The Irish Government will not make further cuts to rail funding in 2015, Transport Minister Paschal Donohoe has announced.
The news that public funding for rail and bus services will be maintained at €210 million next year will be received relatively well by national rail operator Iarnród Éireann (Irish Rail) which has seen the government’s Public Service Obligation (PSO) payments fall by almost 40 per cent since 2008.
Irish Rail has been recording successive losses since the start of the financial crisis and earlier this year it announced a €16.4 million loss in 2013.
The operator is introducing a series of controversial pay cuts across its workforce in order to reduce operational costs. Following negotiations with the trade unions, the extent of the cuts has been scaled down and will only be in place now for the next two years.
In an interview with RailStaff earlier in the year, chief executive David Franks said that the pay deal was just one element of a package of efficiencies needed to resolve the company’s current financial issues.
In a statement, the minister said: “As our economy develops, it is essential that investment in our public transport system keeps pace. Ensuring that those who are returning to work are supported in their efforts to get there is key to enabling our future success.
“Targeted investment in our national, regional and local roads; the development of projects such as Luas Cross-City; and the maintenance of our rail network and upgrading of our bus fleet are all central to this.”
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