Thomas Byrne (Meath East, Fianna Fail)
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169. To ask the Minister for Education and Skills the position regarding the State aid complaint made in relation to the school transport service. [28211/16]

John Halligan (Waterford, Independent)
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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.

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