TheJournal.ie uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Click here to find out more »
Dublin: 10 °C Thursday 23 May, 2013

Varadkar says CIE transport fares could increase

However the Minister for Transport said a rise in fares could have a damaging impact on the demand for CIE services.

Image: Julien Behal/PA Archive/Press Association Images

MINISTER FOR TRANSPORT Leo Varadkar has said he cannot rule out further fare increases after the government announced yesterday that it will boost its funding of the public transport provider by €36 million.

In an interview on RTE’s Morning Ireland this morning the minister commented that the financial position of the company has been deteriorating for some time. He said CIE was “caught in a perfect storm of falling passenger numbers, rising fuel costs and up until yesterday reduced government subvention”.

Varadkar said that although he could not rule out further increases in face any rise would likely affect the demand for services which has already dropped.

“Fares did go up in January of about five or six percent and you could argue and it probably is the case that that’s why passenger numbers fell”, he said.

When the monopoly contracts for Bus Éireann and Dublin Bus are up for renewal in 2015, Varadkar said the government would be considering opening up some of the routes to the private sector.

Alan Kelly, Minister of State for the department told Newstalk Breakfast that completely replacing CIE services with public sector alternatives was not a viable option for the government.

“There are many services around the country which are loss-making which are necessary in order to distribute people, whether it’s to work or school, and private operators simply would not operate those services”, he said.

The €36 million increase in CIE funding brings their total subvention this year to €278 million, the fourth highest allocation ever.

Read: CIE handed extra €36m ‘to protect public transport’ amid funding fears>

Read next:

Comments (60 Comments)

  • The logic of CIE: passenger numbers are falling and we’re not bringing in as much revenue. Solution: increase fares. Clever

    Reply
  • If the fares were cut then they would attract more passengers to use the service. It’s already ridiculously expensive on more Bus Éireann and Irish Rail services. If private firms can do Galway to Dublin for a tenner (with free wi-fi, nice buses, 2.5 hours travel time) then why can’t Bus Éireann. Rail is beyond a joke! €60 return to Ennis from Dublin last time I took the train between the two. I much prefer travelling by train but at those fares there isn’t a hope in hell I’ll be getting on a train for that journey any time soon!

    Reply
    • Eoin, rail was always a luxary form of transport (although in Ireland you wouldn’t think it). Hence the higher prices, CIE target a different demographic to use their rail service over bus. While that’s normally fine, it annoys me that even with the high prices they make a loss and the tax payer has to bail them out each year.

      I do wish that the Irish government did not nationalise the rail in the 1950s.

      Reply
  • The perfect storm could calm if the government reduced fuel prices. Most of what we pay goes to them. And why has petrol shot up again in the last week after steadily declining for a few weeks?

    Reply
  • My monthly train ticket is 102€ and if I ever want to visit Dublin its 41€ for me which is grand but it’s 71€ return cork to Dublin and only 30€ on diesel up and down on the motorway and it’s quicker. So why go on Irish rail?

    Reply
    • Paul 25/07/12 #

      Is that agricultural diesel or are you driving a moped? We spent nearly €80 on petrol in a tiny rental car Dublin Cork and back a few months ago

      Reply
    • Book ahead by 3 days and the Dublin Cork train is only 30 euro return. Last minute fares cost more, but that’s the same as airlines as well.

      Reply
    • Irish Rail aren’t competing with flying but with cars, where a last-minute trip costs the same.

      Reply
    • The same company running rail and bus, I don’t know what idiot allowed that to happen. Split CIE up so they have to actually compete with each other. Ideally privatise it and let the market decide.

      It is much cheaper to drive than to use the train, even with early booking, unless you’re only going from city centre to city centre. Otherwise you’ll have to get a taxi or rental car or further public transport costs to get to your destination.

      Reply
  • Peter 25/07/12 #

    600000 people on travel passes surely this needs to be means tested

    Reply
    • Tommy 25/07/12 #

      Exactly, the days of free travel should be over. Diesel is just too expensive.

      Reply
    • Tommy 25/07/12 #

      Exactly, the days of free travel are long gone. Everyone must contribute to the services they use. Fuel is just too expensive..

