A private company that runs a licenced public bus service in Dublin is to go into liquidation, blaming unfair competition from Dublin Bus.
Circle Line operates routes between Lucan and Celbridge through Dublin city centre to Rathfarnham. It will close its routes next week with the loss of 20 jobs.
It will also refund 10,000 customers who bought annual smart cards. The company says it was subject to unfair competition because Dublin Bus swamped its routes with buses.
Dublin Bus says it is completely satisfied that services it operates around Lucan and Celbridge are fully compliant with Department of Transport service authorisations.
It also says it totally refutes allegations made by bus operator Paul Morton that Circle Line is being driven out of business by anti-competitive practices by Dublin Bus.
Transport Minister Noel Dempsey said the decision to stop the Circle Line service was regrettable. He said his department had written to Dublin Bus following complaints of anti-competitive behaviour by Circle Line.
The minister said he is in the process of introducing legislation so companies like Circle Line can operate successfully.
Fine Gael Transport Spokesman Fergus O'Dowd says Dublin Bus should be providing new services where they are needed and filling empty Quality Bus Corridors rather than chasing out competition.
He also accused Mr Dempsey and previous Fianna Fáil Transport Ministers of failing to deliver proper competition in the bus market, to the detriment of commuters. He said private operators should be supported where possible.
Describing the news that Circle Line is going into liquidation as disappointing, Labour Transport spokesman Tommy Broughan described the system for licensing buses in Dublin and across the country as a mess.
He said the current legislation was vague and outdated, and lacked transparency. The issue of State buses going head-to-head with private services is already subject to a formal EU investigation.
