Public transport fare increases as subsidies cut

THE COST of public transport is to rise next year following cuts to the Department of Transport budget, with the Minister for Transport favouring a differential fare system based on the pre-paid Oyster card used in London.

Overall, cuts of €45 million are to be achieved in the Department of Transport, Tourism and Sport this year, with further cumulative savings of €29 million and €70 million pencilled in for 2013 and 2014 respectively. The department is to cut its subsidy to CIÉ by 8 per cent, which will result in the fare increase, and may lead to cuts in services and routes.

According to Minister for Transport Leo Varadkar, the fare increase will be implemented through a differential fare system. Customers using the new integrated Leap card will be cushioned from most of the price rises, while cash fares will increase. CIÉ is expected to submit a business plan to the department in the coming weeks outlining how it is to absorb the cuts.

The Road Safety Authority is to see a 20 per cent cut in its subvention payment, though the Minister stressed this will be counter-balanced by an increase in income from NCT tests, particularly in light of the greater number of cars older than 10 years on the road. The RSA also derives income from driving tests. “The objective is to make the RSA self-funding,” he said. Other changes to be implemented by the department include the continuing reduction in subsidies paid to regional airports, which will generate savings of €5 million per year. A further €21 million in savings are to be achieved through cuts to the National Transport Authority, through a reduction in funding for public service contracts.

The department is to reduce maintenance spending on the local and regional road network and discontinue funding and grants for non-public roads, leading to savings of €4.5 million, though national roads will be subject to a cut of only one per cent.

Coast Guard services, the RNLI, mountain rescue or the Commissioners of Irish Lights will not face any reduction in funding because substantial cuts have already occurred, according to the Minister. The maritime budget will be increased from €70.5 million to €80.3 million, mainly due to provisions for a new helicopter contract.

There will be a 5 per cent reduction in funding for the Sports Council, though funding for the sports campus will be maintained.

A 5 per cent cut to the tourism marketing fund will be implemented, though the Minister stressed €80 million is set to be spent between now and 2015 on promoting tourism attractions.

SPENDING CEILING

2011€900m

2012 €786m

2013 €747m

2014 €691m

TRANSPORT

-8%

% decrease

2011 to 2012