[Article] Subsidies help CIÉ increase surplus by over 32%

Subsidies help CIÉ increase surplus by over 32%
From:ireland.com
Monday, 5th June, 2006

The State transport group, CIÉ, increased its surplus by 32.3 per cent to €25.8 million last year after a 5.8 per cent rise in the Government subvention to €283.4 million. The Government also gave €289 million to CIÉ for capital expenditure and €3.7 million in "revenue support grants".

CIÉ's 2005 annual report, to be published soon, will say that its improved financial performance was achieved in spite of competition from the Luas tramway and the curtailment of Dart services during the upgrade of that system.

But while the number of passenger journeys on the Iarnród Éireann system rose to 38 million from 34.6 million and Bus Éireann journeys rose to 92.6 million from 90.2 million, the number of Dublin Bus journeys fell back to 146 million from 149.9 million in 2004.

Traffic gridlock remains a problem, with Dublin Bus estimated to have lost revenues of €60 million due to congestion last year and Bus Éireann estimated to have lost €20 million. A net rise of €21 million in customer revenues was attributed to fare increases and higher service levels.

The suspension of many weekend Dart services resulted in an estimated loss of €3.4 million in revenues last year but the upgrades that caused them are now complete. Eight-carriage trains with capacity for 1,500 passengers are now in use at peak time.

The operating surplus in the rail company, Iarnród Éireann, rose to €15.4 million from €2.4 million in 2004. The net surplus was €7.5 million after the company incurred costs of €7.9 million for a voluntary severance and early retirement programme. This contrasts with a net deficit of €16.7 million in 2004.

Following investment of €1.4 billion in the rail system since 2000, the company says the introduction of new rolling stock and trains currently on order means it is on course to have the most modern fleet in Europe by 2008. A significant revamp of the track and signalling system is now complete.

Some 116 railcars have been introduced since 2004 and a new hourly service on the the Dublin-Cork line will be introduced this year with up to 67 new carriages in use on the route.

The CIÉ report will say that Dublin Bus achieved a net operating surplus of €2 million, around the same level as in 2004.

The company's revenues rose by €43.9 million to €181 million and its subvention rose to €64.9 million from about €62 million. Dublin Bus says the subvention amounts to 26 per cent of its operating costs, adding that "this is one of the lowest subsidy levels given to a European public bus company".

The annual report will say that Bus Éireann's net surplus fell to €3.5 million from €5.8 million, although revenues rose by €14.8 million to €241.3 million.

Gross revenues at the coach tour company CIÉ Tour International declined by 8 per cent to €51 million. This was "largely due to mid-year uncertainty", the report will say.

CIÉ's property unit realised €6 million from the sale of surplus property. This contrasts with the €24 million the group realised from its property portfolio in 2004, when it banked €22.5 million from the sale of a freight depot in Cabra. In addition, the property unit received €13.1 million in rental income.

CIÉ's advertising business - Commuter Advertising Network - made a net profit of €6.8 million from the sale of bus and rail advertising formats. The unit reported a net profit of €5.9 million in 2004.