Private bus operator Citylink has expressed frustration with Government policy on bus competition after it was turned down for a licence to operate a Galway-Limerick-Cork service.

The company has called on the new Minister for Transport, Mr Cullen, to finally push through real competition in the public transport sector.

The Department of Transport told the company recently there was no indication of demand for such a service.

A letter said that having studied the existing bus and rail options the service was "not required in the public interest".

Citylink currently operates a Dublin Airport-Dublin city-Galway service and also a Galway to Shannon Airport service.

It also operates the Aer Dart service, although this has been under pressure because of weekend disruptions to the DART in the last year.

The managing director of Citylink, Mr Allen Parker, said his company was frustrated by the lack of progress in opening up the bus market. He said an independent regulator was badly needed to oversee the issuing of licences as part of a tender process.

"There is no competition on the Galway-Limerick-Cork route, Bus Éireann have a monopoly with the travelling public being denied any choice. Citylink is convinced that there is considerable demand on this route - we are prepared to back this up by investing in excess of €3 million to start the service," he said.

"The Department of Transport have made the decision that the current level of service is sufficient without detailing any research or criteria they may have used to back up the decision," he said.

The company plans to meet the Minister for Transport, Mr Cullen, in the weeks ahead to discuss the issues. The firm said it remained hopeful Mr Cullen would be open to reform in the area.

"We are now on the third Minister for Transport since the announcement of Government policy to liberalise the public transport market in Ireland. I hope that the new Minister will now finally push ahead and introduce competition to the public transport market," said Mr Parker.

In the inter-city coach market Citylink is calling for a fully liberalised market, albeit with a strong regulator.

Citylink is part of the Metroline Group, a major provider of bus services in London. Metroline is a wholly owned division of the global ComfortDelGro Group.