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Morning business news - June 20

with David Murphy
with David Murphy

CIRCLE LINE BLAMES DUBLIN BUS FOR COLLAPSE - A licensed bus service in Dublin is to go into liquidation, blaming unfair competition from Dublin Bus. Circle Line operated routes between Lucan and Celbridge through Dublin city centre to Rathfarnham. 

Circle Line's Paul Morton said its service had been successful initially, but claimed that when it put extra buses on the routes, Dublin Bus responded by flooding the route with its buses. He said Circle Line 'could not fight a State company'.

Mr Morton said 3,800 of its customers who used its smart cards would be refunded. He accused the Transport Minister of 'doing nothing' about the situation.

In a statement to RTE News Dublin Bus says that it was conforming to its obligations in relation to service authorisations. The Minister for Transport said the decision to stop the Circle Line service was regrettable.

Minister Noel Dempsey said his Department had written to Dublin Bus following complaints of anti-competitive behaviour by Circle Line. The Minister said he was in the process of introducing legislation so companies like Circle Line could operate successfully.

Mr Morton said the European Commission was investigating the whole issue, but he claimed that by the time an answer came, there would be no private operators.

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NEWS IN BRIEF - Denis O'Brien's mobile operation in the Caribbean has seen its revenues rise 38% to €1 billion. The company has cut its losses to €30m. The group has six million customers.

The former chief executive of the Irish Stock Exchange Tom Healy received a termination payment worth €520,000 when he retired last year. He is now head of the Abu Dhabi securities market.

China has cut its subsidies on petrol which keep prices artificially low for consumers. The move will result in an 18% increase in petrol prices in China. The financial markets hope this could slow demand. That has resulted in drop in oil prices of $5 a barrel to $131 a barrel .

This morning the euro is worth $1.55 and 78.70p sterling.