Dáil Éireann Debate, Wednesday - 16 December 2015
6. Deputy Timmy Dooley asked the Minister for Transport, Tourism and Sport if he will address concerns regarding the decreasing affordability of public transport, given the recent rise in the cost of fares in addition to consistent increases over the past four years; and if he will make a statement on the matter. [44999/15]
Amharc ar fhreagraThe Minister is aware of the significant increases in the cost of public transport and the impact that is having on people's use of it. The Minister has correctly identified some of the investment that he has made. However, there is a rising concern about the affordability of public transport as a result of the significant increases in fares. I ask him to address that and to provide any views he has on it.
As the Deputy knows, the National Transport Authority, NTA, is the statutory body charged with regulating public transport fares and I have no legal function in the matter. On 30 October 2015, the NTA published its fares determination for 2016. In setting fares, the NTA takes a number of factors into consideration including, of course, the financial contribution that fare revenue makes toward the overall funding of good-quality public transport services. However, there are other important factors which it also considers, including the role the fare structure can play in ensuring greater use of public transport. This year's fare determination builds on the work of recent years in simplifying what has historically been a quite complicated fare structure system. In addition, the recent determination continues the initiative to encourage people to switch to using the Leap card. The recent announcement means that the public now knows that the Leap card will always be 20% cheaper than cash for a single journey.
Along with its work on simplifying fare structures and encouraging the switch to Leap card, the NTA has also delivered a number of significant cross-operator initiatives such as real-time information at bus stops, via apps and online, the national journey planner, investment in the bus fleet and on-board Wi-Fi, improved public transport maps and the reconfiguration of regional city bus services.
There is no doubt about the need to make public transport more attractive by creating better, more accountable and, importantly, more affordable transport systems. Extensive fare hikes have taken place across bus, rail and Luas services. If one looks at it cumulatively over the last four years, one cannot but conclude that providers have been predatory and made a significant dent in people's pockets while at the same time reducing the attractiveness of public transport. Adult cash fares on Dublin Bus services have increased by 36% since 2012. The increase at Bus Éireann averaged approximately 18% while Luas fare increases totalled approximately 11%. Increases on most monthly and annual rail tickets were on average approximately 22% on short hop commuter trips. All of that has amounted in my view to a targeted attack on commuters using the public transport system.
Despite the huge fare hikes over recent years, the NTA has approved fare increases of up to 5% across Dublin Bus, Bus Éireann, Luas and Irish Rail from the beginning of next year. Like others, I welcome the increased economic activity. However, the growth that is taking place is in no way keeping pace with the increases with the cost of public transport. While I accept the difference between the statutory roles of the Minister and the NTA in this regard, there is a need to call a halt here. If fares continue to increase, that will have an impact on people's use of public transport services, which in turn will only add to further gridlock.
I have outlined to the Deputy what my role is in how these decisions are made and how the fare structure is set. As Minister for Transport, Tourism and Sport, I expect that as our economy recovers, more public investment in public transport is made and the balance sheets of public transport companies begin to improve in line with increases in their passenger numbers, the frequency and magnitude of the price increases we have experienced in the past will begin to change. The Deputy has referred to the most recent fare determination figures. I would like to contrast those figures with where we came from in the depth of our difficulties in 2013. In 2013, Dublin Bus had a price increase of 5.7%, whereas its most recent price increase was 1.2%. In 2013, Bus Éireann had a price increase of 6.1%, whereas its most recent price increase was 1.1%. In 2013, Irish Rail had a price increase of 7%, whereas its most recent price increase was 1%. This shows that the magnitude of price increases is beginning to decline significantly. In all cases, the Leap card will be cheaper than cash. In many cases, a single Leap card fare will be exactly the same in 2016 as the cash fare was in 2013. This is all about driving more integration and better utilisation of public transport.
The bottom line is that it comes down to the level of subvention that is available. What I am saying in a roundabout way is that there is a need for the Minister to fight at the Cabinet table for a greater level of subvention. We all have faith in his capacity to ensure the burden of the cost of a publicly funded public transport system does not weigh too heavily on the shoulders of those who use it. If people move away from public transport because it has become an intolerable burden, a negative spiral will be created. Although investment in the upgrading of infrastructure is important and good, if fares continue to increase as they have been increasing, it will have a very negative effect. I hope that over time, the Minister will be able to secure a greater level of funding through the State subvention.
As I have said, I accept it is not good for public transport and for this country's climate change agenda if fares go up at such a rate that they clearly make the use of public transport unattractive, particularly for families. I remind the Deputy that the most recent fare determinations differ considerably from the fare determinations that were made earlier in the crisis with which this country had to deal and from which we are now looking to emerge. In response to the Deputy's question about investment in public transport with particular reference to the level of subvention, I will set out where we are now. When the budget that will come into effect next month was announced, the Minister of State, Deputy Ring, and I were able to provide for an increase of €28.5 million in the current funding available to the CIE group. That single increase restores almost 30% of all the funding lost by the group over the last seven years.
The clock in the Chamber might not be working, but I assure Deputies that the clock on my desk is working.
