Bus and train fares are to rise by an average 5.5 per cent in January, following approval by the Minister for Public Enterprise of the first across-the-board increase since 1991.
The move will mean an extra 5p on all Dublin bus fares up to and including £1.65, while inter-city mainline rail fares will rise by between 4 and 6 per cent.
Ms O'Rourke called the increases "modest" and said they struck a fair balance between the interests of CIE, which had sought an average 11 per cent rise, and transport-users. General inflation had increased by 18 per cent since 1991, the Minister said, and by 10 per cent since 1994, when single standard fares last went up.
The increases, which take effect from January 1st, also include an extra 10p on the £2.25 outer suburban fares of Dublin Bus, and an extra 20p on the £3 and £3.50 fares.
Dublin suburban rail fares of up to £1.35 will rise by 5p, with an extra 10p on those of £1.60 and over. Cork suburban rail will cost an extra 5p, except for the £2.10 fare, which goes up by 10p. Bus Eireann's city and town services will increase by 5p, while the long-distance fares rise by an average 5.5 per cent.
Last July the CIE chairman, Mr Brian Joyce, said the company needed a fares increase "really desperately" to generate the profits for future investment. CIE's profits rose sharply last year, to a record £11.6 million, compared with £5.1 million in 1997. The group also carried record numbers of passengers, 307.6 million, in 1998.
Late last year Ms O'Rourke said she would respond positively to the application by Dublin Bus for a fares increase, following the agreement by unions and management for a restructuring of the company. She hoped Bus Eireann and Iarnrod Eireann would be able to build on the success at Dublin Bus and conclude negotiation of their own restructuring packages, which have since reached an advanced stage.
The Minister has also linked the issue of fare increases to the signing of public service contracts, under which the CIE companies undertake to provide a specified range of services for a fixed three-year subvention. Signing of a contract with Dublin Bus is understood to be imminent, while negotiations with the other companies are also well advanced.
