Vol. 412 No. 1
4 Mr. Byrne asked the Minister for Tourism, Transport and Communications the reason he approved the recent application for an increase for bus and rail fares; if any assessment was undertaken of the likely negative impact on passenger numbers arising from the increase especially in regard to Dublin Bus; and if he will make a statement on the matter.
34 Mrs. Owen asked the Minister for Tourism, Transport and Communications if he will outline the fare increases which he sanctioned for Bus Átha Cliath and Iarnród Éireann in the last three months.
I propose to take Questions Nos. 4 and 34 together.
In the context of the Government's recent expenditure review it was decided to reduce the 1991 subvention for CIE by £1.5 million from £109.6 million to £108.1 million. Having regard to this decision and to CIE's difficult financial position generally, approval was given to CIE for an increase in CIE's rates and fares which would generate an increase of up to 5 per cent in group revenue on an annual basis.
To counteract possible negative impact of the fares increase, Dublin Bus introduced a promotional campaign concerning the advantages of purchasing ten journey tickets. While the cost of single journey tickets has increased, commuters who purchase ten journey tickets will not have to bear any price increases. This strategy is designed to improve the standard of bus services generally, especially in Dublin city. I understand that Dublin Bus expect that passenger carryings will increase as a result of the enhanced service levels resulting from this overall strategy.
Did the Minister read in The Irish Times today a report that Irish women were living in the middle ages? If a French journalist was to write about the Minister and his transport policy he would be excused for thinking that the Minister too was thinking in terms of the middle ages with regard to transport in this city. Will the Minister tell the House, and the hard-pressed and over charged public transport user, why he prides himself in cutting back the subvention to CIE by 15 per cent in real terms, the net result of which means an increase in fares? Is the Minister aware that a husband, wife and two children leaving the outer suburbs of Tallaght to go to the city will have to pay £6.40 return? Does the Minister consider that reasonable? Will, the Minister tell the House what is so different about transportation in this city when compared with other cities in Europe? We have only a 19 per cent subvention level. Cities like Athens have an 88 per cent subvention; Amsterdam has 78 per cent; Turin has 83 per cent; Brussels 73 per cent and The Hague 75 per cent. Every other capital city in Europe has a subvention far in excess of that of Dublin city.
The Deputy is imparting a lot of information rather than seeking it. That should be adequate.
I do not take enormous pride in cutting CIE's subsidy from £109.6 to £108.1 million. All aspects of Government expenditure have been cut back and that is not a major cut for a particular company to bear. I would prefer if we did not have to do it but we have to make sure that expenditure at all levels is controlled and that is a cut I believe they can handle.
The Deputy asked me about high fares. One of the ways of tackling high fares is to introduce competition into the bus business of the city and if the Deputy supports that no doubt he will give me some support in introducing private competition so that we can have competition in the city and in the country and, hopefully, that will push down fares as it has done in many industries.
Is that the Pat Doherty model of Rossvilly?
Perhaps the Deputies will excuse my voice. I am suffering from a bad cold today which I have been trying to get over. I got it in Knock yesterday.
The Government are suffering from a heavy cold.
I suppose we do not do as well as other countries proportionately in subsidising our public transport because we are simply not as well off as some of the countries the Deputy mentioned. We would like to do better but £108.1 million works out at about 3p in the pound income tax. That is a hefty subsidy for public transport.
I was referring specifically to Dublin Bus which does not get such a heavy subvention. Would the Minister agree with me that the fare increases in December last year and March this year penalise the poor who are totally dependent on buses which are their sole means of transport and that it also drives passengers who own cars back into their motor cars and onto the streets further adding to the congestion on our roads? No matter what the Minister might say about his belief that Dublin Bus will be able to cater for more and more passengers, the reality is that since 1975——
Let us have brevity.
I will conclude by asking the Minister if he would not agree that the figures show that since 1975 there has been a constant decline in the numbers of people using public transport and a corresponding increase in those forced to use private transport, that is, cars, resulting in the traffic snarls and jams in our cities every day?
The numbers that use Dublin Bus have not decreased. They have remained static over the past couple of years. There was no increase in fares in 1988, 1989 or 1990; I refused increases to CIE in 1988 and 1989. The increase in fares works out at 12 per cent over four years which is roughly in line with inflation. That is the best we can do.
There were three increases in the past 12 months.
December and March were the last two increases.
The Minister is being selective with his figures.
It was 12 per cent in four years. The service has to be paid for. I propose to take Questions Nos. 6, 31 and 38 together.
I am sorry, Minister. It is Question No. 5.
Is the Minister trying to avoid Question No. 5?
I got my lines crossed.
