Vol. 403 No. 5
17 Mr. Byrne asked the Minister for Tourism and Transport if he intends to increase the level of subvention for Dublin Bus, in view of the difficulties created by recent increases in fuel prices in order to avoid an increase in fares or a deterioration in services which would have the effect of reducing passenger numbers; and if he will make a statement on the matter.
The Exchequer subvention to CIE in 1990 in respect of essential public transport services will amount to almost £111 million, of which about £14.8 million is in respect of bus services provided by Dublin Bus. I have no plans to increase the level of Exchequer subvention.
Since I took up office, I have consistently refused applications from CIE for increases in fares and rates, emphasising instead the need for further cost economies within the CIE group's operations to keep the costs of public transport to the travelling public and to the Exchequer as low as possible. However, in view particularly of the substantial increase in fuel costs arising from the Gulf Crisis, I decided reluctantly that an increase in fares and rates was unavoidable, since these fuel cost increases, being outside CIE's control, must be recovered. I have therefore, recently conveyed approval to CIE for an increase not exceeding 7 per cent in fares and rates from an early date. The precise details of the individual fares increases are at present being settled between my Department and CIE.
I should mention that the last increase in CIE fares and rates was in January 1988.
