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Private bus operators criticise unfair state competition

Bus Journeys
/ 9th May 2022 /
Nick Mulcahy

Private bus operators claim that excluding them from the 20% fare reduction on state-funded public transport services risks putting hundreds of operators out of business.

The 20% fare reduction came into effect across public transport services in the Greater Dublin Area today, and will remain in place until the end of this year.

The reduction applies across a number of public transport services, including Dublin Bus and Go-Ahead Ireland. In addition, fares Bus Éireann and Transport for Ireland Local Link services were reduced by 20% last month. 

The Coach Tourism and Transport Council of Ireland says its members handle 31 million journeys annually.

The organisation says that its members fear that the loss of patronage, as a result of this exclusionary policy, could push hundreds of family-owned, private transport companies to financial ruin.

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CTTC chairman John Halpenny said: “The decision to exclude private operators from this scheme unconscionably distorts the market. State-funded services can now offer fare discounts that family-owned, private transport companies could never compete with.

Private Bus Operators
CCTC chairman John Halpenny said: “The decision to exclude private operators from this scheme unconscionably distorts the market. State-funded services can now offer fare discounts that family-owned, private transport companies could never compete with."

“The majority of our members operate regional and commuter services, and as a result of this exclusionary policy, many of our passengers are now being actively disadvantaged at a time when there is a cost of living crisis.

“The solution is straightforward - the Department of Transport must seek to include commercial bus operators in the 20% fare reduction scheme as a matter of grave urgency,”

CTTC estimates that subsidising private bus operators so that they too can discount fares would cost the state around €24m.

“This sum pales in comparison with the €538m of funding for Public Service Obligation and Local Link services that was secured by the Department of Transport as part of Budget 2022, which is being used to support this initiative,” said Halpenny.

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