Martin Heydon (Kildare South, Fine Gael)
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243. To ask the Minister for Transport, Tourism and Sport the progress and rationale for the tendering of 10% of public service obligation bus routes; the way the chosen routes were selected; if they are profitable routes; if it is open to foreign companies to apply for them; and if he will make a statement on the matter. [19073/15]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 240, 242 and 243 together.

Government's intention is for the NTA to procure bus services through a combination of direct award and tendering in the best interests of quality, integrated public transport to serve the needs of the travelling public.  This is provided for in legislation dating back to 2008 that reflects EU competition law. The NTA made its decision after a public consultation.  

The NTA believes that some competition in awarding operating contracts will be good for the bus market and for the travelling public in encouraging transport operators to provide enhanced services.  Following the consultation phase, the NTA decided that 10% was sufficient to achieve this without fundamentally damaging the market as it stands or the existing network.  Routes were chosen on this basis and Dublin Bus and Bus Éireann can compete for the routes in this tender process.

The tendering will also allow the NTA to consider whether they are getting the right value for the taxpayer and the travelling public in awarding the other routes to Dublin Bus and Bus Éireann as more money continues to be invested in public transport. 

The detailed issues raised on the tendering process itself are matters for the National Transport Authority (NTA) and I have referred the Deputies' questions to the NTA for direct reply.  Please advise my private office if you do not receive a reply within ten working days.