Fergus O'Dowd (Louth, Fine Gael)
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Question 110: To ask the Minister for Transport the events and issues surrounding his granting Dublin Bus permission to run their 41X service via the Port Tunnel in competition with a private operator; if he has cancelled public funding in respect of services by Dublin Bus to Swords as a result of Dublin Bus operating this route; and if he will make a statement on the matter. [24101/08]

Noel Dempsey (Meath West, Fianna Fail)
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The initiation or alteration of a bus service by Dublin Bus is subject to compliance with the necessary regulatory requirement of giving advance notice to my Department and to compliance with the provisions of Section 25 of the Transport Act 1958 concerning competition with licensed private operators.

Where proposed services by the Company are deemed to be in competition with services that are the subject of a licence held by a private bus operator issued under the Road Transport Act, 1932, Dublin Bus is required to obtain my consent under section 25 of the Transport Act 1958 before the Company can introduce such services.

My Department previously advised Dublin Bus on 20th February 2008 and again on 20th March, 2008 that its prior proposals to reroute its 41X services from Swords would give rise to competition with an existing licensed service. The Company was accordingly advised that should it wish to pursue the introduction of the proposed service changes, it must apply for Ministerial consent under Section 25 of the 1958 Act. Alternatively, the Company was advised that it could review its proposal in order to avoid competition with the licensed operator.

On 5th June 2008 Dublin Bus submitted a revised proposal for the rerouting of its 41x morning peak services from Swords. My Department considered the proposal and was satisfied that the changes proposed would not compete with an existing licensed service and therefore, did not require Ministerial consent in accordance with section 25 of the Transport Act, 1958. Accordingly, Dublin Bus was advised on the 12th June, 2008 that it may proceed with the proposed changes.

The position regarding funding paid to Dublin Bus in respect of their Public Service Obligation (PSO) services is as follows:

The funding is paid (through CIÉ):

(a) in their capacity as State-owned transport operator with a statutory mandate to provide PSO services; and

(b) solely for PSO services.

The compensation paid to CIÉ (in respect of PSO services provided by Dublin Bus), in accordance with Articles 10 and 11 of Regulation 1191/69, does not exceed the difference between the costs incurred for discharging these PSOs and the revenue generated through the sale of bus tickets. CIÉ, in its annual accounts, confirms compliance with all relevant EU Regulations governing State aid to transport undertakings.