John Halligan (Waterford, Independent)
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Question 724: To ask the Minister for Transport, Tourism and Sport his views on the proposed increases in fares to be implemented by Bus Éireann and Iarnród Éireann; his further views on whether increases such as these would be inappropriate in the current financial climate particularly given that the public should be encouraged to avail of public transport. [21986/11]

Leo Varadkar (Dublin West, Fine Gael)
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I am not aware of any current proposal by Bus Éireann or Iarnród Éireann to increase fares. Iarnród Éireann fares were increased by an average of 3% in February last, following approval by the National Transport Authority (NTA). The recently published CIÉ accounts for 2010 showed a deficit of €53.597 million for 2010. In the context of such figures, and the fact that the state subvention to public transport providers will decrease over the next number of years, I highlighted in public comment that the CIÉ companies will be required to look at further cost savings, service rationalisation and fare increases. Cost-cutting should take precedence over fare increases and service reductions but fare increases and service reductions will be inevitable if costs cannot be reduced sufficiently. I have communicated this also to the newly appointed Chairpersons of CIÉ and its subsidiaries. Of course, any proposal by the CIÉ companies to vary bus or rail passenger fares requires the approval of the NTA.