Willie O'Dea (Limerick City, Fianna Fail)
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81. To ask the Tánaiste and Minister for Social Protection the projected increase, due to changing demographics, in the number of persons availing of the free travel scheme over the next five years; the cost of maintaining the scheme at current levels, taking account of the projected increase in users; and if she will make a statement on the matter. [46135/15]

Joan Burton (Dublin West, Labour)
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The free travel scheme provides free travel for those with eligibility on the main public and private transport services which includes road, rail and ferry services provided by companies such as Bus Átha Cliath, Bus Éireann, Iarnród Éireann, Luas and services provided by over 80 private transport operators. Persons resident in Ireland who are over 66 and persons in receipt of certain social welfare payments are eligible for the scheme. There are currently approximately 839,000 customers with direct eligibility with an annual allocation of €77 million. This number is currently increasing at a rate of approximately 3.5% per annum.

Funding requirements of the free travel scheme are dependent on a number of factors, including the number of people in receipt of qualifying benefits, the number of participating companies and routes, and fare levels, not all of which can be predicted 5 years in advance.

While changing demographics are expected to result in increased numbers of people qualifying for the travel pass, the payments to operators who accept the free travel pass are calculated on the basis of fares foregone (at a reduced rate to take account of travel generated by the free travel scheme), and not simply by the numbers who are entitled to a free travel pass. Other factors that can affect the overall cost include the number of operators who participate in the scheme and potential future fare increases by those operators.

Consequently, the funding for the subsequent 12 months is agreed in the context of the Budget process each year.

In order to maintain service at existing levels, an additional funding of €3 million was provided for in Budget 2016, increasing the annual allocation to €80 million.