Dáil Éireann Debate, Tuesday - 7 December 2004
54 Mr. P. Breen asked the Minister for Transport the fare increases which have been sought by State public transport companies for 2005; his views on such increases; and if he will make a statement on the matter. [32033/04]
Amharc ar fhreagra80 Ms Lynch asked the Minister for Transport his views on the application for an 8% fare increase from CIE across its three divisions, Iarnród Éireann, Dublin Bus, and Bus Éireann; and if he will make a statement on the matter. [32335/04]
Amharc ar fhreagraI propose to take Questions Nos. 54 and 80 together.
The Department of Transport recently received fare increase applications from each of the CIE operating companies. Bus Éireann is seeking an increase of 8.5%, Iarnród Éireann is seeking an increase of 8.2% and Dublin Bus is seeking an increase of 8%. The main rationale for the applications is the increased operating costs faced by the companies, particularly relating to pay and fuel costs. The applications are being examined by the Department. I expect to make a decision on them shortly.
I am amused by the number of decisions the Minister plans to make shortly. He will have a very busy Christmas. I am appalled by the prospect of an increase of 8% or 9% in the fares charged by the various CIE companies, as such an increase would be much greater than the rate of inflation. While I accept that fuel costs have increased this year, the reality is that fuel prices are now tumbling. There is no justification for the proposed increase in fares.
We discussed earlier the lack of competition in the Dublin bus sector. There is no incentive for Dublin Bus to reduce prices or to introduce efficiencies which might result in a decrease in prices. Inflation in this sector should be controlled at the level of inflation in the general economy. A special level of inflation should not be put aside for public transport simply because there is no competition in the sector. Does the Minister intend to contemplate an increase of that magnitude?
The applications I have received are just applications. I subscribe to the view that all businesses in the public and private sectors have to be cost-efficient. They have to deliver the best results they can from the resources at their disposal. I expect that the three operating companies — Bus Éireann, Iarnród Éireann and Dublin Bus — are taking such factors into account. Many organisations and companies are facing cost increases for the same reasons. The increase in the price of fuel has affected everybody this year. I am not sure that everybody is considering an increase of 8% to compensate for it, however.
Precisely.
I am examining the applications to try to understand the reasons for them. I would like to hear what the companies can do to manage the cost increases we all face. The Government does not want to punish customers. I want to ensure that customers enjoy real and direct benefits, to encourage more people to use public transport and to make it as cost-efficient as possible.
Does the Minister realise that much of that is in his own hands?
Does the Minister intend to demand that initiatives are introduced to ensure that fares do not increase? I refer to initiatives such as integrated ticketing, which has been promised for years by the Minister's two immediate predecessors. When will it be introduced?
It has already been initiated. I will give more details on the matter shortly, in response to Question No. 62. I hope we will reach that question. Integrated ticketing will be introduced on the Luas system in January. I have told all the companies, including Dublin Bus, that I would like them to introduce integrated ticketing in 2005. I agree with the Deputy in this regard. I strongly believe that people would like to see integrated public transport. The introduction of a smart card ticket will be a significant step in that direction. I want the process to be completed in 2005.
Will that include Iarnród Éireann?
I have spoken to representatives of Iarnród Éireann. The system will be introduced soon by Dublin Bus and Luas. I would like Iarnród Éireann to be part of that process. I will give further details in response to Question No. 62. I will deal with it.
