Bus operators demand new industry regulator

PRIVATE bus firms, which oppose Government funding for State-owned CIE, yesterday demanded an independent regulator for public transport.

They claim a conflict of interest exists in the Department of Transport as it both owns CIE and regulates the sector.

Last December, the coach operators complained to the European Commission about State funding of public buses which compete with private operators in the greater Dublin area.

Feargal Barton, chairman of the Coach Tourism and Transport Council, said private operators had been held back from competing with Dublin Bus on many routes.

Last year, the private operators commissioned a report on State aid, which they later sent to Transport Minister Martin Cullen.

They directed their complaint to Brussels before Christmas.

Mr Barton said one aspect of the complaint related to State aid to help Dublin Bus buy 200 buses.

“There remains a strong perception within the private sector that CIE companies are given more favourable treatment by the department, which gives them a serious competitive advantage,” Mr Barton claimed.

He said private operators were opposed to the €70 million requested by Dublin Bus to purchase 200 buses.

Calling for an independent transport regulator, Mr Barton said they wanted him to carry out an audit to establish what services were commercial and which were not profitable.

The private operators were prepared to work on non-profitable routes if they received the same subsidies as Dublin Bus, he said.

A Dublin Bus spokesperson said they had one of the lowest State subvention levels among European bus companies. Last year, the Government gave €70m, equal to 26% of the company’s operating costs, compared with 50% subvention in other EU countries.

“We also have repeatedly said we are not against competition,” the spokesperson added.

A study commissioned by Dublin Bus showed greater Dublin area was set to grow by about 15% by 2010. In the next three years 57,000 new houses would be built.

The Department of Transport last night said they had kept the EU informed of the subvention paid to Dublin Bus over the years.

A spokesperson for Transport Commissioner Jacques Barrot confirmed the EU received the complaint.

“The only thing we can say, at this stage, is that the complaint is being examined,” he said.