A former junior minister at the Department of Education has supported a private company’s claim that there was a contract with Bus Éireann for provision of the school transport system.
In an affidavit to the Commercial Court, Frank Fahey, a minister of state from 1987 to 1992, said he had no reason to think during his term of office that Bus Éireann was anything other than an independent commercial company providing the student bus service under contract to the department.
Mr Fahey said he had looked at privatising part of the service on a pilot basis in 1988 but there was strong lobbying against this.
He provided the affidavit in the action by a consortium against the Minister for Education, with Bus Éireann as a notice party. Student Transport Scheme Ltd claims the scheme costs €162 million to operate and contends the department is awarding the contract to Bus Éireann without it going out to contract as required under EU competition directives.
The Minister and Bus Éireann contend there is no contract.
The hearing before Mr Justice Brian McGovern continues.