The Department of Transport is finalising a package of proposals on reforming the Dublin bus market which would exclude existing bus routes from competition but which would guarantee up to 15 per cent of an expanded bus market for private operators.
The proposals would also see extra funding of more than €30 million being given to Dublin Bus this year to buy 100 buses to service new bus corridors.
The compromise deal is likely to be acceptable to trade unions, but it is expected to face opposition from the Progressive Democrats who want to open up some 25 per cent of existing routes to competition.
It is expected that Minister for Transport Martin Cullen will put the bus reform proposals to Government colleagues as soon as possible, although this could be delayed until the future of Aer Lingus, which is a priority for his department, is dealt with.
Mr Cullen has in the last two weeks met representatives from both Dublin Bus management and the two trade unions involved, Siptu and the National Bus and Rail Union.
He indicated he would accept trade union demands that existing bus routes continue to be operated by Dublin Bus.
In return the bus unions are willing to accept proposals that a set quota of new routes be given over to private operators, up to a level of 15 per cent of existing routes. After this quota is reached, both private operators and Dublin Bus would be able to tender for future new routes.
It is also believed that the Minister is willing to provide financing to Dublin Bus to expand its fleet. In January the company sought €70 million for 100 new buses for this year and a further 100 for next year. The department is willing to agree to the first 100 in the immediate term as part of an overall reform package.
There are a number of new bus corridors, including one in Clondalkin and another near the new town of Adamstown, that cannot be serviced at present because of a lack of buses. The possibility of providing funding for private operators is also being examined.
As part of the package, the proposed Dublin Transport Authority would eventually take over the regulation of the bus market, deciding on time-tabling and routes.
The package will be ready to be brought to Cabinet for approval from early next month, once a study on the proposed new transport authority has been delivered. However there are concerns that the ongoing difficulties over the privatisation of Aer Lingus could delay this further.
There is also considerable uncertainty over whether such a package would be acceptable to the Progressive Democrats.
A spokesman for Tánaiste Mary Harney said there was currently no formal proposal for her to consider. He said proposals that a quarter of all Dublin Bus routes be privatised had already been agreed by Government and this was still supported by the PDs. A threat of strike by trade unions in 2004 resulted in the Government suspending this privatisation plan.