Robert Troy (Longford-Westmeath, Fianna Fail)
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Question 1399: To ask the Minister for Transport, Tourism and Sport his views on whether the reduction of subsidies to Iarnród Éireann is having a negative impact of the cost of railway fares (details supplied); his views on whether this is a grave disincentive to persons wanting to use public transport. [17913/12]

Leo Varadkar (Dublin West, Fine Gael)
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As the Deputy will be aware, public transport services and fares are a matter for the CIÉ operating companies in conjunction with the National Transport Authority, which regulates fares for public service obligation (PSO) services. I have referred the Deputy's question to the National Transport Authority for direct reply. Please inform my private office if you do not receive a reply within ten working days.

I am aware that the NTA approved a range of fare increases in respect of the CIÉ companies which took effect in January this year. Notwithstanding the NTA's statutory responsibilities, the Government recognises the need for the CIÉ companies to respond to the challenge of reduced PSO subvention funding, reduced fares income arising from reductions in passenger numbers and increased costs, such as fuel costs, which are outside their control. As a general principle, efficiencies in operational costs should, in the first instance, be examined in preference to fare increases and service reductions. I have stated this in the Letters of Mandate I issued to each of the four CIE Company Chairpersons appointed in 2011. However, in the current environment there has to be a recognition that, unfortunately, fare increases will be inevitable if costs cannot be reduced sufficiently in order to maintain a reasonable level of service provision. While a recovery in passenger numbers could increase company revenues, all concerned must focus on identifying key public transport priorities in our cities and across the country and PSO public transport service providers will have to achieve greater efficiency and cost effectiveness in the years ahead.