Written answers

Thursday, 5 November 2009

Department of Transport

Public Transport

10:00 am

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 10: To ask the Minister for Transport his strategies to make CIÉ financially more self-sufficient; his plans to reduce subvention to CIÉ; the amount of public money given in both capital and public service obligation payments to CIÉ since 1997 to date in 2009; the forecast made by him for the 2009 CIÉ deficit; and if he will make a statement on the matter. [39623/09]

Photo of Noel DempseyNoel Dempsey (Meath West, Fianna Fail)
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In the period 1997 to 2009 over €3.03 billion in Exchequer subvention has been paid to CIÉ towards the operational cost of loss making socially and economically necessary services. The allocation of €303m in 2009 represents an increase of 127% in the 1997 figure, but a decrease of 1.7% on the 2008 provision and a decrease of 1.1% on the 2007 provision. In addition an amount of €3.2 billion (€298m in 2009 to date) in capital funding has been provided in the same period. Despite this high level of Exchequer support, CIÉ and its subsidiary companies are facing a very difficult financial position in 2009 with a projected operating loss of €70m due to declining passenger numbers, diesel tax increase due to withdrawal of fuel duty rebate (as required by EU law), reduced subvention and less savings than planned. In response, all three companies are pursuing cost recovery plans involving measures to increase revenues, change pay and conditions, allowances and work practices and rationalise services. It is imperative that these cost recovery plans be pursued vigorously and expeditiously so that the companies can achieve at least financial breakeven as early as possible while maintaining services at the highest possible level. The Exchequer is not and will not be in a position to compensate for accumulating losses.

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