CIÉ is to be allowed to raise its fares annually in line with inflation but reports of a 4 per cent increase next year are overestimated, a spokesman for the Minister for Transport, Mr Brennan,said last night.
Commenting on reports of an across the board increase for bus and rail fares yesterday, the Minister's press officer Mr Tom Rowley said "nothing has as yet been decided".
The "Minister's thinking" is that there should be annual increases in line with inflation but increases of the order of 9 per cent which was sought by the CIÉ group had been ruled out.
Last year was the first time in eight years that Dublin Bus, Bus Éireann and Iarnród Éireann were granted an increase. It was in the order of 9 per cent.
However a similar request for a similar increase next year is unlikely to get the required ministerial approval.
According to the spokesman price increases in future are likely to be pegged at the same level as inflation. He suggested this would result in a figure closer to 3 per cent next year.
The comments came after Opposition commentators condemned the fare increases. Ms Róisín Shortall of Labour said the Government should be reducing fares to encourage people to use public transport and she called on the Government to "make up its mind" on what was its public transport policy.
The Green Party spokesman, Mr Eamon Ryan, accused the Minister of being unwilling to properly fund public transport. While he maintained that "bus and rail fares will have increased by 13 per cent over less than 18 months if the 4 per cent increase goes ahead in January".
Meanwhile, a spokesman for the ATGWU branch at the centre of a strike threat at Iarnód Éireann, said industrial action was still avoidable.
Around 100 drivers belonging to the ATGWU are seeking negotiating rights with the company. Yesterday union official Mr Brendan Ogle spend the day in talks with other ATGWU members and their legal advisors.
A spokesman said a strike was avoidable if the company was prepared to enter talks with the union, SIPTU and the National Bus and Railworkers Union on a "round table basis". At issue is the issuing of new rosters which are due to come into effect on December 14th.
