Deputy Maurice Dubras said the truth would come out

Committee president, Deputy Maurice Dubras, said they had found it impossible to do their duties due to continued criticism regarding the issue.

The seven-strong committee was facing a "no confidence" motion in the States which, if it lost, would have seen it disbanded.

Earlier this month it was announced a full public inquiry would be held into how Connex was awarded the contract more than a year ago to run the island's bus service, defeating the existing operator Jersey Bus.

After the contract was decided, there was a dispute over whether Connex and the Public Services Committee had been told about a pay rise agreed for workers at Jersey Bus just before it lost the contract.

I have never knowingly misled the House and I am confident the committee of inquiry will vindicate me in this. Deputy Maurice Dubras, Public Services Committee president

Deputy Dubras said the truth over the bus contract would come out.

In his resignation speech, he told the States: "We inherited the responsibility for the public bus services and we have relied upon, and worked with, the documents and information with which we were provided.

"There are clearly some major issues which still have to be resolved, particularly in relation to the public bus service contract.

"There has been some criticism of what was portrayed as my reluctance to admit errors and apologise to this assembly.

"I have apologised to the House and that apology was absolute in its sincerity.

"However, I wish to make it clear that I have never knowingly misled the House and I am confident the committee of inquiry will vindicate me in this."

"The truth must out; the truth will out."

Deputy Dubras apologised to members at the start of the month for misleading them over whether the committee knew about the bus workers' pay rise.

Angrily denied

The inquiry will look at concerns raised by the public and politicians over the tendering process.

The 20% pay rise to Jersey Bus staff meant an extra bill to taxpayers of about �500,000 because the company was still under contract to the States, even though the work was about to be moved to Connex.

Deputy Dubras said at the time that Jersey Bus had not told anyone.

But Jersey Bus angrily denied that no-one in the States knew about the pay deal, saying that all tendering companies and the committee had been told of it before any decisions on the tenders were made.

Deputy Dubras said: "Although we have tendered our resignation because we believe it in the best interests of the States of Jersey, we do so in the firm belief we have conducted ourselves in a proper, decent and honourable manner.