Vol. 405 No. 6
216 Mr. Yates asked the Minister for Tourism, Transport and Communications if he will outline the Government's and CIE's pricing policy in relation to fare levels on the following: (a) the railways, (b) Dublin Bus and (c) Bus Éireann in the context of (1) the Government's subvention, (2) competition and (3) inflation.
Since the Government took office, I had consistently refused applications from CIE for increases in fares and rates, emphasising instead the need for further cost economies within the CIE Group's operations, to keep the costs of public transport as low as possible to the travelling public and to the Exchequer. However, in view particularly of the increase in fuel costs arising from the Gulf crisis, I decided reluctantly late last year that an increase in fares and rates was unavoidable since fuel cost increases, being outside CIE's control, must be recovered. I, therefore, conveyed approval to CIE for an increase in rates and fares which came into effect on 17 December 1990.
With regard to CIE's pricing policy, decisions on individual fare levels within approved maxima, e.g. concession fares, fall entirely within the responsibility of the board. I understand from CIE that fares are set at levels designed to maximise revenue subject to the need to maintain existing carryings to the greatest possible extent.
