A £2.5 billion public transport investment package over the next seven years, to include the development of a multi-million rail safety programme, is recommended in a major new transport study to be published tomorrow.

The report, carried out by the Policy Institute on behalf of the Joint Oireachtas Committee on Public Enterprise and Transport, proposes significant private sector involvement in the transport plan.

The study recommends an improvement of the mainline rail system, bus investment in Limerick, Galway, Waterford, and that all Cork-based Bus Eireann operations should be managed by a new company Bus Chorcaigh.

The report, a draft copy of which has been seen by The Irish Times, also calls for an increase in the number of taxis in Dublin, the reservation of road space for buses in cities and towns, integrated ticketing across regions and "managed competition" in the inter-city bus market.

The Oireachtas Committee says in the report it is satisfied that the public finance position over the next seven years appears at this point to allow for a significant proportion of the £2.5 billion to come from public funds.

"However, some funding will, as in previous programmes, come from transport companies themselves. The committee would favour significant private sector involvement in the package."

In relation to regional and inter-city services, the report recommends a total £790 million investment. This will include £366 million investment in rail infrastructure targeting the growth centres of Sligo, Athlone, Castlebar and Tralee, and a £325m investment in rail safety across the State.

It also proposes a £40 million expenditure on fleet renewal for Bus Eireann, £8 million investment in bus stations and £23 million investment in "ancillary measures".

The report suggests that bus stations for long distance services should be made accessible to all licensed operators and operated by a new station management company, whether within the public sector or otherwise.

In relation to Dublin, the report recommends a £1.55 billion investment over the next six years on rail, light rail, and bus services.

The report includes a sum of £700 million to cover flagship suburban rail projects into the medium term, pending completion of CIE's review or the strategic options for the rail network. Land should be reserved along likely transport corridors to allow for lines recommended in the review to be built at a later stage.

The Joint Committee is recommending the implementation of a £20 million park and ride system for Dublin at points well served by bus and rail route.

The report recommends developing a new legal framework to accommodate opening up the bus market to competition.

The committee said its preference is for a form of managed competition to handle bus transport between the major cities and towns.

The licensing system should allow for more than one operator on a route provided the licensing criteria are met, including minimum standards of service.