O'Rourke suggests ending CIE rail monopoly

The Minister for Public Enterprise has suggested ending CIE's rail monopoly and widening bus competition.

Speaking in Ballinasloe at the weekend, Ms O'Rourke said public transport was "widely perceived as a poor-quality service - unreliable, slow, inefficient and bad value for money".

"The time has come for a fundamental rethink about how we deliver public transport services.

"CIE was established as a response to the financial difficulties of the railways. It is over 50 years old and has seen little structural change." Over the next seven years the State is to invest £2.2 billion on public transport, and Ms O'Rourke says "the time has come to ask if the existing institutional arrangements are adequate for a new era".

Ms O'Rourke said despite the public's perception there had been some successes in public transport such as DART, the Enterprise service to Belfast, and the inter-urban facility provided by Bus Eireann and its private competitors. And the Stillorgan Quality Bus Corridor, which she said was successful at attracting car owners to use the bus.

The Department of Public Enterprise is currently reviewing legislation regulating the bus market in Dublin - much of which dates from 1932 - with a view to expanding private competition. The fact this legislation was framed to protect the railways more than half a century ago is, according to Ms O'Rourke, "eloquent testimony to the need for change".

The Government is already committed to encouraging private participation in public services such as Luas, Dublin's light rail system.

The Minister, who was in Ballinasloe to address the chamber of commerce, says she has "no doubt" such partnerships are the way forward for public transport facilities.

She said the State was prepared to provide seed capital in certain circumstances to assist in the start-up of rural transport initiatives. The Department of Public Enterprise has already approved more than £3 million aid to organisations such as area development management, which has made a start in this area.

"If these demonstration projects prove successful I am hopeful that increased funding support will be provided. We should also look to our European partners, such as Finland, for good ideas in this area."

Ms O'Rourke said much of the negative response about privatising public transport services tended to be conditioned by the UK experience. However, she argued that we "should look beyond the shores of our nearest neighbour and realise that they do not always get it right".

There are good examples available of partnerships between the State and the private sector getting things right, she said.

However, she did maintain: "It will also be important for the State to clearly define an appropriate level of public transport service and to provide the necessary revenue support for uneconomic services."