Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

20. To ask the Minister for Transport, Tourism and Sport if he considers the recent fare increases introduced by public transport companies to be sustainable; and if he will make a statement on the matter. [54393/13]

Alan Kelly (Tipperary North, Labour)
Link to this: Individually | In context | Oireachtas source

Public transport fares are the responsibility of the regulator, the National Transport Authority (NTA), who adjudicate on applications from the CIE companies and the Railway Procurement Agency for fare increases or changes.

In our dealings with all companies, we have consistently emphasised that they must reduce costs ahead of future fare increases or service cuts.  However, in the current environment, it is the case that fare increases will be inevitable if costs cannot be reduced sufficiently in order to maintain a reasonable level of service provision and protect our network. I am aware that the NTA recently approved a range of fare increases.  It is, however, important to point out that significant savings can be made by passengers who choose to avail of the integrated ticket, the Leap card. In many cases, passengers will be paying fares that are below 2011 cash fares when using the Leap card.

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.  It is important to remember that public transport remains heavily subsidised by the State and fares would be much higher if people had to bear the full cost of providing PSO services.

The Board of CIÉ is pursuing a number of measures to address the financial position, including cost reductions across the three operating companies.  Improved bank facilities have been agreed, which will ensure that the Group has sufficient funding into the future. Good progress has been made recently with cost savings agreed in Bus Éireann and Dublin Bus and passenger numbers have stabilised as the economy is recovering.  In our submission to the next comprehensive expenditure review, Minister Varadkar and I will be proposing that there be no further cuts to the PSO subvention from 2015.