A report complied for private bus operators has found that the regulations governing the industry are anticompetitive and favour the State companies.
The study by Goodbody economic consultants for the Coach, Tourism and Transport Council (CTTC) found that Government subsidies granted only to state companies and restrictive licensing arrangements for private operators undermined the competitive position of private bus firms.
The report also claimed that liberalisation of the bus sector has slowed to a halt and that the process has excluded private sector representatives.
The Council wants an industry tack force drawn from members of the public and private sector to be established "to ensure rapid, effective and accountable liberalisation of the sector".
It also wants an independent regulator, because under the current system the Department of Transport both owns Dublin Bus and Bus Éireann and also regulates the market.
According to the council, the transparency surrounding public subsidies needs to be investigated. The report claims that under the National Development Plan CIÉ Group bus companies are scheduled to receive €543 million for fleet renewal and expansion, in addition to the €77 million subvention.
Cora Collins, chief executive of the CTTC, said private companies were discriminated against by a system that seemed purpose-built to hinder a competitive environment. She also said commuters and businesses were hampered by gridlocked roads every day.
"The private bus and coach transport sector is fully committed to working with the Government to help alleviate these problems. . . . But we are faced with a playing field that is biased towards the state-funded operators who get massive subsidies from the taxpayer," she said.
Ms Collins added: "We're not looking for handouts, but we are looking for the introduction of transparency in the current system and industry consultation leading to the introduction of controlled competition to ensure widespread and intense competition in the bus and coach transport sector across the country."