Five operators of bus and taxi services In Tipperary appeared today in a Competition and Consumer Protection Commission led prosecution at the Central Criminal Court in Dublin, where they pleaded not guilty to alleged anti-competitive conduct in the school transport sector.
Defendants Mr Andrew Walsh of Derrymore, Roscrea; Mr Raymond Heney of Camas, Cashel; Mr Noel Browne of Bansha; Mr Larry Hickey of Ardmayle, Cashel, and Mr Anthony Flynn of Golden Road, Cashel, all resident in Co Tipperary, face a single charge under the Competition Act 2002, alleging that each engaged in a concerted practice between November 1st 2014 and December 31st 2016, aimed at preventing, restricting or distorting competition in the provision of school-transport services in counties Tipperary, Limerick, Clare, South Galway and Waterford.
Presiding Judge Mr David Keane empanelled a jury of seven men and five women to hear the case, which is expected to last up to six weeks.
The prosecution arises under Section 4(1) of the Competition Act 2002, which prohibits any agreement, decision or concerted practice, whose object or effect is to prevent, restrict or distort competition in trade.
The defendants’ pleas of not guilty mean the matter will now proceed to full trial, where the court will examine evidence including tenders, contracts, communications between operators and the structure of the school transport market.
Private operators bid for contracts to provide specific routes as part of the scheme. When operators agree or coordinate how to bid (or not bid) for these contracts, the effect can be to reduce competition: fewer bidders means less pressure on prices and potentially lower quality of service.
The national competition regulator, Competition and Consumer Protection Commission (CCPC) is empowered, under the Competition Act 2002, to prosecute concerted practices or agreements between competitors which have the object or effect of restricting competition.
The school-transport scheme involves significant public expenditure. For example, in a recent review the cost was estimated at about €509 million for the 2024 year. If competition is distorted in the contracting of these services, the State and ultimately families and taxpayers may face higher costs or receive less efficient service. Coordinated bidding or allocation of routes undermines the competitive tendering process.
By pursuing criminal cases in this domain, the Consumer Protection Commission (CCPC) is signalling that collusion in public-service contracts (including school transport) is taken seriously.
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