Written answers

Wednesday, 6 May 2009

Department of Transport

Public Transport

8:00 pm

Photo of Tommy BroughanTommy Broughan (Dublin North East, Labour)
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Question 307: To ask the Minister for Transport the process and analysis by which the price increases of 10% in bus, rail and Luas prices from 1 January 2009 were arrived at; his views on moving towards setting prices in line with the consumer price index; and if he will make a statement on the matter. [17971/09]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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My objective in relation to fares charged by CIE is to secure a good balance between anticipated revenues, the cost environment - cost efficiencies and necessary cost increases - and compensation for loss-making services by way of Exchequer subvention to CIÉ, thereby ensuring the ongoing financial viability of the group. In respect of the 2009 fare increases, the CIÉ group was projecting operating losses of €120 million for 2009 before the fares increase and the achievement of increased efficiencies within the group. These losses are due to declining passenger numbers and projected operating costs increases of approximately 10%. I approved an average 6% increase in Luas fares to reflect rising costs, anticipated revenues, as well as current and future maintenance costs. The setting of fares for public transport needs to take account of factors other than changes in the Consumer Price Index.

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