The Tanaiste, Ms Harney, has called for "re-regulation" of the urban public transport sector, stating that there is a "huge unmet need" for high-quality public transport services in urban areas.
"I would like to see routes, or networks of routes, franchised out for set periods through competitive tendering, with licenses awarded on the basis of the quality and quantity of services provided," she has said. She added that she was not proposing the kind of deregulation which occurred in Britain.
Public transport will be included in a review of the current regime on competition, which the Government plans to initiate before Christmas. The new Programme for Government states that the review will examine restrictions inhibiting the development of new business and where increased competition could offer significant benefits to consumers, among other areas. The membership of the review body will be drawn from the public and private sectors under an independent chairman.
Citing the impact of competition in the aviation and telecommunications sectors, Ms Harney said competition would have a similar impact on public transport.
"We must promote competition if we want to harness the full development potential of the Irish economy; and it is particularly important, I believe, that we realise the benefits of competition in the transport sector."
