Minister warns of inevitable change after CIE posts € 7.8m loss

CIÉ has posted a deficit of €7.8 million for 2001, compared with a surplus of €21.9 million the previous year. Over the same period, the Government's financial support for the company increased by 20 per cent to reach €245.1 million, writes Una McCaffrey.

CIÉ yesterday attributed the negative performance to the cost of extra transport services provided under the National Development Plan, and rising wage costs associated with national pay agreements and increased staff numbers. Payroll costs increased by €75 million last year.

The company has called for fare increases of up to 20 per cent across its services, arguing that, in real terms, CIÉ's fares are 13 per cent cheaper than they were 10 years ago.

The Minister for Transport, Mr Brennan, described the results as "extremely disappointing" and said they were "a cause of concern to Government".

In the course of a radio interview, Mr Brennan said repeatedly that "change is inevitable" at CIÉ and called for "serious talks" with interested parties over coming months.

"People are working very hard in this system but the system itself is not working," said Mr Brennan.

The Minister said that he was not interested in discussing fare increases until the wider context was addressed. "It can't go on this way," he said.

A spokesman for CIÉ said the future financial position of the company was a matter for the Minister, adding that "a happy balance" between Government subvention and fare increases was desirable.

"It's for the Government to determine what the level of the service is. We can operate whatever they want," said the spokesman.

The Government now contributes 78 cents to the average public transport journey, a level that CIÉ argues is small "in the context of public transport's role as the solution to traffic gridlock". CIÉ claims gridlock costs the company's bus divisions €47 million every year, with €13 million of this lost on Dublin Bus routes.

CIÉ's annual report shows that passengers made 318 million journeys on the company's bus and rail networks in 2001, the largest number for more than 25 years.

Dublin Bus passenger numbers rose by 3.6 per cent to 196.7 million over the year, with the company reporting a surplus of €1.1 million.

Bus Éireann, meanwhile, recorded a deficit of €4.4 million, compared to a surplus of €6.1 million in 2000. CIÉ attributed this to the provision of new services.

The company's rail division, Iarnród Éireann, which attracted expenditure of €223 million last year, ran €6.7 million over budget, according to the annual report.

Elsewhere in the group, CIÉ Tours International generated a profit of €1 million, while outdoor advertising business Commuter Advertising Network recorded a net profit of €4.9 million, up from €2.8 million in 2000.

The company's property division saw rental income produce a profit of €5.3 million, a performance that CIÉ describes as "excellent".

Labour Party spokeswoman on Consumer Affairs Ms Mary Upton last night urged Mr Brennan to reject any application from CIÉ for increased fares, calling instead for increased Government subvention.

"The level of subvention for public transport in Dublin is one of the lowest of any European city of comparable size," Ms Upton said.

The Green Party has demanded, meanwhile, that the Government outline its plans for CIÉ, arguing that the current policy "is all wrong".

"It is clear now that the Government has no faith in the current CIÉ management as a key element," said Mr Eamon Ryan, Green Party spokesman on transport.