Tipperary school bus trial not stuff of 'Hollywood' but affects everyone, says prosecution

The trial of school bus operators who are alleged to have colluded to drive tender prices higher is not the stuff of "Hollywood", but does involve an issue that affects everyone, a barrister has told the Central Criminal Court.

Five bus and taxi operators from Tipperary are on trial accused of anti-competition practices in the provision of school transport services across five counties.

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All five have pleaded not guilty to offences under the Competition Act 2002. The single charge against each accused alleges that between November 1, 2014 and December 31, 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 accused men operated businesses providing school bus and transport services in Limerick, Tipperary, Clare, South Galway and Waterford during the period.

In his opening speech at the Central Criminal Court on Thursday, prosecution counsel Mr Dominic McGinn told the jury that the case is “not Hollywood” and there would never be a movie made out of it, but said that maintaining true competitiveness affects the everyday life of everyone.

He said that the five men were accused of a coordination of behaviour known as a "concerted practice", which didn’t reach the level of a proper agreement, but led to removing competition in the offering of school transport services in the southwest region.

Mr McGinn said that all of the accused were involved in the process of bidding for tenders to provide school bus routes.

He said that these bus routes are allocated by Bus Eireann in a five-year cycle, and once a business is awarded a route they have it for that period before the tender process happens again.

Mr McGinn said that it is up to Bus Eireann to look at all the tenders and determine which is appropriate to facilitate picking up school children and taking them to school.

He said it is alleged that, in the months leading up to the submission of tenders, there was a collusion between transport operators.

Mr McGinn said that one of the accused would arrange to hold meetings in hotels and other venues in order to provide services and assistance in dealing with administrative processes.

He said the man would invite other bus operators and they would allegedly discuss the allocation and pricing of the school bus routes.

He said that what arose from these meetings was a concerted practice to interfere with the competitiveness of the bidding process.

Mr McGinn said that the people involved would allegedly only bid on tenders in a certain way, rather than doing it independently. He said that there was a “degree of coordination” between the parties so that prices would end up higher.

He said that there was an alleged understanding that some people would not bid for a route which was understood to “be for somebody else”.

Mr McGinn said that people would allegedly make bids for routes that they did not intend to get, but gave the impression of a genuine bid, which would result in the lower price being elevated.

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He said that the Competition and Consumer Protection Commission conducted an investigation into what was going on.

Mr McGinn told the jury that they would be shown documents, text messages, evidence from investigators and an expert in the field of submitting tenders by the prosecution.

He said that it is the jury’s job to determine whether there was a concerted practice to prevent, restrict or distort competition going on, and if they are satisfied with that, if each of the five accused were involved.

The prosecution is being taken by the Competition Authority and the trial is expected to last up to six weeks.

The accused, who all have addresses in Co Tipperary, are Andrew Walsh (62) of Derrymore, Roscrea; Raymond Heney (54) of Camas, Cashel; Noel Browne (77) of Bansha; Larry Hickey (73) of Ardmayle, Cashel and Anthony Flynn (51) of Golden Road, Cashel.

The trial continues on Friday before Mr Justice David Keane and a jury of seven men and five women.