Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

The Oireachtas transferred the power to make these decisions from the Minister to the regulator. I have conversations with the regulator, with whom the legal power rests. The impact analysis is made every year by the National Transport Authority as part of the fare determination process. To clarify the matter, I will be proposing to the Government that there be no further cuts in subvention from 2015 onwards. I am not saying that is a Government decision yet; it is a proposal I will make as part of the next comprehensive spending review which will be under way in the next couple of months.

Deputy Timmy Dooley's question relates to what economists like to call the elasticity of demand; if the price is set too high, the numbers using the service will fall. Of course, they can, but so far this has not happened. Dublin Bus passenger numbers have stabilised, while Luas passenger numbers are increasing. There is a slightly trickier picture with regard to Bus Éireann and Irish Rail, particularly on intercity services. If we continue to increase fares at the current rate, we will see a fall-off in passenger numbers. That is why I am restating my view that in the coming years it is not sustainable for fares to be increased at the rate they have been increasing in recent years.

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