Dáil Éireann Debate, Thursday - 12 January 2012
4Deputy Timmy Dooley asked the Minister for Transport; Tourism and Sport if he will outline in percentage terms, the expected fare increases in public transport services provided by CIE in 2013 and 2014; and if he will make a statement on the matter. [1755/12]
Amharc ar fhreagraPublic transport fares are a matter for the CIE operating companies in conjunction with the National Transport Authority. I am aware that the NTA approved a range of fare increases in respect of the CIE companies recently which took effect earlier this month. It is the responsibility of the NTA to make a determination on any future fare increases as appropriate.
Notwithstanding the NTA's statutory responsibilities, I would add that Government recognises the need for the CIE companies to respond to the challenges of reduced PSO subvention funding, reduced fares income arising from reductions in passenger numbers and increased costs, such as fuel costs, which are outside their control. As a general principle it is my belief that efficiencies in operational costs should, in the first instance, be examined over fare increases and service reductions. However, in the current environment there has to be a recognition that unfortunately, fare increases will be inevitable if costs cannot be reduced sufficiently in order to maintain a reasonable level of service provision.
While a recovery in passenger numbers could increase company revenues, all concerned in my Department and the NTA must focus on identifying key public transport priorities in our cities and across the country. In turn, the PSO public transport service providers will have to achieve greater efficiency and cost effectiveness in the years ahead based on a realistic assessment of the scope and level of contracted services.
It is clear that the reduction in the PSO subvention provided by the Government for the CIE group of companies has led to a considerable fare increase. Obviously, this is having an impact on people's capacity to travel to work. The Government has made a great deal of the fact that it has decided not to tax work. It could be strongly argued that the increase in the cost of getting to work - either in the form of an increase in the fares charged by the CIE group of companies or in a rise in the cost of motor tax or fuel oil - has led to a correspondingly significant increase in taxes on work.
In the past the Minister indicated that there was a necessity for transport prices to be reduced and argued that this was part of the economic model which showed that the country had the capacity to be competitive. The programme for Government states the Administration recognises the need to rebalance transport policy in favour of public transport. The Government indicated that it would establish a Cabinet sub-committee on infrastructure to explore the benefits to the public transport passenger of a more diverse bus service. What has been done to establish such a service? A great deal was promised in this regard. Is the Minister of State satisfied with the response of CIE in the context of its efforts to reduce the cost of its operations and develop a more cost-effective method of providing public transportation which would not, in the first instance, rely on increases in passenger fares?
The Department and the NTA have been working hard in various ways to encourage a greater uptake of public transport services. In the context of fare increases, it is important to point out that serious savings are to be made by consumers who choose, as we are encouraging them to do, to avail of the integrated ticket, the leap card. Using a leap card can lead to savings of as much as 9% in using Dublin Bus services, 16% to 19% in using DART commuter services and 17% in using Luas services. The uptake of the leap card has been so significant that we are confident that many people are being encouraged to use public transport.
The Deputy is well aware that there have been a number of reports on the efforts of the various CIE companies. The Deloitte report on Dublin Bus shows that many cost efficiencies and savings have been made. Of course, the companies in question are always going to be seeking to make further savings. In the context of the financial position of these companies, it is important to note that Dublin Bus, Irish Rail and Bus Éireann have all made significant savings in the past year. These savings will have to be re-examined in the current economic context. However, we are happy with the way in which the companies are going in this regard.
As a result of the time I spent as a member of the Joint Committee on Transport, I am aware of the Deloitte report and the efforts the various companies have made. Is the Minister of State prepared to accept that, in view of the fact that he is not providing the group of companies with adequate resources, it is right and fitting that there should be an increase in passenger fares in order to pay for the subvention for PSO routes? Is he happy with the fare increases?
In an ideal world we would not be contemplating fare increases. Given the costs associated with the various companies, many of which are fixed, and in the light of the price of fuel, there is an inevitability to the imposition of fare increases. However, as the Deputy has acknowledged on previous occasions, there is a way of mitigating the impact of these increases through use of the leap card. We have purposely differentiated the fares in order to encourage more people to use public transport and thereby lower the costs relating to the various companies into the future.
