NEWS / IRELAND
Carbon Tax hits operators in Irish budget
More CIE cutbacks on the way doesn’t seem to be the case with
this measure,” he told CBW.
Ireland’s finance minister Mr. McConn said that the half
delivered the toughest budget in percent cut in the VAT rate would
the history of the state last week, offer some comfort to consumers
with pay cuts for public sector “though it is really just putting it
workers, cuts in social welfare back to where it was before”.
and a carbon tax adding 5 cents Looking to the future, Mr.
a litre to diesel prices. Cutbacks McConn told CBW that a decrease
in spending by all government in the Employers rate of PRSI
departments will force further contribution would have been the
measures at CIE companies most business friendly measure
Dublin Bus and Bus Éireann, that the government could have
who have been prohibited from introduced in the budget.
raising fares in 2010.
Announcing the budget, which CALLS FOR MARKET REFORM
left income tax rates largely AS CIE FACES FURTHER CUTS
unchanged, finance minister Unions have sharply criticised the
Brian Lenihan said that while David McConn, MD of Dualway, criticised the fuel price hike further 9% cut in funding to the
tough decisions had to be made CIE companies, promising “holy
to achieve savings of €4billion in transport services in the future. increase in petrol and diesel war” if pay cuts are forced on
2010, the worst was now over. ■ The capital provision for public fuel costs across the board. the semi-state bodies. Meanwhile
“Our plan is working. We have transport investment in 2010 is The rise has been dismissed as opposition Fine Gael transport
turned the corner,” he told The €625 million, €3 million lower “Greenwash” by Gerry Mullins, spokesman Fergus O’Dowd has
Dail. than in 2009. Chief Executive of the Coach called for the bus market to be
One big surprise in the ■ Priority is being given to the Tourism & Transport Council liberated in response to the CIE
transport element of the delivery of Metro North and the of Ireland, the body which cutbacks.
Budget was the retention of full DART Underground Programme. represents the operators. “The Budget saw a cut of nearly
funding for the Rural Transport Planning and design work will “If this was a true green 9% in CIE’s funding, which means
programme, which had been continue on the remaining inititive it would be trying more bus routes and services will
threatened with abolition Transport 21 projects with a view to modify behavior, not be cut. Yet Transport Minister
following the publication of the to the earliest possible delivery raise revenue, they would be Noel Dempsey refuses to allow
‘Bord Snip’ report earlier this as financial resources become encouraging people to move private sector operators to fill the
year. The service is expected to available. from private cars onto public gap left by State cutbacks,” Mr.
carry 1.5 million passengers in transport,” Mr. Mullins told CBW. O’Dowd stated.
remote rural areas during 2010. FUNDED PUBLIC TRANSPORT “But by imposing the tax across “Passengers will be left
CAPITAL PROGRAMMES IN 2010 all forms of transport they are standing on the footpath as a
PUBLIC TRANSPORT endash.cap ■ Railway Safety Programme not creating any benefit for bus result of this blinkered policy.
MAIN BUDGET CHANGES ■ Rail Ticketing Systems operators. It is no more than a These same passengers want
■ A rise of 5c/litre in diesel costs, ■ Removal of Rail Speed simple rise in the excise duty more buses, on more routes, and
as a result of the Carbon Tax. Restrictions rate, disguised as something more often. But the Government’s
■ A reduction of the top rate of ■ Rail Road Crossings Automation green,” he continued. public transport policy is failing
VAT from 21.5 to 21% ■ City Centre Rail Resignalling Pointing out that the rise with buses being mothballed,
■ The public transport ■ National Rail Resignalling comes less than a year after routes being scrapped and CIE
subvention provision payable to ■ Rail Rolling Stock the abolition of the Fuel Duty recording a massive deficit.
CIE in 2010 will be €276 million. ■ Quality Bus Corridor programme Rebate scheme for bus and coach “This year, Dublin Bus has
(a reduction of €27m [8.8%]). in Greater-Dublin Area (GDA) operators, Mr. Mullins told CBW already taken 120 buses off the
■ The government will not ■ Bus priority programme and that taken together, the two road. Bus Éireann has withdrawn
sanction any fare increase in the park and ride in regional cities moves amounted to an effective 150 vehicles. Fine Gael wants
three CIE companies – Dublin Bus, ■ Public transport accessibility 66% increase in the fuel price to the private sector to be able to
Bus Éireann, and Irish Rail. programme operators in a 12 month period. compete for routes alongside CIE,
■ Rural Transport Programme ■ Integrated ticketing Mr. Mullins comments were and to provide services where CIE
continued, with funding being ■ Dublin Bus Automatic Vehicle echoed by David McConn, is unable or unwilling.
maintained at €11 million “in Location System (AVLS) manager of the award-winning “The catastrophic
recognition of the important ■ Real Time Passenger Information Dualway fleet of coach, mismanagement of the economy
role it plays in combating rural sightseeing tour and city bus coupled with zero reform of our
isolation, particularly for older OPERATORS CRITICISE vehicles, and one of Dublin’s public transport services means
people”. CARBON TAX FUEL RISE largest independent operators. our bus network is crumbling.
■ Studies underway to see how Coach and bus operators have “The rise in the price of diesel Ireland can no longer afford the
RTP can be integrated with Bus criticised the blanket introduction is a major deterrent, they should sheltered monopolies of State
Éireann rural stage carriage of the Carbon Tax, the result be encouraging people to move bus companies. Widescale reform
services, health related and school of which is a 5 cents per litre onto public transport, but that needs to emerge from this crisis.”
12 CBW December 16, 2009
NewsIreland.indd 12 14/12/09 20:00:20
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