The funding sources for public transport in the National Development Plan include the Exchequer, EU and CIE borrowing and other own resources. The commitment for 2004 under the public capital programme for public transport including CIE, RPA and DTO is €633 million, an increase of €49 million – 8.4% – over 2003. All of the increase relates to CIE. While the Exchequer element is reduced by €73 million, the targeted programmes will be maintained by increased borrowing by CIE for which additional subvention is being provided towards the interest charges on the borrowing. The issue of the CIE debt and its allocation is a matter that will be dealt with in the overall proposals for the restructuring of the company.
As regards the cost of borrowing, I understand that the difference in interest rates payable by the Exchequer and by a semi-State organisation such as CIE would not be material. In any event, the subvention to CIE is being increased by an additional 1%, over and above the previously committed increase of 5%, as a contribution towards the cost.
The planned investment programme by CIE for 2004 includes rail safety programme; extra rolling stock for suburban and intercity services, with extra DART carriages for delivery in 2004; DART upgrade; commencement of works on quadrupling of Kildare line; and Harristown bus garage, to open in 2004. I will make a final decision on the precise allocations to be made on projects in the coming weeks.
