The European Commission is considering a complaint made by private bus operators over the way State funds are being allocated to CIÉ's two bus companies.
The Coach Tourism and Transport Council of Ireland (CTTC), which represents private bus firms, lodged the complaint with the EC last December.
CTTC chief executive Cora Collins told ireland.comprivate firms argued that the allocation of State aid to Bus Éireann and Dublin Bus is anti-competitive.
A report by Goodbody Economic Consultants, commissioned by the CTTC, claimed last April that the two companies benefit from several anti-competitive practices.
It said private firms have to undergo stringent scrutiny before being allowed to operate on a new route. Bus Éireann and Dublin Bus merely have to notify the Department of Transport of their intention to run a new service to be granted permission.
Under the National Development Plan 2000-2006, €543 million was allocated to Dublin Bus and Bus Éireann.
Ms Collins said this State support is "not being paid in a transparent manner". She said it was unfair that State companies were being subsidised on routes where they are in competition with commercial firms that do not receive any financial support.
Ms Collins claimed there was no transparency over which routes were running at a profit and which were being kept running by Government subvention. She said private operators want to be allowed the chance to tender for routes that were losing money for State companies.
"The State subvention for non-commercial routes to be available to anyone who wants to take them up," Ms Collins said.
A ruling from the EC is not expected until later this year. The private bus and coach industry employs 6,000 people directly. An estimated 3,000 other jobs are dependent on the industry.
Progressive Democrats' transport spokesman Senator Tom Morrissey backed the CTTC's call for more competition, saying it would benefit "hard-pressed" commuters.
He said bus operators should be allowed a bigger slice of the market "since they have some 5,000 buses at their disposal, which have never received a cent in subsidy from the State towards their operation."
Last January, Dublin Bus formally applied to the Department of Transport seeking €70 million for 100 new buses for this year and a further 100 for next year to serve nine new bus corridors.
"Why should the taxpayer fund extra buses [for Dublin Bus] at a cost of some €300,000 each while there are 5,000 under-utilised buses in the private sector?" Senator Morrisey asked. "These private vehicles will cost the taxpayer nothing. We need a more competitive bus market: the more buses, the better."