      Reply
    • It is means tested but some people seem to be able to get it all.I would agree that there should be some contribution to the fare from peole with the pass. It is wrong to increase the fare when people are already struggling. Everytime it is the working person that is screwed.It has reached a situation that everyone pass or not should contribute to the bus fare in some form.

      Reply
  • If you do that then give us something worthy of travelling on with a service that’s second to none. On time.

    Reply
  • Want people on buses?
    - Make them cheaper, not more expensive.
    - Modernize the fleet
    - More bus gates
    - Have more routes feed Dart and Luas
    How do we pay for all that?

    The answer is pretty simple here. Barrier free congestion charging in the city centre, with the money going towards improvements in bus and cycling infrastructure. More people cycling, more people taking public transport, less traffic in city centre.

    The money would have to go back into upgrading and reforming the transport system, but I think it would work.

    Reply
  • It’s very simple: fares go up, passengers go down. We’ve had repeated increases in the last few years and the service has just got worse!

    Reply
  • Minister Vararardakaer, I use a bicycle. Would you like to tax that too? Perhaps I could pay a rate based on the number of revolutions of my wheel each day?

    Reply
  • The country should be plastered in railways, just like every other country in the EU …I’ll probably get thumbs down for this next statement but the Germans should be brought in to show us how things should work…

    Reply
  • Dear Irish Government,

    Here’s an economics book.

    Regards John…………

    Dear John,

    What’s economics?

    Confusingly yours, Irish Government

    Reply
  • Obviously they’ll increase the Fare, how else they’ll make that €36Million back? Wouldn’t be surprise to see CIE bus going on 3-4 hours journey with only 8-10 people on it n with 3-4 of them have travel pass.

    Reply
  • Travel fares in Ireland is cheap compared to UK.

    Reply
  • finbar m 25/07/12 #

    Have you ever got a bus in the uk ,,,, twice the price

    Reply
  • More Fliddling sumbags with there passes roll on the the cuts in SW may it be 100% to the con men and women ,, leave it alone to the ppl who need it

    Reply
  • I think it’s fair to say it’s a fare increase

    Reply
  • Higher increase in fares,same crap services!!!

    Reply
  • CIE, yet another inneficient semi state service, where middle & senior staff are overpaid, not to mention some junior staff. It’s administration is over bloated & inneficient.

    Cut overpaid slaaries, streamline inneficiencies at the top end & admin and there would be huge savings to be made. But Varadker would rather have less paying customers by hiking prices.

    Once more the Clownish beahaviour of Govt shines through…!!!

    Reply
  • I do admire the hundreds of empty Xpresso buses that glide around the city centre though, they’re very graceful and light on their wheels, most mornings at College Green bus stop you will see 6 Xpresso’s within 5 minutes with a total of 5 passengers between them, now that my friends, is efficiency

    Reply
  • Peter 25/07/12 #

    Privatise this please we can’t afford this nonsense any longer

    Reply
    • Rob 25/07/12 #

      I agree in principle but the problem is privatizing will result in higher fares. To the private sector, it’s a monopoly.

      Reply
    • Scarr 25/07/12 #

      Privatising is fine if you’re in or around the city centre but if you’re away from main already under-served routes, then you better buy granny a good pair of walking shoes this Xmas.

      Reply
    • @ Rob – maybe we can tell them all to stop paying tax, that should bring the fares down. You’d know all about that, why don’t you apply for an advisory job there.

      Reply
    • CIE is a public monopoly, whenever a private company tries to compete with a better service or new route CIE scrambles to saturate that route and drive out the competition. If a private company did this it would be in court. Shane Ross has an on going series of articles on CIE and how muddy that organisation is, with zero transparency for the tax payer.

      @Rob – CIE is already a state monopoly that makes massives losses each year that the tax payer must cover. If the Irish tax payer keeps giving it a blank cheque each year they’ll never be efficient – what’s the incentive? If the bloat was cut fares may not have to increase too much.

      @Scarr – You won’t like this comment, but maybe if your granny paid to travel on public transport we could afford to keep the route. The time of free public transport for OAPs needs to be looked at, as a country we can’t afford it.

