The recommendation in the McCarthy Report to consider the privatisation of Dublin Bus and the sale of the CIÉ expressway and tour businesses has been welcomed by the Coach Tourism and Transport Council.
The organisation, which represents private bus and coach operators, said Dublin Bus and Bus Éireann were failed systems that had received millions from the State for too long.
It said the annual payment of €49 million provided to Bus Eireann and the €83 million to Dublin Bus was a waste of taxpayers' money.
"Bus Eireann and Dublin Bus together cost too much money, and their presence hampers the development of quality bus services in Ireland," said council chief executive Gerry Mullins.
"Why should the State spend borrowed money from Europe in order to compete with an Irish company that pays tax to it?"
In the report, economist Colm McCarthy said consideration should be given to the privatisation of Dublin Bus but only after the Government has decided on a model for competition in the city's bus market.
He also said CIÉ's tours business, expressway services and other bus businesses competing with private operators should be sold off.
