Parliametary Question addressed to the Minister for Transport, Tourisim and Sport

1st October 2013 - Olivia Mitchell TD

To ask the Minister for Transport, Tourism and Sport the current financial position within the CIÉ transport companies; and if he will make a statement on the matter?

Reply:

Since 2008 , the financial performance of CIÉ has been severely affected by the economic recession which has resulted in a significant reduction in passenger numbers. CIÉ recorded total losses, before pension cost adjustments, in the five years 2008 to 2012 of over €153m. The current CIE business plan 2013-2017 provides for almost breakeven by 2015 and a return to profitability of the Group thereafter.

In July 2012 the Government approved an increase in the 2012 subvention to CIE by €36 million to €278 million to ensure that the companies could continue to operate PSO services for the rest of 2012. Given the pressure on the public finances there will be no additional funding from the Exchequer in 2013. The implementation of a credible business plan will therefore be essential to CIE’s financial recovery in the period ahead.

The Board of CIÉ are pursuing a range of measures to address the financial position, including cost reductions across the three operating companies. At the end of 2012 a significant voluntary severance programme was implemented in Irish Rail and the Group generated cash of €20 million by selling its interest in the ground lease in Spencer Dock. CIÉ also benefitted from the introduction of a fuel rebate in July and, in addition, the Group has benefitted from fare increases approved by the NTA. The Group has also negotiated improved bank facilities in relation to refinancing of the Group, which will ensure that the Group has sufficient funding into the future.

Parliametary Question addressed to the Minister for Transport, Tourisim and Sport

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