Dara Calleary (Mayo, Fianna Fail)
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Question 45: To ask the Minister for Transport, Tourism and Sport in view of a recent report into the published accounts of Bus Éireann and Dublin Bus conducted by a company (details supplied) and published by the Coach Tourism and Transport Council, if he intends to introduce a proper tendering regime of Bus Éireann's PSO routes following claims by the CTTC that private bus and coach operators could save the Exchequer €20 million to €30 million through a proper tendering regime; and if he will make a statement on the matter. [18906/11]

Leo Varadkar (Dublin West, Fine Gael)
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I am of course aware of the contents of the Report mentioned. Under EU law and the Dublin Transport Authority Act 2008, as amended, existing public service obligation (PSO) bus services can be procured by the NTA through direct award contracts and any other new subvented services must be procured by way of open tendering. The NTA is obliged under the Public Services Contracts to ensure that the compensation payable is not in excess of the costs incurred in discharging the PSO taking account of the relevant receipts and a reasonable profit. It is also required to ensure that the costs in discharging the PSO are in keeping with those of a well-run Operator. Operators are required to maintain separate accounts in accordance with the Regulation to increase transparency and avoid cross-subsidisation. The direct award contract with Bus Éireann applies for 5 years. At the end of the 5 year period NTA has discretion to renew or modify the direct award provision of bus services following a consultation process with interested parties under which the NTA is obliged to justify its approach.

In accordance with the commitment in the Programme for Government to explore the benefit to the public transport passenger of more diverse bus service provision, I am considering the various options that are currently available as regards achieving greater diversity of bus operators. I will be consulting with my Ministerial colleagues on the future options for procurement of PSO bus services once I have completed my examination of the options. I hope to announce the outcome of those consultations in the coming months.