Introducing tendering for some bus routes traditionally operated by State companies has the potential to save taxpayers' money, according to the Minister for Transport. Paschal Donohoe told the Dáil he was fully committed to controversial plans to put out to tender 10 per cent of routes currently run by Dublin Bus and Bus Éireann.
However, the plan for the potential privatisation of the routes could lead to strikes in the State transport sector in the weeks ahead.
The National Bus and Railworkers Union (NBRU) ands Siptu will ballot members in Dublin Bus and Bus Éireann for industrial action up to and including strike action following the collapse of talks on the tendering plan at the Labour Relations Commission earlier this week.
Mr Donohoe said international experience indicated that competitive tendering was “beneficial in providing subsidised public service obligation bus services-socially necessary, non-commercial bus services”.
He added: “I believe that our support for improved bus services should be given in conjunction with an appropriate degree of competitive tension within the market, in the interests of quality and cost effectiveness for commuters. This is why I am committed to the tendering of 10 per cent of bus routes.”
The Minister said he was disappointed trade unions had withdrawn from the LRC talks. “It is the Government’s view that these Labour Relations Commission discussions would allow employee concerns to be addressed satisfactorily. Indeed there has been a particular focus on facilitating existing employees to remain in either Dublin Bus or Bus Éireann if either company did not succeed in the tendering process,” he said.
“I understand that strenuous efforts were being made within the talks process to facilitate as many as possible existing employees staying in their respective companies, arising from forecast growth in the public service obligation market under the Dublin Bus and Bus Éireann direct award contracts.”
Siptu said on Tuesday it would ballot drivers for industrial action. The NBRU said on Monday that it would be balloting its members in the two State-owned bus companies, as well as in Irish Rail, on the issue. It is also to initiate legal action aimed at blocking the initiative.
A Siptu spokesman said the result of the ballot should be known on April 10th. The union said it would be consulting with other grades of staff in the companies about “solidarity action”.
Unions say the tendering proposals could lead to the privatisation of routes and would result in a deterioration of their members’ terms and conditions if they have to move to private operators.
Under the current plans, orbital routes in Dublin, such as those between Blackrock and Rialto, and Chapelizod and Tallaght, would be put out to tender.
Bus Éireann routes earmarked for tender include commuter services from Dublin to Tullamore, Portlaoise and Kildare, as well as a number of routes in Waterford city.
Dublin Bus and Bus Éireann will be permitted to tender to continue to operate the routes.
