We must question these exclusive rights in the context of the type of competitive economy we are all trying to create.

The Minister of State might explain the reason it was necessary to include the bus provision in the Taxi Regulation Bill 2012, which we all recently harmoniously agreed to. He might also explain the reason we continue to be attached to exclusive rights and direct award contracts in light of what we are trying to do in terms of developing the economy, increasing employment and improving the quality of public transport.