Commuters face hike in bus and rail charges

BUS and rail commuters are set to face higher transport costs in the near future as Iarnród Éireann and Bus Éireann have both applied to the National Transport Authority for fare increases.

Already, hard-pressed consumers face a price hike from next week after it was confirmed that Dublin Bus fares are to increase by up to 4.5%.

The transport authority confirmed yesterday that it has authorised a 5c-10c increase on adults fares on Dublin Bus services from February 6. The increases represent a price rise of between 2.8% and 4.5%.

A decision on applications for fare increases by the other two companies in the CIÉ group is expected within the next few weeks.

Dublin Bus had sought an average fare increase of 6.3%. However, the authority rejected Dublin Bus’ application for a 5c increase on all child fares, while pre-paid tickets will not be subject to any price increase.

It is believed Iarnród Éireann and Bus Éireann have sought increases that average over 6%.

The authority warned that fares could be further reviewed if Dublin Bus was to suffer a significant reduction in passenger numbers over the coming year, while some bus routes might also face a reduction in services.

Dublin Bus said that its passenger numbers had fallen by 29 million between 2007 and 2010 — a decline of 18%. It is estimated the company has suffered operating losses of €41 million over that period.

The request for an increase in fares across CIÉ became almost inevitable after former Transport Minister Noel Dempsey confirmed last November the Government was reducing the state’s annual subvention to the CIÉ group by almost 4.5% this year.

The three CIÉ companies — Bus Éireann, Dublin Bus and Iarnród Éireann — are to see their combined subsidy fall by €12.5m this year to €266m.

Speaking last November, Mr Dempsey claimed any request for a price increase for bus and rail fares would have to be justified. The former Transport Minister said he believed the shortfall could be offset by CIÉ through rationalisation and administrative savings within the group that had been highlighted in a recent consultant’s report.

The NTA said yesterday that Dublin Bus had already implemented a range of cost-saving measures worth €40m per annum and would benefit from new NTA initiatives due to be launched later this year including real time passenger information for bus commuters, integrated ticketing and an improved online journey planning facility.