Financial support from the Exchequer - or taxpayer - for public transport takes two main forms: there is current funding for the Public Service Obligation (PSO) subvention to help fund the operational costs of delivering services, and there is capital funding for investment in infrastructure and facilities. Both of these funding streams have been growing and, as announced recently in Budget 2018, they are now budgeted to continue to grow further.
The PSO subvention for public transport services increased last year, again this year and will increase yet further next year. Over the three years PSO subvention will have increased by some 35% in total. This means that in 2018 over €285 million will be allocated via the National Transport Authority (NTA) to support the continued delivery of these socially necessary but financially unviable services that have grown in recent years.
Multi-annual capital funding for investment in public transport is provided under the Government's Capital Plan. An enhanced four-year capital envelope for public transport of over €2.7 billion was announced in Budget 2018, which is a 30% increase over the original Capital Plan allocations for the period 2018-21. This funding will enable both necessary investment in maintaining the existing public transport infrastructure (especially the rail network) in order to underpin the continued provision of safe and effective transport services, and it will also allow for considerable investment in new infrastructure and facilities so as to expand capacity, address congestion and enhance services.
The capital allocation provides capital funding to semi State providers of public transport both directly and through the NTA. In accordance with the requirements of EU law, my Department provides capital funding to Iarnród Éireann for the maintenance and renewal of the heavy rail network under the Infrastructure Manager Multi-Annual Contract (IMMAC). The present IMMAC covers the five-year period 2014-2018. Iarnród Éireann also receives capital funding, via the NTA, for heavy rail projects in the Greater Dublin Area as well as funding under the Accessibility Grants and Regional Cities Programmes.
My Department also provides capital funding to the NTA for a rolling programme of bus replacement and refurbishment of the Bus Átha Cliath and Bus Éireann PSO fleets. Funding is also provided to these two companies for accessibility projects and funding for Bus Éireann under the Regional Cities Programme.