      Reply
    • Scarr 25/07/12 #

      @joe – I don’t mind that comment at all. I don’t see anything wrong with granny having a free bus pass, it’s the bus pass recipients onthe periphery that bother me more. I’m not opposed to privatising necessarily, but it cannot be a case that all the plum routes are saturated and then everything else be ones busless. Tenders should be done on existing routes and best tender wins. Simple enough. There’s nothing stopping 1,2 or 3 operators having the same route.

      Reply
    • Leo Varadkar spoke very differently in opposition. From the speech he gave on a FG Private Members motion from December 2010 on Consumer issues when in opposition:

      “The Minister for Transport, Noel Dempsey has agreed to a 5% increase in bus and train fares to assist CIE in meeting the costs of the pay deal and the fall-off in fares due to recession and emigration. CIE should not increase fares. They should follow the example of the broader economy by cutting costs and cutting fares to increase custom. Luas fares will increase by 4.1%.”
      http://www.leovaradkar.ie/?p=252#more-252

      Reply
    • Rob 25/07/12 #

      Joe wrote: ” whenever a private company tries to compete with a better service or new route CIE scrambles to saturate that route and drive out the competition”

      Really??? That’s why a private company is ALWAYS charges higher fares on the same route? It’s called corporate greed. I’d much rather have a regulated public transport system than a greedy private company.

      Reply
    • Rob 25/07/12 #

      Cllr David McGuinness,

      You are trying to shill this stuff for the next election. You are merely talking your book. Fianna Fail bankrupted this country by tying our fate to doomed banks. You never invested in a viable public transport system. The results are now coming home to roost.

      Reply
  • if they reduced the prices the trains /buses would be full…

    better than empty buses/trains at ridiculously high prices.

    dopes ..

    Reply
  • Reduce the fares – more people will use the service. Simples!
    Any Q’s, ask Michael O’Leary how it’s done :-)

    Reply
  • Varadkar is just another gombeen Irish politician trying to please his Europhile banking elite overlords in the ECB/IMF.
    Rising bus fares are the tip of the ice berg,
    Varadkar and FG/LP couldn’t care less about the ordinary man or woman who will suffer the consequences of this ill thought out plan. In his desperation to please his Bosses in the IMF/ECB etc., he and the rest of the morally bankrupt FG/LP coalition have turned their backs on the people who elected them, discarding the pre-election promises they made in order to get elected.

    But hey, if you voted yes to the last treaty on austerity you deserve every increase in services and tax that is coming your way. The unfortunate thing is, a large minority will suffer the same faith because the Yes voters allowed themselves to be manipulated and scared into voting yes to austerity.

    When will you people wake up and learn that the politicians in Ireland couldn’t care less about you..in any way, they dont care if you are struggling to pay bills, they dont care if you dont have a job or education, they dont care if patients are sleeping in hospital corridors on chairs for 3 days straight waiting on a bed, they dont care if the tax payer is forced to take on the burden of hundreds of billions of euro of debt that is not theirs, as long as the politicians continue to go into politics for the money and power Ireland will always be a corrupt, redundant rip off Republic.

    But it doesn’t have to be this way, people power is the most potent force on this planet and can bring about real change, educate yourself on the facts, dont accept the word of any politician without questioning it, use critical thinking to analyse what they say and why they say it.

    Reply
  • Matthews coaches :-)

    Reply
  • Rob 25/07/12 #

    As usual, they chose the nuclear option. This will justify their cuts to future routes in next years budget once passenger numbers fall. Deal with the real cause: the high salaries to the public sector. Not the services.

    Reply
  • Should be interesting when there are 20 people left who use the bus and ticket prices are a few million each.

    If numbers are down they should just have more single deckers.

    I actually think Dublin would be a better city without all these tall, smelly, noisy moving walls speeding through the city.

    Reply
  • They can increase the fares all they like because I have a Free Travel Pass :)

    Reply
  • CIE should be privatised – subsidise the unattractive routes through a tender process open to all operators. As some have already stated CIE has used bully tactics to kick private operators off of routes removing choice from the consumer.

    Reply

Add New Comment