Private bus companies hoping to enter the Dublin bus market claim they can give the taxpayer a better deal than currently provided.
But some believe it would be a mistake for the Minister for Transport, Mr Brennan, to move too quickly in opening up the market.
A sudden move to franchise out 25 per cent of routes could deny Irish-owned bus companies the chance to compete for routes, it was claimed yesterday.
Multi-national operators, however, are likely to welcome a speedy opening of the market to private competition. The intention of Mr Brennan is to have 25 per cent of the existing Dublin bus market opened to competition this year. He has told unions, however, that he is prepared to consider other ideas in talks due to get under way over the next few days. Mr J.J. Kavanagh, a director of the Kilkenny-based company J.J. Kavanagh & Sons, said the market should be opened "on a route by route basis".
The cost of buses alone for a typical route would be about €2.5 million, he said. Entry into 25 per cent of the existing market would cost between €60 million and €70 million. "There wouldn't be an Irish investor who could put up that kind of investment in the short term." However, Mr Allen Parker, managing director of Citylink and Aerdart, said they would have no difficulty tendering for a large number of routes.
The two companies are owned by the world's fifth-largest land transport company, DelGro Corporation, which is based in Singapore. Aerdart currently operates a service from Howth Junction to Dublin airport, and it is through this company that DelGro aims to expand its Dublin operation. A sister company, Metroline, currently operates about 1,000 buses in London, equivalent to the entire Dublin market. Mr Parker said Aerdart was well-positioned to develop its business in Dublin and was anxious to see Mr Brennan proceed as quickly as possible with his reforms.
While Kavanaghs and Aerdart differ on the desirable pace of change, both claim that increased private sector involvement in public transport would reduce the burden on the taxpayer.
Mr Kavanagh said private operators had a track record in providing services without the huge subventions provided to State companies.
The two companies acknowledge that State support would be required for inherently loss-making "social routes".
