School bus drivers accused of anti-competition practices among contractors provide 'great value for money'

Ryan Dunne

Five school bus operators accused of anti-competition practices are among the many contractors who provide “great value for money” by delivering 90 per cent of all school transport routes for 71 per cent of the overall budget, a court has heard.

Five Tipperary men are being prosecuted by the Competition Authority for alleged offences relating to the provision of school transport services across five counties.

The accused are Raymond Heney (54) of Camas, Cashel; Andrew Walsh of Derrymore, Roscrea; Noel Browne of Bansha; Larry Hickey (73) of Ardmayle, Cashel and Anthony Flynn (51) of Golden Road, Cashel.

All five have pleaded not guilty to offences under the Competition Act 2002.

The single charge against each accused alleges that between November 1st, 2014 and December 31st, 2016, they engaged in a concerted practice which had as its object or effect the prevention, restriction or distortion of competition in trade in the provision of school transport services.

Ceara McBride, Procurement and Materials Manager with Bus Eireann, gave evidence to Dermot B. Cahill SC, defence counsel for Mr Heney, that the provision of school transport is one of the main functions of Bus Éireann, with the company procuring school services on behalf of the Department of Education.

She confirmed that distance requirements are in operation, with primary school children entitled to transport if they live not less than 3.2km from their school, while for secondary school children the distance is 4.8km. For children with special educational needs, distance requirements do not apply.

She agreed with Mr Cahill that people who are carrying children with special needs in their vehicle get to know the child, which leads to a particular relationship developing.

Ms Bride confirmed that 54 per cent of Bus Eireann’s turnover comes from school transport, with most of the men and women who provide this service not being Bus Eireann employees.

She agreed with Mr Cahill that 10 per cent of school routes are provided by Bus Eireann, while 90 per cent are provided by people like the five accused men.

Mr Cahill said that the Department of Education pays Bus Eireann to run the service, with €149 million paid by the Department and €14 million through fee collection from families, making a total budget of €163 million.

Of the total €163 million, 71% is paid to contractors, which was €116 million in 2015, said Mr Cahill.

He said that, as contractors are providing 90 per cent of the services but costing 71 per cent of the budget, this was “great value for money”, which Ms McBride agreed with.

Ms McBride went on to confirm that a formal public procurement process for the selection of tenders was introduced in 2011, with a yearly panel of contractors in place until 2015, when the decision was then made to have five-year panels.

She confirmed that 114,000 children are transported each day across 6,000 routes nationally.

The trial continues on Thursday before Mr Justice David Keane and the jury of seven men and five women.