Revenues at CIÉ drop by €47m to 2006 levels

REVENUES AT State-owned transport subsidiary CIÉ are back at 2006 levels, having slumped by €47 million last year, from a peak of €789.1 million in 2008, leading the group to record a loss for 2009.

According to the group’s annual report, a considerable decline in passenger volumes led to the group’s profit of €10.2 million in 2008 being turned into a loss of some €77.7 million for 2009.

Although the group reported a positive outcome on its pension performance during the year, it nonetheless only made a slight dent on its pension deficit of over €500 million.

According to CIÉ, the group, which includes Iarnród Éireann, Dublin Bus and Bus Éireann, made a loss in 2009 due to a combination of factors, including the overall tough economic environment which led to a decline in passenger numbers of almost 11 per cent on 2008, and the loss of the excise duty rebate of €22 million.

CIÉ also saw a reduction in State funding last year, with the Government’s public service obligation (PSO) falling by €5.1 million, down to €316 million, 58 per cent of which was accorded to Iarnród Éireann. Without this subsidy, total losses at the group would have come close to €400 million. When the grant for the National Development Plan of €438.5 million is included, total State funding for CIÉ came to €754.5 million in 2009.

The group recorded losses amongst its three subsidiaries, with a decline in passenger numbers largely to blame.

Iarnród Éireann reported a deficit of € 32 million, up from €19.1 million in 2008, as passenger revenues fell by €17 million.

Similarly, Dublin Bus also suffered during the year, “due to the depth of the economic downturn which resulted in a significant reduction in sales”.

It reported a deficit of € 12.9 million as customer journeys fell by 10.6 per cent.

Bus Éireann incurred a deficit of €11.2 million last year, again due to a decline in passenger journeys, which fell by 9.3 million in 2009, while the loss of the excise duty rebate in respect of fuel used on road transport operations added €10 million to its cost base.

A gain of some €23 million was made on the group’s pension scheme, a remarkable turn-around on the € 422.6 million which was lost in 2008.

Despite this strong performance, the pension scheme remains in deficit to the order of €547 million, only a slight improvement on 2008’s deficit of €567.6 million.

Board members’ remuneration at CIÉ increased by 4 per cent during the year, up to € 665,000. CIÉ executive chairman Dr John Lynch was paid €235,215 in 2009, down from € 239,602 in 2008, while board members were paid €16,333 in directors’ fees.

Overall payroll and related costs declined by 6 per cent in 2009, dropping down to € 579.2 million, as employment numbers fell slightly, declining by 3 per cent, or 385 people during the year, down to 11,463.