THE MINISTER for Education has failed to clarify the exact nature of arrangements with Bus Éireann for the provision of school transport for about 123,000 children, it was argued before the Commercial Court yesterday.
Student Transport Scheme Ltd (STS) wants to tender for the €166 million school transport contract but claims the tender process, as allegedly operated under a contract with Bus Éireann or its associated companies, lacks transparency and infringes various EU directives and regulations.
Bus Éireann has been joined as a notice party to the proceedings.
The Minister had previously sought for STS to provide €240,000 security for costs of the case but Mr Justice Peter Kelly had directed, before deciding, that the company could seek certain sworn information from the Minister.
The court yesterday heard replies had been received from the Minister but Tony O’Connor SC, for STS, argued that it was hard to establish from those replies whether there was an “agreement” with Bus Éireann concerning the scheme.
It seemed some agreement had been reached about a rebate but there was no evidence of that, he said. This meant it was still “up in the air” as to whether there was an agreement and his client would need to seek limited discovery.
The Minister had said he had no control over Bus Éireann but it “beggars belief” to say there was no agreement between a Minister and a company that got hundreds of millions in public money, Mr O’Connor added.
“Nothing surprises me,” Mr Justice Kelly remarked.
Michael Cush SC, for the Minister, said his side had replied to the questions asked and, if the case was proceeding, STS must provide security for costs.
Mr O’Connor said the case was proceeding but the attitude of the Minister in his replies was “unfair” as those replies had not solved the problem.
Noting the case was proceeding and there was no argument that the €240,000 sought as security was inflated, the judge said he would make an order requiring payment of that sum. If the money was not provided within one month, he would dismiss or strike out the case, he added.
Brian Cregan SC, for Bus Éireann, indicated he intended to bring an application for security of his client’s legal costs.
Mr Cush previously said it appeared the arrangements with Bus Éireann for school transport had been in place since 1968 except for one alteration in 1975.
STS claims its efforts to secure the right to tender for this academic year have been blocked and hindered by the alleged lack of transparency about the arrangement with Bus Éireann and the funding of that arrangement.
The Minister has failed to identify if, how and when the contract for the 2011-12 school year was awarded to Bus Éireann, it claims.
Bus Éireann had published a notice on November 8th last on e-tenders and in the Official Journal for the award of a contract for a “school transport system”, the court heard. STS was incorporated earlier this year with the intention of tendering for the school transport scheme.
