School bus operators on trial over alleged anti-competition practices on Limerick routes

FIVE school bus operators accused of anti-competition practices are among the many contractors who provide “great value for money” by delivering 90% of all school transport routes for 71% 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 - Limerick, Clare, Tipperary, south Galway and Waterford.  

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

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All five have pleaded not guilty to offences under the Competition Act 2002. The single charge against each accused alleges that between November 1, 2014 and December 31, 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.  

At the Central Criminal Court, 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 Eireann, 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 persons who are carrying children with special needs in their vehicle get to know the child, which leads to a particular relationship developing.  

Ms McBride confirmed that 54% of Bus Eireann’s turnover comes from school transport and that most of the men and women who provide this service are not Bus Eireann employees. She agreed with Mr Cahill that 10% of school routes are provided by Bus Eireann, while 90% are provided by people like the five accused men.  

Mr Cahill said 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% of the services but costing 71% of the budget, this was “great value for money”, which Ms McBride agreed with.  

The witness 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 further confirmed that 114,000 children are transported to school each day across 6,000 routes nationally.  

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