Michael Moynihan
Question:9. Deputy Michael Moynihan asked the Minister for Transport, Tourism and Sport if CIE has received the €36 million subvention announced in July 2012; and if he will make a statement on the matter. [57230/12]
View answerPublic Transport Provision
Questions (9)
Oral answers (6 contributions)
On 24 July, the Government decided to provide additional PSO funding of €36 million to CIE to ensure that the company could continue to operate for the rest of 2012. This would bring the total PSO subvention for this year to €278 million, higher than the subvention level for 2010, and the fifth highest level of subvention ever. In November, €16 million of the additional subvention was paid by the National Transport Authority to CIE and the remaining allocation of €20 million was paid by the NTA to CIE last week.
While that ties in with my earlier points, this is really about the provision that has been made for last year in light of the €36 million that was needed this year. I accept the legislation was passed this week that will provide CIE with the capacity to borrow to a greater extent, and that will be helpful, but there is still real concern in Fianna Fáil and among the workers and those who use CIE services that in a deteriorating financial environment, the consumer will be hit on the double with increased ticket prices and reduced services, thereby further diminishing the quality of the network.
There is no doubt that 2013 will be a tough year for CIE. A certain level of funding is available and the Department must find the funding for the coming years. We have put in place a three year programme and next year CIE will receive €226 million. We are working closely with the company to ensure it can provide the services with that subvention in 2013. There are cost cutting measures across all of the CIE subsidiary companies. Irish Rail has already agreed to a number of cost cutting measures, while Dublin Bus and Bus Éireann are in negotiations at the moment. There are issues for Bus Éireann and the Department is watching that closely. I thank everyone in the Houses for the speedy passage of the CIE borrowings legislation that will allow us to increase its borrowing limit, which is necessary given the current environment.
It would be wrong not to say to everyone in the House with an interest in transport that 2013 will be a challenging year when it comes to CIE and its subsidiaries. We are working closely as a Department with the board of CIE and the chief executives of the three subsidiaries to ensure we can get through 2013 and get more passengers and cut costs, while looking at what other measures are possible to sustain the services we all need.
Different people have different views on the importance of public transport. There is now significant competition in the market with the issuing of licences to some of the private bus operators between certain centres of population. That is putting significant pressure on CIE. As a Labour Party man, is the Minister of State satisfied that the Minister for Transport, Tourism and Sport is as committed to public transport as he is?
It is certainly Christmas time in here, that question was teed up. The Government is committed to public transport and I assure the Deputy that I work very closely with Deputy Varadkar on the issues he has raised.
We all know 2013 will be a challenging year but we are working with everyone every day to maintain services and ensure they are delivered in a satisfactory manner. The push needs to be to improve the customer experience to get more people to use the services. The additional use of RTPI and Wi-Fi helps to create a better customer experience for everyone using the services, which is crucially important. Measures will be continually undertaken to achieve that.
There needs to be improvement in the commercial angle of CIE and how the individual three subsidiary companies commercially exploit their services. I have worked very closely indeed with CIE and its subsidiaries, even up until recently, to ensure that in 2013 there will be considerable changes and focus from the companies to ensure they commercially exploit their excellent facilities and services. Deputies should note, for instance, that Irish Rail has new offerings on its services across the country where those who book early get a concession. It is this kind of thing we need to promote in order to ensure more people use public transport.
I thank the Deputies for their questions, to the Ministers of State for their replies and to the staff for assisting us in the debate here this evening. I wish the Members a happy Christmas and a happy new year.
Written answers follow Adjournment.