Transport plans scrutinised
Government plans for public transport should allow consumers maximum choice, according to Isolde Goggin, Director of Regulated Markets Division at the Competition Authority.
Her call comes as the Southern and Eastern Regional Assembly, responsible for integrating development in the southern counties, prepares for a major conference in Bantry next month at which transport issues will be discussed.
And it also coincides with a call from Bus Eireann Regional manager for Cork city and county, Joe Fitzgerald, for the introduction of bus lanes on a number of routes in Cork City.
Ms. Goggin, in an address to to the Foundation for Fiscal Studies pointed out that restrictions on bus transport operations had initially been introduced in the 1930’s to benefit the railways.
They had not, however, prevented the decline of the railways but instead had resulted in a decline in both forms of transport.
Ms. Goggin broadly welcomed recent government proposals to update the institutional and regulatory framework for public transport, but queried whether they went far enough.
“The separation of regulatory and operational functions in public transport is critical if we are to create a “level playing field” between public and private (or privatised) companies and to reap the benefits of private-sector participation”, said Ms Goggin.
“However, while it is proposed to establish Bus Eireann and Bus Atha Cliath as separate independent companies, it might be necessary to go further and split each of them along business unit lines”, she added.
Ms Goggin went on to point out that it is not clear that any form of economic regulation is necessary for long-distance bus services, apart from qualitative regulation to ensure safety standards, driver qualifications etc.
“The long distance bus market is one, which could most easily and quickly make the transition to competition” she said.
The franchising model proposed for the Greater Dublin area has advantages, but would have to be carefully implemented in order to avoid competition problems.
And where competition on the route rather than for the route is feasible, the regulatory authority should be given sufficient flexibility to choose it.
“These proposals are both timely and constructive”, said Ms. Goggin. “But the system has to be carefully designed to ensure it meets consumer needs.
Regulation should be avoided unless a clear need is established.
It must be proportionate, linked to clearly defined objectives and based close to the market. Competition has a vital role to play in ensuring that consumers’ needs are met.”
