Oireachtas Joint and Select Committees

Wednesday, 21 September 2016

Joint Oireachtas Committee on Transport, Tourism and Sport

Estimates for Public Services 2016: Vote 31 - Transport, Tourism and Sport

10:00 am

Photo of Catherine MurphyCatherine Murphy (Kildare North, Social Democrats) | Oireachtas source

The availability of funding, if one breaks it down between capital and current, is critical. Thankfully, the economy is in recovery. If it is going to grow, items such as congestion are significant and should be addressed to have a better recovery. Better use of transport is required. To what extent will there be capacity to push out the capital funding envelope? Transport and housing are two areas where a significant argument could be made for extra funding, particularly where congestion could be reduced. Portugal and Spain, for example, have broken some European rules at a time when the interest rate is at 0% for capital investment purposes and sanctions do not appear to have been applied. There is a significant argument to be made in the case of transport, particularly public transport, an area in which we will ultimately save money in the long term. I note that we have climate change obligations which will cost us in hard cash and which, in turn, will prevent us from being able to invest in the very things that would lead to a reduction in emissions.

On the public service levy, I note that there are only a number of ways by which we can cover the cost of public transport, which include the payment of a subvention and an increase in fares.

There have been very significant increases in fares to the point where it is a big outlay for people in respect of getting to work. The other issue is reducing or keeping wage rates low so subvention is important. The Minister says that substantial increases have been sought. What are those substantial increases? Is he optimistic about that? Where is it on his list of priorities?

The Minister says there are signs of improved financial performance in respect of the CIE group. However, that is only the case if one measures the position against that which obtained in 2012. In some of the documentation provided, he said that there are further medium and long-term challenges ahead. That was a heavily redacted element of the documents. I have never seen as much black ink put on a document. I am trying to figure out what is actually being said in the critical areas. What are the financial challenges. I think this committee needs to know what are the substantial challenges ahead. The Minister might elaborate on that.

I will not go back over the valid points raised in respect of roads. It will cost us way more to remediate the roads if the amount of funding provided continues to be inadequate. There is a point where it actually costs more not to invest. Has that point been made to the Department of Finance in strong terms, particularly as we are at that point in respect of a certain proportion of roads in some parts of the country?

Comments

No comments

Log in or join to post a public comment.