[Article] Bus fare increases on the way?

Heroditas

I didn't hear anything about this yesterday! :eek:


Apologies if it was already mentioned but I didn't see any mention of it here.


From yesterday's Indo online:

BUS commuters face the prospect of a 20pc fares hike by the end of the year.
Both Bus Eireann and Dublin Bus are expected to apply for the increased fares to the Department of Transport because of the ending of the annual fuel tax rebate.
The rebate was introduced over 50 years ago to incentivise public transport provision and amounts to 34.5 cent per litre, about one-third the cost of fuel bills.
Yesterday, Bus Eireann said it would be forced to look for the price increases or else cut services.
It is expected that the two bus providers will apply for the increases in early autumn, after which transport minister Noel Dempsey will rule on the matter.
Managing director of Dublin Bus Joe Maher told a Sunday newspaper it was likely Dublin Bus would aseek an increase in the annual company subsidy of €80m per annum.
He said the fuel rebate was worth €12m a year, while the spiralling price of oil would cost an additional €13m next year.
A spokesman for Bus Eireann said it could not sustain the level of fuel increases which have happened recently. "These are costs that are facing us now and in the future and, unless somebody does something somewhere in between, we are going to be forced into either cutting services or looking for price increases," he said.
The removal of the rebate also applies to private operators. The only ones exempt are Public Service Obligation (PSO) bus services, such as school bus providers.
Overall, it costs the government over €30m, some €10m of which goes to private operators.
A spokesman for the Department of Transport said any request for price increases or subvention rises by Bus Eireann or Dublin Bus will be considered in line with next year's budget estimates.
"Consideration was given to putting in place some form of workable replacement scheme to counteract the financial impact of the loss of the derogation while still respecting state aid and competition law. This was found not to be feasible," said a statement from the Department.
- Shane Hickey

Steve

I read somewhere that the private school bus operators contracted to Bus Eireann were also pulling out.

How they can justify a move like this when they are crying out for more people to use public transport beggars belief.

prendy

Dublin Bus is a State body right?

i dont see why the Govt cant waive the fuel tax to state companies if the savings are passed to the public. i mean it would encourage the use of public transport.

Heroditas

We allegedly have the Greens in coalition too. :rolleyes:

KC61

prendy wrote: »

Dublin Bus is a State body right?

i dont see why the Govt cant waive the fuel tax to state companies if the savings are passed to the public. i mean it would encourage the use of public transport.

This is due to the EU Directive ruling that it must be removed.

However, the government has not acted to counter this (as in Britain) with increased operational grants based on mileage.

paulm17781

KC61 wrote: »

However, the government has not acted to counter this (as in Britain) with increased operational grants based on mileage.

Of course not. Why do anything when they can give less money out and claim it's the result of an EU directive that they're powerless to overrule.