Leo Varadkar (Dublin West, Fine Gael)

As the Deputy will be aware, public transport fares are a matter for the CIE operating companies in conjunction with the National Transport Authority which is responsibility for regulating the maximum fare on public service routes. I am aware that the NTA approved a range of fare increases in respect of the CIE companies, which took effect last month. It is, however, important to point out that significant savings can be made by passengers who choose to avail of the integrated ticket, the Leap card.

Notwithstanding the NTA's statutory responsibilities, the Government recognises the need for the CIE companies to respond to the challenge 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, efficiencies in operational costs should, in the first instance, be examined over fare increases and service reductions. I have stated this in the letters of mandate I issued to each of the four CIE company chairpersons appointed in 2011. In the current environment, however, there must be a recognition that, unfortunately, fare increases will be inevitable if costs cannot be reduced sufficiently 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 throughout 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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