The Department of Transport is in advanced talks with trade unions and transport companies on major reforms for the bus sector which are expected to see 15 per cent of new routes in Dublin being privatised, writes Liam Reid, Political Reporter.
The package also provides for plans by Minister for Transport Martin Cullen to establish a new transport commissioner to regulate the bus and rail sectors.
The commissioner would oversee fares, routes and timetables for both public and private bus companies.
He or she would take over the licensing of all new bus routes, which will be open for tender by both public and private companies.
The new regulator would also have the power to impose heavy fines on companies, including State-owned operators, who fail to adhere to routes and agreed timetables.
The package will also include extra investment for Dublin Bus and Bus Éireann to buy additional buses for new routes.
While agreement has yet to be reached, those close to the negotiations believe that a deal could be brokered by the end of next month.
Mr Cullen is expected to hold meetings directly with union and transport company representatives with a view to having a deal completed by then.
Negotiations are currently centred on an interim package for new routes in the Dublin region, which would precede the establishment of a regulator.
Officials are anxious that a specific quota of the new routes to be established this year and next year must go to private operators.
While no exact figure has been agreed, it is expected 15 per cent of new routes will be awarded to private operators.
Dublin Bus is also engaged in a major review of its bus routes, and will bring forward plans for new routes throughout the city in November.
It is expected that it will also cut services on a number of lesser- used routes, especially those along Luas lines.
Government investment for 150 buses for new routes in Dublin would be conditional on a deal on the privatisation of some new routes.
The Government has been withholding funding for additional buses for Dublin Bus since 2002, a decision that has been widely criticised by unions and Opposition parties.
Dublin Bus commissioned a study earlier this year by DKM consultants. It found that some areas of the city, such as Blanchardstown, will experience population growth rates of more than 30 per cent between 2002 and 2016, and that the bus network will be the only effective means of servicing many of these high-growth areas because of a lack of rail facilities.
Once the regulator is established, it is envisaged that all new bus routes will be put out to tender, and that Dublin Bus and Bus Éireann will also be able to tender for the routes.
It is also expected that the regulator may decide on the level of State subsidies for specific routes that would not be profitable to operate.
Mr Cullen is also considering plans for the creation of a transport "tsar" to regulate all public transport, including aviation and taxis, once the public transport commissioner's office is established.