Unprofitable rail services may be reduced, replaced

Iarnród Éireann has warned the number of services on some unprofitable routes may have to be reduced, and possibly replaced by Bus Eireann services.

In a discussion with TDs and Senators on the stark financial position of the company, chairman designate Philip Gaffney said every aspect of Iarnród Éireann's services were currently under review.

Mr Gaffney said capital funding had been reduced by 75 per cent over the last five years and investment was needed in infrastructure to offer a full-time , two-hour service between Dublin and Cork, as well as increasing speeds on the Dublin to Belfast line.

While all CIE companies had faced cuts in subvention in recent years he said bus companies don’t have to pay for the roads, but Iarnród Éireann was required to pay for the upkeep of its rail infrastructure.

He said company had reduced its costs per kilometre by one third over the last five years, and instanced the fare from Drogheda to Dublin as being about one third of the comparable journey from Luton to London in England.

While special reduced fares as low as €9.99 had been successful, and passenger numbers were growing, the fact was that Iarnród Éireann was operating with a low subsidy international standards, and he warned “there is a real threat to services”.

While he said all options were being reviewed, “closure of lines is the absolute end option”.

A more likely scenario was that if the subsidy did not match costs, services would be reduced “in an integrated way” with Bus Éireann replacing some train services.

Mr Gaffney was supported by the chairwoman designate of CIE, the parent group of Bus Éireann, Dublin Bus and Iarnród Éireann.

Ms Gaffney told the politicians, members of the Oireachtas Committee on Transport that subvention to the group in recent years had dropped by 35 percent, which compared with a drop of 10 percent in health services, 9 percent in education and 16 percent between the Garda and Defence.