Noel Dempsey (Meath West, Fianna Fail)

The 2010 provision for the funding of public transport PSO, public service obligation, services provided by the CIE companies will be published shortly as part of the budget. It will then be a matter for the national transport authority to determine, in the context of the direct award public service contracts recently concluded with the companies, the allocation of this funding across the three CIE companies.

The Exchequer subvention to Irish Rail in 2009 towards the cost of loss making services is €175.78 million – an increase of 50% on the 1997 level. Despite this high level of Exchequer support and a fares increase of 10% in 2009, Irish Rail, in common with the other CIE companies, is facing a very difficult financial position in 2009 with a projected operating loss of approximately €16 million. In response, Irish Rail is pursuing a cost recovery plan including service changes that reduce costs while maintaining services at the highest level possible. Service and timetable changes in 2009 and subsequent years are an operational matter for Irish Rail and, in the context of the contract for PSO services, for the national transport authority.

The position in respect of rail freight is that I propose to establish a forum on the movement of goods in 2010, as set out in the Smarter Travel policy paper. My Department is currently undertaking preparatory work on the membership, tasks and timescales for the forum. The potential for rail freight and its role within an integrated freight transport strategy will be among the matters explored by the forum.

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