Alleged School Bus Tender Collusion Case Hears Claims of ‘Loaded Dice’ in Tipperary and Surrounding Counties.
The Central Criminal Court has heard allegations that five school bus operators attempted to “load the dice” in their favour by distorting competition in the tender process for school transport services across five counties.
Five Tipperary men are being prosecuted by the Competition Authority in connection with the provision of school transport services. All five deny the charges.
The accused are:
Mr Andrew Walsh aged 62, Derrymore, Roscrea, Co. Tipperary.
Mr Raymond Heney aged 54, Camas, Cashel, Co. Tipperary.
Mr Noel Browne aged 77, Bansha, Co. Tipperary.
Mr Larry Hickey aged 73, Ardmayle, Cashel, Co. Tipperary.
Mr Anthony Flynn aged 51, Golden Road, Cashel, Co. Tipperary.
Each man faces a single charge under the Competition Act 2002. It is alleged that, between 1st November 2014 and 31st December 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.
The trial has heard that all of the accused were involved in bidding for tenders to provide school bus routes during the period in question. It is alleged that, rather than competing independently, the men colluded in how they would bid.
The jury was told that one of the accused arranged meetings with other bus operators, ostensibly to assist with administrative processes. At these meetings, it is alleged that operators discussed the allocation and pricing of school bus routes and agreed to bid for tenders in a coordinated manner.
Counsel for the prosecution, Dominic McGinn SC, said that parties in a tender process cannot lawfully discuss who is bidding for what, or at what price. He told the jury that there was a “degree of coordination” between the parties so that tender prices would end up higher than they would be in a genuinely competitive process.
Mr McGinn explained that competition law exists to protect consumers and taxpayers by ensuring value for money and preventing manipulation of markets.
He told the jury that:
“Agreements or understandings not to charge below a certain amount, amounted to price fixing and provided no benefit to consumers.
Market sharing”, where competitors agree among themselves to allocate specific areas or routes so that there is effectively only one provider, is also prohibited.
Any manipulation of that or distortion of that is unfair to us,” he said, noting that, as this case concerns public contracts, the people ultimately affected are taxpayers.
Mr McGinn said the alleged conduct did not require a formal written agreement, but involved collusion, an exchange of information and coordination that led to “the disappearance of competition” in the relevant tenders.
He told the jury that the case was not about the importance of school transport for children in Tipperary, nor about the fact that the accused men are approaching retirement and are alleged to have committed the offences late in their careers. Rather, he said, the case concerns whether the five men, and possibly others, attempted to “load the dice” to distort competition in the school transport market.
All five accused have pleaded not guilty.
The trial continues today, Thursday, before Mr Justice David Keane and a jury of seven men and four women.
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