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Transport Costs

Dáil Éireann Debate, Wednesday - 14 February 2024

Wednesday, 14 February 2024

Questions (86)

John McGuinness

Question:

86. Deputy John McGuinness asked the Minister for Transport the actions he is considering to support the transport industry in relation to fuel costs, ever increasing insurance premiums, cost of implementing Government decisions such as the minimum wage, extra holidays/bank holidays, and extra staff costs because of the cost of living increases and Government red tape. [6710/24]

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Written answers

The Government is strongly committed to providing all citizens with reliable and realistic sustainable mobility options, and public transport plays a key role in the delivery of this goal. To support this objective, under Budget 2024, a funding package of c. €613.463m has been secured for Public Service Obligation (PSO) and Local Link services. I am keenly aware of the cost of public transport to the user. That is why for 2024 I have negotiated the retention of a range of discounts, first introduced in 2022, particularly the average 20% discount on public transport fares and the 50% discount for the Young Adult Card. In addition, the age limit of the card has been extended for 2024 from 23 to 25.

I am also conscious of the impact of increasing costs on public transport operators. I want to assure the Deputy that these increasing costs are always considered when the annual Public Service Obligation (PSO) Budget is agreed annually. Indeed, it is a key feature of the PSO contracts between the National Transport Authority and the public transport operators that they allow for contract variations and indexation to be factored in when agreeing the annual allocations. This approach ensures that inflation factors, including increased fuel and wage costs etc., are fully factored into the budgets agreed with the PSO operators.

Further, during the period of surging inflation in 2022 and 2023, I supported the delay in passing on the increased toll prices to drivers. I secured funding for the introduction of the Emergency Haulier Relief scheme, to assist in mitigating the impact of increased fuel prices on road hauliers, who provide a vital service and are a key component of supply chains. Furthermore, my Department provides grant incentives to support the transition from more costly to run petrol and diesel vehicles to more environmentally friendly and cost efficient electric vehicles.

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