CIE is expected to announce a sharp rise in "profits" - up by approximately £6 million, to £17 million last year, compared with 1998. The results, which it is understood will be published this morning, will also show a corresponding sharp rise in Exchequer subventions. It is understood that the figures, approved yesterday by the Cabinet, will show that last year the CIE group of companies got £142 million from the Government to help run the group. This compares to £107 million in 1998. However, last year's increase includes an extra £29 million which was designated for improving rail safety.
The bulk of the group's subvention goes towards the upkeep of rail infrastructure and unprofitable services and last year was no different. It is believed the company will spend up to £100 million this year on rail safety, compared to around £76 million last year.
The company is also set to announce an increase in passenger numbers, up 4 per cent to around 310 million. The results will also show an increase in investment in new buses, partly funded by the EU as well as CIE.
The results will provide the first outing for the group's new executive chairman, Mr John Lynch, former director general of FAS, the State training organisation. He has taken over the role at a time when CIE has been riven by the train-drivers dispute and when restructuring plans are being implemented.
The previous chairman, Mr Brian Joyce (a non-executive chairman), resigned earlier this year, citing "fundamentally differing views" from the Minister for Public Enterprise, Ms O'Rourke, over the autonomy over the troubled group.
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