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Dáil Éireann debate -
Thursday, 13 Dec 1990

Vol. 403 No. 10

Adjournment Debate. - Bus and Rail Fare Increases.

Deputy Byrne gave me notice of his intention to raise on the Adjournment the subject matter of the decision of the Minister for Tourism and Transport to sanction substantial increases in bus and rail fares from Monday next.

The decision of the Minister for Tourism and Transport to sanction a major increase in Dublin Bus, Irish bus and rail fares from Monday next will further damage public transport, leading to even greater traffic chaos in Dublin. The Minister should have considered ways of increasing the income of the transport companies either by way of increased Government subvention or by measures to encourage greater passenger numbers rather than grant fare increases.

One of the major problems in this area is that this Government have no commitment to public transport. In fact the Minister appears to have no interest at all in public transport. He appears to be far more interested in the high profile sphere of air travel which most people use occasionally, very many not at all, than in the public transport system in this capital city where Dublin Bus provide almost half a million passenger journeys each day. I am particularly concerned about the position in Dublin where the fare increases will almost certainly lead to a drop in passenger numbers and even more cars on our already traffic-jammed streets. The number of passenger journeys provided by Dublin Bus, unfortunately, has decreased by 6 million in the last two years because of the already expensive fares and deteriorating service. At a time when Dublin's streets are almost choked to death by traffic problems national transport policy should be aimed at providing an efficient and economic public transport system, encouraging more people to leave their cars at home.

This latest increase will also affect those on low incomes in that a return journey for two adults and two children from an outer suburb to the city centre already costs £5, a considerable burden on working-class families, particularly those in receipt of social welfare benefits.

Contrary to public belief, Government subvention to Dublin Bus amount to 17 per cent only of fare receipts whereas in October 1988, it constituted 22 per cent. This is well below the national subvention provided for public transport systems in many comparable European cities. For example, in Rome the level of subvention is 80 per cent, in Luxembourg, 76.3 per cent, Brussels, 72.6 per cent and in Amsterdam 72.6 per cent. An efficient, affordable public transport system for Dublin is essential on social, economic and traffic grounds. It is in the public interest that the Government should provide funds to enable Dublin Bus provide an efficient public transport system. There is need to examine other means of increasing the efficiency of Dublin Bus. For example, steps need to be taken to increase the speed of passenger journeys which has deteriorated significantly since the introduction of the OPOs. The existing bus lanes should be adequatly policed to ensure they are respected by motorists, that new lanes are created and existing ones extended. Greater effort should be made to promote the use of pre-paid tickets to eliminate delays at bus stops. Fare incentives should be introduced to encourage off-peak travel. Linked with that is the need for a proper management strategy for the city. Unfortunately the Minister has no plans and, it would appear, fewer ideas, other than simply to increase fares. We must now begin to take the necessary steps to give public transport the priority it warrants in this city if its traffic is not to slowly grind to a halt.

The financial restrictions placed on Bus Áth Cliath — wherby the Minister cuts back its subvention at the rate of 2.5 per cent per annum — is a disgrace. It is about time the traveling public knew why these fares are being increased at this time. As I have pointed out, their subvention constitutes 17 per cent only of the fares whereas, in October 1988, it constituted 22 per cent. The Minister and Government are constantly reducing their subvention. Until the Minister controls the predominance of the private motor car, congesting the traffic of this city at the expense of public transport, Bus Áth Cliath will continue to be incapable of providing an efficient, reliable and fast service capable of attracting back to public transport those who deserted it in favour of the private motor car.

Since assuming office, the Minister for Tourism and Transport has been resisting applications from CIE for fares increases. Instead, he has continually emphasised to a group the need for further cost economies within their operations and improved marketing to keep the cost of public transport to the travelling public and the Exchequer as low as possible.

However, CIE recently had to bear substantial increases in their costs, notably in their fuel costs, as a result of the Gulf crisis. As these extra fuel costs are exceptional and entirely outside the control of the group, the Minister recognised that some increase in fares, as a compensatory measure, would have to be allowed. Accordingly, he recently conveyed approval to CIE to increase their bus and rail fares by an average of 7 per cent. The revised fares will be applied with effect from Monday next, 17 December. This will be the first general fares increase since January 1988.

The additional fuel costs to be borne by CIE as a result of the Gulf crisis will be about £6.7 million in a full year. This will bring the group's annual fuel bill to over £25 million. The extra annual yield from the fare increases will be about £6 million.

As I indicated, the overall fares increase will work out at 7 per cent. However, because of the need to keep fares in multiples of 5p, as far as possible, the increase is greater than 7 per cent for some fares and less for others. The denomination of fares in multiples of 5p is vital to the smooth operation of one person buses.

The Minister for Tourism and Transport has insisted to CIE that there will be no increase in children's fares. He has exempted those fares from increases as he is most anxious not to add to the costs to be borne by parents whose children have to use public transport on a regular basis and particularly for school-going journeys.

CIE have faced other increases in their costs recently in addition to their fuel bill. The final phase of the Programme for National Recovery, which was payable to some CIE employees on 1 October last and to the balance on 1 December, will increase their payroll costs in a full year by £4.6 million. In addition, they have had to meet the general increase in costs since their last fares increase. However, in line with the Minister's policy that such cost increases should be offset as much as possible by cost efficiencies, improved marketing and so on, the Minister would not be prepared to sanction a higher fares increase to recover these costs. I am confident that the management and work-force in CIE will rise successfully to this challenge.

The Government are strongly committed to the provision of an efficient public transport system despite Deputy Byrne's assertion to the contrary. This is borne out by the Exchequer subsidy to CIE which amounted to almost £111 million last year. In 1991 the subsidy will amount to £110 million. That means over £2 million per week to CIE. If that is not a commitment to public transport I do not know what is. This is a very sizeable amount, particularly with the present budgetary constraints.

Some capital for investment is also vital to enable CIE update and renew their infrastructure and thus ensure the provision of a high quality service. In this connection. I am glad to say the investment of £36.2 million by CIE as part of the public capital programme for 1991 was recently approved by the Government. In addition the operational programme on peripherality, roads and other transport infrastructure which was launched earlier today by the Ministers for the Environment and Tourism and Transport and which covers the period 1990-93 contains proposals for EC aid of approximately £18 million for public transport, mainly in respect of rail projects.

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