Commission to examine bus company subsidies

Investigators from the European Commission arrive in Dublin today as part of their inquiry into possible infringement of EU competition law by the Government over subsidies granted to Bus Éireann and Dublin Bus on certain routes.

The EC officials are due to meet with representatives of the Department of Transport as part of the long-running examination of tens of millions of euro paid out to the two CIÉ companies over many years.

The commission has expressed doubt over whether such subsidies are compatible with EU state aid rules. It has also expressed reservations about state grants to upgrade bus stations and maintenance facilities on the basis that such funding is not available to private bus operators.

A Department of Transport spokesperson said EC officials were in Dublin as part of a “fact-finding mission” as a result of a formal complaint made to the European Commission about the direct awarding of contracts to Dublin Bus and Bus Éireann for public service obligation routes.

Fine Gael MEP Jim Higgins, who discussed the issue with EU Competition Commissioner Joaquin Almunia earlier this week said the Government had failed to specify which routes had benefited from €45m provided to Bus Éireann in 2011.

“Bus Éireann operate on similar routes to many private operators and they never have to make a profit,” said Mr Higgins.

“They just have to ask for a handout from the taxpayer at the end of the year.”

Mr Higgins said the EU Competition Commissioner had also confirmed that a separate investigation is ongoing into the Government’s failure to put the country’s schools’ bus service contract out to tender.

The controversy over Bus Éireann’s contract to run the school bus service is also the subject of a number of ongoing legal cases at both Irish and European level.