Written answers

Wednesday, 20 July 2016

Department of Transport, Tourism and Sport

Coras Iompair Éireann

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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406. To ask the Minister for Transport, Tourism and Sport if he will consider increasing the public service obligation payments received by CIE, given that despite the increase in fare revenue and commercial income in 2015, CIE recorded a net loss of €26.4 million in 2015, according to its annual report; and if he will make a statement on the matter. [23025/16]

Photo of Imelda MunsterImelda Munster (Louth, Sinn Fein)
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417. To ask the Minister for Transport, Tourism and Sport his views on increasing the public service obligation payments received by CIE, given that despite the increase in fare revenue and commercial income in 2015, CIE recorded a net loss of €26.4 million in 2015, according to its annual report; and if he will make a statement on the matter. [23023/16]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
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I propose to answer Questions Nos. 417 and 406 together.

The Deputy will be aware that this year's total Public Service Obligation (PSO) subvention was increased by 13% when compared to last year and the total amount of money being made available to the National Transport Authority (NTA) in 2016 is €236.6m.

It is the statutory responsibility of the National Transport Authority (NTA) to allocate the funding to the PSO operators, including the CIÉ companies. All PSO services are provided in accordance with public service contracts concluded between the NTA and the relevant operator and all payments must comply with relevant domestic and European legislation.

I am fully aware of the financial position of the CIÉ Group of companies and my Department has been working closely with both the Group and the individual companies in recent years as challenges have arisen.

The recently published Summer Economic Statement outlines the anticipated public expenditure framework over the medium term and I will be engaging with Ministerial colleagues in the coming weeks as Budget 2017 is developed. Obviously PSO subvention is one relevant area of expenditure which will form part of that engagement. It is of course also an area which requires careful scrutiny to ensure the taxpayer receives value for money in respect of the services delivered given the considerable expenditure incurred.

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