Mary Lou McDonald (Dublin Central, Sinn Fein)
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Question 26: To ask the Minister for Transport, Tourism and Sport his views on whether CIE is a strategically important State asset; and if so, his plans to retain it in State control. [26572/11]

Leo Varadkar (Dublin West, Fine Gael)
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CIÉ and its three operating subsidiary companies are important State assets. However, it must be recognised that they are unique semi-state companies, in that they are in receipt of significant amount of exchequer funding from the National Transport Authority in order to carry out their Public Service Obligations. Even after this subsidy, they still recorded a loss of €53.6 million in 2010. Furthermore, there is a significant pension deficit within the Group.

In this regard, I would concur with the Report of the Review Group on State Assets and Liabilities, that stated that "having regard to the unavoidable losses inherent in maintaining a nationwide railway and uneconomic urban and rural bus services, disposal or part-disposal of the main CIE companies is not a realistic short-term option." As such, I have no plans at present to privatise CIÉ or its operating subsidiaries: Bus Átha Cliath, Bus Eireann and Iarnród Eireann.