Bríd Smith (Dublin South Central, People Before Profit Alliance)
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80. To ask the Minister for Transport, Tourism and Sport if he will commission a study to examine the impact of fare reductions and the provision of greater fare-free travel on public transport in view of recent moves in Germany and elsewhere to reduce monthly fares; and if he will make a statement on the matter. [30735/22]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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121. To ask the Minister for Transport, Tourism and Sport if he will consider abolishing fares on buses, trains and the Luas given the recent moves by other governments across Europe to substantially decrease transport costs; and if he will make a statement on the matter. [30730/22]

Eamon Ryan (Dublin Bay South, Green Party)
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I propose to take Questions Nos. 80 and 121 together.

Providing free public transport is often seen as a silver bullet solution to our transport and climate challenges. And while I recognise the importance of incentivising greater use of our public transport services, I am not convinced that providing free public transport is the most balanced means of achieving this objective.

As the Deputy is aware, funding for the provision of public transport services is made up of both the fares paid by passengers and the subvention payments from the Exchequer. The main purpose of the subvention payment is to meet the gap between income from fares and the cost of operating services.

COVID gave us some insight into the level of funding that might be required in the absence of fare revenue. For example, in 2020, an additional €370 million was required to enable the continued operation of public transport services due to the collapse of fare intake. In 2021, €659m was required to run PSO services, and this year we have allocated €538 million for the continuation of these essential services. Apportioning such significant levels of Exchequer resources to one goal undoubtedly impacts the State’s ability to support other worthy public services.

While free or significantly subsidised public transport is available in some European locations, I understand that results have varied or have yet to be seen as per the German initiative referenced in the Deputy's question. The intention is always commendable - encouraging modal shift, reducing congestion, and capitalising on the associated environmental benefits. However, such schemes can have unintended consequences, for example encouraging people away from active travel modes. This is counter to our core Government goals of improving citizen’s health and reducing greenhouse gas emissions.

While I might not agree that free transport provides the answer - I do believe there is merit in incentivising fares when an appropriate balance can be struck. In view of the importance of incentivising young people to use public transport, I was delighted to introduce the Young Adult Card in May which will allow any person nationwide who is between 19 and 23 years old, to avail of an average of discount of 50% on public transport fares. In addition, a 20% average PSO fare reduction was introduced as part of a suite of Government measures to help combat the rising cost of living.

In summary, funding our public transport services represents a significant expenditure of taxpayers' money, and funding levels have increased in recent years to cater for additional services and growing capacity. Any assessment of a proposed change to public transport fare structures would need to be considered carefully and in full awareness of their potential impact on finite Exchequer resources. I will of course stay informed on how alternative incentives, like the German €9 ticket, develop.