Michael D Higgins (Galway West, Labour)
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Question 119: To ask the Minister for Transport his views on the impact of the recently sanctioned price increases for Dublin Bus and Bus Éireann on developing the modal shift to public transport; if the level of subvention recently set for CIÉ had any impact on the fare increases that were sanctioned; if the new Dublin Transport Authority will have the power to set fares; if this will include setting LUAS fares; and if he will make a statement on the matter. [3402/08]

Noel Dempsey (Meath West, Fianna Fail)
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My objective in relation to public transport fares is, taking account of underlying cost factors and inflation, to secure a good balance between anticipated revenues, cost control and compensation for loss making services by way of Exchequer subvention. This approach is intended to make public transport an attractive option for the travelling public and to ensure that the public transport companies continue to operate on a sound financial basis.

It is not anticipated that the recent increase of an average 5% in Dublin Bus and Bus Éireann fares will have any significant impact on a modal shift to public transport. Factors such as reliability, frequency and punctuality usually score highly in determining levels of demand for public transport and accordingly allow the companies the opportunity to grow market share by offering reliable and innovative public transport.

The regulation of public transport fares, routes and service levels in the Greater Dublin Area is set out in the Programme for Government as among the proposed functions of the Dublin Transport Authority.