Bus and rail travellers will get a £3 million boost next year following yesterday's Cabinet order to CIE companies to round down all their fares following the introduction of the euro.
The Minister for Public Enterprise, Ms Mary O'Rourke, told Cabinet colleagues that State companies had to be seen to be offering "a good example".
The order to round down fares is expected to cost Dublin Bus £1.5m, Iarnr≤d ╔ireann £1 million and Bus ╔ireann several hundred thousand pounds.
Dublin Bus, in particular, had intended to cut the price of nine of its fares, and increase three to avoid chaos and delays among commuters from January 1st.
For example, some child fares would be cut from 51 cents to 50, while another costing 44 cents would rise to 45 cents. "The option of converting exactly isn't open to us. This would have cost us £120,000. Now, the Cabinet's decision will cost us £1.5 million. They have decided that we should be whiter than white," said Dublin Bus spokesman, Mr Christy Dorman. However, the Department of Public Enterprise quickly pointed out that the State's subsidy to CI╔ companies has gone up by 16 per cent this year to £183m.
Mr Barry Kenny, media and public relations manager of Iarnr≤d ╔ireann, said the rail company accepted the decision and would be implementing it. "Obviously it's of benefit to our customers," he said. However he said the move would cost the company an estimated £1 million in a full year. "We hope that will be taken on board by the Government," he said.
Bus ╔ireann's spokesman Mr Cyril McIntyre said the company had been informed some months ago by the Department of Public Enterprise that it was expected to round down its fares.
"The CI╔ group asked the Department to review that decision in view of the loss it will mean to the company but obviously it has decided to stick to its original guidelines," he said. "We just have to live with it," he added.
He said the decision would result in an annual loss to the company of "a couple of hundred thousand euros".
The new fares will not be the only factor to cost the CIE group this year. Traffic gridlock, which is set to worsen over Christmas, cost Bus ╔ireann and Bus ┴tha Cliath £40 million last year, its 2000 annual report said.
Despite this, the CI╔ Group recorded a surplus of £18.3 million last year as against £17.1 million in 1999. The State grant paid to CI╔ in 2000 was £160.7 million, an increase of £45.2 million on the previous year.
