Sir, – Tim O'Brien ("No buses available for special services for hospital workers, National Transport Authority says", News, November 2nd) cites a statement from the NTA that we should use public transport less because capacity levels are reduced on most bus services. "People have been left behind at bus stops and the problem is most acute early in the morning in the Dublin region."
Restricting entry to the bus sector has been the policy of the Department of Transport since 1932.
A total of 99.6 per cent of bus subsidies and grants go to Dublin Bus and Bus Éireann, which have 19 per cent of the bus fleet.
Those who have invested in 81 per cent of the national bus fleet have to go cap in hand to the regulatory authorities or, on occasion, to the courts in order to increase the supply of public transport capacity.
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It is incongruous for public bodies to restrict entry to a sector and then complain that there is a lack of capacity in that sector.
The Department of Transport used to restrict entry to aviation and road freight. Subsequent changes to that regime were hugely beneficial for the productivity of the overall national economy.
The NTA warned in October 2018 that “the costs and benefits from an-ill-considered competition are substantial. Consequently, care must be taken in progressing even if the changes are well proven in other jurisdictions.”
As of November 2nd, the NTA recognises that “ill-considered” non-competition costs the economy. Over 9,000 vehicles in the independent bus fleet cannot serve passengers left behind at bus stops, as noted by the NTA.
The Department of Transport retains its King Canute title in the bus sector but, happily for Ireland, lost the titles in aviation and freight, where it can no longer exclude new market entry.
The programme for government states that “SMEs are the backbone of our economy and communities across the country and are key drivers of employment”. The Government wants to strengthen “SMEs’ resilience, productivity and innovation.”
It must, however, address regulatory capture.
On July 30th, the Competition and Consumer Protection Authority announced that it has “referred a file to the DPP in relation to potential bid-rigging in the procurement of publicly-funded transport services in certain parts of Munster and Leinster.”
The end of an 89-year-old anti-competitive regulatory system is long overdue. – Yours, etc,
SEAN BARRETT,
Trinity College
Dublin,
Dublin 2.