CIE seeks bus and rail fare increase of 10%

CIE is seeking a 10 per cent increase in fares "across the board" for all buses and trains, it was revealed yesterday. The proposal is being assessed by the Department of Transport and a decision is expected before the end of this year.

The admission by the company's chief executive, Mr Michael McDonnell, comes just four weeks after its chairman, Mr Brian Joyce, said CIE was not considering any fare increases, despite mounting losses and record borrowings, currently running at £200 million.

At the launch of a major investment programme for the railways, Mr McDonnell said the last increase was in 1991 and there was a need for more "flexibility" on fares. Since then, wage costs had gone up by £90 million as a result of national pay deals.

But the Minister for Transport, Mr Lowry, gave no commitment that the Government would agree to the fares increase. "We have to keep an eye on the fact that people will only use the public transport service if it's competitive and we will make our decision in that context."

He agreed that the service provided by CIE on the mainline railways was "appalling" and said this was due to "gross under investment" over the years. However, without EU grant aid at 85 per cent of the cost, he conceded that the latest injection of funds "would not have been possible".

Mr McDonnell said the investment programme inaugurated "a major new era for public transport" in Ireland and he was "delighted" by the speed with which it had been arranged. He gave an assurance that the money would be well spent as a "golden opportunity" to improve the rail service.

The programme will cut rail journey times. Dublin Sligo would be reduced by 30 minutes to two hours and 45 minutes; Dublin Waterford by 25 minutes to one hour and 50 minutes, Dublin Tralee by 20 minutes to three hours and 15 minutes, and Dublin Galway by 15 minutes to two hours and 15 minutes.

A previous EU funded investment in the Dublin Belfast line will reduce journey times between the two cities to a little over an hour and a half from this autumn. But the Dublin Rosslare line is not being upgraded because the European Commission was not convinced that it would be worthwhile.

Mr Lowry had confidence in CIE's ability to deliver the investment programme "within budget and on time". Work would start within a month on the mainline rail projects. The DART extension to Greystones was also "ready to start", while preparatory planning had been concluded for the Malahide link.

Referring to the Dublin light rail project, the Minister admitted that it had got a "bumpy ride" and he blamed this on "political opportunism". He also repeated the Government's commitment to build three lines, serving Tallaght, Dundrum and Ballymun - even though the latter has been deferred.