Charlie McConalogue (Donegal North East, Fianna Fail)
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497. To ask the Minister for Education and Skills her plans to review the tendering arrangements for school transport, in view of a European Commission ruling (details supplied); and if she will make a statement on the matter. [17688/15]

Regina Doherty (Meath East, Fine Gael)
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511. To ask the Minister for Education and Skills following the ruling by the European Commission in October 2014, on the unsatisfactory tendering arrangements in place between her Department and Bus Éireann, for the school transport scheme, when the recommendation from the Commission that the school transport scheme contract be put out to tender, will actually commence; and if she will make a statement on the matter. [17826/15]

Damien English (Meath West, Fine Gael)
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I propose to take Questions Nos. 497 and 511 together.

Bus Éireann operates the school transport scheme on behalf of the Department. This scheme has been in existence since 1967, and is based on accounting arrangements put in place in 1975.

An investigation was launched by the Commission in 2007 after receiving a complaint that, among other activities, alleged unlawful State aid was being provided to Bus Éireann in respect of school transport services.

The Commission's Decision found that the scheme was existing aid and for this reason was not unlawful at the time the complaint was made. The Commission Decision was not a ruling on the tendering arrangements in place between the Department of Education and Skills and Bus Éireann for the School Transport Scheme.

However the Commission indicated that it would initiate dialogue with Ireland to agree on appropriate measures to ensure that the School Transport Scheme is compatible with the internal market in the future. The Department has commenced an informal dialogue with the Commission in this regard.