Oireachtas Joint and Select Committees

Wednesday, 1 February 2017

Joint Oireachtas Committee on Arts, Heritage, Regional, Rural and Gaeltacht Affairs

Sustaining Viable Rural Communities: Discussion (Resumed)

2:30 pm

Ms Anne Graham:

A certain cost is incurred by Iarnród Éireann and the other operators in the provision of services. This cost is being funded through the fare revenue of passengers, the subsidy provided and the free travel payment made by the Department of Social Protection. I am referring to subsidised services only. The norm for cost recovery in other jurisdictions where a free travel scheme is provided is a level of between 60% and 70%. Cost recovery here is not at that level. If it were to increase to the norm of between 60% and 70%, it would mean that fare paying passengers would no longer subsidise the cost of the provision of services and the subsidy being provided by the Department would no longer cover the gap in funding from the Department of Social Protection.

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