Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

Question 123: To ask the Minister for Transport his views on the decision taken by Iarnród Éireann to increase by 25%, from January 2005, the rates it charges to its business customers to transport rail freight; and if he will make a statement on the matter. [27023/04]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context

Question 187: To ask the Minister for Transport his views on the opinion of Iarnród Éireann that the Government should provide State subsidies to businesses which use rail freight; and if he will make a statement on the matter. [27024/04]

Martin Cullen (Waterford, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 123 and 187 together.

Iarnród Éireann receives significant funding annually from the Exchequer by way of capital grants and subvention towards operating expenditure. Such funding has been increasing annually in recent years and the company has succeeded in improving its overall financial performance. The allocation of subvention to different business areas is a matter for the company. I have no additional funds at my disposal for the provision of subsidies to private sector business for using rail freight.

As part of Iarnród Éireann's plans to reshape its loss making operations the company has restructured its rail freight operations to refocus on the more profitable elements of rail freight and seek out new business in those areas where the rail mode is best suited to the traffic. I understand from the company that it has had some success in this regard and that its efforts are continuing. Iarnród Éireann's decision to increase its charges is in line with its plans to return this aspect of its operations to profitability.