Donohoe denies tendering of bus routes will lead to privatisation

Minister for Transport Paschal Donohoe has insisted Government-backed plans to put some bus routes out to tender will not lead to the privatisation of Dublin Bus and Bus Éireann.

The National Transport Authority plans to put out to tender 10 per cent of routes currently operated by the two State companies.

Speaking on RTÉ radio, Mr Donohue said the tendering process would go ahead following lengthy talks at the Labour Relations Commission (LRC) on Wednesday night.

Planned strikes at Dublin Bus and Bus Éireann were called off in the early hours of Thursday morning after new proposals were brought to the table to tackle concerns of trade unions.

“I’ve always argued, and the Government has maintained, that tendering can play a very important role in making sure that public transport is purchased and made available to the taxpayer at a good price,” said Mr Donohoe.

He said he recognised the “legitimate concerns” raised by employees regarding plans to put bus routes out to tender but argued that the move would not lead to privatisation of the companies.

“It’s not privatisation because these routes will still be owned and regulated by the National Transport Authority,” he said. “ I’ve made very clear because of growth that is happening in the bus market there will be no compulsory requirement for somebody to transfer if the public bus company was to lose a route.”

Mr Donohoe said he expected last year’s growth in the sector, which included hiring an additional 170 bus drivers and an increase of three million passengers, to continue into the future.

He added that Government-backed plans to tender out bus routes would be carried out in a regulated manner.

“What we are not talking about is the tendering out of the full bus market in an unregulated manner. This is the most regulated market that we have in our country, with the National Transport Authority playing a lead role in the economic regulation.”

The Minister said he was committed to working with unions in the future on any further concerns they may have regarding the proposed policy changes.

“It’s the right of Government to be able to determine policy, to go and make that happen, and that is happening in a way that recognises the legitimate concerns that some employees will have.”