'Striking' that school bus operators who distorted market prices have suffered heart complications, court hears
Each of the defendants had operated buses or taxi services bringing children to and from school in the southwest.
It is "quite striking" that two of five men convicted of colluding to drive tender prices higher in the provision of school bus services have suffered heart complications after a long trial process, the Central Criminal Court has been told.
A panel of three women and seven men agreed last December with the State's case that the men had attempted to “load the dice” to distort competition in the market, affecting taxpayers.
Each of the defendants had operated buses or taxi services bringing children to and from school in the southwest. Their trial heard that all of the accused were involved in the process of bidding for tenders to provide school bus routes through Bus Éireann, which derived 54% of its turnover from school transport.
In his opening speech, prosecution counsel Dominic McGinn SC had 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 was an issue affecting everyone.
The Competition and Consumer Protection Commission (CCPC), along with the Director of Public Prosecutions, prosecuted the men.
The jury heard that Raymond Heney (56) would arrange to hold meetings in order to provide services and assistance in dealing with administrative processes in bidding for tenders. Mr Heney would invite other bus operators, and the prosecution alleged they would then discuss the allocation and pricing of the school bus routes. It was the prosecution's case that the people involved would only bid on tenders in a certain way, rather than doing so independently, with a “degree of coordination” between the parties.
The State argued that this concerted practice was not a formal agreement but collusion between the men that involved an exchange of information and a form of coordination that led to “the disappearance of competition”. The five defendants, who are all from Tipperary, were Heney of Camas, Cashel; Andrew Walsh (63) of Derrymore, Roscrea; Noel Browne (79) of Bansha; Larry Hickey (76) of Ardmayle, Cashel and Anthony Flynn (52) of Golden Road, Cashel.
Counsel for Noel Browne, Philip Sheahan SC, told a sentencing hearing today (MON) that his client had significant cardiac issues and that he had been allowed to remain at home for a portion of the trial due to health reasons.
He said that Browne has no previous convictions, lives a pro-social lifestyle and is held in the highest standing in his local community. Mr Sheahan said that Browne had been working for bus authorities since the late nineteen seventies without complaint and had provided a strong and reliable service in his community. He said that a probation report put him at a low risk of reoffending for a variety of reasons and counsel submitted that his client had led a "blameless existence" up until this point in his 79-year life.
Brendan Grehan SC, on behalf of Larry Hickey, said that his client also had no previous convictions and suffered from cardiac complications. He said that his client had over 75 years of good standing in his community. He said that it was “quite striking” that both his client and Browne suffered heart attacks and noted that court is a stressful place. He said that their clients spent approximately three months in the criminal trial process.
He said that Hickey was not someone of extravagant means and only tendered for one bus route in the process. Mr Grehan said that there were no allowances for local circumstances in the law, which usually deals with regulating companies "trading in the trillions".
He asked the court to treat the case as leniently as it feels it can, with regard to the scale. Brian Storan BL, representing Anthony Flynn, said that a probation report for his client outlined that he had an insight into his behaviour and the impact it had on himself and others. He said that Flynn didn’t have a large bus service and that he assisted in bringing children with special needs to school. Mr Storan said a probation report outlined that Flynn was not somebody likely to come to the adverse attention authorities again at any stage.
He said that Flynn's conviction will hang over him and that it taints his "otherwise exemplary reputation" in the community. Counsel for Raymond Heney, Dermot B Cahill SC, said that his client accepts the verdict of the jury and that he crossed the line, but said that the background of the case must be considered. Mr Cahill said that Heney provided consultancy services, which Bus Eireann accepted, and that if he had not provided this service there would have been a smaller pool of drivers.
He said that Heney did not have a large operation and he assisted others with the tendering process. He said that Heney and his family have suffered a real financial loss as a consequence of the verdict. Mr Cahill read a letter from a representative of a school for children with special needs, which described Heney as a “compassionate individual” with a dedication to vulnerable children and their families, who consistently went above and beyond to help them.
Patrick Gerard Kennedy BL, on behalf of Andrew Walsh, said that his client was a bus operator for many years and that he got no complaints in that time about his service. He said that Walsh got involved for the procurement process and that he should have been more alert to the issues that were happening. Mr Kennedy said that Walsh wished to apologise for engaging in the offences and that it wasn't his intention to be in this kind of scenario. He said that Walsh was at the lower end of the scale in terms of the law, had cooperated with the investigation and took full responsibility. Mr Kennedy said that Walsh had a loss of business as a consequence of his conviction.
Mr Justice David Keane decided to adjourn the matter to July 6 next to make a decision on sentencing.