Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 38: To ask the Minister for Transport his views on the recent OECD report that competitiveness would be restored through stronger competition; his plans to increase business competition in the transport sector; and if he will make a statement on the matter. [28562/09]

Noel Dempsey (Meath West, Fianna Fail)
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The Agreed Programme for Government includes commitments to reform bus licensing to facilitate the optimum provision of services by providing a level playing field for all market participants, and to examine the need for a National Transport Regulator in the context of the overall review of the economic regulatory environment.

The legislative framework to support the authorisation and provision of improved public bus services in the Greater Dublin Area (GDA) has already been updated through the passage of the Dublin Transport Authority Act 2008, which establishes a new contractual structure relating to the provision of subvented bus and rail services in the GDA. This is in compliance with EU Regulation No. 1370/2007 on public passenger transport services by rail and by road which comes into force on 3 December 2009 and provides for a new contractual framework regulating how Member States award exclusive rights and pay compensation for services deemed to be 'Public Service Obligations.' The Act also provides that existing PSO bus and rail services can be procured by the DTA through direct award contracts but that future growth in subvented services must be procured by way of open tendering.

On 21 January 2009 the Government approved the General Scheme of the Public Transport Regulation Bill. The primary purpose of the Bill is to establish a modern system for the licensing of commercial public bus passenger services by the DTA with the objective of promoting regulated competition in the provision of licensed public bus passenger services on a national basis in the public interest, as well as the promotion of integrated, well-functioning and cost efficient public passenger transport services. In addition to the reform of the Road Transport Act 1932, as amended, which applies to the licensing of private bus operators, and relevant provisions of the Transport Act 1958 that relate to the provision of bus services by the State bus companies, the Bill will also provide for the introduction of new contractual arrangements for the procurement of bus and rail services on a national basis that is modelled on the approach established in the Dublin Transport Authority Act 2008 in respect of the GDA. Future growth in the market for subvented bus services will be addressed by public service contracts entered into following open tendering processes.

The Bill will also see the role of the Commission for Taxi Regulation being assumed by the Dublin Transport Authority and the re-naming of that body as the National Transport Authority so as to reflect its expanded national role in relation to commercial bus licensing, bus and rail subvention and the regulation of small public service vehicles.

In the light of the Government approval to the General Scheme, the draft Bill has been prepared and has been circulated to Government Departments for observations. On their receipt, it is my intention to seek Government approval to the publication of the Bill as soon as possible.