Proposals which Córas Iompair Éireann and its subsidiary companies may develop from time to time to increase standard fare rates require the approval of the Government before they can be implemented. In considering whether or not to authorise an increase in standard fares, account is taken of the need to strike a balance between, on the one hand, restricting fares increases in order to maximise ridership and reduce congestion and on the other hand, the need for the group to recover its operating costs and support it own capital investments in infrastructure development and fleet replacements. In addition, careful consideration is given to the potential adverse social effect of the proposed fare increases.
CIE applied for a fare increase in 1996 and the then Minister responded that in future applications for fares increases would be dealt with in the context of the system of public service contracts to be introduced in respect of socially necessary services which cannot be provided by the CIE companies on a commercial basis. That remains the position.