CIE is seeking an across-the-board 11 per cent increase in fares which it says is vital to ensure the company can generate the profits it needs for its own investment.
CIE chairman, Mr Brian Joyce, said the State transport group "really desperately" needs an increase, pointing out that none had been granted since 1991.
However, he welcomed the Government's proposal to earmark £2.08 billion (€2.64 billion) for public transport as part of the National Plan. "I am delighted that the Minister [Mrs O'Rourke] and the Cabinet have recognised the deficit in public transport in investment over many years. I am looking forward to a much better transport service over the next five years as a consequence of that investment."
Mr Joyce was speaking as CIE released its annual results for 1998 which confirmed a sharp rise in profits to a record £11.6 million (€14.73 million) from £5.1 million (€6.48 million) in 1997. The group also carried a record 307.6 million passengers.
CIE received a £107 million State subvention last year, a rise of £2.1 million on the previous year. CIE says it uses the monies to fund unprofitable services which the Government decrees it must provide.
Mr Joyce said the fares increase request was awaiting the Minister for Public Enterprise, Ms O'Rourke's, approval. "We are relying on the Minister to deliver it [the increase]," he said, adding "we believe it will happen in the near future."
Mr Joyce said the increase was already earmarked for investment programmes, on rail, bus and DART services. He said he hoped CIE would then be given permission to increase its fares in line with the Consumer Price Index (CPI) - but not above that - each year without recourse to the Minister.
A spokesman for Ms O'Rourke said last night that she was actively considering a fares increase, but repeated her position that any rise would be tied to public service contracts. Under the terms of these, CIE would provide generally unprofitable services, such as certain bus and rail routes, and would agree to maintain specific standards for a specific price. Failure to maintain the standards would result in CIE being fined.
These contracts have been mooted by CIE for several years. Mr Joyce said the company and the Department of Public Enterprise were "very close" to signing at least one such contract.
The group's results, published yesterday, show that two of the three CIE subsidiaries increased their profits last year. Only Dublin Bus showed a decrease in profits - £1.3 million (€1.65 million) compared to £1.5 million (€1.90 million) in 1997, although revenue grew by 2.5 per cent. The company said operating costs grew by 4 per cent, due to wage round payments and increases in materials and services because of more passenger traffic.
The company cautioned that to achieve "a top-quality bus service" in the Dublin region, much work needs to be done on traffic management priorities. It said that only two Quality Bus Corridors have been completed, out of 11 originally identified by Dublin Corporation five years ago. It warned it is "imperative" that developing these corridors be undertaken as a priority, "so that the city becomes more accessible to its citizens".
Iarnrod Eireann, which absorbs about 90 per cent of the annual subvention, showed a 150 per cent increase in profit last year, to £4.4 million (€5.59 million), compared to £1.8 million (€2.29 million) the previous year.
Bus Eireann's profits grew by 6 per cent, from £3.4 million (€4.32 million) in 1997 to £3.6 million (€4.57 million) last year. The company said that revenue from its Expressway and Stage Carriage services showed continued growth. Revenue on provincial city services showed a small increase.
The results also show that CIE invested £68 million in new track, trains and buses and new facilities and reduced borrowings by £3 million to £151 million.
