Alan Kelly (Tipperary North, Labour)

Public transport fares are a matter for the CIE operating companies in conjunction with the National Transport Authority. I am aware that the NTA approved a range of fare increases in respect of the CIE companies recently which took effect earlier this month. It is the responsibility of the NTA to make a determination on any future fare increases as appropriate.

Notwithstanding the NTA's statutory responsibilities, I would add that Government recognises the need for the CIE companies to respond to the challenges of reduced PSO subvention funding, reduced fares income arising from reductions in passenger numbers and increased costs, such as fuel costs, which are outside their control. As a general principle it is my belief that efficiencies in operational costs should, in the first instance, be examined over fare increases and service reductions. However, in the current environment there has to be a recognition that unfortunately, fare increases will be inevitable if costs cannot be reduced sufficiently in order to maintain a reasonable level of service provision.

While a recovery in passenger numbers could increase company revenues, all concerned in my Department and the NTA must focus on identifying key public transport priorities in our cities and across the country. In turn, the PSO public transport service providers will have to achieve greater efficiency and cost effectiveness in the years ahead based on a realistic assessment of the scope and level of contracted services.

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