Dáil Éireann Debate, Thursday - 23 June 2005
149 Mr. Wall asked the Minister for Transport the figures relating to subsidies for the project until at least 2007 in view of the fact that his Department described the prospect of a subsidy for the Luas in 2004 as a doomsday scenario; if the progress made with the Luas has not reached expectations; his views on the financial performance of the Luas; and if he will make a statement on the matter. [21859/05]
View answerIt has always been envisaged that there would be an operational deficit in the early period of Luas operations pending a full ramp-up of the system and its customer base. Earlier estimates of the amount of the operating deficit also had to be revised to take account of higher than expected costs for maintenance of trams, infrastructure and ticket machines and of insurance costs more than doubling.
It is expected that an operational subsidy will be required until 2006 and that the total subsidy required for 2004, 2005 and 2006 will be €7.1 million. This estimate assumes that the current relationship between costs and revenues will be maintained to negate the impact of inflation. It is expected that the requirement for an operational subsidy will cease after 2006.
