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CIE saved by Government aid

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Leo Varadkar,TD,the Minister for Transport,Tourism and Sport   at Leinster House yesterday.Pic Tom Burke 24/4/13

Leo Varadkar,TD,the Minister for Transport,Tourism and Sport at Leinster House yesterday.Pic Tom Burke 24/4/13

Leo Varadkar,TD,the Minister for Transport,Tourism and Sport at Leinster House yesterday.Pic Tom Burke 24/4/13

EMERGENCY Government aid and selling assets saved CIE from a deficit of €4m last year.

The company's annual report shows it received a €36m subvention payment last year and in addition got a further €20m from the sale of properties in Spencer Dock in Dublin.

Revenue was down €64m last year compared to the previous year and the group had an operating deficit of €295m before the State grants and the sale of property were taken into account.

The annual report also predicts further deficits this year and next year with the company returning to profitability by 2015.

The troubled financial situation at the transport company was raised at yesterday's Cabinet meeting where Transport Minister Leo Varadkar (right) presented the report.

Earlier this year the Government approved an extension of CIE's credit facilities for its €100m in borrowings.

It is understood the Government has no plans to take any immediate action on the company's financial situation.

Long-term policies to improve the financial situation of the company have already been put in place and the Government is believed to be confident that the group's projections of a return to profit by 2015 will come about. The predictions are based on no industrial action at the company, following the action by bus drivers earlier this month which cost €200,000 a day.


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