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Public Transport

Dáil Éireann Debate, Tuesday - 17 May 2022

Tuesday, 17 May 2022

Ceisteanna (211, 212, 213)

Louise O'Reilly

Ceist:

211. Deputy Louise O'Reilly asked the Minister for Transport the total cost arising from the reduced 20% public transport fares to the public and the reduced 50% public transport to students and young people under 24 nationwide; if he is considering making the reduction permanent; and if he will make a statement on the matter. [24289/22]

Amharc ar fhreagra

Louise O'Reilly

Ceist:

212. Deputy Louise O'Reilly asked the Minister for Transport the total estimated cost of eliminating all public transport fares nationwide, factoring in the cost of providing the additional fleet, depots, drivers and so on to meet the likely resultant substantial increase in passenger numbers if fares were eliminated; and if he will make a statement on the matter. [24290/22]

Amharc ar fhreagra

Louise O'Reilly

Ceist:

213. Deputy Louise O'Reilly asked the Minister for Transport the total estimated cost of eliminating all public transport fares in rural areas; and if he will make a statement on the matter. [24291/22]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 211 to 213, inclusive, together.

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.

In 2022, I secured €538m to support PSO services including over €200m to address COVID expenses (i.e. loss of fare revenue, cleaning costs). Up to €12m will be provided as ongoing support for the licensed bus sector; 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 all PSO services until the end of 2022. These discounted fares will benefit the hundreds of thousands of people across the country who use PSO public transport every day. €54m in Exchequer funding has been secured to allow for the introduction of these discounted fares.

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. The discount is available on PSO services and will be broadened to include commercial operators as soon as practical. 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 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.

Therefore, in light of the NTA's responsibility in the regulation of fares, I have forwarded the Deputy's specific questions to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.

Question No. 212 answered with Question No. 211.
Question No. 213 answered with Question No. 211.
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