Why muted response to CIÉ attack?

It is interesting to note the muted response to Transport Minister Leo Varadkar’s “withdrawal” of the additional €36m subvention to CIÉ. Still less his stated reasons for doing so.

While Mr Varadkar did inform the trade unions at their meeting (Sep 19, 2012) that he hoped to see a speedy conclusion to the cost-cutting plans, he did not make it a pre-condition for the then expected €36m. So, why did he change his mind? What has made the minister suddenly accept the original preferred option of his officials at the Department of Transport, Tourism & Sport, ie for CIÉ to obtain a loan from the National Reserve Pension Fund? An option which will place additional liabilities on the fragile financial position of CIÉ.

The minister also implied that CIÉ was dragging its feet in selling off some of its assets in order to fund the Irish Rail Voluntary Severance package (€20m). This is not true. There is a tendering process which cannot be fast tracked.