Vol. 482 No. 6
91 Mr. Callely asked the Minister for Public Enterprise if she will give details of the fare increases which have been implemented by semi-State companies providing transport services over the past five years; the basis on which fare increases are considered; and if she will make a statement on the matter. [18530/97]
I assume the companies being referred to by the Deputy are Aer Lingus and Córas Iompair Éireann.
In regard to Aer Lingus the Deputy will be aware that as part of the process of liberalisation of air transport in recent years, the role of Governments in controlling and regulating air fares has been progressively reduced.
Under the provisions of Council Regulation (EEC) No. 2409/92 which came into effect on 1 January 1993, air carriers licensed in the European Economic Area (EEA) are free to set air fares and the conditions under which these fares apply in respect of carriage within the EEA in accordance with their own commercial judgment, subject to certain safeguards against excessively high areas or predatory pricing. As Community air carriers and those from Norway and Iceland which make up the EEA are no longer required to obtain Government approval for air fares in respect of carriage within the EEA, I have no statutory function in the matter. Fares on services between Ireland and non-EEA countries are governed by individual bilateral air agreements. By and large, as in the case of the USA, these include liberal provisions in relation to air fares. This means that it is only in very exceptional circumstances that the respective aviation authorities would intervene in relation to fares. My Department has not intervened in relation to setting air fares in such markets during the period in question.
As regards Córas Iompair Éireann (CIE) the last general increase in standard fares approved by the Government was in 1991. The Government also approved an increase in certain categories of standard fares in 1994. The detailed implementation of such increases is a day to day matter for Córas Iompair Éireann and its subsidiary companies. I have no function in this regard.
In considering whether 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 CIÉ to recover its operating costs and support its own capital investments in infrastructure development and fleet replacement. In addition, careful consideration is given to the potential adverse social effects of the proposed fare increases.
CIE applied for a fares increase in 1996 and the then Minister responded that 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.
It should be noted that each of CIE's three subsidiary companies — Bus Atha Cliath, Bus Éireann and Iarnród Éireann — has the discretion to offer discount or promotional fares, including multiple journey tickets, in accordance with their own commerical judgment. Neither the Government nor the Minister has any function in relation to increases in discretionary or discount fares, provided that the approved maximum standards rates are not exceeded.
