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Public Service Obligation Services

Dáil Éireann Debate, Tuesday - 18 September 2012

Tuesday, 18 September 2012

Questions (1904)

Nicky McFadden

Question:

1904. Deputy Nicky McFadden asked the Minister for Transport; Tourism and Sport when a decision will be made on the issue of Ireland's public service obligation services; the services that will be put out to tender among private bus companies; if he will comment on the possible savings for the State if PSO contracts were to be tendered to private companies; and if he will make a statement on the matter. [37705/12]

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Written answers

The issue raised by the Deputy  is a matter for the National Transport Authority (NTA) and I have referred the Deputy's question to the Authority for direct reply. He should advise my private office if he does not receive a reply within ten working days.  

Under EU law and the Dublin Transport Authority Act 2008, as amended, existing public service obligation (PSO) bus and rail services can be procured by the National Transport Authority through direct award contracts and any other new subvented services must be procured by way of open tendering. At the expiry of the current 5 year direct award contracts for the provision of PSO services with Dublin Bus and Bus Éireann the NTA have discretion to renew, modify or terminate the direct award provision of bus services following a consultation process with interested parties under which the NTA is obliged to justify its approach.

A  public consultation on 2014 Bus Public Service Contracts, as required by the legislation, commenced on 14th June and concluded on 11th July, 2012. The NTA is considering whether to undertake one or more procurement competitions for the award of part or all of these contracts, or it may decide to directly award part or all of these contracts to the existing contracted parties.

In accordance with the commitment in the Programme for Government to explore the benefit to the public transport passenger of more diverse bus service provision, I will be consulting with my Ministerial colleagues on the future options for procurement of PSO bus services.

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