CIE abolished, Dublin Bus monopoly to end

The Minister for Transport, Mr Brennan, has announced the abolition of the State-owned transport company CIÉ and the ending of its subsidiary company's virtual monopoly in the Dublin bus market.

Taken in tandem with the strategic rail review currently under way, the proposed changes announced yesterday amount to the most radical review of public transport since CIÉ was established in 1946.

All three State-owned transport companies, Dublin Bus, Bus Éireann and Iarnród Éireann are to be reformed and a new office, which the Minister was provisionally describing as that of a transport regulator, is to be created to regulate all public transport services in the greater Dublin area.

This includes long-distance commuter services, DART and suburban rail and Luas.

From the beginning of 2004, up to 25 per cent of an expanded bus network in the capital should be in the hands of private operators.

The changes reflect the Minister's determination to introduce widespread "but controlled" competition in the public transport arena.

The proposed regulator will also allocate funding from the Exchequer.

Mr Brennan's reforms come under three broad headings: restructuring of the existing state-owned transport companies, reforms in the greater Dublin area and reforms outside the greater Dublin area.

Initially just new routes, but ultimately all routes, are to be franchised by a regulator or similar office-holder who would have responsibility for all public transport services, including the allocation of capital funding from the Exchequer.

Mr Brennan acknowledged that under European Union law, the introduction of competition even on a limited basis effectively spells the end of preferential State treatment for its own bus companies.

This could have implications for Bus Éireann and Dublin Bus when their fleets need replacing, but according to the Minister, the regulator would be able to aid the companies, as long as all companies were treated fairly.

Long-distance commuter bus services serving the greater Dublin area which commence or end outside that area will be administered by the Dublin regulatory body.

Mr Brennan said these would need "priority passage" on road space throughout greater Dublin, a measure which would deal with recent complaints from Dublin Bus and Bus Éireann that they were seriously hampered by traffic congestion.

He said further "demand management" - effectively measures which make it more difficult to use private motorcars - would also be introduced throughout the greater Dublin region, an area which includes parts of Kildare, Wicklow and Meath.

A report detailing options for bus-based public transport outside the greater Dublin area is due to be published by the Minister next week.

He indicated that rail transport, including the closure of routes and competition in the freight sector, will be dealt with in the strategic rail review, which is due early in December. A restructuring group comprising representatives of the departments of transport and finance, CIÉ and its three operating subsidiaries is to be established.

The board of CIÉ has also been asked to begin work immediately on devolving central functions and preparing the subsidiary companies for full independence.

Mr Brennan also said he was considering a request from CIÉ for an increase in fares and he indicated he would be responding within a matter of weeks.