A private bus company claimed at the High Court yesterday it is in danger of going out of business because its passengers have transferred to Bus Eireann which is not charging fares on the Galway-Dublin route.
Nestor Bus Ltd, of Coolarne Road, Turloughmore, Galway, claims Bus Eireann and Coras Iompair Eireann are abusing their dominant position in the provision of bus and passenger transport services to and from Galway and Dublin.
Mr Justice Kearns yesterday adjourned for one week an application by Mr Tony O'Connor, for Nestor, for an interlocutory injunction against the transport companies. Nestor has also brought proceedings against the State and the Minister for Public Enterprise alleging she has failed to consider adequately the requirements of the public regarding competition for the Galway-Dublin bus services.
Nestor sent 13 completed licence application forms to the Department two years ago but claims it has received no decision to date.
It issued proceedings against the transport companies, the Minister and the State last year.
Mr Justice Kearns adjourned that issue for three weeks after being told by Mr Anthony Collins, for the Minister, that a decision on the licensing applications would be made within that period.
One of the directors of the Galway company, Patrick Nestor, claimed in an affidavit the company had been providing bus transport on the Galway-Dublin and Dublin Airport routes for 14 years. In 1991, the Department had issued licences to his company for services on the Dublin-Galway and Dublin to Gort routes. These were effectively occasional licences covering particular periods.
His company's traditional bus service provided a cheap and reliable way to transport passengers, particularly students, on the Dublin to Galway corridor. Last September, they became aware that many of their regular passengers were using buses contracted by Bus Eireann. It turned out there was an agreement between Bus Eireann and its trade unions that drivers of these contract buses could not collect fares from passengers, Mr Nestor said.
On October 13th, Nestor's solicitors requested Bus Eireann to stop providing services which were not economically sustainable and which had a detrimental effect on Nestor's business.
Solicitors for Bus Eireann and CIE had rebutted Nestor's claims and complained of alleged "poaching" by Nestor of Bus Eireann passengers.
Mr Nestor said it was clear Bus Eireann was not in a position to service the increasing schedules for its Dublin to Galway route. It had Eireann to hire private operators and, in doing so engaged in a form of licensing for the route.
Mr Nestor said because of increasing fuel, labour and financing costs, he had to borrow to maintain the company's survival. It was now feared that Nestor would not be able to continue to trade and would have to be wound up if Bus Eireann continued the practice of contracting private operators and preventing them from collecting fares.
Since the High Court proceedings, Bus Eireann had not sought to use the regular services offered by Nestor to accommodate those passengers who could not be accommodated by Eireann. the State company. The inference was that Bus Eireann and CIE did not want to give Nestor an opportunity to get a licence.
The State, the Minister, Bus Eireann and CIE deny Nestor's claims.