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

​Irish Rail remains in a difficult financial situation and has incurred losses in each of the past seven years with accumulated losses of more than €150 million in that period. CIE and its subsidiaries are dependent on continued bank funding and new banking facilities, agreed in 2013, contain a number of financial covenants, all of which were met in 2014. More demanding bank covenant targets will have to be met this year and in later years. For the first time since 2008, the level of public service obligation, PSO, funding for rail services is being maintained in 2015 at the same level as in 2014. I was also able to secure an additional €101 million in funding for public transport companies in a Supplementary Estimate at the end of last year, which included €45 million for Irish Rail's network renewal investment. In July this year, I also announced an additional €100 million for my Department's capital programme. Of this, €29 million will deliver much needed maintenance on rail rolling stock and a further €9 million is being allocated towards the rail safety programme.

While there have been some positive signs, including a reduction in Irish Rail's deficit in 2014 to €2 million and an increase in passenger numbers in 2014 for the first time since 2008, the underlying financial picture remains extremely challenging. I remain strongly supportive of the efforts to secure Irish Rail's financial sustainability so that rail services can be provided efficiently and cost effectively.

With regard to the latter part of the Deputy's question concerning EU discussions on the opening of the domestic rail passenger markets to competition, Ireland, along with a number of other member states, has fundamental concerns with the proposed reforms. I met the Commissioner in Brussels two weeks ago and pointed to the difficulties posed to the Irish rail sector and indicated that Ireland could not agree to mandatory opening under any circumstances. I believe we will find a solution that will not pose risks to the Irish rail sector.

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