Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

Iarnród Éireann has incurred accumulated losses of over €148 million in the past six years.  This trend is unsustainable and being addressed on a number of fronts.

Payroll comprises 60% of the cost-base and savings had to be found.  I acknowledge the changes that have been accepted by workers on foot of the Labour Relations Commission's proposals of last September. The LRC also recommended that the cost management committee, involving both management and employee representatives, identify target savings on non-payroll items necessary to implement the company’s five year plan.

The Government has provided for substantial Exchequer investment in the rail network in recent years, despite the significant financial challenges, and is fully engaged with Iarnród Éireann and the National Transport Authority in examining the future funding requirements of the company to ensure a sustainable future. I have given a commitment to avoid further reductions in the public service obligation, PSO, funding. For the first time since 2008, the level of PSO funding for bus and rail services is to be maintained in 2015 at current levels. This commitment has now been achieved. 

It is also my intention, within the overall capital envelope available to me, to make a significant injection of additional funding in the public transport capital investment programme.  A large portion of the amount earmarked for public transport will be targeted at Irish Rail’s renewal investment required in the rail network which will contribute to securing a viable path for the company.

These measures are necessary components that will contribute to addressing the financial position of the company and the CIE Group.  The policy and funding framework must take account of what the Exchequer can afford, while providing clarity for the public and employees on the necessary measures to restore the company to viability.

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