Dáil Éireann Debate, Tuesday - 19 June 2012
741 Deputy Sean Fleming asked the Minister for Transport, Tourism and Sport his views on the subsidy to Bus Éireann through CIE each year for the provision of its services in view its social commitment; and if this subsidy should be reduced in areas in which Bus Éireann reduces its bus services to communities; and if he will make a statement on the matter. [29777/12]
Amharc ar fhreagraThe provision of public service obligation services by the CIÉ companies is subject to contract between the companies, in this case Bus Éireann and the National Transport Authority (NTA). I have forwarded a copy of your question to the NTA for information. Notwithstanding the NTA's statutory responsibilities, the Government recognises there is a need for the CIÉ companies to respond to the challenge 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.
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 important to note that due to the financial constraints that the State is operating under, the level of the PSO subvention has been reduced in each of the past four years. As outlined in the Comprehensive Expenditure Report 2012-14 the funds available to support of scheduled public obligation services will be further reduced in 2013 and 2014.
