Dáil Éireann díospóireacht -
Tuesday, 2 Jul 1996

Vol. 467 No. 7

Written Answers. - Bus Services.

Desmond J. O'Malley

Ceist:

22 Mr. O'Malley asked the Minister for Transport, Energy and Communications if he will make provision to enable private bus operators to tender for public bus service contracts; and if he will make a statement on the matter. [14167/96]

Desmond J. O'Malley

Ceist:

34 Mr. O'Malley asked the Minister for Transport, Energy and Communications the current position regarding the proposed liberalisation of bus services in preparation for the introduction of the EU Transport Directive; and if he will make a statement on the matter. [14168/96]

Minister of State at the Department of Transport, Energy and Communications (Mr. Stagg)

I propose to take Questions Nos. 22 and 34 together.

The provision of scheduled road passenger services, other than those provided by Bus Éireann and Bus Atha Cliath, is governed by the Road Transport Act, 1932. Difficulties with the implementation of this legislation have been encountered over the years and there is a general consensus that it is in need of updating in a number of respects.

As I have advised the House on previous occasions, I have initiated a comprehensive review of the legislative framework within which bus services are provided. As an essential part of that process, I began a round of consultations late last year with all of the major interest groups associated with the road passenger sector. That phase of the review is well advanced, and when completed, will provide the basis for the preparation and appraisal of realistic options for a new legislative framework within which the road passenger industry can develop in the future.

A further factor to be taken into account in this review is the move at EU level towards further liberalisation of road passenger cabotage, that is the freedom for suitably qualified road passenger operators established in any member state to provide services in another member state's domestic market. At present, EU Council Regulation 2454/92 permits cabotage for all road passenger services, except ordinary scheduled services. The Commission has now tabled proposals for the extension of cabotage to all scheduled services, including inter-city services. These proposals in their present form could have very significant implications for Irish road passenger operators in both the public and private sectors and I am giving them very careful consideration on that basis.

The public transport contracts, which it is proposed to introduce in 1997, will relate exclusively to socially necessary non-commercial public transport services provided by CIE. These contracts will replace the annual global Exchequer subvention which CIE currently receives. The purpose of this new policy is to place the provision of Exchequer support for CIE on a more transparent, closely focused and resultsoriented basis, in line with best international practice and with EU policy on State support for public transport services. The contracts can, however, be adjusted in due course to take account of the outcome of the current review of the Road Transport Act, 1932 and of any new EU legislation affecting public transport operations.