Dáil Éireann Debate, Thursday - 2 June 2022
197. Deputy Jennifer Whitmore asked the Minister for Transport if his Department has carried out costings on the provision of free transport for all school children; and if he will make a statement on the matter. [28589/22]
Amharc ar fhreagraAs 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.
In view 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 YAC was launched on PSO services on the 9th of May, with over 1000 applications received by the NTA on launch day alone. The initiative will be broadened to include commercial operators later this year, with the aim to have it in place before the recommencement of third level colleges. 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.
In addition, as the Deputy will be aware a 20% average reduction is being introduced on PSO services as part of a suite of Government measures to help combat the rising cost of living. This fare reduction was applied to all services outside the Greater Dublin Area (GDA) from the 11th of April and nationwide from the 9th of May. The fare reduction will be in place until the end of the year and €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 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, I have forwarded the Deputy's specific question in relation to costings on the provision of free transport for all school children, to the NTA for direct reply. Please advise my private office if you do not receive a response within ten working days.
