State to spend extra €28m on bus and rail

The Government plans to spend an extra €28 million on boosting bus and rail services in 2016.

The Department of Transport, Tourism and Sport will receive €1.74 billion next year to help it tackle growing demand for commuter services and promote the Republic as a holiday destination.

The increased allocation will include an extra €28 million for public service obligation funding for train and bus services around the State.

This money will be used to increasing services on Dublin Bus and Bus Éireann routes, including those operated under the rural transport programme, opening the Phoenix Park tunnel for commuter transport, and improvements to the Dart light rail.

Minister for Transport, Tourism and Sport, Paschal Donohoe, pledged that the extra cash would enhance the current level of services.

“This is the first time since 2008 that PSO funding has been increased and this allocation represents more than half of the reduction in PSO funding since 2011, at €53 million,” he said.

Overall, the Government intends to increase transport spending by 7 per cent to €1.37 billion.

This will include €555 million for road maintenance and building and €347 million for investing in public transport projects, including rail mainteance, the Luas cross-city project in Dublin and bus-fleet renewal.

Tourism spending will increase by 1 per cent to €121 million and the allocation will include €2 million in extra cash for overseas marketing and the 2023 Rugby World Cup bid.

In his budget speech, the Minister for Finance, Michael Noonan, said that the Government would not increase the special 9 per cent VAT rate for the hospitality sector.

Mr Noonan noted that hotel room rate rises in Dublin indicated that the special measure, introduced in 2011 to boost competitiveness, is less needed in the capital than around the rest of the Republic.

However, he added “the case for retention of the measure for the rest of the country remains”.

The Government is earmarking €27 million for the civil aviation programme, an increase of 2 per cent on 2015. Regional airports will receive an extra €600,000 to a total of €12.6 million.

The maritime programme will receive an extra 7 per cent to €93 million. This will include extra money to ensure the Irish Coast Guard maintains its current level of service through the SAR helicopter project.

Sports funding will increase by 40 per cent next year to €126 million with €31 million going to completing the National Indoor Arena by next November.