Richard Boyd Barrett
Question:196. Deputy Richard Boyd Barrett asked the Minister for Transport the estimated full-year cost of making all public transport free; and if he will make a statement on the matter. [23797/23]
View answerThursday, 18 May 2023
Questions (196)
Written answers
As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport; however, I am not involved in the day-to-day operations of public transport. The National Transport Authority (NTA) has statutory responsibility for the regulation of fares charged to passengers in respect of public transport services provided under public service obligation (PSO) contracts.
The NTA commissioned a report with Ernst & Young Business Advisory Services which examined the impacts of free fares on public transport. That report concluded that to fund a fully free public transport system as it stands today, without accounting for the likely increased passenger demand, would require an additional €540m in Exchequer funding per annum at a minimum, on top of the existing annual PSO subvention which is €563.55 million for 2023.
The report also found that any increase in public transport demand due to free fares would largely be achieved by reductions in walking (7%) and cycling (13%), resulting in just a 1% reduction in car travel.
My Department’s funding for public transport services is therefore focussed on existing fare initiatives and service improvements such as BusConnects in the five cities, expanding town services in the larger towns and rolling out Connecting Ireland in rural Ireland. These improvements are delivering real benefits for citizens across the country and I look forward to seeing more of them delivered this year and beyond.