26/06/2003
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CIE's transport companies have enjoyed a huge boost in bus and rail passenger numbers - but the improved performance has come at a high cost. Despite increased State grants and customer revenue, two of the three CIE companies, Irish Rail and Bus Eireann, had a combined deficit of almost €32m, the group's annual report showed yesterday. Only Dublin Bus showed a surplus but worsening gridlock in the capital and other cities across the country cost the two bus companies €52m last year. The CIE group of companies made "real and dramatic progress" in the past year, said the annual report. In Dublin, passenger numbers on Dublin Bus's peak services increased by more than a fifth since 1997. The introduction of quality bus corridors were a spectacular success and had boosted passenger numbers by 38pc on such routes. Weekly morning peak figures had risen from 138,500 to 191,000. There was also a sharp rise in rail commuter figures with the number of commuter rail users in the capital rising by 20pc from 20m in 1997 to 24m last year. Bus Eireann was carrying over 6,000 commuters into Dublin every morning - a 70pc increase in three years in spite of worsening traffic congestion. Commuter rail and bus numbers on key routes in Cork showed similar growth. Irish Rail achieved record passenger numbers. Inter-City passenger journeys rose to 11.3m with long-distance train carryings up by over 24pc. Customer revenue also rose by €31.4m with Bus Eireann showing the highest increase of €23.3m followed by Dublin Bus, €5.9m, Irish Rail, €1.7m and the holding company, €0.5m. But it wasn't all good news for the group. Irish Rail and Bus Eireann showed a combined deficit of €31.9m with Irish Rail announcing a €22.5m deficit and Bus Eireann, €9.4m. State grants for the provision of public services rose by €7.6m to €252.7m and payroll costs increased by €46m. Irish Rail got €155m in State grants while Dublin Bus got €56m and Bus Eireann received €21.87m. Only Dublin Bus showed a surplus - €3.4m while the holding company posted a €24.9m surplus. CIE chairman John Lynch also warned about serious losses in the freight service with Irish Rail losing €14m service last year. This level of loss could not be sustained, he said. The board had deferred a decision on a plan for corrective action at the request of Transport Minister Seamus Brennan, pending the outcome of the Government's strategic rail review.