Michael Healy-Rae (Kerry South, Independent)
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163. To ask the Minister for Transport, Tourism and Sport his views that Irish Rail is in serious financial difficulties and that if the company does not receive a major injection of capital funding it will be unable to avoid insolvency or a major service decline; and if he will make a statement on the matter. [44629/14]

Paschal Donohoe (Dublin Central, Fine Gael)
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CIÉ continues to face a very challenging financial situation and is dependent on continued bank funding.  Irish Rail has incurred accumulated losses of over €148m in the past six years, a position which is unsustainable.  

I acknowledge the changes that have been accepted by workers and the contribution of the LRC proposals of 3rd September last. The LRC also recommended that the Cost Management Committee, involving both management and employee representatives, should identify target savings in non-payroll items necessary to implement the company’s five year plan.

The company continues to tackle its financial situation through a range of measures, of which payroll is just one.  Payroll comprises 60% of the cost base and savings had to be found here.  There have already been substantial fare increases in recent years.

I remain strongly supportive of the efforts to secure the company’s financial sustainability in order to ensure that rail services can be provided efficiently and cost effectively, with investment needs met over the long term.  The Government has provided substantial Exchequer investment in the rail network in recent years despite the significant financial challenges and is fully engaged with Irish Rail and the National Transport Authority (NTA) in examining the future funding requirements for the company to ensure a sustainable future.

I have given a commitment to avoiding further reductions in the Public Service Obligation funding and for the first time since 2008, the level of Public Service Obligation (PSO) for bus and rail services is being maintained in 2015 at current levels. I am also giving consideration to how I can increase the Government's contribution towards the renewal investment required on the rail network, from within the overall capital funding available to me.

These measures are necessary components that will contribute to securing a viable path for the company.  I believe that the policy and funding framework must take account of what the Exchequer can afford while giving clarity to the public and employees on the necessary measures to restore the company’s viability.