I wrote to the chairman on 19 November 2002 approving an average fares increase of 9% in respect of CIE fares to be introduced from December 2002. In devising their new fares structure, CIE were asked to have particular regard to An Agreed Programme for Government on fares issues and, in particular, the need for greater interchangeability of commuter tickets on bus and rail services, in advance of the introduction of smart card technologies.
The increase was also granted in the context of the continued progress to improve accountability and transparency with regard to Exchequer subvention paid to CIE in respect of non-commercial services. In this context, it was noted in my letter of approval that agreement has been reached with CIE to introduce service level agreements from 1 February next. These agreements will set down for the first time in the history of the companies an arrangement to provide greater transparency in regard to State support for nonommercial services and greater accountability in relation to the quality of the service to be provided by the companies.
My Department has been assured by the companies that their fare increases, when taken across the full range of fares, have increased only by an average of 9%. Nevertheless, in a meeting with my Department early this week, the chairman referred to concerns raised in that regard in recent days and indicated that it was his intention to re-examine the new fares over the coming days.