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Dáil Éireann díospóireacht -
Tuesday, 3 Nov 1992

Vol. 424 No. 8

Written Answers. - Social Welfare Benefits.

Jim Mitchell

Ceist:

252 Mr. J. Mitchell asked the Minister for Social Welfare the cost to the Exchequer per week for each free fuel allowance granted in each of the years from 1986 to 1991 and to date in 1992; the number of weeks for which the allowance was granted in each winter; and if he will give an estimated figure for the year 1992-93.

The information requested by the Deputy is set out below. Estimated expenditure on the Fuel Scheme in respect of the 1992/93 heating season is not available at present as the 1993 Estimates have not yet been finalised. The figures given in respect of 1992 are based on the provision for the Fuel Scheme in the 1992 Published Estimates. The data includes expenditure on the Smokeless Fuel Allowance which came into operation from October 1990.

Year

Total expenditure

No. of weeks

Average weekly exp.

1986

£26,472,000

30

£882,400

1987

£27,858,488

28

£994,946

1988

£25,861,674

26

£994,680

1989

£25,901,518

26

£996,212

1990

£29,506,043

26

£1,134.848

1991

£34,422,252

26

£1,323,933

1992

£36,550,000

26

£1,405,769

Vincent Brady

Ceist:

253 Mr. V. Brady asked the Minister for Social Welfare the total cost of the free travel scheme on an annual basis; the way in which these figures are calculated; if he has satisfied himself that the costs passed on to his Department from CIE are in order.

Total expenditure on the Free Travel Scheme amounted to £28.2 million in 1991. The cost of the scheme in 1992 is expected to be £29.6 million. The bulk of this expenditure (96.7 per cent in 1991) is made to the CIE group of companies. The balance is spread over a total of 30 private bus and ferry operators.

Payments are made to all participating operators in the Free Travel Scheme based upon surveys of passenger usage conducted by the operators themselves. The findings of these surveys are rigorously examined by the Department after which a fixed recoupment level is agreed with each individual participant. To confirm the accuracy of the payments being made, officers of my Department occasionally conduct their own surveys of passenger usage by individual bus and ferry operators.

The basis of the agreed rate of remuneration with CIE in respect of the free travel scheme was a survey of passenger usage carried out by CIE personnel on all its services during October 1974. These findings were examined and approved by my Department at that time in consultation with the Central Statistics Office and the Department of Finance. As free travel usage is restricted to off-peak times on CIE's Dublin and provincial bus services, the Department negotiated a 40 per cent discount in the total annual payment due to CIE.

All percentage fares increases applied by CIE since 1974 have resulted in a corresponding percentage increase in the rate of remuneration by my Department to CIE. Developments of the free travel scheme as a result of various budget extensions in client coverage have also resulted in further remuneration to CIE due to increased free travel passenger usage.
The notional cost of each Free Travel Pass amounts to £66 per annum. This has been calculated by dividing the total estimated cost of the scheme in 1992 (£29.6 million) by the number of free travel pass-holders (444,700). This cost includes provision for some 14,000 special category free travel pass-holders who are entitled to be accompanied by a companion on unlimited free travel.
I am satisfied that this scheme expenditure represents good value for money in relation to the cost of bus fares generally, as well as being highly valued by the free travel pass-holders themselves.
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