Unfortunately, CIÉ is in a difficult financial situation and is dependent on continued bank funding. Cost saving measures have already been agreed in Bus Éireann and Dublin Bus and savings need to be made in Irish Rail. Despite the introduction of a number of cost reduction measures, Irish Rail has incurred accumulated losses of over €147m in the past six years, a position which is unsustainable. It is essential for the future of Irish Rail’s jobs, as well as the company, that unions reach agreement with management regarding payroll savings.
The Labour Court issued a recommendation on Friday 11 April which concluded that the measures sought by the company were “unavoidable if the future of the Company and the employment that it maintains is to be protected”. I understand that unions will ballot their members shortly on the Labour Court recommendation. I am sure that all Deputies share my hope for a positive outcome to assist the company in getting its finances back on a sustainable footing.
The National Transport Authority (NTA) has entered into a Public Service Obligation (PSO) contract with Irish Rail for the provision of rail services. Specific proposals relating to the provision of services under that contract are a matter for the NTA in conjunction with Irish Rail. I have therefore referred the Deputy's question to the NTA for direct reply. The Deputy should please advise my private office if he does not receive a reply within ten working days.
