PDs delay Dublin Bus funding in dispute over competition

Dublin commuters are the real victims in the row between Fianna Fáil and the Progressive Democrats which has delayed the modernisation…

Dublin commuters are the real victims in the row between Fianna Fáil and the Progressive Democrats which has delayed the modernisation of the Dublin bus system, the Labour Party said last night.

Government sources confirmed yesterday that Tánaiste, Mary Harney had refused to agree to a massive investment of public money in Dublin Bus because of the failure to introduce real competition into the bus market.

"It is ludicrous that the PDs should be allowed to exercise a veto over the introduction of badly needed new buses in Dublin," a Labour spokesman said. "Buses are the cornerstone of the public transport system and the additional buses are badly needed."

The PDs have refused to agree to the introduction of the new buses until there is agreement on the opening up of the market to genuine competition.

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Disagreement between the coalition parties on the issue for the past two years has delayed the introduction of a package of proposals which would open up the Dublin bus market and allow for a massive investment in the Dublin Bus fleet.

The issue was again deferred after a discussion at the special cabinet meeting in Avondale, Co Wicklow, last Monday and ministers will not return to it until the autumn.

There is now considerable doubt as to whether there will be any movement on the issue before the general election which is expected in May of next year.

Minister for Transport Martin Cullen is believed to have devised a package of measures which would exclude all existing bus routes from competition but which would guarantee up to 15 per cent of an expanded bus market for private operators.

Acceptance of the proposals would have paved the way for an investment package of €300 million to fund a new fleet for Dublin Bus. The first instalment of that would have involved extra funding of €30 million this year to buy 100 buses to service new bus corridors.

The CIÉ unions were happy with the plan as it protected existing routes from competition but it has faced stiff opposition from the PDs who want to open up some 25 per cent of existing routes to competition.

Mr Cullen met representatives from both Dublin Bus management and the two trade unions involved, Siptu and the National Bus and Rail Union before finalising his plan. During the talks he indicated he would accept trade union demands that existing bus routes continue to be operated by Dublin Bus.

In return the bus unions are willing to accept proposals that a set quota of new routes be given over to private operators, up to a level of 15 per cent of existing routes.

After this quota is reached, both private operators and Dublin Bus would be able to tender for future new routes.

It is also believed that the Minister is willing to provide financing to Dublin Bus to expand its fleet.

In January the company sought €70 million for 100 new buses for this year and a further 100 for next year. The department is willing to agree to the first 100 in the immediate term as part of an overall reform package.

There are some new bus corridors, including one in Clondalkin and another near the new town of Adamstown, that cannot be serviced at present because of a lack of buses. The possibility of providing funding for private operators is also being examined.

As part of the package, the proposed Dublin Transport Authority would eventually take over the regulation of the bus market, deciding on time-tabling and routes.