[article] 10% fares hike on the way

[Mark Gleeson]

Originally Posted by Sunday Tribune

Appalling economic vista triggers public service plan
Shane Coleman Political Editor
Outside body to tackle numbers as government approves inheritance tax rises and CIE fares hike

Brian Cowen
FINANCE minister Brian Lenihan is to recommission An Bord Snip, the legendary body assembled by Charlie Haughey in 1987 to cut spending in the public service, the Sunday Tribune has learned.

An expenditure review group made up entirely of non-public servants ill be appointed by Lenihan this month with a brief to conduct an extensive review of public sector numbers and programmes, with a view to making substantial savings for the exchequer.

The Sunday Tribune has learned that CIE is to set to be granted an average fare increase of 10% by the government in the coming weeks just half the 20% sought by the state transport group in September.

..snip..

Meanwhile, transport minister Noel Dempsey is expected to bring a proposal to cabinet in the coming weeks recommending an average increase of 10% in CIE fares and a rise of 6% in Luas tickets.

A spokesman for CIE said yesterday that the company had applied for a 10% increase. However, government sources insisted that CIE lodged an application for a 20% rise in fares last September, citing increased fuel and labour costs. At the time, the company was projecting a very significant total loss of €131m for next year without any fares increase.

It is understood the government has ruled out an increase of anything close to 20%, but will agree to a compromise increase of 10%. However, following discussions with the Department of Transport, CIE will be expected to introduce a number of measures designed to protect the financial position of the group. These will include reductions in services on loss-making routes and measures to improve bus priority and bus journey times.

http://www.tribune.ie/news/article/2...lic-service-p/

[Mark]

Does the 'company' ever disclose what routes are loss making?

[Mark Gleeson]

Originally Posted by Mark

Does the 'company' ever disclose what routes are loss making?

None of Irish Rail's routes make a profit, the accounting is so confusing its hard to tell. But Dublin Cork and the Dublin suburban area are very close to break even

Dublin Bus are in serious trouble as the fuel price hike hurts the bottom line a lot harder. In short the 747/748 and Nightlink are profitable everything else is PSO, though within that there are goldmines like the 46A

[Colm Moore]

Originally Posted by Mark

Does the 'company' ever disclose what routes are loss making?

On a purely financial basis, its widely believed to be everything that isn't Cork-Dublin. Dublin suburban probably breaks even.

On an economic basis (that is including the wider economy) getting people to work is rather important. We can't afford to not have railways.

[markpb]

Originally Posted by Mark Gleeson

Meanwhile, transport minister Noel Dempsey is expected to bring a proposal to cabinet in the coming weeks recommending an average increase of 10% in CIE fares and a rise of 6% in Luas tickets.

I thought Veolia operated the Luas as a fixed price contract. Why would a ticket price increase be required?

[Mark Gleeson]

Veoila run the service, but the RPA take in all the income. The RPA pay the electricity bill and any non routine maintenance costs.

Veoila is not quite on a fixed price deal, the amount per year is fixed, obviously enough Veoila has to deal with staff costs

Then again they only looking for 6%, the other crowd where looking for 20%. The RPA don't have to seek the DoT's permission for a hike