Olivia Mitchell
Question:77. Deputy Olivia Mitchell asked the Minister for Transport, Tourism and Sport the current financial position within the CIE transport companies; and if he will make a statement on the matter. [40787/13]
View answerTuesday, 1 October 2013
Questions (77, 88)
Alan Farrell
Question:88. Deputy Alan Farrell asked the Minister for Transport, Tourism and Sport his views on the current financial viability of the CIE group; and if he will make a statement on the matter. [40788/13]
View answerWritten answers
I propose to take Questions Nos. 77 and 88 together.
These questions relate to the current financial position of the CIÉ group. Since 2008 , the financial performance of CIÉ has been severely affected by the economic recession which has resulted in a significant reduction in passenger numbers. CIÉ recorded total losses, before pension cost adjustments, in the five years 2008 to 2012 of over €153m. The current CIE business plan 2013-2017 provides for almost break even by 2015 and a return to profitability of the Group thereafter. In July 2012 the Government approved an increase in the 2012 subvention to CIE by €36 million to €278 million to ensure that the companies could continue to operate PSO services for the rest of 2012. Given the pressure on the public finances there will be no additional funding from the Exchequer in 2013. The implementation of a credible business plan will therefore be essential to CIE's financial recovery in the period ahead.
The Board of CIÉ are pursuing a range of measures to address the financial position, including cost reductions across the three operating companies. At the end of 2012 a significant voluntary severance programme was implemented in Irish Rail and the Group generated cash of €20 million by selling its interest in the ground lease in Spencer Dock. CIÉ also benefitted from the introduction of a fuel rebate in July and, in addition, the Group has benefitted from fare increases approved by the NTA. The Group has also negotiated improved bank facilities in relation to refinancing of the Group, which will ensure that the Group has sufficient funding into the future.
Question No. 78 answered with Question No. 63.