[PR] Extra Buses & Role for Private Operators in the Bus Market - Cullen

Extra Buses & Role for Private Operators in the Bus Market - Cullen
28 September 2006

"100 new buses for Dublin Bus...

160 new buses for Bus Eireann...

Next 15% growth in the Dublin bus market will go to private operators..."

Transport Minister, Martin Cullen, T.D. has announced today (Thursday, 28th September 2006) that, based on his proposals the Government has made a number of significant decisions that will provide a solid basis for expanded and improved bus services for commuters, while ensuring better value for money for both passengers and taxpayers. The decisions made are in line with the Agreed Programme for Government.

The Government 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 (that legislation is now at an advanced stage of preparation). The Dublin Transport Authority 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 Transport 21, it is anticipated that there will be a requirement in the Greater Dublin Area for an expansion of the number of buses providing scheduled services. This will require an increase in the total number of buses to around 1,800, 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 Dublin Transport Authority to procure the additional 100 buses from the private sector to provide services on new routes.
Minister Cullen said: "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% (approx 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 Dublin Transport Authority. This approach will encourage new investment and innovation in the Dublin bus passenger market.

The Government also agreed that in the interests of stability and integration of the bus network, the legislation establishing the Dublin Transport Authority will allow it to enter into a direct contract with Dublin Bus, in accordance with EU law, on the basis of it continuing to operate without a diminution in the size of their current bus fleet. The Dublin Transport Authority will allocate all subventions, both to Dublin Bus and to new operators, on an objective, transparent and even handed basis so as to maximise value for public money.

The integrated nature of the Dublin bus market will be underpinned through the Dublin Transport Authority having responsibility for traffic management strategy, which will prioritise public transport, and for integrated ticketing, fares and information systems. The Dublin Transport Authority will also be empowered to organise the allocation of routes to operators in such a way as to maximise their prospect of efficient operation and the coherent development of the bus network.

The Government is also investing up to €50m for the delivery of up to 160 buses for Bus Éireann in the period commencing 2007 for non-commercial services outside of Dublin.

In line with commitments in the Programme for Government, new legislation will be brought forward to replace the Road Transport Act, 1932 with a modern regulatory and licensing regime. This will be designed in a manner consistent with EU law on public service obligations and State aids and in such a way as to create new opportunities and a level playing field for private operator involvement in the bus market.

The combination of immediate investment in new bus capacity and structural reform to introduce competition and enhance incentives for efficiency, represent a balanced strategy to benefit bus passengers and taxpayers alike. It follows extensive consultation with interested parties and study of mechanisms used internationally to achieve efficiency and effectiveness in the bus market. The Government's strategy will deliver immediate benefits and secure steady and continuing progress into the future.

Minister Cullen added: "The Government's Transport Investment Programme Transport 21 recognises the critical role that an expanded bus service will have in meeting transport needs, including new and expanded feeder services to support a substantially expanded rail network. In total the programme provides approx. €770m for upgrading bus services, with €530m being provided for the Greater Dublin Area and €240m for the rest of the country."

ENDS