[Article] EC probes Dublin Bus subsidies

markpb

EC probes Dublin Bus subsidies

25 June 2006 By Niamh Connolly, Political Reporter

Government subsidies to Dublin Bus are being investigated by the European Commission, leading to more delays in a decision over capital investment in a new fleet.

The EC is investigating a complaint from private coach operators about market opening and the plan to fund 200 new buses for the state company.

The private operators are claiming that CIE lacks transparency in relation to its commercial routes and unprofitable routes that receive public service obligation (PSO) subsidies.

However, informed sources said that, despite the investigation, the government may still opt to fund about 100 buses before the Dail goes into recess this summer.

The commission notified the government in April of its investigation following complaints from the Coach Transport and Tourism Council of Ireland (CTTC) about the government’s plan to liberalise the bus market.
Fianna Fail and the Progressive Democrats have been divided for almost a year over the proposal by Minister for Transport Martin Cullen to open 15 per cent of new and expanding bus routes, leaving the existing Dublin Bus city centre network with the state company.

The PDs believe 25 per cent of the existing Dublin Bus market should be open to competition, though this has been rejected by the bus unions.

Private operators claim more funding for Dublin Bus would breach EU state rules. The Department of Transport asked the commission to extend its deadline to allow for consultations with the attorney general.

However, the second deadline at the end of the month is unlikely to be met. A spokeswoman for the department said it would be replying in the coming weeks.

‘‘It’s not unusual that an extension is sought particularly where there are complex legal issues involved,” she said. The recent EU complaint has further complicated the plan for market liberalisation and capital funding of Dublin Bus.

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How is it that Dublin Bus has one of the lowest operating suvbsidies in Europe and yet the EC are still investigating it? Are we doing something differently to other cities or is it just the CTTC trying to force the government to private some of the routes? Dear god, we want more subsidies, not less :mad:

shltter

I think the lack of transparency is the problem the private operators are arguing that because they can not see exactly how DB spends the subsidy it could be using the Goverment subsidy to finance non social services.
For example DB could be using the subsidy to finance the Airlink route or private hires the wedding bus for example.

The problem is that the Dept of finance has resisted any move to identify the social services and the exact cost of supplying those services because if the true cost of those social services was known the subsidy would be much higher.

Of course they also want to open the market up so that they can apply for subsidies as well