Planned cut to CIE subsidy will see ‘increase in fares’

THE CIE Group of companies is projecting a combined loss of €25 million this year, with passenger numbers expected to drop by 5% in 2011.

The projected loss is disclosed in an internal Department of Transport review that has found that the planned 20% reduction in subsidy announced for the CIE group would lead to “a radical increase in fares and significant service reductions”.

Last week, the Minister for Transport, Tourism and Sport, Leo Varadkar announced an 8% or €21m reduction in subsidies for the CIE group next year and confirmed an additional €32m reduction between now and 2015 resulting in the overall 20% subsidy reduction.