[ThomasJ]

And reaction
http://www.independent.ie/national-n...g-1969542.html

Public transport hit with €27m cut in funding
By Paul Melia


Thursday December 10 2009

PUBLIC transport services are facing a €27m cut in funding to CIE -- which includes Iarnrod Eireann, Bus Eireann and Dublin Bus. Transport Minister Noel Dempsey last night said permission would not be given for fare increases to make up the shortfall, and admitted this would mean further cuts in services.

Payments in the public transport subvention programme -- used to fund buses and trains -- have been cut back to €276m for 2010, a drop of almost 9pc.

Passenger numbers have fallen by between 8pc-13pc over the past year, and 270 buses have been already taken off the road.

"This time last year we told CIE to expect a cut of 10pc. It will affect services, there's no doubt about that," Mr Dempsey said.

Labour transport spokesman Tommy Broughan said it was a "bad day" for public transport.

In all, €920m will be spent on public transport in 2010.

Another €1.72bn will be spent on roads, with €411m set aside for maintenance, which is a drop of 10pc.

The State will also pay €51m for roads projects delivered under public-private partnerships in 2010. This bill will rise to €90m in 2011.

Meanwhile, regional airports face a "bleak" future, Mr Dempsey admitted, saying "for some of them, yes, I would say that's true".

A reappraisal of the public service obligation (PSO) -- where the State part-funds the cost of internal flights to the regions -- was likely to see an end to the current funding arrangements.

Mr Dempsey said the PSO was subject to review in 2011 at EU level "and I would anticipate changes".

"Part of the problem is we have a regional airport in every county apart from Leitrim," he added.

Regional airports are to receive €23.2m in 2010, following a 32pc cut last year.

- Paul Melia

Irish Independent