Dáil Éireann díospóireacht -
Thursday, 2 Apr 1998

Vol. 489 No. 5

Written Answers. - CIE Subvention.

Ivan Yates

Ceist:

45 Mr. Yates asked the Minister for Public Enterprise the discussions, if any, she has had with CIE or any of its three subsidiaries in relation to the level of fares for 1998 and beyond in the context of the Government's subvention; the assurances, if any, she has received as to minimising any proposed fare increase; and if she will make a statement on the matter. [8311/98]

Eamon Gilmore

Ceist:

52 Mr. Gilmore asked the Minister for Public Enterprise the proportion of CIE's subvention for 1998 which is allocated to Dublin Bus; if she will extend the requirement for her approval for Dublin Bus fare increases to multi-journey tickets; and if she will make a statement on the matter. [8316/98]

Minister for Public Enterprise (Mrs. O'Rourke)

I propose to take Questions Nos. 45 and 52 together.

Córas Iompair Éireann receives an annual subvention from the Exchequer for the provision of socially necessary services which cannot be provided on a fully commercial basis. The allocation of the subvention to the individual companies within the CIE group is currently a matter for the board of CIE. The total subvention for 1998 is £107.205 million and I am advised that of this amount some £7 million has been allocated to Bus Átha Cliath by the CIE board.

In so far as fares are concerned, the three CIE operating companies require the approval of the Government before they can implement increases in standard fare rates. In the case of Bus Átha Cliath, the approved standard rates are those for single fares. However, the CIE companies have discretion to offer discount or promotional fares, including multiple journey tickets, in accordance with their own commercial judgment, provided that the approved maximum standard rates are not exceeded. I have no approval function in relation to such discretionary or discount fares. I also have no approval function in relation to the types of discretionary or discount tickets which the companies may choose to introduce or withdraw. I do not propose to change the existing approval arrangements so as to extend the Government's role in relation to CIE's fares.

It is planned to place the financial relationship between the Government and CIE on a more structured and transparent basis. To this end discussions are ongoing between my Department and CIE, and its operating subsidiaries, with a view to the introduction of public service contracts, initially to cover a three year period, between the two parties. It is envisaged that, among other things, these contracts will identify three specific elements in respect of each of the CIE entities: the services (including those which are socially necessary but are non-commercial) to be provided; the specific payments to be made for those services and the standard fares to be charged.

In 1996 CIE submitted proposals for a fares increase of the order of 10 per cent. Consideration of those proposals was deferred so that they could be examined within the context of the formulation of the public service contracts. That remains the position. As the discussions on the contracts have yet to be concluded it is not possible to comment on any possible fares increases which may be approved under the new system.