2026-06-18

114. Deputy Pa Daly asked the Minister for Transport if he will rule out fare increases in budget 2027; and if he will make a statement on the matter. [45499/26]

Tá ceist Uimh. 114 á thógáil ag an Teachta O'Hara ar son an Teachta Daly.

Safeguarding long-term financial sustainability while being responsive to passenger needs remains a central commitment under the programme for Government. Achieving this requires a careful balance between delivering high-quality reliable services and ensuring that the network is adequately resourced to meet growing demand. Passenger numbers have continued to rise in recent years, with a record-breaking 363.5 million journeys undertaken just last year. As the statutory body responsible for regulating fares across services operated under PSO contracts, the NTA is central to shaping a public transport system that is fair, efficient and accessible. Through its management of fare strategies, it helps to ensure that pricing structures support social inclusion and the modal shift while also underpinning the financial viability and resilience of the network. Public transport fares in Ireland remain comparatively low due to a range of targeted measures introduced in recent years. For context, Ireland's farebox recovery average stands at 38% when compared to a 44% European average. Including the young adult card, the 90-minute fare and free travel for children under nine years of age, such targeted initiatives have significantly improved affordability and accessibility. They also increase reliance on subsidy, making fare revenue a critical component of maintaining a financially sustainable PSO model. In line with international best practice, prioritising the reinvestment of the fare revenue is essential to support service improvements, expansion and system resilience. Maintaining a stable funding base is, therefore, critical to sustaining service levels and ensuring public transport continues to meet passenger needs over the long term. Regarding budget 2027, the PSO funding allocation will be subject to the annual budgetary and Estimates process. As is standard in all budgetary deliberations between Departments and State agencies, a comprehensive assessment of all service provision costs and requirements will be undertaken, with a strong focus on ensuring value, fairness and accessibility for all passengers.

I thank the Minister of State. The cost of fares is obviously a significant expense for people who rely on public transport. At a time when households right across the State are struggling with rising costs, rising rents and rising everything else, there is a need for the Government to be upfront with people as to whether commuters will face an increase in public transport fares. In the Minister of State's response, he has not given any clarity as to whether fares may increase. I want to raise the taxsaver scheme because this is one area where commuters try to save money on their fares. While many people have the opportunity to participate in that scheme, it is only available to commuters who are employed at companies that are taking part in the scheme. It has been raised with me that this requirement means that a whole cohort of people are being excluded from the scheme. I understand that the Department of Finance has a role in that also. Has the Department of Transport given any consideration to extending this scheme to all employers to make everybody eligible to benefit from it?

Everything will be considered in the budgetary deliberations for next year. As the Deputy knows, all deliberations between our Department and the various agencies under it are subject to a thorough assessment in terms of their service provision, cost and requirements. There is a strong commitment to and focus on ensuring that value, fairness and accessibility for all passengers is achieved. Looking at what we have done, we have made public transport accessible for people through the young adult card, the PSO uplift and the funding of cost-of-living measures. The point the Deputy makes as to how we can get more people to use public transport and to incentivise them is one on which we must reflect. I certainly have heard it from many people in terms of the taxsaver scheme. If we look at the whole national fares strategy, it is one we are always looking to examine, review and analyse. As the Deputy says, this is about getting people in that modal shift. He referred to other routes in his earlier contributions. I will certainly take the Deputy's point back to the Minister and the Department, but I cannot give any answer this morning because the budgetary process has not commenced yet.

It would be good if changes could be considered. A related issue I wish to raise is the significant difference that commuters in Galway are paying for rail fares compared to other parts of the State, particularly Dublin. I had a constituent in touch with me highlighting that rail passengers between Athenry and Galway city pay €5.10 each way for a 20-minute train journey. At the same time, a commuter travelling between Clonsilla to Connolly Station in Dublin, a journey of roughly 30 minutes, can travel for approximately €2.60 each way. Athenry to Galway is a commuter route. There is clearly an unfairness in passengers on those trains having to pay significantly more - double what a commuter in Dublin could expect to pay. At a time when the Government is trying to encourage and promote the use of public transport, why are commuters in Galway paying twice what commuters in Dublin could expect to pay for their rail fares, especially given that public transport is much more limited in the west? Will the Minister of State review this difference in fares and ensure that commuters in Galway are treated fairly when it comes to the cost of public transport?

I think the Deputy has raised this matter before. The important point I would make is that we are committed as a Government to maintaining a fare strategy that is fair and equitable. We are committed to helping to ensure that the pricing structure supports social inclusion and the modal shift, whether it is in Cork, Galway, Dublin or Offaly. It does not matter where. For us, our public transport provision is very important. If we look at the comparison to Europe, the farebox recovery average stands at 38% compared to the 44% European average. I will take the point the Deputy makes back to the Department. We are committed to improving the offerings for people. We have a very good model of fare strategy, and if there are improvements to be made, let us make those happen.