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Public Transport

Dáil Éireann Debate, Thursday - 3 March 2022

Thursday, 3 March 2022

Ceisteanna (71)

Bríd Smith

Ceist:

71. Deputy Bríd Smith asked the Minister for Transport if he will commission a study into the impacts and benefits of moving to the provision of fare free public transport across the country, specifically its impact on transport greenhouse gas emissions; and if he will make a statement on the matter. [12057/22]

Amharc ar fhreagra

Freagraí scríofa

As Minister for Transport, I have responsibility for policy and overall funding in relation to public transport. I am not involved in the day-to-day operations of public transport, nor decisions on fares. 

It is the National Transport Authority (NTA) that has the statutory responsibility for the regulation of fares in relation to public passenger transport services and also has statutory responsibility for securing the provision of public transport services by way of public transport services contracts in respect of services that are socially necessary but commercially unviable.  The funding of those services comprises both the fares paid by passengers and the subvention payments from the Exchequer.  The main purpose of the subvention payment is to meet the gap between income from fares and the cost of operating services.

The provision of public transport services is heavily dependent on passenger fare revenue as it normally contributes about 65% of the operational cost.  The remaining 35% of cost is covered by the PSO grant and the Department of Social Protection grant under the free travel scheme.  

Prior to COVID-19, €287 million of Exchequer funding was provided for PSO services in Budget 2020; however, since 2020, additional funding has been required to continue to address the significant COVID impacts on public transport provision. All PSO providers are currently in receipt of emergency support funding to compensate for fare revenue loss arising as a result of the impact of Covid-19 on the sector, and the associated fall in passenger numbers (passenger numbers fell to below 10% of 2019 levels at the height of the restrictions in 2020 and 2021). Further, on 25/06/2020 Government approved the introduction of temporary financial supports for the licensed bus sector – commercial operators (in accordance with EU and national legislation).

In 2022, I secured €538m to support PSO services including over €200m to address COVID expenses (i.e. loss of fare revenue, cleaning costs). €9m of the €538m allocation has been provided as ongoing support for the licensed bus sector for the first three months of the year. While, over €15m has also been allocated to support Local Link regular service provision in rural Ireland. 

The Government is strongly committed to helping combat the rising cost-of-living being experienced throughout the country. In this context, a suite of new measures is being introduced by Government to help with this issue, including a 20% average fare reduction on PSO services until the end of 2022. These discounted fares will benefit the hundreds of thousands of people across the country who use public transport every day. A further €54m in Exchequer funding has been secured to allow for the introduction of these discounted fares, this is in addition to the REV22 allocations. The NTA will work with the PSO public transport operators in the coming weeks to commence rolling out these fare reductions across the public transport network in late April/ early May.

Also, in recognition of the importance of incentivising young people to use public transport, as part of Budget 2022 I secured €25m of funding to provide for the introduction of a young adult card (YAC) which will allow any person nationwide who is between 19 and 23 years old, to avail of an entitlement for discounted travel costs, and to increase the level of discount over and above the current student discount to an average of discount of 50% across all services, including city, intercity and rural services. It is envisaged that the discount will initially be made available on PSO services, and then broadened to include commercial operators at a later date.  This will not only promote modal shift in the transport sector among this age group but should also contribute towards a reduced reliance on private transport with associated benefit of transport emission savings.  The NTA has commenced work in relation to the implementation of the new fares’ structures for young adults, and this includes the application process and establishing a definitive timeline for the introduction of the Scheme. 

The PSO programme represents a significant expenditure of taxpayers' money, and funding has increased in recent years to cater for additional services and growing capacity.  Any assessment of a proposed change to public transport fare structures would be a matter for the NTA to consider in the first instance.  

In light of the Authority's responsibility in this area, I have forwarded the Deputy's specific question in relation to the possible commissioning of  a study into the impacts and benefits of moving to the provision of fare free public transport across the country, specifically its impact on transport greenhouse gas emissions to the NTA for direct reply.  Please advise my private office if you do not receive a response within ten working days.

A referred reply was forwarded to the Deputy under Standing Order 51
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