CIÉ has reported a deficit of €7.8 million for 2001, a massive plunge from its surplus of €21.9 million in the previous year.
The State company has blamed the deficit on improved bus and rail services and rising wage costs. CIÉ carried over 318 million passengers last year, up from just over 300 million in 2000.
CIÉ has applied for permission to raise bus and rail fares by up to 20 per cent.
It is seeking to increase fares on Dublin Bus by 19 per cent; Bus Eireann fares by 14 per cent and rail and DART fares by 10 per cent. The increase is for operational costs, including wages.
The application was made to the Department of Transport 10 days ago. The Minister for Transport, Mr Brennan, suggested today that price increases would be conditional on the company improving its organisational structures.
The Labour Party insisted today CIÉ’s fare rise application be rejected in favour of increased State funding for the public transport system.
The Government invested €245 million on public transport last year, an increase of €41 on the previous year.
"At a time when Dublin is slowly grinding to a halt because of its chronic traffic problems and when the absolute priority should be the encourage the greater use of public transport, it would be an act of folly to increase bus fares," Labour’s transport spokeswoman, Ms Mary Upton, said.
"The Government will also have to accept that if the public are going to be subjected to repeated increases in charges for public services . . . then workers will inevitably have to seek compensation through increased wages and salaries".