Fares on CIÉ's bus and rail services and on the Luas are to increase by nearly four per cent from next month.
The increases, which were sanctioned by the Cabinet yesterday, are expected to add about five cent to the cost of most journeys on Dublin Bus and Dart services.
However, another semi-state company, An Post, has had its application for a rise in the price of stamps on standard letters turned down by the regulator, ComReg. An Post wanted the price of posting a standard letter to rise from 48 cent to 60 cent, a jump of 25 per cent. ComReg said insufficient evidence had been submitted to justify this and said it wanted An Post to offer better value for money.
However, the regulator did sanction a rise in the cost of large envelopes and parcels. The changes will not be implemented for another three months.
Minister for Transport Martin Cullen said last night he had rejected requests by the CIÉ companies (Iarnród Éireann, Dublin Bus and Bus Éireann), as well as from Luas, for increases in fares of up to 7.5 per cent. Government sources said Dublin Bus had sought an increase of up to 15 cent per journey.
The Minister said that following detailed examination of the applications from Iarnród Éireann, Dublin Bus, Bus Éireann and Luas, he had decided that an increase of 3.8 per cent in fare revenue for 2006 was more appropriate.
There will be no increase in fares for Luas passengers who purchase smartcards or who buy tickets through sales agents such as newsagents.
This move is aimed at encouraging people to pre-purchase their tickets and to reduce queuing at ticket vending machines at Luas platforms.
The increases approved by Cabinet yesterday will come into effect from early January.
Mr Cullen said that in making his decision to reject the fare increases sought and to sanction lower rises, he was "conscious of the requirement to achieve a balance of the impact on the customers of CIÉ and Luas with the need to sustain the financial health of the companies".
The Department of Transport said last night that it understood Iarnród Éireann, Dublin Bus, Bus Éireann and Luas would now finalise the details of their new fare structures.
A spokesman for CIÉ said it welcomed the fare increases sanctioned by the Government.
It is understood that the annual Exchequer subvention for the CIÉ companies will also increase in line with the rate of inflation next year.
A spokesman said the three CIÉ constituent companies had experienced significant increases in costs, particularly in relation to fuel and labour, in the last year.
Bus and rail fares were last increased a year ago. In December 2004 Mr Cullen approved increases of 3.5 per cent.