THE Competition & Markets Authority is looking at whether state operator Translink has a monopoly over bus and coach services in the north and is contributing to anti-competitive practices.
It comes amid claims that applications for service permits from rival companies to operate express services continue to be ignored by the Department for Infrastructure (DfI).
And it has emerged that a number of the main GB private operators, who are finding it increasingly difficult to expand coach services into new European territories due to Brexit, may now focus on what they see as an untapped market.
The region has a unique set up within the UK when it comes to public transport regulation and competition.
Public transport reforms stalled in 2015, and effectively all bus and rail services are operated solely by the state-subsidised Translink.
In October 2015 Translink was directly awarded exclusive rights to its services through a service agreement with the DfI.
That agreement expires next October, though there is an option for a two-year extension, with October 2022 seen as perfect timing for GB operators to seek to enter the market.
In addition to exclusive rights, Translink also receives significant capital and revenue subsidies to operate services, in addition to taking home all the farebox revenue.
Similar capital and revenue subsidies are not available for express services in Northern Ireland and the sector remains largely uncontested.
Rivals like Hannon Coach in Aghalee have proposed services intended to fill this gap in the local public transport market - always unsuccessfully.
Now the chair of the CMA, Lord Andy Tyrie, following a visit to Belfast in September, has written to David Simpson outgoing MP for the area where Hannon is based, voicing his concerns and advising that it will “encourage” DfI to address the situation and deliver on its policy objectives.
Owen McLaughlin, marketing manager for Hannon Coach, speaking to the editor of Bus & Coach Buyer, said he believes Northern Ireland public transport “remains a closed shop”.
But he believes this could now change given that the CMA in London has responded to a complaint Hannon raised regarding anti-competitive practices and issues around regulation of the public transport market.
In July 2017 the DfI turned down the first of Hannon’s applications on the grounds that a proposed non-stop express service between Belfast and Derry could have a negative impact on the regular stopping services operated along the route by Translink and negatively impact its financial position.
But Hannon challenged that decision, and in February 2018 was successful in a judicial review brought against the DfI and was subsequently awarded costs.
However, the Department has still not issued the permits, claiming it's a decision which needs to be taken by a Stormont minister.
Mr McLaughlin said: “Given the lack of a functioning Assembly, this means the department is effectively passing the buck and continues to kick the can down the road.
“Having been through a successful judicial review and been assured decisions would be forthcoming, we found the new position wholly unacceptable, so at the start of this year we raised a complaint with the CMA.”
Karen Magill, chief executive of the Federation of Passenger Transport in Northern Ireland, said: “Hannon has taken time to invest in developing services and its business, and the issues the company are experiencing are disappointing.”
