P J Sheehan (Cork South West, Fine Gael)
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Question 61: To ask the Minister for Transport his views on the complaint being considered by the EU Commission on unfair State aid for State transport companies; the contact his Department has had with the EU on this matter; when he expects a ruling to be made; and if he will make a statement on the matter. [5933/09]

Noel Dempsey (Meath West, Fianna Fail)
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The European Commission informed my Department in July 2007 that, as a result of a complaint received by them, it had decided to initiate a formal investigation procedure into whether the Exchequer capital and current funding provided to CIÉ contravenes European Union law.

My Department submitted to the European Commission a detailed response to the issues raised and outlined how the compensation paid to Bus Éireann and Dublin Bus in respect of their public service obligations complies with the requirements of Regulation 1191/69 under Article 73 of the Treaties.

Since submitting the detailed response, the European Commission has been in contact with my Department requesting responses to third party comments on the matter. Third party comments were received by the European Commission as part of the standard process of formal investigation procedures of this nature. Responses to these comments have been forwarded to the European Commission.

Officials have been in contact with the European Commission recently and I understand that the investigation procedure is ongoing.