Bus, rail prices to rise 10pc as passenger numbers fall
Saturday December 06 2008
Commuters and bus passengers are to face a 10pc fare hike from the New Year. Transport Minister Noel Dempsey has sanctioned the increase as the CIE group of companies face crippling losses for 2009.
CIE -- which includes Dublin Bus, Bus Eireann and Iarnrod Eireann -- had sought a 20pc increase and last night Mr Dempsey approved a hike of 10pc which will see Dublin Bus fares rising by 10 cents for an adult and 5 cents for a child.
Train fares on DART, commuter and inter-city services are expected to increase by 10pc across the board, with similar increases for Bus Eireann.
The hike comes on top of a controversial 20pc increase in on-street parking charges in Dublin city centre and a 0.5pc rise in VAT. But Dublin Bus is only receiving the increase in return for making wide-ranging reforms of the bus network.
Improved
Extra buses will have to be provided on poorly-served routes, and journey times improved to encourage people onto public transport.
An improved service is essential as the capital faces the 'big dig' next year as construction work on Metro North begins.
Large parts of Dublin city centre will be closed to car traffic, meaning that workers will rely on Dublin Bus to move them around the city.
The last time CIE sought a fare increase was 2007 when it received a 5pc increase.
The fare hikes come as the country's public transport operator faces crippling deficits next year. Last month it emerged that hundreds of jobs could be lost as the company faced losses of €131m.
Redundancies at Bus Eireann and the withdrawal of some services, garage closures and a pay freeze are all being considered as passenger numbers fall and the company comes under severe financial pressure.
The company's bus services have been particularly hard hit by mounting fuel costs and losses caused by congestion adding to its financial woes.
Among the measures being considered include the withdrawal of 100 buses in the capital through reduced frequency on some routes, and withdrawal of others.
The fare increase is expected to reduce the €131m deficit by €45m, but the group will still have to trim costs, especially as bus passenger numbers are down by 4pc so far this year, while rail passengers are down by 1pc. The capital's main transport operator has seen passenger numbers fall despite investment in new buses, a position described as "unsustainable".
Money
"For Dublin Bus, we have to make sure we grow passenger numbers in 2009. If numbers aren't growing, we can't keep throwing money at it," a source said.
"Dublin Bus will have to look at population centres and routes to make sure people are getting into the city quickly."
Dublin Bus said it had provided new services in growing areas of the city, and was working to improve the quality bus corridor network.
There are a number of other proposals under way to get buses moving in Dublin.
The Dublin Transport Authority will take over responsibility for a number of areas.
A major Deloitte report into efficiencies in Dublin Bus will also recommend changes.
Excerpts of the report, seen by the Irish Independent, show that an increase in capacity did not lead to a substantial increase in passengers between 2000 and 2008.
In 2008 CIE got €308m, with €191m for Iarnrod Eireann, €36.8m for Bus Eireann and €80.6m for Dublin Bus.
- Paul Melia and Patricia McDonagh
