EC to investigate complaints about state aid to CIE

[PaulM]

Originally Posted by breakingnews.ie

The European Commission is to examine whether the amount of state aid that the Government gives to CIE is in breach of EU competition laws.

The investigation is being mounted in response to complaints from the body representing private coach operators in Ireland.

The Coach Transport and Tourism Council claims CIE has an unfair advantage as it can compete with private firms using buses bought with public money.

The European Commission is to investigate if this distorts competition and breaches EU laws governing state aid.

Sigh...... fair rises if this is considered anti-competitive.

[al2637]

Well, isn't it more the issue that the money shouldn't go directly to CIE, and there should be a competitive tender?

Nothing wrong with that in my view.

[ACustomer]

Don't tell me that IE is the only railway in the EU which gets state aid on effectively a non-competitive basis. Or maybe the rules are to be obeyed by the Brits and ourselves but not by the French (of course!) and the other continentals?

[al2637]

Well, it is more for the provision of new buses for Dublin, right? At the very least there is a case to answer.

Why should DB get the money and not one of the many private operators who want to start service in the city?

I know opening the bus market is hugely complicated issue, but the private operators have a very good case.

[Kevin K Kelehan]

CIE and in particular Bus Eirrean have previously been accused of anti-competitive practices when other operators enter routes. I think that at least one of those complaints will be sustained; I doubt that either Dublin Bus or IE will suffer too much grief.

[PaulM]

Yeah, tendering for bus routes, with the same finance DB get would be fine.

What would be a disaster is if the government stop paying for buses and DB fares shoot through the roof.

[Mark Gleeson]

Fares wouldn't rise you would simply have fewer buses

Dublin Bus seem to have figured out a way around the DoT's block on new routes, simply bring back the old ones, 4 and 8 are back come on the number 6

Its mainly DB and BE that are in trouble

[Mark]

Essentially there is no problem with a government owning, funding and running a transport company, this happens the world over. The only difference here is the lack of an independent regulator/authority.

You look at all the other similar industries and they all have them. Really this should have been the centre piece of the whole Transport 21 announcement and agenda.

The Department of Transport has to relinquish regulatory power and do it as soon as possible so that not only the day to day running can be scrutinised but also the planning and development of new routes and networks.

Just on the rail side of things we are in danger of having two separate rail systems in Dublin with poor integration and little to no dialogue between the two parties.

[Kevin K Kelehan]

Originally Posted by Mark

Just on the rail side of things we are in danger of having two separate rail systems in Dublin with poor integration and little to no dialogue between the two parties.

There seems to be a wilful attempt from both parties to deliberately ignore the existence of the other; A minister with real interest and a spine would sort this out; it is not rocket science.