CIE problems remain despite investment

Alone among large semi-State groups, CIE's management and board decided against conducting a press briefing when its latest annual…

Alone among large semi-State groups, CIE's management and board decided against conducting a press briefing when its latest annual report was published.

The transport group revealed yesterday that it received an operating subvention of £160.7 million (#204 million) from the Government last year, £45.2 million more than in 1999.

But it claimed a press conference was "unnecessary" because the "figures have been in the public domain for some time".

Elements of CIE's financial results last year have been reported in this newspaper and others, although the practice of not holding press conferences seems well established.

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None was held when the 1999 and 1998 annual reports were published.

It was not as if the group had a dearth of good news to tell. CIE was long starved of cash, so the rise in State support was something of a turning point.

Iarnrod Eireann received a £115.87 million subvention; Dublin Bus received £32.44 million; and Bus Eireann received £12.40 million.

An additional £132.99 million was allocated to deferred income, mostly for a rail safety programme and capital expenditure.

Thus, 225 new vehicles were added to the Dublin Bus fleet; 208 to that of Bus Eireann; and Iarnrod Eireann also received new rolling stock.

Its investment in rail safety continued and prompted a positive safety audit by consultants to the Government earlier this summer.

But CIE still has problems.

No longer able to blame low investment by the Government, it now cites "gridlock" as the bugbear.

Despite the introduction of quality bus corridors (QBCs) on some routes - certain QBCs remain at the planning stage, years after they were mooted - many buses operate at only a "walking pace".

This means additions to the fleet were required because each bus can make fewer round trips per route each day.

Traffic congestion caused a significant problem in 1999 too, but the group did not put a price on it.

Yesterday it said clogged streets were costing it £40 million per year.

Industrial relations problems persisted last year too, resulting in severe curtailment of its rail services and stoppages at Dublin Bus.

While the Government has committed more than £2 billion to long-term investment in public transport under the National Development Plan, serious questions were raised about the group's project management capacity and procurement policies. This occurred when it emerged last year that the cost of a rail signalling system projected at £14 million was likely to rise to £50 million.

Parallel work on an Esat system laid along the railway was linked to the overrun.

This, and other factors, prompted the establishment of an Oireachtas inquiry empowered to compel witnesses to attend. Hearings begin in September.

When asked whether the signalling overrun suggested other elements of the £2 billion investment might run into trouble, the spokesman said all other aspects of that plan were proceeding "on time and on financial schedule".

Meanwhile, the group implied it wanted the Government to grant it a fare increase. "The cost of putting more trains and buses into service is not a onceoff payment. Maintaining these extra services will entail increased but necessary operating costs to CIE."

Citing the investments, the spokesman said: "Certainly given this context, some level of fare increase is called for."

The level of increase would be for the Government to decide, he said, adding that State support for rail and bus services was among the lowest in Europe.

In the background lie plans by the Minister for Public Enterprise, Ms O'Rourke, for ownership and structural change at CIE. But given the group's industrial relations, major developments are not expected before the next general election.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times