The State subvention paid to Dublin Bus rose by more than £15 million (#19 million) last year to £25.5 million, The Irish Times has learned.

It is understood the bus company's latest annual report will show it recorded a "surplus" of about £7 million in 2000, which is taken from the total State payment of £32 million to derive the subvention.

The subvention in 1999 was £10.4 million, when the company earned a surplus of £2.6 million.

It is understood the subventions paid to the other CIE companies, Iarnrod Eireann and Bus Eireann, also rose last year. In 1999 the rail company received £123.1 million from the State and Bus Eireann received £5.8 million.

According to sources, the rise in State support reflects increased commitment to public transport.

Figures compiled in Jane's Urban Transport Systems show that Dublin Bus had a cost recovery rate of 71 per cent in 1999-2000, down from 96 per cent in 1993. This means the State paid 4 per cent of Dublin Bus's costs in 1993 - the lowest rate of support in Europe that year - and 29 per cent in 2000 and 1999.

This contrasts with 74 per cent state support last year in Rome, 65 per cent in Amsterdam and 58 per cent in Paris. London transport companies received 14.5 per cent state support, Jane's said.

The Dublin Bus annual report, which has yet to go to the Cabinet, will show payroll costs rose to £86.3 million from £72.3 million.

The rise was caused by the recruitment of staff and a pay deal agreed with unions in April. More than 400 new buses were purchased under the National Development Plan in 2000 and 1999.

Dublin Bus opened new Quality Bus Corridors this year, though it said gridlock causes bus speeds of only five miles per hour on some corridors.

The cost of services and materials rose to £36.9 million from £32.7 million.

Depreciation costs rose to £14.2 million from £10.5 million, reflecting a move to a 10year depreciation period last year. The company adopted a 10-year depreciation period in January 2000. Depreciation was spread over 12 years before then.

Total operating costs last year rose to £138.1 million from £117.6 million in 1999, while revenues rose to £112.8 million from £107.4 million in 1999.

The Minister for Public Enterprise, Ms O'Rourke, last year proposed the establishment of an independent public transport regulatory body. While the plan said the State should increase its support, it should do so only by awarding contracts for services of defined quality and quantity. While Dublin Bus would be constituted independently under this plan, transport insiders believe no change is likely before an election.