The Government has decided that the regulation of the bus market and future decisions on the allocation of all public subsidies for bus services in the Greater Dublin Area will be taken by the new Dublin Transport Authority, which is being established under legislation, now at an advanced stage of preparation. The DTA will have responsibility for contracting with all operators in the Dublin market, including Dublin Bus. It will also be responsible for monitoring the quality and cost of service by all operators and ensuring value for money on all routes.
Under the Government's Transport Investment Programme — Transport 21 — it is anticipated that there will be a requirement in the GDA for an expansion of the number of buses providing scheduled services. This will require an increase in the total number of buses to around 1800, with a requirement for at least 200 extra buses over the next two years. The Government has decided to meet this initial requirement by providing up to €30m immediately to enable Dublin Bus to buy 100 additional buses for delivery over the period 2006/07 and mandating the DTA to procure the additional 100 buses from the private sector to provide services on new routes.
The 100 buses procured from the private sector will form part of an initiative to facilitate the entry of new, private operators by awarding franchises to operate routes accounting for 15% (approximately 200 buses) exclusively to such operators by way of competitive tendering. Following this period, all new routes will be subject to a competitive tendering process open to all operators. The precise arrangements will be approved by Government on the basis of proposals from the DTA.