Vol. 472 No. 5
19 Mr. S. Brennan asked the Minister for Transport, Energy and Communications the companies he was referring to and was aware of when he warned recently that several powerful, private groups are showing an interest in the operations of CIÉ; if he has met any of these private groups and if he will make a statement on the matter. [23529/96]
What my predecessor actually said on this subject was that he had "no doubt that CIÉ's key markets are already attracting the attention of some very powerful private sector operators". He added that the "large resources and low cost base of these potential competitors should focus the minds of both CIÉ management and unions".
CIÉ has come under increasing competitive pressure from the growing domestic private bus sector in recent years. Furthermore, deregulation in Britain has brought into being a number of very large private sector bus operators there which are anxious to expand their operations beyond their domestic market. Ireland is clearly a very attractive market for such operators for a variety of reasons, including our nearness to their home market, the absence of a language barrier and generally similar driving conditions. Up to now, our restrictive bus licensing regime under the Road Transport Act, 1932, has meant that both domestic and non-national bus operators have been unable to secure entry to the Irish market or to expand operations already in existence. Approaches made to my Department in recent years by UK interests could not be acceded to under the existing law because the routes in question were already served by authorised operators.
However, all the indications from Brussels are that gradual liberalisation of public transport, including domestic bus markets, will take place at European level in the coming years. The Commission's commitment to liberalisation has been clearly stated in documents such as the Green Paper on the Citizens' Network and in other Commission publications and proposals. Public transport is one of the last major sectors in which large scale liberalisation has not yet taken place. It would be foolish to pretend that this situation can continue indefinitely.
My predecessor's statement was therefore simply a timely reminder to both management and unions in CIÉ of the changing environment in public transport at European level. The challenge of increasing competition, both domestic and international is a reality, which they will inevitably have to face.
Finally, my Department is not aware of any meetings between my predecessor and any foreign private sector bus interests.
