Private firm challenges school transport scheme ‘contract’

A private firm is challenging an alleged contract between Bus Éireann and the education minister for a bus service providing transport for 123,000 students.

Student Transport Scheme Ltd says an agreement between the minister and the State-subsidised bus company contravenes EU directives relating to the awarding of public contracts. It wants the Commercial Court to declare the contract between the two is ineffective under those regulations and is seeking damages.

The minister, and Bus Éireann as a notice party, say there is no contract and even if there was they are entitled to avail of a number of exceptions.

In its action, Student Transport Scheme, of Pimlico, Dublin, says the minister failed to identify if, how, and when the school contract for the 2011/12 was awarded to Bus Éireann.

It has also claimed that if it had been given information sought from the minister in May of last year about the school transport services, it would have been able to determine whether it had an interest in the contract or had grounds for review.

The firm was incorporated with the intention of tendering for the school transport scheme and says it has a “memorandum of understanding” with a large US-based school bus manufacturer and distributor.

It claims it has information indicating Bus Éireann secured €166m for provision of school transport services for about 123,000 children daily for the year ending Dec 31, 2010.

In a statement of opposition, the minister says the company does not have any standing to bring the proceedings and public contract directives do not impose any obligation on him to terminate the transport scheme or engage in a tendering process.

Bus Éireann says it will contend the administration of the scheme constitutes a form of co-operation among public entities in which there is no participation of private capital.

They say the arrangement is exempt from the application of the EU directives and/or any law concerning public procurement.

Opening the case yesterday before Mr Justice Brian McGovern, Anthony Collins SC, for STS, said the court will first have to decide whether a contract exists and if the judge finds against him then the whole case falls away.