Timmy Dooley (Clare, Fianna Fail)
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To ask the Minister for Transport, Tourism and Sport his assessment of Iarnród Éireann's prospects; his strategy to ensure a viable rail network; and if he will make a statement on the matter. [8968/13]

Alan Kelly (Tipperary North, Labour)
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My Department and the National Transport Authority are working with Iarnród Éireann to increase the efficiency and attractiveness of existing rail services.

The Government continues to provide substantial Exchequer investment in the rail network despite the significant financial challenges. In the past two years almost €385 million has been invested in Iarnród Éireann and further investment of over €130 million will take place this year. The overall investment in railway safety is in excess of €1.5 billion since 1999 when the railway safety programme commenced. There has also been significant investment in rolling stock, on upgrading the Kildare route and opening new routes such as Cork commuter route, Navan phase 1 and phase 1 of the western rail corridor.

The investment regime for Iarnród Éireann for 2014 is being reviewed having regard to the anticipated completion of the railway safety programme by the end of 2013 and new EU-mandated infrastructure management contract requirements, allied to the need to ensure value for money in the spending of constrained Exchequer funding. It is envisaged that from 2014 onwards investment in Iarnród Éireann will concentrate on maintaining and renewing a fit-for-purpose rail network, augmented by some targeted investment enhancements which will be limited due to the overall level of resources available for transport investment up to 2016.

On 24 July 2012 the Government decided to provide additional PSO funding of €36 million to CIE companies. This brought the total subvention paid to CIE in 2012 to €278 million, of which €166.4 million was paid to Iarnród Éireann. CIE is progressing a five-year business plan to address the underlying financial challenges facing CIE so that the CIE's rail and bus services can be provided efficiently and cost effectively over the plan period.

Timmy Dooley (Clare, Fianna Fail)
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The Minister of State has knowledge of the accounts of the company and in particular the accounts of Iarnród Éireann. From various media reports at the end of last year and early this year he will be aware of the very serious funding crisis in Iarnród Éireann. How does he expect Iarnród Éireann to come through that particular difficulty? He identified the need for and the House supported the provision of in excess of €35 million last year, much of which was required to resolve Iarnród Éireann's day-to-day funding issues. A voluntary severance programme was intended to reduce costs. However, part of that had to be delayed because the company was not in a cash position to meet the demands entailed. The firm required an extra €16 million just to pay the day-to-day expenses. Iarnród Éireann had a very serious cash crisis last year. We gave the Minister of State a period of time to resolve it. What progress has been made on that? Is Iarnród Éireann now on a viable financial footing as we head into another difficult year?

Alan Kelly (Tipperary North, Labour)
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As the Deputy is aware, last year we put an extra €36 million into CIE, which will mean that in 2012, some €166 million went to Irish Rail and €126 million is budgeted for in 2013. Further financing was required in 2012 to fund the voluntary severance scheme and the sale of non-core assets such as a Spencer Dock property, which was central to that. The issue of voluntary severance is serious because as that is rolled out we will gain continued savings through the years. CIE has put in place a five-year business plan, a large proportion of which relates to Irish Rail. It has sought to secure additional banking facilities in 2013, through an NPRF loan.

They are looking at various other ways of executing the business plan to ensure the efficiencies necessary in Irish Rail over the next five years can be achieved. Following successful negotiations with Irish Rail €11 million per annum has been saved and a great deal of progress in terms of services for passengers has been made. It is hoped this, in tandem with the business plan, will result in an increase in passenger numbers and an improvement in the company's balance sheet.

Timmy Dooley (Clare, Fianna Fail)
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Has the Minister of State seen the five-year business plan, sought external advice on it, passed it to the Department of Finance for comment and signed off on it?

Alan Kelly (Tipperary North, Labour)
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NewERA has considered the business plan in great detail, the Department has considered the various components of it in great detail and the Government has signed off on it. Access to banking facilities in 2013 is important. The Deputy will be aware that the legislation dealing with borrowings by CIE was recently passed by this House, which legislation provided additional elasticity in this regard. A plan is being executed to ensure that service provision is improved, leading to an increase in passenger numbers and reducing the need for finance into the future. An increase in passenger numbers over the five years of the business plan will help to improve the company's balance sheet.