The European Commission informed my Department in July 2007 that, as a result of a complaint received by them, it had decided to initiate a formal investigation procedure into whether the Exchequer capital and current funding provided to CIÉ contravenes European Union law.
My Department submitted to the European Commission a detailed response to the issues raised and outlined how the compensation paid to Bus Éireann and Dublin Bus in respect of their public service obligations complies with the requirements of Regulation 1191/69 under Article 73 of the Treaties.
Since submitting the detailed response, the European Commission has been in contact with my Department requesting responses to third party comments on the matter. Third party comments were received by the European Commission as part of the standard process of formal investigation procedures of this nature. Responses to these comments have been forwarded to the European Commission.
Officials have been in contact with the European Commission recently and I understand that the investigation procedure is ongoing.